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APP

‘Structural reforms must for economic growth’

Published on: June 1, 2026 10:05 AM

South Asian Association for Regional Cooperation (SAARC) Chamber of Commerce and Industry former president Iftikhar Ali Malik has called for urgent structural reforms to address challenges limiting Pakistan’s long-term economic growth and prevent the economy from overheating. In a statement issued on Sunday, Malik said Pakistan’s economy had expanded to more than $452 billion, while per capita income had risen to $1,901. He noted that the large-scale manufacturing sector was showing signs of recovery and that the services sector remained the largest contributor to economic growth. However, he expressed concern over the performance of the agricultural sector, describing it as the backbone of the national economy and a major source of employment. He said the sector’s growth rate of 2.89 percent was well below its potential and insufficient to support broad-based economic development. Malik pointed out that despite an increase in per capita income in dollar terms, many citizens continued to struggle with rising living costs, stagnant wages, and reduced purchasing power. He stressed that without sustained reforms in productivity, education, energy, exports, and governance, periods of economic recovery would continue to be followed by recurring crises.

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