Pakistan PM Shahbaz Sharif hints at more rate cuts
Premier emphasizes prudent policies during speech at Pakistan Stock Exchange
Prime Minister Shahbaz Sharif has emphasized the need for prudent economic policies to avoid potential pitfalls, despite room for further interest rate cuts.
Speaking at the Pakistan Stock Exchange (PSX) on Wednesday, Sharif highlighted the reduction of interest rates from a peak of 22% to 13% over the past six months.
“I wish the interest rates are reduced by 800 basis points, but caution and prudent policies are essential to maintain economic stability,” the prime minister said.
He acknowledged the challenges faced by industries under high tax regimes and interest rates and called for tangible solutions to foster economic growth.
The PM underscored the importance of avoiding boom-and-bust cycles and sustaining growth to improve economic indicators.
He pointed out that revenue collection over the past six months showed a delta of PKR 400 billion, with the tax-to-GDP ratio surpassing the IMF target of 10.6%, reaching 10.8%.
Sharif also invited business leaders to visit Islamabad with concrete proposals to attract fresh investment and enhance the economic cycle.
Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb also addressed the occasion, highlighting the urgent need to develop the capital market.
Aurangzeb noted the increase in investor numbers from 300,000 to 365,000 but emphasized the need for further market development. He called for streamlined taxation measures before the Federal Budget to ensure certainty over corporate tax laws.
Dar stressed the importance of tapping into Pakistan's mineral resources, valued at trillions of dollars. He recalled the past success of Euro Bond floatation worth $500 million, which saw seven times more subscription when the stock market valuation was $100 billion, now nearly halved.
Dar urged collective efforts to increase the capital market size through bond issuance and other financial products.
PM Sharif arrived in Karachi on a day-long visit, where he was expected to hold meetings with the Sindh chief minister and the business community. Upon his arrival at Karachi’s Faisal Air Base, Sindh Governor Kamran Tessori and Chief Minister Murad Ali Shah welcomed him.
During his visit, the premier will tour the South Asia Pakistan Terminal at Karachi Port Trust, in addition to inaugurating the Federal Board of Revenue (FBR)’s Faceless Customs Assessment System there, which aims to bring transparency to customs clearance, according to the report.
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