Since the 2008 economic crisis, the private sector’s contribution to economic growth has been marginal, replaced in large part public sector projects and CPEC (China Pakistan Economic Corridor). This has placed an already flawed economic model on a completely unsustainable trajectory, while also failing to spur growth, control inflation or generate employment.

The numbers are stark. Private credit-to-GDP stood at a mere 10 percent in FY24, one of the lowest globally. This is a significant decline from its peak of 23 percent in FY07. For a perspective, World Bank data shows private sector credit-to-GDP at 12 percent in Pakistan compared to 29 percent in Egypt, 37 percent in Bangladesh, and 50 percent in India. Credit to private sector in Pakistan is negligible, presenting a prime opportunity to reignite economic growth using a private sector led model.

In 2000, private credit-to-GDP fell to 14........

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