ISLAMABAD: Prime Minister Shehbaz Sharif on Friday said that Pakistan’s economic outlook had improved, citing encouraging growth in gross domestic product (GDP) during the first quarter of the current fiscal year and asserting that the government had pulled the country back from the brink of default through difficult but necessary decisions.
Chairing a meeting of the federal cabinet at the Prime Minister’s House, the prime minister said the July–September GDP performance reflected the initial results of economic stabilisation measures adopted by the government after assuming office. He maintained that restoring macroeconomic stability had been a key priority amid severe fiscal and external pressures inherited by the administration.
Mr Sharif said that shortly after taking charge, the government resolved to pursue structural reforms, including the privatisation of loss-making state-owned enterprises. In this context, he described the privatisation of Pakistan International Airlines (PIA) as a major reform milestone.
“The privatisation of Pakistan International Airline is an extremely important step in our broader economic reform agenda,” the prime minister said, adding that the process was conducted in a transparent manner. He expressed satisfaction over the successful privatisation of 75 per cent shares of the national carrier, terming it a significant move toward reducing the financial burden on the public exchequer.
The prime minister also spoke about Pakistan’s external relations, saying his recent engagements with regional partners had strengthened diplomatic and economic ties. He described his meetings with United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan as productive, noting that they contributed to enhanced bilateral cooperation and mutual consultation.
Referring to his recent telephone conversation with Saudi Crown Prince and Prime Minister Mohammed bin Salman, Mr Sharif said both sides expressed satisfaction over the pace of economic and strategic cooperation between Pakistan and Saudi Arabia. He added that discussions were also held on further expanding bilateral relations in various sectors.
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At the start of the meeting, the prime minister congratulated members of the federal cabinet on the New Year and extended his best wishes.
During the session, the cabinet endorsed decisions taken at meetings of the Cabinet Committee for Legislative Cases (CCLC) held on December 30 and December 3, 2025. These included confirmation of action related to the Islamabad Capital Territory Local Government (Amendment) Ordinance, 2025.
“The privatisation of Pakistan International Airline (PIA) is an extremely important milestone in this regard,” the prime minister said, adding that the move was part of the government’s broader vision for economic reforms.https://t.co/IeadMp2gka
— Dawn.com (@dawn_com) January 3, 2026
The cabinet also approved decisions taken at the Economic Coordination Committee (ECC) meeting held on August 26, 2025. Among these was the approval of relief measures for electricity consumers of distribution companies in relation to the Off-Grid (Captive Power Plant) Levy, along with the formulation of a strategy to implement the relief.
In addition, the cabinet approved the issuance of a Presidential Ordinance to amend the Off-Grid (Captive Power Plants) Levy Act, 2025. The amendment would allow the sale of gas to off-grid captive power plants by third parties, following recommendations from the Petroleum Division.
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