Prime Minister Shehbaz Sharif’s newly unveiled National Economic Transformation Plan aims to significantly boost Pakistan’s economic growth, targeting a doubling of GDP growth and halving poverty within five years. The plan, outlined this week, sets out ambitious goals for increasing investment, improving infrastructure, and enhancing various sectors to ensure sustainable economic growth.
A central aspect of the plan is the goal of attracting $29 billion in investment, managed under the Special Investment Facilitation Council (SIFC). This includes investments from countries such as $10 billion from the UAE, $5 billion from Saudi Arabia, $2 billion from Qatar, $2 billion from Azerbaijan, and $10 billion from Kuwait.
The National Economic Transformation Plan sets a clear roadmap for implementation, running through 2029, with each ministry and province tasked with preparing annual targets. The plan also calls for quarterly monitoring of key objectives, with updates provided to the Prime Minister via the National Economic Transformation Unit (NETU). Sector-specific targets will be outlined, and progress will be tracked closely to ensure the success of the plan.
Key targets in the plan include raising GDP growth to 6% by Fiscal Year 2028-29, up from the baseline scenario of 2.5% in 2023-24. Additionally, per capita income is expected to increase from $1,680 to $2,405. The plan also targets an increase in investment, which is set to rise to 17% of GDP, up from 13.1%, while keeping inflation under control at 6.2% and reducing poverty levels to 12%, down from the current 21.4%.
By 2035, the plan envisions Pakistan’s GDP reaching $1 trillion, with an annual growth rate of 9.8%. While the plan does not explicitly address exchange rate fluctuations, sources suggest that the rupee-dollar parity is expected to remain stable. Minister for Planning, Ahsan Iqbal, emphasized that the plan will focus on export-led growth, moving away from the boom and bust cycles caused by over-reliance on imports.
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Iqbal also addressed concerns about remittances, condemning any calls to stop overseas Pakistanis from sending money back home, as recent remittance figures have shown an increase. He urged expatriates to continue using official banking channels to send remittances, which play a crucial role in supporting the economy.
The plan also outlines strategies to boost exports, with a focus on agriculture, industry, IT, services, mining, and the blue economy. Exports could rise to $60 billion, with efforts to increase Pakistan’s share in China’s import market, which currently stands at just $3 billion, with potential to grow to $50-100 billion.
Iqbal further noted the growth of IT exports, which have seen a 34% increase, despite some technical challenges. He also explained that the internet firewall had been installed to address cybersecurity threats and digital terrorism.
The National Economic Transformation Plan represents a bold and comprehensive approach to rejuvenating Pakistan’s economy, with a focus on sustainable growth, investment, and export expansion to drive the country toward a prosperous future.
