Our future is promising, country poised for economic take-off: PM Sharif at Davos

ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif on Wednesday declared that the country is poised for an economic "take-off," telling global leaders at the World Economic Forum that the country has transitioned from the brink of crisis to a "success story" during his sideline speech at Davos, Switzerland.

Speaking at the forum, PM Sharif highlighted a dramatic cooling of inflation, which has dropped from a peak of 30 percent to between 5 and 12 percent, alongside a reduction in the policy rate from 22.5 percent to 10.5 percent. 

“But the way forward is very clear: Pakistan has to have an export-led growth,” he added.

“We have brought a fundamental change in our revenue collection system, and it is not being completely digitized,” he said.

These indicators, he argued, show that the South Asian nation is moving forward with a "sense of achievement and a sense of purpose".

IMF 'Role Model' 
The prime minister noted that the International Monetary Fund (IMF) now views Pakistan’s adherence to its "stringent" program as a "role model" for other developing nations. 

To curb economic "bleeding," the government has shuttered several state-owned entities, including the Public Works Department (PWD) and utility stores, saving billions of rupees despite pushback from "vested interests," he added.

"Unless and until we stop this bleeding of our economy through these measures... our economy will not be on sound footing," Sharif said, emphasizing that privatization remains a cornerstone of his agenda.

He cited the "completely transparent" sale of Pakistan International Airlines (PIA), broadcast live to ensure authenticity, as the hallmark of this new approach, which will soon extend to airports and the power sector.

A key driver of this stability, according to PM Sharif, is the "complete harmony" between Pakistan’s political and military hierarchies.

He described this teamwork as essential for alleviating poverty and managing the country’s "mounting debts."

On the international stage, Sharif touted "strong economic connections" with China and revitalized relations with the United States, particularly in mining, counterterrorism, and technology.

“With China, we have strong economic connections. We have built relations with the United States now."

“In the field of mines and minerals, there is a great hope that we will cooperate with each other in big way and in counterterrorism, IT, and AI.”

He noted that Pakistan is moving at "lightning speed" to exploit "infinite natural resources" in its northern and western regions through agreements with both American and Chinese firms.

Youth Bulge and the AI Race

Addressing Pakistan’s population of 240 million, the prime minister characterized the "youth bulge" as a "great opportunity." 

Through federal vocational training and international certification, the government is preparing its youth for "productive employment" in the Gulf States and the global IT sector, the prime minister added.

According to him, Pakistan's official IT exports have already reached $3 billion annually, with a focus on expanding into AI and crypto.