KEY POINTS
- Government shifts focus from consumption to export-driven growth
- District-level and Small and Medium Enterprises are central to the strategy
- Skills, technology and human capital prioritised
- Provinces urged to align with national Zero Poverty vision
ISLAMABAD: Pakistan on Friday unveiled a forward-looking economic strategy centred on export-led growth, industrial competitiveness and human capital development as it seeks to reverse a recent rise in poverty and place the economy on a more sustainable footing
Speaking at the launch of the Poverty and Inequality Estimates 2024-25 in Islamabad, Planning Minister Ahsan Iqbal acknowledged that the national poverty rate has climbed to 28.9 per cent, up from 21.9 per cent in 2018-19.
He described the increase as the cumulative outcome of the COVID-19 pandemic, global food and commodity price volatility, climate-related disasters and domestic macroeconomic adjustments.
For international observers, Pakistan’s challenge mirrors that of many emerging markets: restoring macroeconomic stability after external shocks and then pivoting toward productivity-driven expansion.
The country has undertaken reform programmes supported by the International Monetary Fund to stabilise its balance of payments, rationalise subsidies and strengthen fiscal management.
Ahsan Iqbal said the next phase must move beyond stabilisation. He outlined a transition from import-intensive, consumption-led growth to an export-oriented model, which rewards innovation, efficiency and value addition.
Past surges in imports, which once approached $80 billion annually, created wide trade deficits and exposed structural weaknesses in domestic production.
“Our long-term poverty reduction depends on expanding exports, improving productivity and building globally competitive human resources,” he said.
A notable feature of the strategy is its district-level focus.
Rather than concentrating growth in major urban centres, the government aims to promote Small and Medium Enterprises and cottage industries across provinces.
The goal is to integrate rural and semi-urban districts into national and international value chains.
Recent data show rural poverty has risen faster than urban poverty, underlining disparities in opportunity and infrastructure.
By fostering small industrial clusters, improving logistics and expanding access to finance, policymakers hope to generate employment closer to communities and reduce migration pressures on large cities.
The minister urged provincial governments, which now control a significant share of development spending following fiscal decentralisation, to align their strategies with national objectives.
Coordinated action, he said, will be critical in ensuring that economic gains translate into measurable poverty reduction.
Central to the new approach is investment in education, vocational training and digital skills. Pakistan has a young population, with millions entering the labour force each year.
Harnessing this demographic potential through skill development and technological awareness is seen as essential to boosting productivity and exports.
He linked the strategy to global development commitments under the United Nations Sustainable Development Goals, particularly those related to decent work, reduced inequalities and inclusive growth.
He also highlighted the importance of equitable resource distribution within provinces, warning that persistent deprivation in certain districts can entrench inequality and undermine social cohesion.
Targeted infrastructure, connectivity and enterprise support in underdeveloped areas form part of what he described as a broader Zero Poverty ambition.
For global investors and development partners, Pakistan’s evolving policy direction signals a reform window aimed at strengthening competitiveness and resilience.
Sustained Gross Domestic Product growth, supported by exports and industrial upgrading, is viewed as the key lever for durably reducing poverty.
Ahsan Iqbal said the coming years would focus on translating macroeconomic stability into inclusive expansion, ensuring that recovery efforts not only stabilise indicators but also widen opportunity.
