ISLAMABAD: Advisor to the Federal Minister for Finance, Khurram Schehzad criticised a recent BBC Urdu article for portraying what he called a “gloomy and outdated” picture of Pakistan’s economy, asserting that actual data reflected stabilisation, reform momentum and renewed global confidence.
Commenting on the BBC Urdu report in a post on X, he said the narrative of economic collapse was detached from facts, as Pakistan had achieved improved macroeconomic indicators, controlled inflation, strengthened external buffers, and a revival of exports and investment.
He said GDP growth strengthened to 3 percent in FY25 from 2.5 percent in FY24 and was projected between 3.6 and 4 percent in FY26, while per capita income rose 10 percent to $1,830 after years of stagnation. Inflation dropped sharply to 4.5 percent — a nine-year low — and the policy rate was reduced from 22 percent to 11 percent, helping affordability and investment.
Highlighting gains on the external and fiscal fronts, he said Pakistan recorded a $2.1 billion current account surplus in FY25 — the first in 14 years — while SBP reserves increased 55 percent year-on-year to $14.5 billion. The primary surplus reached a historic 2.4 percent of GDP, and the overall fiscal deficit fell to a nine-year low alongside debt-to-GDP declining below 70 percent. He said two successful IMF reviews, along with support from the World Bank, ADB and IFC, validated the policy direction.
Schehzad said deep reforms were underway in taxation, energy, state-owned enterprises and privatisation, pensions and regulatory oversight, while digital, AI and industrial policies were shifting the economy toward productivity-led, export-driven growth.
Exports continued to grow, with goods up 7 percent and services up 15 percent in FY25, supported by an 18 percent increase in IT and tech exports. Large-scale manufacturing posted 9 percent growth in July–September 2025 — the highest in more than three years — and the Pakistan Stock Exchange rose 60 percent in FY25 as the investor base crossed one million.
He noted that the ICT sector achieved record highs, with tech exports reaching $1.06 billion in the first quarter of FY26 — a 20.5 percent increase — and $366 million recorded in September alone, making ICT the leading services export sector.
He said Pakistan had regained global investor interest, reflected in recent rating upgrades by Fitch, S&P and Moody’s and new commitments from Saudi Arabia, China under CPEC Phase-II, the UAE in banking and energy, and the United States in technology and minerals.
Schehzad said lower industrial energy tariffs, cheaper credit, digitized taxation and a governance model led by private-sector expertise were enhancing competitiveness and creating jobs.
He concluded that Pakistan’s current economic trajectory represented a shift from “stability to reform to competitiveness and growth”, adding that the BBC Urdu article’s claims of a downward spiral ignored documented progress and the ongoing economic turnaround.
