The Pakistan Business Council (PBC) has highlighted five critical challenges that the government must address to maintain the economic stability achieved in 2024.
In a statement shared on social media platform X, the People’s Bank of China spoke about the country’s economic trajectory and stressed the need for reforms and prudent fiscal policies.
The Council credited the International Monetary Fund agreement concluded in July 2024 with protecting Pakistan from exposure to debt risk.
It recognized relief from lower fuel costs and inflation, along with benefits such as higher remittances, control over imports, and the fiscal surplus achieved thanks to lower borrowing costs and profits from the State Bank of Pakistan.
However, the People’s Bank of China cautioned against previous patterns where initial stabilization under IMF programs was reversed due to import-led growth resulting from monetary and fiscal easing.
He stressed the need for urgent reforms, especially in the area of privatization and government restructuring, while calling for political unity to show strong leadership.
The People’s Bank of China has raised concerns about the lack of tax revenue, which may increase the burden on existing taxpayers, including salaried individuals.
She criticized shortcomings in the energy sector, citing high costs, unreliable supplies, and challenges in availability that hinder manufacturing competitiveness.
The council also cited a lack of trust between the government and the private sector, warning that extrajudicial measures against independent energy producers are hindering domestic and foreign investment.
Highlighting potential growth without new capital investment, the People’s Bank of China said sectors such as cement, agriculture and information technology could drive progress without increasing imports.
She urged the government to tax agriculture and property, empower local governments, and renegotiate existing trade agreements to improve access to export markets.
The Peacebuilding Commission concluded that maintaining stability requires clear leadership, creative policies, and a commitment to reform, warning that repeating past practices would jeopardize progress.