Addressing a special session of the federal cabinet to mark one year of assuming office, Prime Minister Shehbaz Sharif on Tuesday emphasized his administration’s commitment to eradicating terrorism to foster a conducive environment for foreign investment and economic growth.
Stressing the importance of national unity, the premier urged all political factions to collaborate in the national interest rather than engaging in counterproductive rivalries. Summarizing his government’s achievements in its first year, he referred to economic stabilization, attributing this success to the collective efforts of coalition partners.
Sharif also highlighted a notable reduction in inflation and key policy rates, asserting that the opposition had been unable to raise any substantial scandals against the government during this period, which was a “great achievement.”
Recalling the precarious economic situation when he assumed office in March 2024, the prime minister criticized the previous leadership of the Pakistan Tehreek-e-Insaf (PTI) for attempting to obstruct financial assistance from the International Monetary Fund (IMF) by discouraging the global lender from approving loans to Pakistan.
Counter-terrorism
Deputy Prime Minister Ishaq Dar, who also holds the portfolio of foreign minister, addressed the recent surge in terrorism nationwide, attributing it to the PTI-led government allowing the resettlement of hardcore terrorists in Pakistan. He expressed confidence that the Azm-e-Istehkam operation would eradicate terrorism from the country.
Dar also hoped for economic prosperity, stating that countries such as Saudi Arabia, the U.A.E., and Azerbaijan had committed over $20 billion in investments to bolster the economy.
Power and Finance
Finance Minister Muhammad Aurangzeb briefed the session on the state of the economy, noting a 71% increase in returns from the Pakistan Stock Exchange and the highest current account surplus in two decades. He mentioned ongoing plans for rightsizing 43 ministries and their 400 attached departments, along with the introduction of pension reforms and agricultural taxes.
He said the Federal Board of Revenue (FBR) had reported a 26% revenue surge, which he credited in part to the implementation of a faceless assessment system.
Power Minister Awais Ahmed Leghari discussed comprehensive reforms in his sector, claiming this had led to a Rs. 151 billion reduction in industrial cross-subsidy. He said the government’s efforts had seen the per unit price of electricity decrease to Rs. 4.96, benefiting both consumers and industries.
He noted the government had terminated agreements with five inefficient Independent Power Producers (IPPs) and revised deals with 14 others following an evaluation of 104 IPPs. This, he said, had culminated in savings of Rs. 1,333 billion. Additionally, he shared, the government initiated the solarization of tube-wells in Balochistan, converting 4,000 out of 27,000, thereby saving approximately Rs. 100 million in losses to the power sector.
The ultimate message of the special session, which was televised, was a renewed focus on strengthening the economy, combating terrorism, and implementing reforms across various sectors.