ADDRESSING the 9th edition of the Future Summit in Karachi, Finance Minister Aurangzeb recounted steps taken towards economic restructuring, privatization and sustainable growth.
He explained that 70% of the process of right-sizing the Government has already been completed and employees are provided packages aligned with private sector standards. The Minister confirmed that the privatization of the national carrier, the PIA, will be completed before the end of the year, alongside ongoing efforts to privatize three distribution companies. He further noted that the government is working to provide digital infrastructure for AI-led growth and that population management and climate change remain existential challenges.
The present government has, no doubt, taken bold measures to put the economy back on track and its successes on this account are highlighted by the active interest of foreign investors to make investments in different sectors of the national economy. A number of MoUs have already been signed with the Kingdom of Saudi Arabia (KSA), UAE, United States and Azerbaijan besides China and these would surely serve as incentive for other countries to follow suit. As pointed out by the Minister, the First Women’s Bank has already been privatized attracting multi-million dollar investment and the tech giant Google Chrome has launched its assembly line in Pakistan, which will pave the way to make the country hub of exports. Addition of close to one million new filers is also a step towards efforts to increase tax collection to minimize dependence on foreign loans. The Finance Minister reaffirmed the government’s commitment to structural reforms, fiscal discipline and strategic partnerships aimed at reshaping Pakistan’s economic direction. However, the way the structural reforms are being carried out has left an impression that the government was not serious and is merely resorting to slogan mongering. The stated aim of the privatization has been to save government expenditure but the actual implementation of the process will deprive the country of the profit earning entities while loss-making institutions will remain there to swallow tax-payers’ money. Selection of the top three efficient distribution companies for divestment has raised serious questions about transparency and motives of the privatization as those inflicting huge losses would continue to be the liability of the state.
There are dozens of other institutions which can be reformed provided the Government stops interference in their management. It would be worthwhile if, instead of treading the beaten path of privatization, the government listens to the viewpoint of experts who want to reposition Pakistan’s economy from traditional manufacturing to a knowledge-driven, export-led framework. At the summit the Minister attended, a viable suggestion came from Yousaf Hussain, President of OICCI and Faysal Bank Limited, who emphasized that Pakistan’s narrative must shift to national competitiveness,” adding that access to fast-growing markets in China and the GCC provides a strategic advantage and Pakistan’s youth can be the engine of growth through technology and skills. Experts also point out that aligning fiscal discipline with innovation and inclusion will be crucial for Pakistan’s resilience amid global economic headwinds, climate pressures and demographic challenges. The call for “course correction” underscores the need to move beyond reactive policymaking and establish a clear, consistent roadmap for investment, industrial modernization and digital transformation. The Finance Minister himself pointed out that the current geopolitical tailwinds offer a golden opportunity for Pakistan’s economic stability, citing strong support from partners including China, the United States and the KSA. The opportunity is surely there but it all depends on Pakistan’s ability to transform the potential for a meaningful change into a reality. It would be worthwhile if a high powered committee is formed under the chairmanship of the Prime Minister to formulate a comprehensive roadmap for the purpose.
