Pakistan does not suffer from a lack of ideas. It suffers from a lack of priorities and implementation.
Every few years, a new rescue plan appears. Taxes are tweaked, subsidies shuffled, loans negotiated. Growth flickers briefly, then fades. The reason is simple: we keep treating symptoms while ignoring the structure of the economy itself.
A real turnaround requires seven clear choices. None are radical. All are proven. Together, they can change Pakistan’s economic direction within a decade.
First, the country must declare clearly and consistently that exports and employment are the national mission. Not investment headlines. Not speculative gains. Jobs.
Manufacturing and IT exports are the fastest way to create large-scale employment. Every factory job supports multiple households. Every IT export dollar brings foreign exchange without importing fuel or machinery. Government policy must reward firms that create jobs, especially those that bring women into the workforce. Female participation in Pakistan is among the lowest in the region. That is not a cultural inevitability; it is a policy failure. Tax credits, social security support, and safe-transport incentives can turn women’s employment from an afterthought into an engine of growth.
Second, taxes must be rational, predictable, and regionally competitive. Pakistan taxes the same narrow base repeatedly while leaving large segments outside the net. The result is high rates, low trust and weak compliance. No economy has grown by punishing the compliant minority. The solution is not higher rates but a wider base, simpler rules and alignment with regional norms. Growth expands revenue far more reliably than pressure ever has.
Third, energy must be affordable, deregulated and private. Energy is not just a utility; it is the foundation of competitiveness. Pakistani industry pays far more for electricity than competitors in Vietnam, Bangladesh, or India. This alone prices exporters out of global markets. Power generation and distribution must be fully deregulated and privatised. Governments no longer run airlines, banks or telecoms. Power should be no different. Cheaper, reliable energy is not a concession to industry, but a prerequisite for survival.
Fourth, policy must clearly reward those who build and operate businesses, not just those who invest passively. Stock markets and real estate matter. They should continue to earn freely. But manufacturing and high-employment enterprises must earn more, not less, because they carry greater risk, effort and responsibility. If government policy treats running a factory as less attractive than buying plots or shares, the next generation will rationally choose comfort over creation. Economies grow when effort is rewarded.
Fifth, remittances must be treated as a strategic pillar, not an accident. Pakistan’s external account depends heavily on overseas workers. Any disruption, global slowdown, regional conflict or policy misstep can trigger a crisis. The solution is to continuously upgrade skills: electricians, nurses, technicians, programmers and care workers. Higher skills mean higher wages, more remittances and greater resilience. Countries that export skilled labour treat it like an industry. Pakistan must do the same.
Sixth, raw materials for re-export must be tax and duty-free. This is not generosity; it is standard global practice. Vietnam’s export boom was built on this foundation. If Pakistan wants to be an export powerhouse, it cannot tax inputs intended to leave the country as finished goods. Blocking this flow is equivalent to taxing growth itself.
Finally, freight must shift back to rail. Rail is cheaper, cleaner, and faster for bulk goods. Decades of neglect have forced cargo onto roads, raising costs, damaging infrastructure, increasing food prices and worsening congestion. A serious shift to rail would cut logistics costs, reduce carbon emissions and improve national productivity overnight.
None of these reforms requires miracles. They require alignment.
For this agenda to succeed, tactical and surgical implementation teams must be put in place each with clear ownership, strict timelines, and defined responsibilities. Progress must be reviewed monthly through transparent oversight, with real, visible and unavoidable accountability. Economic turnarounds do not fail because plans are unclear. They fail because execution is weak and responsibility is diffused.
Pakistan already knows what needs to be done. What remains is the discipline to deliver on time and in full view of the nation. Plans do not build nations; disciplined execution, visible ownership and relentless accountability do.
The author is a business leader and policy advocate focused on export-led growth, employment generation and competitiveness in emerging economies. He can be reached at: [email protected]
