As Prime Minister Shehbaz Sharif’s administration completes its first year in power, Pakistan stands at a pivotal moment in its history. The past twelve months have been characterized by a blend of economic stabilization efforts, political challenges, social initiatives, and governance reforms that have collectively shaped the nation’s trajectory. This comprehensive review delves into the multifaceted performance of both the federal and provincial governments, highlighting achievements, challenges, and the path forward. Upon assuming office, the government faced daunting economic challenges, including soaring inflation, a depreciating currency, and dwindling foreign reserves. In response, a $7 billion Extended Fund Facility was secured from the International Monetary Fund to stabilize the economy. This intervention played a crucial role in averting an immediate financial crisis and set the stage for structural reforms aimed at long-term recovery. The administration implemented stringent fiscal policies and targeted monetary interventions to curb inflation, which had surged to 38% before their tenure. These measures yielded significant results, with inflation rates declining to 1.5% by February 2025, marking the lowest level in nearly a decade. This reduction alleviated pressure on households and restored purchasing power, contributing to overall economic stability. The Pakistani rupee had experienced a sharp depreciation, crossing 300 against the US dollar, exacerbating economic uncertainties. Through a combination of strict currency regulation measures and increased remittance inflows, the rupee stabilized, settling around 278-282 per dollar. Additionally, foreign exchange reserves were bolstered, covering essential imports and enhancing investor confidence. Reflecting renewed investor confidence, Pakistan’s stock market witnessed a remarkable surge. The KSE-100 index, which had been hovering around 41,453 points at the end of June 2023, crossed the 100,000 mark and currently stands at approximately 112,000 points. This unprecedented growth underscores the positive market sentiment and the effectiveness of the government’s economic policies. Recognizing the imperative of fiscal consolidation, the government introduced comprehensive tax reforms aimed at broadening the tax base and enhancing revenue collection. The Federal Board of Revenue implemented measures to improve tax compliance and reduce evasion. Despite these efforts, challenges persist, including structural inefficiencies and the need for a more equitable taxation system. The four provincial governments collectively accounted for approximately 36% of total public expenditure in 2024-25, with a combined outlay of Rs 10,456 billion, equivalent to 8.5% of the projected GDP. This significant allocation underscores the critical role of provinces in public service delivery and development initiatives. Recognizing the importance of sustainability, the government launched initiatives aimed at environmental conservation and climate resilience The political environment remained dynamic, with the government navigating complex challenges to uphold democratic processes and ensure effective governance. Efforts were made to strengthen institutions, promote transparency, and enhance public service delivery. However, issues such as bureaucratic inefficiencies and political polarization continued to pose obstacles to seamless governance. The government engaged in extensive diplomatic efforts to mend relations with key international partners, securing trade and investment commitments from Gulf states, China, and the United States. Despite these engagements, concerns over human rights violations and restrictions on press freedom created friction with Western nations, impacting Pakistan’s international reputation. The administration prioritized social welfare programs to uplift marginalized communities and promote inclusive development. The expansion of the Benazir Income Support Programme provided financial assistance to millions of underprivileged families, aiming to alleviate poverty and improve living standards. The Youth Empowerment Scheme was launched to create employment opportunities and foster entrepreneurship among the youth, addressing unemployment and harnessing demographic dividends. Efforts were made to standardize curricula across provinces in collaboration with provincial governments, aiming to improve literacy rates and educational outcomes. Significant investments were directed towards enhancing infrastructure to support economic growth and improve quality of life. The Lahore Metro system was expanded to improve urban mobility and reduce traffic congestion. Major road networks were developed to facilitate trade and connectivity between regions. In Sindh, particularly Karachi, initiatives were undertaken to enhance water supply systems, addressing longstanding shortages. The government also focused on energy sector reforms, investing in renewable energy projects and tackling circular debt issues that had plagued the power sector for years. Punjab’s agriculture sector received focused attention, with reforms aimed at boosting productivity and ensuring food security. Modern irrigation systems were implemented to address water scarcity and improve irrigation efficiency. Subsidies were provided for fertilizers and seeds, and farm mechanization programs were introduced to enhance agricultural output. The Kisan Card scheme was expanded to facilitate access to credit and modern equipment for small-scale farmers. The wheat procurement process was streamlined, ensuring that farmers received fair prices for their produce. However, challenges such as middlemen exploitation, delays in subsidy disbursement, and increasing climate-related disruptions continued to impact the sector. Sindh made strides in improving health services with the expansion of the Sindh Institute of Urology and Transplantation and the launch of new healthcare facilities. The provincial government also focused on improving flood rehabilitation efforts, although complaints about mismanagement and corruption in relief distribution hampered the effectiveness of these initiatives. Karachi’s transport system remained underdeveloped, with delays in mass transit projects further frustrating the public. In Khyber Pakhtunkhwa, despite facing security threats, the provincial government continued its work on police reforms and counter-terrorism strategies. The Sehat Card program remained a major success, providing free healthcare to thousands. However, financial constraints and limited federal support created hurdles in implementing large-scale development projects. Balochistan, Pakistan’s most resource-rich yet underdeveloped province, remained mired in socio-political challenges. The provincial government focused on mineral extraction and energy projects but failed to translate these into direct benefits for the local population. Gwadar’s development saw renewed attention, with China investing in port expansion and industrial zones, but local resentment over the lack of employment opportunities persisted. The law-and-order situation remained fragile, with insurgent attacks increasing in frequency. The government’s inability to address the grievances of the Baloch population contributed to ongoing tensions. The administration faced complex security challenges, including a rise in militant attacks, particularly in Khyber Pakhtunkhwa and Balochistan, necessitating enhanced counter-terrorism strategies. The closure of the Torkham border crossing with Afghanistan disrupted trade and movement, highlighting the need for diplomatic engagement. Collaborating with international intelligence agencies, the government led operations that resulted in the detention of key terrorist figures, thereby strengthening global security partnerships. Concerns over human rights and press freedom remained a contentious issue throughout the year. Allegations of suppressing opposition voices and curbing freedom of expression raised alarms among international human rights organizations. Reports of harassment and arrests of journalists contributed to a decline in press freedom rankings, drawing criticism from media watchdogs. The government attempted to balance security concerns with media independence but faced growing dissent from civil society groups advocating for greater transparency and freedom of expression. Recognizing the importance of sustainability, the government launched initiatives aimed at environmental conservation and climate resilience. Investments in clean energy projects were made to reduce carbon emissions and reliance on fossil fuels. Afforestation programs were implemented on a large scale to combat deforestation and mitigate climate change impacts. However, industrial pollution and unregulated urban expansion continued to pose environmental challenges that required urgent attention. As the government enters its second year, the challenges remain immense. Economic reforms need long-term structural adjustments to ensure sustainable growth. Political stability remains elusive, governance inefficiencies persist, and the public’s trust in the system continues to erode. Addressing these deep-rooted issues requires more than just rhetoric; it demands decisive action, transparent governance, and a commitment to democratic principles. The coming year will not only determine the fate of this administration but also set the course for Pakistan’s future, making it imperative for both federal and provincial governments to shift from damage control to deliver meaningful progress. The government must ensure that economic stability translates into improved living standards for the masses and that democratic institutions are strengthened rather than weakened. The next phase will test the resilience and commitment of the leadership to drive the nation toward sustainable growth, social justice, and political harmony. The writer is a financial expert and can be reached at jawadsaleem.1982@ gmail.com. He tweets @JawadSaleem1982