In a recent address at the “Opportunities for Economic Diplomacy to Promote Pakistan’s Trade and Investment” event organized by the Pakistan Business Council, Deputy Prime Minister and Foreign Minister Senator Ishaq Dar shed light on Pakistan’s economic journey, highlighting its resilience and potential for growth.

A Decade of Economic Transformation

Reflecting on the pivotal year of 2013, Senator Dar recounted the nation’s struggles with severe load shedding, rampant terrorism, and an economy teetering on the brink of default. The government, upon securing its third term, introduced the “Three Es” manifesto—Economy, Extremism, and Electricity—to tackle these pressing issues. Within three years, these efforts bore fruit:

• Economic Growth: Pakistan ascended to become the world’s 24th largest economy.
• Foreign Reserves: The country achieved record-high foreign reserves.
• Inflation Control: Inflation rates were curtailed to below double digits.

Challenges Post-2018

However, post-2018, the nation faced economic regression. The economy slipped to the 47th position globally, and inflation surged into double digits. By 2022, concerns about a potential default loomed large. Despite these setbacks, Senator Dar expressed optimism, stating, “I believe Pakistan has the potential to streamline its reserves and recover.”

Leveraging Natural Wealth

In 2023, amidst concerns over external debt reaching $130 billion, Senator Dar emphasized Pakistan’s abundant natural resources, including vast mineral reserves and hydrocarbons. He believes these assets can propel the nation to its rightful position in the global economy. He remarked, “We are a nuclear and missile power, yet we lack continuity.”

Revitalizing International Standing

The Deputy Prime Minister lauded the efforts of the then PDM government for averting a potential default and restoring Pakistan’s international standing. He cited the country’s re-election to the UN Security Council with an overwhelming 182 votes as a testament to its renewed diplomatic vigor.

Addressing Misconceptions and Future Strategies

Senator Dar addressed misconceptions about Pakistan’s economic viability, acknowledging the fiscal deficit in rupees but emphasizing its manageability. He highlighted the pressing need to tackle external debt and unveiled plans for the privatization of state-owned enterprises (SOEs). Twenty-four SOEs, including three international airports, have been earmarked for privatization. He urged the Pakistani corporate sector to lead these initiatives, including the potential privatization of Pakistan International Airlines (PIA).

“Pakistan’s business community has the capacity to manage large-scale transactions like the PIA takeover. We need Pakistani corporate groups to actively participate in the privatization of public enterprises,” he asserted.

Conclusion

Senator Ishaq Dar’s address underscores Pakistan’s resilience and its potential for economic resurgence. With strategic initiatives and leveraging its natural resources, Pakistan is poised to reclaim its position in the global economic arena.