Pakistan eyes $1 trillion economy by 2035 through radical reforms

Pakistan’s Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal has urged sweeping governance reforms and national cohesion to lift the country’s economy to $1 trillion by 2035, warning that a continuation of “business as usual” would limit growth to around $600 billion.

Speaking at the Pakistan Governance Forum 2026, inaugurated by Prime Minister Muhammad Shehbaz Sharif, he said governance would determine whether Pakistan achieves accelerated, sustainable growth under the government’s ‘URAAN Pakistan’ framework built around Equity, Exports, Energy, Environment and E-Pakistan.

According to the Associated Press of Pakistan (APP), the minister said recent structural reforms had helped the country avert default and restore international confidence, but stressed that long-term economic sovereignty depends on raising exports beyond $100 billion by 2035. Describing exports as the “lifeline” of the economy, he highlighted the disparity between $40 billion in remittances generated by nine million overseas Pakistanis and roughly the same amount earned through exports by a population of 240 million, calling it a governance challenge.

He identified key structural issues including rapid population growth, child stunting, millions of out-of-school children, a low tax-to-GDP ratio of around 10 per cent, circular debt and inefficiencies in state-owned enterprises. Emphasising investment in human capital alongside infrastructure, the minister called for political unity and coordinated federal-provincial action to implement reforms transparently and steer Pakistan toward sustainable, self-reliant growth.

WAM