Pakistan PM urges unity, economic resilience in New Year message

Prime Minister of Pakistan Shehbaz Sharif addressing the federal cabinet (not in picture) in Islamabad on December 23, 2025. (Screengrab/PTV official-YouTube)
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Updated 01 January 2026
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Pakistan PM urges unity, economic resilience in New Year message

  • Sharif says Pakistan stabilized economy, countered security threats in 2025
  • The prime minister vows reform, unity and diplomacy as the country enters 2026

ISLAMABAD: Prime Minister Shehbaz Sharif urged national unity, economic resilience and a continued focus on reform in a New Year message on Wednesday, saying the country had weathered security and economic challenges in 2025 and must now build on its gains as it enters 2026.

Sharif’s statement comes as Pakistan seeks to consolidate macroeconomic stabilization and navigate a volatile regional and global environment. He framed the year ahead as one requiring cohesion, discipline and sustained reform, while reaffirming Islamabad’s commitment to diplomacy and multilateral engagement.

“Over the past year, we responded to the aggression of enemies and countered the menace of terrorism with matchless courage and bravery, both on the battlefield and in negotiation rooms,” the prime minister said in a post on social media platform X.

“We have also taken meaningful steps to strengthen economic fundamentals, improve governance, expand social protection, and lay the groundwork for long-term development,” he added. “Our efforts are guided by our collective resolve to build a stable, self-reliant, and prosperous Pakistan that delivers opportunity and dignity to every citizen.”

Sharif said Pakistan had begun to restore confidence through fiscal discipline, structural reforms and renewed momentum in investment, exports and energy security, crediting the public’s “hard work, patience, and sacrifices” for recent progress.

On foreign policy, he said the country would continue to prioritize dialogue and cooperation amid rising instability.

“At a time of global uncertainty and conflict, Pakistan will continue to advocate dialogue over confrontation, development over division, and cooperation over unilateralism,” he said.

“With unity, discipline, and hard work, we shall build a Pakistan that is economically strong, socially just, and resilient in the face of challenges,” Sharif added.


IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

Updated 10 January 2026
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IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

  • Fund backs sale of national airline as key step in divesting loss-making state firms
  • IMF has long urged Islamabad to reduce fiscal burden posed by state-owned entities

KARACHI: The International Monetary Fund (IMF) on Saturday welcomed Pakistan’s privatization efforts, describing the sale of the country’s national airline to a private consortium last month as a milestone that could help advance the divestment of loss-making state-owned enterprises (SOEs).

The comments follow the government’s sale of a 75 percent stake in Pakistan International Airlines (PIA) to a consortium led by the Arif Habib Group for Rs 135 billion ($486 million) after several rounds of bidding in a competitive process, marking Islamabad’s second attempt to privatize the carrier after a failed effort a year earlier.

Between the two privatization attempts, PIA resumed flight operations to several international destinations after aviation authorities in the European Union and Britain lifted restrictions nearly five years after the airline was grounded following a deadly Airbus A320 crash in Karachi in 2020 that killed 97 people.

“We welcome the authorities’ privatization efforts and the completion of the PIA privatization process, which was a commitment under the EFF,” Mahir Binici, the IMF’s resident representative in Pakistan, said in response to an Arab News query, referring to the $7 billion Extended Fund Facility.

“This privatization represents a milestone within the authorities’ reform agenda, aimed at decreasing governmental involvement in commercial sectors and attracting investments to promote economic growth in Pakistan,” he added.

The IMF has long urged Islamabad to reduce the fiscal burden posed by loss-making state firms, which have weighed public finances for years and required repeated government bailouts. Beyond PIA, the government has signaled plans to restructure or sell stakes in additional SOEs as part of broader reforms under the IMF program.

Privatization also remains politically sensitive in Pakistan, with critics warning of job losses and concerns over national assets, while supporters argue private sector management could improve efficiency and service delivery in chronically underperforming entities.

Pakistan’s Cabinet Committee on State-Owned Enterprises said on Friday that SOEs recorded a net loss of Rs 122.9 billion ($442 million) in the 2024–25 fiscal year, compared with a net loss of Rs 30.6 billion ($110 million) in the previous year.