Reforms and export-led growth

After stabilising its economy, Pakistan stands at a crossroads. Opinions on the way forward remain divided. Some argue that, following nearly zero average growth over the past 15 years, the country must prioritise economic expansion to counter rising poverty. Others, particularly influential voices in the Ministry of Finance and the business community, warn that the recovery is fragile and worry that rapid growth could trigger another high trade deficit, given the persistently sluggish growth of exports. In fact, Pakistan's share of global exports has been continuously declining and in the last two decades has fallen by over 20%. According to a recent study by the World Bank, the root cause lies in Pakistan's approach to trade policy.