Respected President Rawalpindi Chamber of Commerce & Industry, Mr. Saqib Rafiq

Excellencies, Ladies and Gentlemen,

Assalam-o-Alaikum and Good Morning,

I am honored to address you today on a topic of paramount importance to our nation's future: “Economic Dialogue: A Way Forward for Pakistan.” In our increasingly interconnected world, the economy has become the cornerstone of all our endeavors.

As the Deputy Prime Minister and Foreign Minister, it is my privilege to highlight the efforts and initiatives our government, under the leadership of Prime Minister Mian Muhammad Shehbaz Sharif, has undertaken.

Our economy forms the centrepiece of all our initiatives, driving our diplomatic efforts, shaping our international relationships, and fostering sustainable development. Every policy, every decision, and every action is geared towards creating a robust economic framework that can propel Pakistan towards progress and prosperity.

In our previous stint, when Prime Minister Shehbaz Sharif's government took office in April 2022, Pakistan was confronted with significant economic challenges. The global economy was still grappling with severe impacts of the COVID-19 pandemic, which had disrupted supply chains, reduced economic activity, and increased unemployment.

Additionally, the Ukraine war had led to a surge in global energy prices, placing immense pressure on Pakistan's energy sector and exacerbating the already high inflation rates. These skyrocketing energy costs, combined with escalating food prices, severely impacted the purchasing power of Pakistani citizens.

The country also faced substantial fiscal deficits and mounting debt, further complicating the economic landscape. The convergence of these factors required immediate and decisive action to stabilize the economy and mitigate the adverse effects on the population.

Our government undertook a series of robust measures to revive the economy and stabilize the financial landscape. These initiatives included negotiating a critical agreement with the International Monetary Fund (IMF) to secure much-needed financial support, implementing stringent fiscal policies to reduce the budget deficit, and introducing reforms to improve tax collection and broaden the tax base.

Additionally, the government focused on enhancing energy sector efficiency, reducing circular debt, and promoting renewable energy projects to ensure a sustainable energy supply.

These decisive actions, coupled with efforts to improve the ease of doing business and attract foreign investment, have laid the groundwork for economic recovery and growth, setting the stage for a brighter future for Pakistan.

The government made investment and economic recovery a top priority, as demonstrated by the creation of the Special Investment Facilitation Council (SIFC) in June 20, 2023. The SIFC aims to streamline and expedite the decision-making process for business and investment projects.

The SIFC operates as a ‘Single Window’ for multi-domain cooperation with countries worldwide, aiming to facilitate investment and create an enabling policy environment. By integrating resources from various governmental levels and sectors, the SIFC ensures a harmonized approach to investment promotion and facilitation.

This proactive and coordinated effort underscores our commitment to creating a conducive environment for both local and foreign investments, ultimately driving Pakistan's economic recovery and growth.

As a result of the tough decisions and comprehensive economic reforms we have undertaken, Pakistan's economy is beginning to show positive signs of recovery.

According to the latest Ipsos Pakistan Consumer Confidence Index survey, we have seen a slight yet notable uptick in consumer confidence, reflecting a growing optimism among our citizens about the future. Moreover, 30% of Pakistanis now expect their local economic situation to improve over the next six months, and 40% anticipate a better personal financial situation in the same period.

This stability, observed since the third quarter of 2023, underlines the effectiveness of our stabilization measures. These figures, though modest, demonstrate that our efforts are steering the economy in the right direction, laying a solid foundation for future growth and prosperity.

Ladies and gentlemen,

As the Deputy Prime Minister and Foreign Minister, I have undertaken to promote Pakistan's economic interests on the global stage by placing a premium on Economic Diplomacy. This involves leveraging our comparative advantages and utilizing various economic tools, such as trade agreements and financial pacts, to build strong economic ties with other countries.

For Pakistan, a country rich in human resources, economic diplomacy also encompasses labor arbitrage, providing significant opportunities for our skilled workforce abroad.

Under my stewardship, the Ministry of Foreign Affairs has been actively reorienting its role to promote Pakistan's economic interests. We have taken substantial steps to ensure that our missions abroad are at the forefront of this effort, driving trade promotion, attracting foreign investment, boosting tourism, and enhancing the skills of our workforce.

Firstly, our missions have been directed to prioritize export promotion, especially in sectors where Pakistan has a competitive edge. We have also emphasized the importance of promoting services sectors like health, telecommunications, banking, and finance.

Our ambassadors are making personal outreach efforts to advocate Pakistan’s business interests, ensuring that our products and services receive the visibility and support they deserve in international markets.

To facilitate business delegations, our missions are providing comprehensive support, including arranging business-to-business interactions, offering mission premises for meetings, and organizing events to introduce Pakistani exporters to local businesses. We are also reactivating Pakistan Business Councils abroad, transforming them into performance-driven bodies that actively promote trade and investment.

Moreover, our outreach efforts extend to engaging with chambers of commerce, trade bodies, and businesses within Pakistan. This engagement has been instrumental in addressing long-standing issues faced by businesses, such as consular service delays.

We have introduced special time slots for business sector attestations and opened a new camp office in Gujrat to facilitate these services further.

In collaboration with the Ministry of Information Technology and Telecommunications, we are supporting various IT-related initiatives, including the establishment of an Advisory Committee, facilitating high-level visits, and promoting digital and semiconductor initiatives. These efforts are critical in positioning Pakistan as a competitive player in the global digital economy.

Despite the positive signs, we must recognize that Pakistan's economy still faces significant challenges. High inflation, unemployment, and poverty remain top concerns for our citizens.

The latest Ipsos survey indicates that economic problems continue to dominate the worries of Pakistanis, with inflation and unemployment being the most pressing issues. These challenges underscore the need for a concerted effort from all stakeholders to achieve a sustainable economic revival.

Ladies and gentlemen,

The government can and will continue to create a favorable environment for growth through reforms and consistent policies. However, the true engine of rapid economic growth must be our private sector – Pakistani businesses.

It is imperative for our business community to step forward, take ownership of the economic revival, and invest in our country's future. Long-term and sustained profits should be the goal, moving beyond the reliance on short-term government concessions.

Our private sector should emulate their global counterparts by assuming some measure of risk, particularly in manufacturing and value-added sectors, to drive substantial and lasting economic growth.

Moreover, the willingness of local investors to invest in Pakistan is crucial for attracting foreign investment. No economy can progress, and foreign investors will remain apprehensive, until local investors display confidence and commitment by investing in their own country.

While the government will continue to seek strategic government-to-government investments, especially through initiatives like the Special Investment Facilitation Council (SIFC), commercial foreign investment will only follow if our private sector leads the way.

It is my earnest hope that our businesses will rise to this challenge, contributing significantly to the economic prosperity of Pakistan and setting a robust example for foreign investors.

In conclusion, the path forward for Pakistan lies in a robust economic dialogue that brings together government, businesses, and the private sector. By fostering strong economic relationships and addressing the needs of our business community, we can pave the way for a prosperous future.

The Ministry of Foreign Affairs remains committed to this mission, working tirelessly to promote Pakistan’s economic interests and ensure that our nation thrives in the global economy.

Thank you.