Export-Led Growth Is the Only Way Forward for Pakistan, Says PM Shehbaz

DAVOS/ISLAMABAD: PM Shehbaz Sharif on Wednesday emphasised that export-led growth is the only viable path forward for Pakistan, as the country works to stabilise its economy and unlock long-term development potential.

Addressing a breakfast event at the Pakistan Pavilion on the sidelines of the World Economic Forum (WEF) in Davos, the prime minister said Pakistan was “moving forward with a sense of achievement and a sense of purpose,” pointing to a decline in inflation and a reduction in the policy rate as signs of macroeconomic stabilisation.

However, he acknowledged that challenges remain, particularly in the export sector and social development indicators. “Our exports, collectively, do face different kinds of challenges,” PM Shehbaz said, adding that sustained, coordinated efforts were required to improve social outcomes. “But the way forward is very clear: Pakistan has to have export-led growth,” he asserted.

The premier highlighted a series of structural reforms undertaken by the government, including the digitalisation of revenue collection. He noted that Pakistan’s tax-to-GDP ratio has increased to 10.5 per cent, up from 9 per cent two years ago, calling it a significant achievement in strengthening fiscal discipline.

PM Shehbaz also pointed to growing momentum in the mines and minerals sector, saying Pakistan had entered the industry “in a big way” through agreements and memoranda of understanding with American and Chinese companies. He said the country possessed vast untapped natural resources in Gilgit-Baltistan, Azad Jammu and Kashmir, Khyber Pakhtunkhwa and Balochistan.

Highlighting progress in emerging sectors, the prime minister said Pakistan was advancing rapidly in cryptocurrency regulation, artificial intelligence and information technology. He noted that IT exports had reached $3 billion annually, supported by policy measures designed to facilitate the sector’s growth.

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On youth empowerment, PM Shehbaz said federal and provincial governments had launched multiple vocational training programmes, enabling young Pakistanis to secure productive employment in Gulf countries and other regions. He added that a skilled and trained workforce was key to sustaining export-led growth.

The prime minister also expressed optimism about improving ties with the United States, saying Pakistan hoped to expand cooperation in mines and minerals, counter-terrorism, IT and AI. “Pakistan is at a point where we are going to take off rapidly in agriculture, industry, mining, AI and IT,” he said.

Earlier, PM Shehbaz met IMF Managing Director Kristalina Georgieva, who acknowledged Pakistan’s reform efforts and stressed the importance of maintaining momentum to ensure long-term economic resilience.

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The prime minister is on a three-day visit to Davos (January 20–22) to lead a high-level delegation and engage global trade and investment partners, promoting Pakistan as a destination for sustainable and export-driven growth.