PM says economy stabilised, pledges stronger growth in new budget

• Premier Shehbaz claims inflation down from 38pc to single digits, policy rate cut to 11pc

• Says third budget will build on IMF-aligned reforms and stability gains, lauding 240m citizens for resilience through economic hardship

• Acknowledges provincial cooperation and coalition partners on budget process, reaffirming commitment to relief, jobs and improved living standards for citizens

 ISLAMABAD: Prime Minister Shehbaz Sharif on Friday said Pakistan’s economy had achieved stability despite multiple challenges and expressed confidence that the federal government’s third budget would place the country on a stronger and faster growth trajectory.

Addressing a special meeting of the federal cabinet convened to approve the budget, the prime minister said the government had successfully navigated difficult economic conditions and laid the groundwork for sustainable development.

Prime Minister Muhammad Shehbaz Sharif signing Annual Budget 2026-27 documents after its approval by the Federal Cabinet meeting at Parliament House Islamabad on 12 June 2026. pic.twitter.com/4RtQP7J4ff

— Prime Minister's Office (@PakPMO) June 12, 2026

He paid tribute to the people of Pakistan for enduring inflation and economic hardship over the past two years, saying the patience of the country’s 240 million citizens had played a crucial role in stabilising the economy.

The prime minister said the first two budgets of the current government were framed in line with national requirements and commitments under the International Monetary Fund (IMF) programme, which required difficult fiscal adjustments, including additional taxation, to stabilise an economy facing prolonged uncertainty.

“We are fully aware of the difficulties faced by ordinary citizens. However, through consistent efforts over the last two years, inflation has come down from 38 per cent to single digits, while the policy rate has been reduced from 22.5 per cent to 11 per cent,” he said.

He noted that regional and global developments, including tensions in the Gulf, had created additional challenges, but Pakistan had remained on a path of economic stability. He said key indicators were improving and expressed optimism that the new budget would further strengthen growth and investment.

وزیراعظم محمد شہباز شریف نے آج پارلیمنٹ ہاؤس میں منعقدہ وفاقی کابینہ کے خصوصی اجلاس سے گفتگو کرتے ہوئے کہا کہ تمام چیلنجز کا مقابلہ کرنے کےباوجود معیشت آج مستحکم ہے، موجودہ حکومت کے تیسرے بجٹ سے معیشت کا پہیہ تیزی سے چلنا شروع ہو جائے گا، عوام نے جس صبر و تحمل کا مظاہرہ کیا اور… pic.twitter.com/2EoIImo2rr

— Prime Minister's Office (@PakPMO) June 12, 2026

Earlier, the prime minister informed the cabinet that he had attended the funeral prayers of military personnel martyred in a recent helicopter crash, including two Christian brothers, saying the tragedy had left the entire nation grief-stricken.

“These sacrifices will not go in vain. Terrorism will ultimately be eradicated from Pakistan,” he said.

Highlighting future priorities, PM Shehbaz stressed expanding investment in renewable energy sources such as solar, wind and battery storage, alongside accelerating work on water reservoirs and dams to strengthen long-term energy and water security.

He said the budget process involved extensive consultations with provinces and thanked them for their cooperation, saying discussions on fiscal targets reflected national unity and collective responsibility.

The prime minister particularly acknowledged the support of Punjab Chief Minister Maryam Nawaz and appreciated former prime minister Nawaz Sharif’s role in strengthening coordination between the federal and Punjab governments.

He also thanked President Asif Ali Zardari, Pakistan People’s Party Chairman Bilawal Bhutto Zardari, and the chief ministers of Balochistan and Khyber Pakhtunkhwa for their cooperation on fiscal matters.

He said the provinces had shown generosity and national commitment in discussions on the federation’s financial requirements, describing it as an example of national cohesion.

PM Shehbaz commended the federal economic team for its work in negotiations with the IMF and said he had personally spoken with the IMF Managing Director, who appreciated Pakistan’s economic performance and reform efforts.

Expressing confidence in the country’s future, he said government policies would lead to prosperity and improved living standards.

Briefing the cabinet on his recent visit to China, he said discussions focused on implementing the second phase of the China-Pakistan Economic Corridor (CPEC), with agreement on prioritising four key areas of cooperation.

The prime minister also thanked coalition partners, including the Pakistan Peoples Party, Balochistan Awami Party, National Party and Muttahida Qaumi Movement-Pakistan, for their continued support.

 Budget aimed at relief to public, reduction in tax burden: PM

In a separate statement, PM Shehbaz Sharif said the government had presented a budget focused on relief and public welfare, reducing the burden on the salaried class while promoting exports, industry, agriculture, investment and overall economic growth.

He said, “I am immensely grateful to Allah Almighty, by whose grace and the prayers of the nation we have achieved economic stability, and through whom we have provided relief to the people in the budget.”

He thanked citizens for their patience during difficult times, saying they had played a vital role in stabilising the economy.

“We had promised that after achieving stability, its fruits would be delivered to the common man,” he added. “Alhamdulillah, the time of prosperity has begun.”

وزیرِ اعظم محمد شہباز شریف نے پارلیمنٹ ہاؤس میں مالی سال 2026-27 کے بجٹ کی وفاقی کابینہ سے منظوری کے بعد بجٹ دستاویز پر دستخط کر دیئے. pic.twitter.com/vNyNvHXzX5

— Prime Minister's Office (@PakPMO) June 12, 2026

He said the budget’s core objective was to ensure the benefits of economic stability reached all segments of society.

He thanked Deputy Prime Minister Ishaq Dar, Field Marshal Syed Asim Munir, Finance Minister Muhammad Aurangzeb, the entire economic team, provincial chief ministers and relevant institutions for their contributions.

He said initiatives ranging from the “Apna Ghar” programme to tax relief, youth employment opportunities, and support for business activity reflected the government’s commitment to public welfare.

“God willing, this journey of development will continue, and we will take every possible step for the welfare of the people,” he added.