In a rare and powerful endorsement, Barron's, a leading global financial publication, recently described Pakistan's economic rebound as a "macroeconomic miracle”.
ECONOMIC GROWTH
In a rare and powerful endorsement, Barron's, a leading global financial publication, recently described Pakistan's economic rebound as a "macroeconomic miracle”.
For those in the government who have worked quietly but resolutely to engineer this turnaround, the acknowledgement is deeply meaningful. It affirms what the leadership has long believed and said: that with the right vision, institutional resolve, and consistent implementation, even the most daunting economic challenges can be reversed. What the world sees as a miracle is, in fact, the result of a national strategy that the government introduced a year ago -- the 5Es National Economic Transformation Plan.
When the government of Pakistan launched the plan, Pakistan was navigating through some of the toughest economic headwinds in its history. A currency in free fall, record inflation, mounting debt, dwindling investor confidence, and an unsustainable fiscal trajectory had created a sense of hopelessness. There were predictions of default, and international institutions had begun to lose faith. But the government understood that the severe crisis was also a moment of opportunity -- an inflection point to fundamentally rethink how the state engages with the economy and how Pakistan positions itself in a rapidly shifting global landscape.
The government of Pakistan under the leadership of Prime Minister Shehbaz Sharif, with the Ministry of Planning, Development and Special Initiatives, under the guidance of Prof Ahsan Iqbal, leading the planning for economic and development transformation, crafted the National Economic Transformation Plan not as a collection of quick fixes, but as a long-term framework rooted in structural reform, institutional accountability, and inclusive growth. The plan was the result of a consultative Turnaround Pakistan workshop, hence for the people, of the people, by the people. Its foundation was simple: Pakistan must grow its way out of crisis, but grow differently.
The country needed to shed dependence on short-term bailouts and adopt a model based on productivity, private-sector dynamism, export competitiveness, and investment-led development. This meant tough decisions on subsidies, taxation, regulation, and transparency. It meant moving away from populist policies in favour of prudent economics. And it meant placing trust in institutional mechanisms over ad hoc interventions.
It was a team effort by the government of Pakistan under the leadership of Prime Minister Shehbaz Sharif, where all ministries and departments at all levels came together to collectively contribute towards achieving the ‘mini miracle’.
The implementation of this plan was neither instant nor painless. The government undertook difficult reforms that involved rationalising energy tariffs, widening the tax net, reducing non-essential imports, and digitalising public finance to curb leakages. The political cost of these decisions was not lost on the political leadership. But the long-term benefit -- to restore Pakistan's economic credibility -- was worth it. Today, that credibility is reflected in improved macroeconomic indicators: inflation is cooling, reserves are rising, the rupee is stabilising, and investor sentiment is markedly more optimistic.
There is still much to do. Productivity must rise, exports must diversify, institutions must be deepened, and, above all, the reform process must not lose momentum. The greatest risk now is complacency
One of the most significant achievements of the plan has been the creation and operationalisation of the Special Investment Facilitation Council (SIFC), which serves as a single-window platform for strategic investments. By streamlining approvals, reducing bureaucratic red tape, and aligning civil-military coordination on economic priorities, the SIFC has brought a new level of seriousness to Pakistan’s investment drive. International partners have responded positively. The Gulf countries have invested billions of dollars in agriculture, mining, energy, and logistics. These are not pledges on paper; they are projects in motion.
Complementing these efforts, the World Bank’s recent ten-year, $20 billion financing commitment to Pakistan is a clear signal of renewed institutional trust. The Asian Development Bank (ADB) has also come forth with a strong Pakistan portfolio. Global lenders do not back words; they back performance. They have seen the seriousness in implementation, the willingness to take politically difficult steps, and the commitment to long-term reform.
The government also understood early on that no economic recovery is sustainable without digital transformation. That is why the National Economic Transformation Plan heavily emphasised digitisation -- not just of the economy, but of government itself. From streamlining procurement and tax collection systems to investing in the tech startup ecosystem, the current government has focused on integrating Pakistan into the global digital economy. The goal is to train and enable over 100,000 IT professionals annually and boost tech-related exports exponentially over the next three years. The results are already emerging, with IT exports showing an upward trend and global tech players taking note of Pakistan’s untapped human capital.
But numbers alone do not tell the full story. The plan was never just about fiscal metrics or growth rates. At its core, the NETP was designed to deliver hope -- to assure every citizen that economic revival would be broad-based, regionally inclusive, and socially just. The government scaled up skills training programs, expanded access to healthcare and education, and prioritised women and youth inclusion in the workforce. These are not soft add-ons but fundamental to building a resilient, future-ready economy. True transformation is measured not only in GDP growth but also in improved lives, dignity restored, and opportunities created.
Barron’s was right to call this a mini miracle. But it is one rooted not in chance, but in discipline. The story of recovery is a product of consistent, forward-looking governance. It is the result of believing in the potential of this country when many had given up on it. The journey is not over -- far from it. However, it can be confidently said that the government has achieved the first leg of a long road. The focus is now shifting from stabilisation to acceleration; from recovery to resilience; from external support to internal strength.
There is still much to do. Productivity must rise, exports must diversify, institutions must be deepened, and, above all, the reform process must not lose momentum. The greatest risk now is complacency. But if Pakistan stays the course -- if it keeps reforming, keeps investing in human capital, and keeps believing in its national potential -- it can turn this moment into a lasting transformation.
Pakistan’s economy has confounded expectations not because it was lucky, but because a plan led it. That plan, now revised and realigned to changing realities as Uraan Pakistan: 5Es -- the National Economic Transformation Plan, has given a roadmap to move from volatility to vision, from fragility to opportunity. The world is watching. It is now up to us to keep writing this new chapter with resolve, purpose, and clarity.
The writer can be reached at: sohailmuhammadali@gmail.com
