Uraan Pakistan: Is economic stability here to stay?

After years of economic uncertainty, Pakistan is turning a corner. Inflation has plummeted from a staggering 38% in May 2023 to just 1.5% by February 2025. The rupee has stabilized, investor confidence is growing, and the stock market is soaring. But can this newfound stability last?

With regards to the Planning Ministry’s recent initiative, “Uraan Pakistan,” top business leaders shared their perspectives on Pakistan’s economic turnaround, stability, and the way forward.

A welcome shift

“The economy is on the right track,” says Muhammad Ali Tabba, CEO of Lucky Cement. He credits the turnaround to a current account surplus, a stable exchange rate, and disciplined monetary policies.

“The potential is there, but we need policies that support 5-6% sustained growth,” he cautioned.

One of the prominent voices in the business community, Ehsan Malik, CEO of the Pakistan Business Council, echoes the sentiment. “The government’s IMF-backed policies and strict monetary measures have helped. But real progress depends on tax reforms, privatization, and broadening the revenue base. Without these, long-term stability remains uncertain.”

He further added, “If these measures are taken, the government will have enough resources to develop its socio-economic sectors.”

A $1 trillion vision

For Hussain Dawood, chairman of Engro/Dawood Group and a philanthropist, optimism is key. “Pakistan has the potential to be a $1 trillion economy by 2035. Strengthening infrastructure and fostering a positive business climate are crucial steps,” he emphasizes, adding that now is the time to build investor trust.

Investor confidence is rising, says Farrukh Sabzwari, CEO of the Pakistan Stock Exchange. “The market is responding well to stability, with the KSE-100 index surging. But consistency in policy-making is critical to long-term growth and investors engagement.”

More foreign investment to come

Foreigners are also very optimistic about Pakistan’s economic performance. Veon Group CEO Kaan Terzioğlu calls Pakistan’s fiscal discipline in the last 20 months “remarkable,” citing a budget surplus for the first time in 17 years and a stable rupee.

“It’s proof of disciplined execution,” he says. Foreign investment, which had stalled due to economic instability, is slowly returning as confidence grows.

The challenges ahead

For the first time in a long while, there’s more to complement than to complain.

Amir Paracha, CEO of Unilever Pakistan, credits fiscal discipline, monetary tightening, and a crackdown on smuggling for stabilizing key indicators. Government measures have enabled exports to surpass imports, inflation has plunged from 37.9% in May 2023 to just 1.5% by early 2025, and the stock market has surged 80%.

Business leaders like Aamir Ibrahim of Jazz and Arif Habib stress that while momentum is strong, structural reforms are crucial for lasting growth. The challenge now? Ensuring this progress isn’t just a phase but a foundation for the future.

With ‘Uraan Pakistan’ aiming to drive economic transformation, the next 12 months will be crucial. Can Pakistan sustain this momentum, or is this just temporary relief? Investors and businesses alike are waiting for answers.