ISLAMABAD: Prime Minister Shehbaz Sharif has called for political stability to attract foreign investment and pull the South Asian country out of present economic difficulties, Pakistani state media reported on Monday.
The statement comes amid an economic slowdown in Pakistan that pushed the country to the brink of a default, with inflation hitting a record high of 37.97 percent in May, currency depreciating fast and forex reserves barely enough to cover a month of imports.
However, the PM Sharif-led government successfully negotiated a crucial $3 billion bailout with the International Monetary Fund (IMF) late last month and averted the default fears, but the country’s economic woes are far from over.
Speaking to businessmen in Faisalabad city, the prime minister stressed that politics should be put aside in the matters of economy, the state-run Radio Pakistan broadcaster reported.
“The agreement with the International Monetary Fund only gave breathing space to the economy and the way out of economic difficulties is reforms in different sectors,” PM Sharif was quoted as saying in the report.
“All stakeholders, including politicians, businessmen and bureaucracy should be on board for carrying out structural and deep-rooted reforms.”
The statement comes weeks before the government is due to complete its tenure and a caretaker setup would take over the country and hold nationwide polls in October. However, uncertainty has clouded the national political scene since the ouster of former premier Imran Khan in a no-trust vote last year, which unleashed a series of allegations against the Sharif-led ruling coalition.
In a bid to attract investment, Pakistan last month set up the Special Investment Facilitation Council (SIFC), with Sharif saying the body reflected a “unified approach” to steer the country out of the economic crisis.
In a move to boost foreign and domestic investments, the government this month approved the Pakistan Investment Policy (PIP) 2023 to attract investors by adopting best practices and providing an optimal investment climate.
The new policy, developed in consultation with the World Bank and the International Finance Corporation, is expected to attract up to $25 billion in investment over the next few years.
The government had enacted the law for government-to-government agreements to attract foreign investment and now countries like China, Saudi Arabia, Korea and Qatar were willing to invest in Pakistan, Sharif noted.
“These countries only want political stability so that they can set up businesses, earn profits and in return bring benefits to people of Pakistan,” he added.
