LAHORE: Independence Day serves as a stirring reminder to disheartened Pakistanis that this nation emerged from the ashes of Partition through sheer dedication and collective effort.
Today, while challenges persist, we stand on firmer ground than the fledgling state of 1947. With the right spirit, we can reclaim our growth momentum. At independence, Pakistan inherited 20 per cent of the Subcontinent’s population but less than 7.0 per cent of its industry. Industrial infrastructure was almost non-existent — only 34 factories employing around 26,400 workers.
Nearly eight decades later, the industrial sector still modestly contributes around 18.4 per cent of GDP, with services dominating at 58.4 per cent and agriculture accounting for 23.2 per cent. The textile industry remains central — employing roughly 25 million people, contributing 8.5 per cent to GDP, and placing Pakistan among Asia’s top textile exporters.
The economic landscape has swung between promise and struggle, with occasional glimmers of hope. In FY 2024-25, Pakistan’s economy expanded by 2.68 per cent, driven by agriculture (0.56 per cent), industry (4.77 per cent), and services (2.91 per cent). Nominal GDP stands at around $411.8 billion, with a population of about 255 million, giving a GDP per capita of $1,828.
Agriculture posted weak growth of 0.56 per cent, weighed down by sharp declines in key crops — wheat (-8.9 per cent), maize (-15.4 per cent), rice (-1.4 per cent), sugarcane (-3.9 per cent), and cotton (-30.7 per cent) — though gains were recorded in potatoes, onions, mangoes and sesame.
Agricultural promise: Despite recent setbacks, Pakistan remains among the world’s top producers — 9th in wheat, 4th in cotton, 4th in milk and 12th in rice — with unmatched canal irrigation infrastructure. These assets remain critical to economic revival.
Industrial recovery was mixed: electricity, gas, and water supply surged 28.9 per cent, construction rose 6.6 per cent, but large-scale manufacturing declined 1.5 per cent. Nonetheless, sectors such as automobiles (40 per cent), textiles (about 2.0 per cent), and pharmaceuticals (2.3 per cent) posted growth.
Services maintained steady growth of 2.9 per cent, led by ICT (IT and consultancy up 6.5 per cent) and strong performances in finance, public administration, education and health.
For the coming year, the government has set an ambitious 4.2 per cent growth target, but warns of renewed external pressures. Inflation is projected to ease to around 7.5 per cent.
Expanding the industrial base is essential. Pakistan must diversify beyond textiles, building on the auto, pharmaceuticals, fertiliser, cement and steel industries — sectors supported by a capable manufacturing base that, despite challenges, remains a vital economic pillar.
Emerging sectors such as ICT and telecom are expanding rapidly, with over 147 million broadband subscribers and substantial foreign investment. Digital growth presents a promising pathway for the future.
The government is benefiting from global institutional support, including a new $20 billion, 10-year World Bank package that complements the ongoing $7 billion IMF programme — both aimed at reforms, stabilisation, social development and energy resilience.
However, we must rekindle the spirit of nation-building. Our history shows that resilience and vision built this country; today demands the same resolve. We must revive manufacturing through energy cost reform, value-added exports, and incentives for entrepreneurship. Agriculture needs modernisation, investment in R&D, and measures to restore productivity in staple crops.
Human capital remains our weakest link. Greater investment in education and health is vital to empower future generations. We must tackle structural inequality, expand opportunities beyond entrenched elites, adhere to IMF-backed reforms, broaden the tax base, and utilise global financial support wisely.
From the desolate industrial beginnings of 1947 to a nation with over 25 million employed in textiles and a GDP exceeding $410 billion, Pakistan’s journey is proof of its potential. The road ahead is arduous, but with national resolve, structural reform, and global support, the country can recover its growth momentum. Let this Independence Day be a turning point — when pessimism gives way to purposeful optimism, and Pakistan charts a course towards renewed prosperity.