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Pakistan’s economic growth rate is projected to increase from 2% to 3.5%, marking a significant improvement in the country’s economic outlook, International Monetary Fund (IMF) Country Director Mahir Binici said on Thursday.
Addressing a conference organised by the Sustainable Development Policy Institute (SDPI) in Islamabad, Binici described Pakistan’s economic progress as a historic turning point, saying the country had moved from crisis towards stability.
He said economic reforms were underway and stressed that maintaining the current growth momentum would be essential for achieving long-term economic stability.
IMF Stresses Need for Higher Exports
Binici said Pakistan needed to increase its exports to generate more employment opportunities and strengthen its economy.
He welcomed the country’s continued economic progress despite challenges arising from the ongoing crisis in the Middle East.
The IMF country director emphasised that increasing export capacity should remain a key priority for policymakers. He also highlighted the importance of improving the business environment and maintaining investment in infrastructure and public development projects.
Tax Reforms Essential for Economic Stability
Binici called for continued efforts to increase tax collection and improve Pakistan’s tax-to-GDP ratio.
He said the government needed to strengthen revenue generation through sustained tax reforms to support economic development and reduce financial pressures.
He added that meetings had been held with Pakistani authorities to discuss measures for increasing tax revenues. According to Binici, serious efforts had been underway for several months to improve the country’s economic conditions.
He also acknowledged the contribution of Pakistan’s National Tariff Policy towards improving the economic environment.
Binici reaffirmed that the IMF would continue working with Pakistan over the long term to support economic stability and reforms.
ADB Calls for Greater Private Sector Opportunities
Meanwhile, Asian Development Bank (ADB) Country Director for Pakistan Dr Emma Xiaoqing Fan highlighted the importance of creating greater growth opportunities for the private sector.
She said a stronger private sector would help Pakistan expand its export capacity, create jobs and strengthen economic activity.
Fan stressed that reducing industrial costs was necessary to make Pakistani products more competitive in international markets.
She also called for better access to financing for businesses, particularly women entrepreneurs, to encourage investment and support business expansion.
ADB Highlights Women’s Role in Economic Growth
Fan pointed out that more than half of Pakistan’s female population was unable to contribute effectively to economic development.
She stressed the need to provide women with greater access to skills training and professional development opportunities.
According to the ADB country director, improving women’s participation in the economy and expanding financial support for female entrepreneurs could help unlock Pakistan’s economic potential.
She also emphasised that access to loans for private businesses should be improved to encourage entrepreneurship and create sustainable employment opportunities.
The remarks by the IMF and ADB officials highlight the importance of continued economic reforms, export growth, stronger tax collection and private sector development in Pakistan’s efforts to achieve sustainable economic stability.
