s Pakistan enters 2025, the economy is showing signs of improvement. The inflation was down to 4.1 percent in December—the lowest in over six years—due to a stable currency and lower global commodity prices. The State Bank of Pakistan lowered its key policy rate by 900 basis points through 2024, bringing it to 13 percent in December, to stimulate economic growth.

In the first quarter of the fiscal year 2024-25, the economy grew by 0.92 percent, driven by the agriculture and services sectors, despite a contraction in the industrial sector. A $7 billion loan from the International Monetary Fund approved in 2024 is supporting economic recovery. Pakistan is thus starting 2025 on a positive economic trajectory.

The biggest surprise on the last day of the preceding year was the unveiling of Uraan Pakistan plan by Prime Minister Shahbaz Sharif, a bold initiative designed to revamp the country’s economy. This ambitious five-year National Economic Transformation Plan 2024-29 focuses on a “Five Es” framework: enhancing exports to drive growth and increase foreign exchange; accelerating Pakistan’s digital transformation through E-Pakistan; implementing sustainable practices to address climate change and ensure food and water security; developing affordable and green energy solutions; and promoting social equity and empowerment. The plan aims to position Pakistan as a trillion-dollar economy by 2035, with the creation of the National Economic Transformation Unit to oversee its execution, ensuring transparency and accountability.

The initiative is commendable in that it identifies critical development priorities and offers a structured roadmap for short- to mid-term interventions. By targeting tangible areas, such as improving literacy rates, expanding job opportunities, addressing energy inefficiencies and fostering entrepreneurial growth, the 5Es framework aligns with the global economic paradigm, making it attractive to international donors and lending institutions.

The objective of the Uraan Pakistan plan is to transform Pakistan into a $1 trillion economy by 2035. This requires sustaining an annual growth rate of approximately 8.41 percent over the next 12 years,........

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