Prime Minister Shehbaz Sharif has welcomed the State Bank of Pakistan’s decision to cut its policy rate by 2%, calling it a positive step for the country’s economy. He expressed optimism that lower interest rates would boost investor confidence and increase investments in Pakistan.
“The reduction in the policy rate is a welcome step for our economy. It will boost investor confidence and lead to more investments,” Mr Sharif said, adding that the recent decline in inflation had enabled this adjustment and that he hoped that inflation would continue to fall. decline in the coming months. The key rate now stands at 17.5%.
Speaking at a cabinet meeting on Thursday, the prime minister praised the efforts of Finance Minister Muhammad Aurangzeb and other key institutions, saying: “Efforts to revive the economy are commendable and the reduction in rates of interest will benefit all sectors.
Sharif also spoke about ongoing discussions with the International Monetary Fund (IMF), noting that “we have made all possible efforts and discussions on the next program are progressing well. Once the program is settled, we will take steps to strengthen growth.”
He further highlighted the need for significant reforms in the power sector and in the Federal Board of Revenue (FBR), stating that Ahsan Langrial had been given the task of overseeing the reforms in the FBR.
On foreign relations, the Prime Minister acknowledged the support of Pakistan’s allies during negotiations with the IMF. “Our friendly nations have once again stood by us as brothers, reiterating their historic support for Pakistan.”
Sharif also stressed the importance of reducing dependence on foreign loans. “We are a nuclear power and constantly asking for loans undermines our importance. The government is working hard on this issue.”
Addressing international affairs, the Prime Minister condemned Israeli aggression in Gaza, describing it as “one of the darkest chapters in human history.” He criticized the international community for inaction, saying: “The UN, the Security Council and international courts have been ignored by Israel, and yet world powers remain silent.”
He also highlighted the recent killing of six UN volunteers in Gaza and said: “If this had happened anywhere else, there would have been an outcry.” Today, 17 more Muslims were martyred in Gaza. We condemn Israeli brutality, but this issue has gone far. beyond all condemnation – the global conscience must act. »