Pakistan must realign its economic priorities toward high-tech and innovation-driven services if it aims to achieve sustainable and inclusive growth, leading economist Prof Amir Sufi said on Monday. He stressed that relying on low-tech industries limits the country’s long-term development potential.
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Prof Sufi was speaking at the 25th Zahid Hussain Memorial Lecture in Karachi, where he highlighted the growing global shift toward high-value services such as information technology and professional scientific fields. He said Pakistan’s economic transformation depends on embracing sectors powered by knowledge, innovation, and intangible assets.
“High-tech is driving economic change,” Prof Sufi remarked, noting that countries investing in innovation-led services are better positioned to join the ranks of wealthier nations. He urged policymakers to move away from traditional manufacturing-focused models toward diversified, technology-based growth.
The economist emphasised the importance of small and medium-sized enterprises, calling them central to economic transformation. He argued that SMEs require improved access to finance, particularly lending models that recognise intangible assets like research, data, and intellectual property.
Prof Sufi criticised existing financial structures that favour government borrowing over private-sector investment. He noted that banks often prefer risk-free lending to the government, limiting funding for high-growth industries that lack physical collateral.
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Calling for financial reform, he advocated cash flow-based lending and greater use of venture capital and private equity. He said specialised financial intermediaries are needed to support businesses driven by innovation rather than traditional assets.
He also praised Pakistan’s expanding freelance economy, where professionals export digital services worldwide. However, he said stronger training frameworks and better access to finance are essential to fully unlock this sector’s potential.
State Bank of Pakistan Deputy Governor Saleemullah, also addressing the event, acknowledged recent macroeconomic stability but warned deeper reforms were necessary. He stressed that directing capital toward SMEs, youth, and women is vital for inclusive growth.
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The lecture concluded with a discussion on adapting financial systems to a high-tech future. Participants agreed that innovation-led services could redefine Pakistan’s economic trajectory if supported by timely policy reforms.