At the Karachi Literature Festival, former finance minister Miftah Ismail and a panel of leading economists and policymakers emphasized that Pakistan’s economic challenges are deeply rooted in structural governance issues and require long-term, institutional reforms rather than temporary fixes. The session, titled “Fixing the Fundamentals: Pakistan’s Economic Reform,” brought together experts to discuss strategies for stabilizing the economy, promoting sustainable growth, and restoring investor confidence.
Moderated by former investment minister Muhammad Azfar Ahsan, the discussion featured prominent speakers including Miftah Ismail, former finance minister Asad Umar, former State Bank of Pakistan (SBP) governor Dr Ishrat Husain, Pakistan Business Council Chairperson Dr Zeelaf Munir, and Adviser to the Prime Minister on Privatisation Ali. The panel agreed that Pakistan’s economic cycle cannot be broken without consistent policy, strengthened institutions, and strategic reforms across multiple sectors.
Ali underscored that structural reforms must begin with documenting the economy to improve the taxation system. He argued that sustainable growth is impossible without a broader tax base and more efficient revenue collection. He also stressed reducing government involvement in commercial activities, noting that state-run businesses contribute to high electricity and gas costs. Expanding exports, increasing women’s participation in the workforce, and empowering local governments were identified as essential measures for improving service delivery and governance.
Dr Husain highlighted Pakistan’s external debt burden of $25 billion and noted that $12 billion is needed annually to service these obligations. He pointed out that $10 billion spent on food imports could be reduced by investing in domestic agriculture. Providing farmers with access to credit, modern techniques, and improved supply chains could enhance food security, reduce pressure on foreign exchange reserves, and improve rural livelihoods. He further emphasized the need to shift towards value-added industries, including steel, petrochemicals, pharmaceuticals, and lithium batteries, while promoting innovation-driven service sectors.
Dr Munir focused on the importance of policy credibility and consistency in attracting investment. She noted that Pakistan’s low growth over the past three decades is linked to structural misalignment and inconsistent policymaking. She also highlighted human development challenges, including women’s workforce participation below 20% and 25 million children out of school, emphasizing that long-term economic progress depends on transparency, accountability, and improved governance.
Miftah Ismail stressed that eliminating terrorism, implementing population control, and reforming the NFC Award are crucial to creating an environment conducive to growth. He advocated for privatizing state-owned electricity and gas utilities to enhance efficiency and called for timely, accountable governance reforms to rebuild public trust.
Former finance minister Asad Umar emphasized aligning Pakistan’s industrial output with global demand to increase exports, reduce government footprint, promote fair competition, implement tax reforms, and ensure policy continuity. Muhammad Azfar Ahsan highlighted that ad-hoc policymaking is a persistent challenge, and Pakistan requires a coherent, rules-based, and data-driven long-term economic strategy.
The session concluded with a shared consensus that Pakistan’s economic revival depends on structural reforms, consistent policies, export-led growth, human development, and strong governance. Panelists agreed that sustainable progress would require difficult decisions but emphasized that transparency, accountability, and institutional integrity are essential to placing the country on a stable path toward growth.
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