Economic Outlook 2025: Pakistan Vision for Growth and Prosperity

Pakistan launched a comprehensive five-year economic strategy aiming to achieve an annual GDP growth of 6% and double its exports to $60 billion by 2029. The ambitious plan, titled “Uraan Pakistan” (Rising Pakistan), was unveiled by Prime Minister Shehbaz Sharif during a high-profile ceremony in Islamabad attended by federal ministers and provincial representatives.  

The National Economic Transformation Plan (NETP) outlines a vision for long-term sustainable growth, emphasizing industrial expansion, export-led development, and self-reliance. 

Prime Minister’s Address

In his address, Prime Minister Sharif highlighted his government’s efforts to stabilize the economy over the past nine months amidst a severe financial crisis.  

“This plan is not just about numbers; it is a vision for a prosperous and self-reliant Pakistan,” he remarked. “We are focusing on growing our industry, commerce, information technology, trade, and investment. The aim is to find new markets for our products worldwide and pave the way for a stronger economy.”  

He also assured participants that the current IMF bailout package of $7 billion, secured in September 2024, would be Pakistan’s last. “From now on, we will stand on our own feet and break free from the cycle of economic dependence,” Sharif declared.  

Key Targets of NETP 

Finance Minister Muhammad Aurangzeb provided a detailed briefing on the plan, which focuses on transforming various sectors of the economy. The primary targets include:  

– GDP Growth: 6% annually  
– Per Capita Income: $2,405 by 2029  
– Exports: Increase to $63 billion annually
– Inflation: Reduction to 6.2%  
– Foreign Direct Investment (FDI): $29 billion  
– Tax-to-GDP Ratio: 13.5%  
– Job Creation: 1.5 million annually  
– Debt-to-GDP Ratio: 60%  

It also emphasized the importance of privatization and private sector engagement, mentioning plans to privatize Pakistan International Airlines (PIA) and outsource operations at Islamabad International Airport.  

Also See: Pakistan Launches Five-Year National Economic Plan for Sustainable Growth

Achievements in 2024

Significant economic milestones achieved in 2024, including a dramatic improvement in the Pakistan Stock Exchange (PSX). “PSX has become the second-best performing market globally, with an 84.34% upsurge in returns and 75,000 new trading accounts opened last year,” he noted.  

Inflation has also dropped sharply, from 29.7% in December 2023 to just 4.1% by the end of 2024, reflecting effective economic and financial management.  

Focus on Export-Led Growth 

The plan prioritizes export-led growth to stabilize the economy and avoid boom-and-bust cycles. In 2024, Pakistan’s textile exports surged to $15.97 billion, driven by stable exchange rates and controlled raw material prices.  

“The focus is to provide cheap power to industries by promoting green energy and solar projects,” Aurangzeb explained. “This will not only lower production costs but also enhance competitiveness in global markets.”  

Infrastructure and Energy Developments

Pakistan is making significant strides in infrastructure and energy. The Chashma Nuclear Power Plant Unit-5, currently under construction, is expected to generate 40,000 jobs. Meanwhile, international flight operations at Gwadar Airport will begin on January 10, 2025, with flights to Muscat, followed by potential routes to China, Oman, and the UAE.  

The government also secured $200 million in funding from the Asian Development Bank (ADB) to upgrade power sector infrastructure in LESCO, MEPCO, and SEPCO.  

Mining and Resource Development

The Reko Diq project saw Pakistan selling a 15% stake to Saudi Arabia for $540 million. Additional investments of $150 million are expected to further develop Balochistan’s mining sector.  

Social Initiatives

Under the Benazir Income Support Program (BISP), quarterly installments for underprivileged families will increase from Rs. 10,500 to Rs. 13,500 from January 2025. The initiative aims to empower individuals through skill development, fostering self-reliance.  

Modernizing Pakistan Railways

Pakistan Railways will induct 80 new high-capacity freight wagons and 32 AC passenger coaches in 2025, improving freight and passenger services while boosting revenue.  

The Road Ahead

The government’s multi-faceted strategy under “Uraan Pakistan” reflects its commitment to fostering economic stability and growth. With key reforms in place, a focus on exports, and an emphasis on green energy and privatization, Pakistan is positioning itself as a competitive player in the global economy.  

As Prime Minister Sharif concluded, “This plan is a leap towards a prosperous and progressive Pakistan. Together, we can rise to new heights and ensure a brighter future for generations to come.”