page_title: Nawaz Sharif
section_title: Economic policy
hierarchical_section_title: Nawaz Sharif / Third term as prime minister (2013–2017) / Economic policy
caption_attribution_description: U.S. Secretary of State John Kerry addresses Afghanistan President Ashram Ghani and Pakistan Prime Minister Nawaz Sharif on January 21, 2016, at the Intercontinental Hotel in Davos, Switzerland, before a trilateral meeting between them and Vice President Joe Biden on the sidelines of the World Economic Forum [State Department Photo/Public Domain]
context_page_description: Mian Muhammad Nawaz Sharif is a Pakistani businessman and politician who served as the prime minister of Pakistan for three non-consecutive terms. Sharif is the longest-serving prime minister of Pakistan having served a total of more than 9 years.
  Born into the upper-middle class Sharif family in Lahore, Sharif is the son of Muhammad Sharif, the founder of Ittefaq and Sharif Group. He is the elder brother of Shehbaz Sharif, who also served as the chief minister of Punjab. According to the Election Commission of Pakistan, Sharif is the one of the wealthiest men in Pakistan, with an estimated net worth of at least 1.6 billion Pakistani rupees. Most of Sharif's wealth originates from his businesses in steel construction.
  Before entering politics in the 1970s, Sharif studied business at Government College and law at the University of Punjab. In 1981, Sharif was appointed by President Zia as the minister of finance for the province of Punjab. Backed by a loose coalition of conservatives, Sharif was elected as the Chief Minister of Punjab in 1985 and re-elected after the end of martial law in 1988.
context_section_description: The country's economy faced many challenges including energy shortages, hyperinflation, mild economic growth, high debt and large budget deficit. Shortly after taking power in 2013, Sharif received a US$6.6 billion loan from the International Monetary Fund (IMF) to avoid a balance-of-payments crisis. Lower oil prices, higher remittances and increased consumer spending pushed growth toward a seven-year high of 4.3 percent in FY2014–15.
  Asian Development Bank attributed gradual growth in economy to the continued low prices for oil and other commodities, the expected pick-up in growth in the advanced economies, and some alleviation of power shortages. However, the sovereign debt of Pakistan increased dramatically, with total debts and liabilities swelled to ₨22.5 trillion (or US$73 billion) by August 2016. Sharif's administration issued a five-year $500-million Eurobond in 2015 at 8.25% interest and in September 2016, it also raised $1 billion by floating Sukuk (Islamic bonds) at 5.5%.
  The Sharif administration negotiated free trade agreements (FTAs) to expand trade liberalisation, notably with Turkey, South Korea, Iran, and Thailand, and an expansion of the FTA with Malaysia.
  According to the Pakistan Institute of Legislative Development and Transparency (PILDAT), quality of governance had 'marginally improved' during the Sharif's first year in power within an overall score of 44%. It scored highest in disaster-preparedness, merit-based recruitment, and foreign policy management, while it received the lowest scores on poverty alleviation and transparency.
  On 4 July 2013, the IMF and Pakistan reached a provisional agreement on a US$5.3 billion bailout package to bolster Pakistan's flagging economy and its perilously low foreign exchange reserves, that was contrary to an election promise not to take any more loans. On 4 September, IMF approved another $6.7 billion loan package over a three-year period. IMF demanded Pakistan conduct economic reforms, including privatising 31 state-owned companies.
  Business confidence in Pakistan reached a three-year high in May 2014 backed by increasing foreign reserves which crossed US$15 billion by mid-2014. In May 2014, IMF stated that inflation had dropped to 13% (compared to 25% in 2008), foreign reserves were in a better position and that the current account deficit had come down to 3% of GDP. Standard & Poor's and Moody's Corporation changed Pakistan's long-term rating to 'stable outlook'. The World Bank stated on 9 April 2014 that Pakistan's economy was at a turning point, with projected GDP growth approaching 4%, driven by manufacturing and service sectors, better energy availability, and early revival of investor confidence.
  In FY2015, industrial growth slowed due to power shortages, as Sharif's administration failed to make adequate reforms in energy, taxation, and public sector enterprises. On 3 May, The Economist gave Sharif's administration partial credit for the economy's new stability, having upheld its agreements with the IMF. Standard & Poor revised Pakistan's credit rating from 'stable' to 'positive', noting the government's efforts towards fiscal consolidation, improvement in external financing conditions, and stronger capital inflows.
  During a trip to Pakistan on 10 February 2016, World Bank Group's president Jim Yong Kim applauded the economic policies of Sharif's government. He claimed that Pakistan's economic outlook had become more stable. On 19 March, Sharif approved tax incentives in an attempt to attract new automotive manufacturing plants to the country. In November 2016, the government announced that Renault was expected to start assembling cars in Pakistan by 2018.
  On 8 April 2016, following lobbying by international development groups, the government changed its methodology for measuring poverty. The poverty line was moved from ₨2,350 to ₨3,030 per adult per month, which increased the poverty ratio from 9.3% to 29.5%.  A PILDAT survey claimed that the quality of governance had improved, though it was still weak for transparency. Fred Hochberg, head of the Expor
caption: Sharif at a trilateral meeting with Joe Biden during the World Economic Forum in Switzerland.
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