PM for export-led economic growth

He said various industrial sectors had been provided subsidies since the 1960s, but despite receiving substantial support, they failed to make a significant contribution to exports. Instead, commodity prices increased, while quality and productivity were affected and import substitution could not be achieved.

"This is a bitter reality that must be corrected before we can move forward," he said. He urged exporters to play an effective role in promoting export-led, sustainable economic growth. PM Sharif said that during his recent visits to the US and the UK, he held special meetings with prominent bankers, who appreciated the government's reform efforts.

He said the IMF chief had remarked that it was a "new Pakistan", to which he replied that it was not a new Pakistan but a "new team". "We have to demonstrate export-based growth in our economy," he said, adding that the budget provided Rs2.3 trillion in tax breaks.

He mentioned that Pakistan had achieved major success with the issuance of Eurobonds. Foreign exchange reserves held by the State Bank of Pakistan had reached $21.4 billion, while remittances were showing significant growth. The government had also provided tax incentives to promote industrial development.

The prime minister said the PSX had made substantial progress, but further reforms were needed while keeping other markets in the region in view. Speaking on the occasion, Federal Minister for Finance Muhammad Aurangzeb said economic growth would reach 4% in 2027, compared with 3.7% last year.

He said the government could quickly raise growth to 6% through a consumption-led growth model, but such a short-term increase would create balance-of-payments pressures and push the economy back into a boom-and-bust cycle. Instead, he said, the government was pursuing an export-led, sustainable economic growth model, under which the economy was expected to achieve 4% growth during the current year.

Aurangzeb said the number of tax filers had increased by 45% to more than 5.7 million this year, compared with 3.9 million last year. The government was working on reforms and tax-related issues to increase activity in the capital market.

He said Rs60 billion had been disbursed under the Prime Minister's Apna Ghar Programme, while the banking industry had approved Rs340 billion under the initiative. "The real issue is no longer the issuance of loans," he said.

"The banking industry has taken the first step; now the supply side has to take the next step. "