WEB DESK: The new year 2026 could prove an upgrade for the Pakistani economy. The real question is whether this stability can be converted into sustainable and inclusive growth after economic stability in 2025.
Over the past ten years, the growth rate of Pakistan’s Gross Domestic Product (GDP) has barely kept pace with the pace of population growth. This resulted in flat incomes and widened the gap with regional countries.
The possible stability must lead to employment and income growth, or else the public support for the reforms may decrease.
Therefore, it has become a major challenge of 2026 to move beyond the rate of stability to adopt a path of rapid and inclusive growth.
Window of Opportunities
Yes, our system contains weak points, yet it has encouragingly upgraded itself in many fields.
Low global commodity prices, including oil, have kept inflation under control; record remittances have uplifted the current account system. The strong performance of the stock market has increased the chances of foreign investments.
It has become necessary to convert these favourable conditions into sustainable development, which will counter poverty and other major challenges of society.
Shifting the Focus
To move forward, the government is shifting its focus towards four key areas:
Industry: Shifting the simple textiles towards the production of modern engineering products like mobile phones and defence equipment, such as the JF-17 Thunder jet.
Agriculture: Shifting subsidies away from traditional crops to focus on high-value fruits, vegetables, and oilseeds.
Livestock: Modernising the sector, which makes up 60% of agricultural output but remains underserved.
Technology: By using the forum of China Pakistan Economic Corridor (CPEC) Phase II, we can bring in Chinese technology and improve 5G and broadband access.
The International Monetary Fund (IMF)’s Governance and Corruption Assessment Report has clearly identified the sectors in which reforms are needed. If weaknesses are addressed, economic growth could increase by 5 to 6.5 per cent in the next five years.
