Pakistan needs to move beyond economic stabilization and use the current period of relative stability as a foundation for long-term, generational growth, Adviser to the Prime Minister on Privatization Muhammad Ali said on Thursday. He said the country needs to strengthen competitiveness, encourage innovation, increase private-sector participation and create conditions that can support sustained economic expansion over the coming decades.
Muhammad Ali made the remarks while speaking at the Leaders in Islamabad Business Summit 2026, held under the theme “The Next Move Pakistan’s Next Phase of Growth, Investment and Competitiveness.” He said difficult economic decisions taken to achieve stability should not be considered the final objective. Instead, the stability achieved through those measures should provide a base for reforms and policies aimed at improving investment, productivity and competitiveness.
The adviser emphasized the need for a credible public policy framework and a stronger role for private businesses in driving investment and productivity. He said Pakistan needs to reconsider the relationship between the state and private enterprise, particularly as the country prepares for significant demographic growth. With Pakistan’s population projected to reach 390 million by 2050, he argued that economic policy will need to support greater productive capacity and wider participation in economic activity.
According to Muhammad Ali, the state should focus on leading, regulating, partnering with and enabling businesses while strategically withdrawing from sectors where private enterprises can potentially deliver greater value. This approach, he said, would allow government institutions to concentrate on their core responsibilities while creating additional space for private investment and enterprise.
He also addressed the role of privatization in Pakistan’s economic transformation. Muhammad Ali said privatization should not simply be viewed as a process of transferring ownership from the public sector to private investors. Instead, he described it as a mechanism for unlocking economic value that may remain constrained under traditional management structures. The objective, according to his remarks, should be to improve the performance and productive use of assets while creating better economic outcomes.
Referring to the complex transaction involving Pakistan International Airlines (PIA), Muhammad Ali said the experience gained from the process could provide lessons for future privatization initiatives. He also linked the privatization agenda with the development of bankable public-private partnership pipelines, particularly for infrastructure and public services. Such partnerships could create additional opportunities for private capital to participate in projects where investment requirements are substantial.
The adviser identified three broad structural changes that he said are necessary to renew Pakistan’s economy. One of these is changing the way the country generates economic growth. He called for a shift away from an economic model heavily dependent on consumption and external financing toward one based more strongly on investment, productivity and private capital.
Muhammad Ali also highlighted innovation as another important element of future economic growth. He called for Pakistan’s local industries to adopt newer technologies and integrate industrial development with areas such as artificial intelligence, robotics and electric vehicles. According to his remarks, technological adoption should become part of the country’s broader industrialization strategy rather than being treated as a separate area of economic activity.
A further priority highlighted by the adviser was workforce participation. He stressed the need to increase participation in the economy, particularly among women, while encouraging domestic businesses to expand their productive capacity. Greater workforce participation and stronger local businesses could contribute to a broader economic base and help Pakistani companies compete in international markets.
The emphasis on productivity and international competitiveness also reflects the longer-term challenge of creating an economy capable of supporting a much larger population. As the population is projected to reach 390 million by 2050, Muhammad Ali said Pakistan needs to build economic capacity that can support future generations rather than focusing only on immediate stabilization.
He concluded that the present period of economic stability should be used to develop a more productive and competitive economy capable of sustaining growth through 2050. His remarks placed investment, private-sector participation, innovation, workforce participation and structural reform at the center of Pakistan’s longer-term economic agenda, while positioning privatization and public-private partnerships as potential tools for improving the use of economic assets and infrastructure.
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