Pakistan’s Ascendance: A Vibrant Economy with Growing Potential

Today Pakistan commemorates its National Day; a reflection of the struggles of the muslims of subcontinent for religious freedom and economic emancipation. It has been a journey of ups and downs, fostered by a zealous population, innovation, growth and prosperity.

A diversified economy, with the fruits of vibrant agriculture, creative manufacturing, proactive services sector and an ever-growing Information and Technology sector, Pakistan remains a vital contributor to global economy.

With a population of 241 million, Goldman Sachs estimates Pakistan to become sixth largest economy in the world by 2075, with the support of appropriate policies and institutions.

Currently, World Bank estimates Pakistan’s GDP at USD 376 billion and places it as the 42nd economy in terms of GDP ranking.

In the month of February, 2024, Pakistan recorded an 18% growth in exports as compared to same period last year.

Sectors like knitwear, rice (basmati and others), ready made garments, bed wear, fruits and vegetables have recorded a positive trend in the current year.

Food group exports have registered an impressive growth of 54% in the first eight months of the current fiscal year.

Food commodities worth USD 4.9 billion were exported as compared to USD 3.2 billion for the same period last year.

The Information and Technology (IT) sector has been a story of its own, registering a growth of more than 50% over the last five years and currently stands at USD 2.6 billion.

While the global economy struggled in the face of Covid-19, Pakistani entrepreneurs found avenues of growth in the digital economy.

Pakistan’s IT sector’s growth has consistently outpaced the country’s economy in the recent years.

It stands on the pillars of software development and outsourcing.

The country houses a community of software developers and engineers, known for their expertise and innovation.

Today, it is estimated, that Pakistan hosts around three million freelancers contributing around USD 400 million in export remittances.

The sector promises to be a beacon of growth and prosperity in the coming years.

China-Pakistan Economic Corridor (CPEC) vows to be a global game changer in terms of trade and connectivity.

The project will boost connectivity within the country, providing support to the country’s economic zones and local businesses.

The upgradation of Gwadar Port ensures its transition to a maritime hub, providing connectivity to Middle East, Central Asia and other regions.

This provides a ripe opportunity for international partners to invest in the future of their businesses.

Moreover, Pakistan has a growing consumer market and a young population with estimated median age of 22, providing an immense opportunity for businesses in health, retail, education and Fast Moving Consumer Goods (FMCG).

Pakistan and Bangladesh, with major cultural overlaps, remain important commercial allies for each other.

Both countries are supported by a growing textile sector, agricultural produce, manufacturing and IT entrepreneurs.

The opportunities for collaboration are ever-growing and are ever more vital owing to Bangladesh’s upcoming graduation from Least Developed Countries (LDC) status.

Many Pakistani professionals and businesses have lent their expertise to the Bangladeshi textile industry over the years and the future only promises further growth and prosperity.

This National Day, Pakistan stands at an important economic juncture. The nation’s young population is determined to grow and prosper to build a thriving future.

Pakistan is determined that this economic prosperity is shared by all, and produces dividends for regional and global allies.

(The article is written by Mr. Zain Aziz, Commercial Secretary, Pakistan High Commission)