Prime Minister Shehbaz Sharif said on Saturday that he would have been “defamed” if the country had defaulted in his tenure.

“If the country had defaulted while I was in office, it would have reflected poorly on me. The fear of default kept me awake at night, worrying about what would be inscribed on my grave—that this person did nothing,” he said while addressing the ‘Youm-e-Tameer-o-Taraqqi’ in Islamabad.

The event was held on a day when the opposition Pakistan Tehreek-e-Insaf observed “Black Day” to mark the first anniversary of last year’s elections, which were overshadowed by disputes over inconsistencies in the results.

Jailed former prime minister Imran Khan’s party slammed the government and called for unity to combat terrorism in the country.

The agreement with the International Monetary Fund was “crucial” in preventing the country from defaulting, the premier said and added that the government negotiated a $7 billion three-year programme with the IMF last September.

He reiterated that the government’s role was to formulate policies, not to conduct business. He noted that salaried individuals contributed Rs300 billion in taxes. He claimed that the government measures have brought inflation rates to their lowest levels.

While reflecting on the completion of one year in office, PM Shehbaz highlighted the government’s “strict adherence to austerity policies” and mentioned that smuggling from Afghanistan has been curtailed, resulting in the export of $211 million worth of sugar. He pointed out that without such efforts valuable revenue would have fallen into the hands of smugglers.

PM Shehbaz praised the efforts of the Pakistan Army and law enforcement agencies in combating smuggling activities across the country. He assured that the government was “dedicated” to facilitating investors and committed to making Pakistan a great nation on the global stage.

In 2023, he said the IMF programme faced “significant challenges” and led to difficulties for the common man due to rising inflation. He highlighted that with the support of the Islamic Development Bank, the IMF programme was made possible.

The prime minister noted that government measures have brought inflation rates down to their lowest levels. “We have made tough decisions, and now we must move forward. By January 2025, we aim to reduce the inflation rate from 40% to 2.4%, which will also lead to a decrease in the policy rate,” he stated.

About the government’s privatisation policy, the prime minister mentioned that the country was moving towards large-scale privatisation as there was no role for the government in business activities.

He further stressed that without eradicating terrorism, the country cannot achieve its goals of development and prosperity. PM Shehbaz called for peace, stability, unity, prosperity, and economic growth, emphasising the need for collaboration among all segments of society to achieve such objectives.

“We will soar again, and for sustainable development, we must work together and formulate policies with the consultation of the business community,” he said.

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In his address, Planning and Development Minister Ahsan Iqbal mentioned that discussions about the country defaulting were prevalent in April 2022. He credited the prime minister’s leadership and efforts for saving the nation from default, stating, “We inherited a struggling economy.”

The federal minister acknowledged the challenges of making “tough decisions,” saying that they navigated through a difficult phase and brought the country to a better state. “We sacrificed our political interests to save the state,” he said and noted that government initiatives have led to an increase in foreign investment. But he pointed out that the lack of political stability and continuity in policies had hindered progress. “We will make the ‘Udaan Pakistan’ project successful,” he said.