Deputy PM Dar Advocates for Pakistan Economic Reset
Islamabad recently hosted a crucial discussion on Pakistan’s economic future. Senator Muhammad Ishaq Dar, Deputy Prime Minister and Minister for Foreign Affairs, led the Pakistan Policy Dialogue. This significant event, titled “Correcting Course: Pakistan’s Economic Reset,” gathered prominent figures. They discussed the vital need for economic revival, focusing on realism, rigorous reform, and strong collaboration.
Deputy Prime Minister Dar stressed the importance of strengthening the economy’s core foundations. “Resetting and correcting course means bolstering the economy itself,” he explained. Consequently, this strengthening requires responsible governance, consistent policies, and institutions. These institutions must operate with continuity, extending beyond political cycles. Furthermore, he advocated for modern, technology-enabled governance. This approach aims to reform public service delivery and ensure clear, measurable policy outcomes.
Boosting Investor Confidence through Policy Stability
Deputy Prime Minister Dar’s speech highlighted a vital connection: policy continuity and investor confidence. He affirmed that a stable, predictable policy environment is crucial. This environment attracts investment and promotes sustainable economic growth. Additionally, Dar showcased the government’s proactive diplomatic efforts. “All diplomatic endeavors aim to help businesses increase exports and build economic partnerships,” he stated. This reflects a national drive to use international relations for economic prosperity.
The Pakistan Policy Dialogue truly demonstrates the nation’s dedication to economic self-assessment and future planning. The Policy Research and Advisory Council (PRAC) organized the event. Collaborators included the CORPORATE PAKISTAN GROUP (CPG) and Nutshell Group (Strategic Partner). Founding Partners were the Ministry of Commerce (MoC) and the Trade Development Authority of Pakistan (TDAP). This dialogue serves as a recurring platform for evidence-based policy discussions. Financial support came from Bank Alfalah (Platinum Partner) and BankIslami (Gold Partner), emphasizing private sector involvement.
Diverse Voices on Pakistan’s Economic Reset Path
The “Resetting Pakistan’s Economic Direction” inaugural session brought together diverse, prominent stakeholders. They offered various insights into the economy’s challenges and opportunities. Notable speakers included:
- Prof. Ahsan Iqbal, Federal Minister for Planning, Development and Reforms
- Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue
- Senator Dr. Musadik Malik, Federal Minister for Climate Change and Environmental Coordination
- Muhammad Ali, Adviser to the Prime Minister on Privatisation
- Dr. Ishrat Husain, N.I., H.I., author, economist, former Federal Minister and former Governor, State Bank of Pakistan
- Muhammad Younus Dagha, Chairman, PRAC
- Muhammad Azfar Ahsan, Pakistan’s former Minister for Investment and Chairman, CPG
Professor Iqbal highlighted the importance of planning, productivity, and export competitiveness. He advocated balancing short-term stability with long-term development. He also noted Pakistan’s lag in global development indicators since 1947. This, he suggested, demands a “future-forward approach” instead of divisive political narratives. Senator Aurangzeb, furthermore, outlined the government’s focus on macroeconomic stability. He stressed addressing rapid population growth and climate risks to reach a USD 3 trillion economy. He also underscored the need to formalize new sectors like crypto and blockchain, fostering an ecosystem for youth and freelancers.
Tackling Structural Weaknesses for a Future-Ready Pakistan
Discussions thoroughly explored structural weaknesses and the necessity for transformative change. Senator Dr. Malik advocated for equitable resource distribution, especially for women and new graduates. He firmly stated, “Until you democratize capital and empower new entrants, nothing will change.” Muhammad Ali, on the other hand, emphasized the core of privatization. He urged the government to transfer areas better managed by private enterprise. Key challenges include stretched public resources, informal economic activity, idle capital, and insufficient inclusion.
Dr. Husain urged a paradigm shift towards service exports. He observed that technology drives global service growth, yet Pakistan remains too focused on goods. Therefore, he stressed concentrating on human resources and service exports for sustainable growth. Muhammad Younus Dagha highlighted Pakistan’s move from default risk to macroeconomic stability, marked by falling inflation and rising foreign exchange reserves. He questioned the drivers of this turnaround and the nation’s readiness for future disruptions, like AI. Sustainable growth, he noted, depends on robust human capital, AI-ready skills, productive cities, effective local governments, and a coherent policy framework. Finally, Muhammad Azfar Ahsan concluded that a meaningful Pakistan economic reset demands strong collaboration between the state and private sector. This requires evidence-based policy and a long-term vision, correcting Pakistan’s growth through structural reforms and human capital investment.
Advancing Pakistan: Digital Transformation and Green Growth
The dialogue also included focused policy discussions in post-inaugural sessions. The “Bridging the Digital Divide” panel examined digital infrastructure, financial inclusion, and technology adoption. Aamir Ibrahim, CEO of Jazz, championed a cashless economy and widespread Rast QR code implementation, stressing practical execution. Mujeeb Zahur, Managing Director Pakistan at S&P Global Pakistan, explained how capital and private markets evaluate countries using standardized benchmarks. Digital infrastructure and government digitization are central to boosting investor confidence. Saquib Ahmad, Global Chief Growth Officer at Systems Limited, concluded by emphasizing the crucial role of supporting digitization alongside government initiatives.
Furthermore, the session “Green Growth Pathways for a Climate-Vulnerable Pakistan” concentrated on financing, policy alignment, and private-sector involvement. Nadia Rahman, Member of the Planning Commission, urged mobilizing private capital for decarbonization. She suggested innovative instruments like Green Panda Bonds and carbon finance. Dr. Samuel Rizk, Resident Representative of UNDP Pakistan, called for coordinated, nationally led climate responses. Maheen Rahman, CEO of InfraZamin Pakistan, highlighted severe concerns about water and agriculture due due to climate change. Ayla Majid, Founder and CEO of Planetive, pointed out the need for innovative investment tools, including tokenization and digital asset frameworks. These tools, she suggested, could democratize investment and mobilize capital effectively.
Revitalizing Competitiveness and Ensuring Delivery
The session “Restoring Competitiveness: Fixing the Macroeconomic Framework” provided vital insights into policy reforms. Khurram Schehzad, Adviser to the Finance Minister, outlined the government’s plan to open the economy. This involves tariff and customs reforms over five years, aiming to boost efficiency and attract investment. He noted a key shift: from enforcement-led policies to those focused on finance and revenue. Huma Fakhar, Founder of MAS Capital and MAP Group, highlighted Pakistan’s dual economy. One sector is traditional and struggling, while another, vibrant startup and SME sector, performs exceptionally.
The closing session, “From Dialogue to Delivery: Advancing Pakistan’s Growth Agenda,” featured Mohammad Ali Tabba, CEO of Lucky Cement. He shared essential private-sector viewpoints. Tabba cited significant privatizations, like PIA, and local companies acquiring multinationals as proof of Pakistan’s business acumen. To achieve sustainable growth, he stressed addressing structural bottlenecks in energy, water, and exports. The goal is 5–6% annual growth, which will create jobs and fortify economic resilience.
Forging a Collaborative Economic Future for Pakistan
Muhammad Younus Dagha concluded the dialogue, emphasizing human resource development and multi-stakeholder cooperation. The Pakistan Policy Dialogue achieved a strong consensus on strengthening partnerships. These partnerships involve the state, policymakers, business leaders, financial institutions, and development partners. Participants collectively agreed that future dialogues would further promote evidence-based policymaking and boost private-sector engagement. They would also provide vital support for Pakistan’s ongoing economic reset. This collective determination highlights a national commitment to building a stable, growth-focused, and confident economic future for Pakistan.
