Shehbaz Govt’s First Challenge: Fixing Economy

Shazia Mehboob

Islamabad: The change in government has shifted attention towards Pakistan’s economic challenges, with the new administration facing immediate pressure to stabilise the economy, restore investor confidence and provide relief to citizens struggling with rising costs.

Prime Minister Shehbaz Sharif has prioritised economic recovery, including efforts to strengthen the stock market and improve the value of the Pakistani rupee. A stable currency and controlled inflation are expected to provide relief to households affected by prolonged economic pressures.

Observers believe the government’s immediate challenge will be addressing deep-rooted issues including mounting domestic and external debt, declining foreign exchange reserves, fiscal deficits, inflationary pressures and weak foreign investment.

Economic experts have stressed that sustainable growth will require a coordinated strategy involving the government, private sector and business community. They have called for policies that encourage investment, improve productivity and create a more favourable environment for businesses.

One of the key areas requiring attention is the taxation system. The business community has long raised concerns over high tax rates, urging the government to reduce the burden on existing taxpayers while expanding the tax base to increase revenue collection.

The upcoming federal budget is expected to play a crucial role in shaping the country’s economic direction. Industry representatives have suggested that the finance ministry should consult chambers of commerce, industrial groups and other stakeholders before finalising economic policies.

Analysts say the government must focus not only on short-term financial stability but also on building long-term economic resilience through investment, industrial growth and support for cultural and social sectors.

With multiple economic challenges ahead, the success of the new administration will largely depend on its ability to restore confidence, implement reforms and put Pakistan on a sustainable growth path.