Daily Times

Pakistan’s economy is rewriting its story. From turbulent times to promising horizons, the country is on a path that mixes struggle with opportunity. With a GDP of roughly $350 billion, Pakistan is navigating choppy waters with remarkable resilience. Yes, the hurdles are there. From inflation surges to reliance on international bailouts, the journey has been tough. But now, the winds of change are blowing. Strategic policies, untapped resources, and sheer determination are lighting up a new economic narrative.

Remember the mid-2023 inflation spike? It hit a staggering 40 percent. That kind of inflation hurts everyone. But by October 2024, the story shifted. Inflation had dropped to just 7.2 percent. The State Bank of Pakistan stepped up, slashing interest rates by 700 basis points over recent months. This included a bold 250 basis points cut in November 2024 alone. What does this mean? Lower rates spark business growth, create jobs, and bring stability to prices. It’s a domino effect that the economy desperately needs.

Economic growth has been inching forward. It’s not flashy, but it’s progress. The World Bank predicts Pakistan’s GDP will grow by 1.7 percent this fiscal year. By 2025, it could hit 2.4 percent. These aren’t dream numbers, but they show resilience. Behind this growth are reforms focused on creating opportunities, improving governance, and ensuring that businesses have room to breathe.

Sustainability isn’t just a buzzword; it’s a necessity.

Tax collection is a big part of the government’s strategy. The target is ambitious-a 40 percent jump in revenues, reaching PKR 13 trillion ($44 billion). To hit this mark, reforms are key. Broader tax bases and tighter controls on evasion are top priorities. Every rupee collected is another step away from borrowing. Pakistan has been too reliant on external loans for too long. Fixing this reliance starts with better fiscal management. The IMF isn’t an easy organisation to impress. But in September 2024, Pakistan secured a $7 billion bailout. That’s a big deal. It shows trust in Pakistan’s reforms. The IMF gave credit where it was due – taxation changes, energy sector reforms, and privatising loss-making enterprises. These are tough decisions, but they are the foundation of self-reliance.

Pakistan’s external sector is showing some muscle. Exports are diversifying. The focus is shifting to IT, agriculture, and textiles. These sectors have huge potential for bringing in foreign exchange. Overseas Pakistanis are doing their part too. Their remittances are a lifeline, steadying the external account. Energy is the backbone of any economy. Pakistan’s energy sector has long been a problem, but the government is tackling it head-on.

Circular debt – the financial mess in power distribution – is being addressed. Reforms aim to make the system efficient and sustainable. Renewable energy is also gaining momentum. Solar, wind, and hydropower projects are expanding. Not only do they cut costs, but they’re also environmentally friendly. Pakistan’s location is a blessing. Sitting at the crossroads of South Asia, Central Asia, and the Middle East, it’s a natural trade hub.

The China-Pakistan Economic Corridor (CPEC) is a game-changer. It’s not just about roads and ports. It’s about opening doors for investment and growth. Pakistan’s biggest asset? Its people. The country has a young, vibrant population eager to contribute. The government is investing in skill development and education, particularly in tech and e-commerce. By tapping into this talent, Pakistan can build industries that lead the region.

Sustainability isn’t just a buzzword; it’s a necessity. Pakistan is making strides here too. From tree plantations to renewable energy, the focus is on building a green economy. Sustainable agriculture is another area of innovation. These efforts are about securing the future while boosting the economy. Challenges aren’t over. They won’t disappear overnight. But the signs are clear. Pakistan is stabilising its economy with bold reforms and smart policies.

Lower inflation, stronger exports, and better fiscal management tell a story of hope. With international backing and domestic resilience, Pakistan is paving a path to self-reliance. This isn’t just about numbers. It’s about a nation rising to its potential. Governance, innovation, and collaboration are turning challenges into opportunities.

Pakistan is on the move. The destination? A future where resilience leads to prosperity.

The writer, a chartered accountant and certified business analyst, is serving as a CEO for Model Bazaars.