Pakistan Economy Shows Strong Recovery, Says Finance Advisor

Pakistan’s economy is showing robust signs of recovery, driven by effective structural reforms and a proactive diplomatic strategy. According to Khurram Shahzad, Advisor to the Minister of Finance, the country has emerged as a more confident and resilient power through sustainable economic policies and successful international engagement.

On the diplomatic front, Shahzad noted that Pakistan is playing a pivotal global role, actively working to reduce tensions between the U.S., Iran, and Gulf nations. This diplomatic stability is being matched by domestic progress; the IMF program remains successfully on track, with the positive impacts of recent reforms now becoming visible across multiple sectors.

The external sector has shown significant strength, with foreign exchange reserves growing for 33 consecutive weeks to reach a four-year high of approximately $21.7 billion. Furthermore, the current account has reached a one-year surplus, and remittances and IT exports have surged by 11% and 20%, respectively. National energy security has also improved, with fuel reserves extending from a 3.5-week supply to nearly four weeks.

Industrial activity is equally promising. The manufacturing sector is currently booming; Large-Scale Manufacturing (LSM) grew by 12.1% month-on-month and 10.5% year-on-year, contributing to an overall growth rate of 5.8%.

Shahzad highlighted that investor confidence is at a high, evidenced by a $500 million investment in the 5G auction and various multi-billion dollar investment announcements from major global players. As a result, Pakistan is increasingly positioning itself as a critical gateway for trade routes across Asia.