LocationsFrom Stabilization to Sustainable Growth:
Economic Governance as the Engine of Reform
By Bilal Azhar Kayani | Minister of State for Finance and Railways, Head of Prime Minister’s Delivery Unit
Pakistan stands at an important inflection point in its economic reform journey. The first stage, macroeconomic stabilization, has been successfully achieved. The real test lies ahead: building a form of growth that is durable and resilient.
Pakistan stands at an important inflection point in its economic reform journey. The first stage, macroeconomic stabilization, has been successfully achieved. Pressures on foreign exchange reserves have eased, fiscal discipline is improving, and policy direction is more coherent. Yet stabilization is only the starting point. The real test lies ahead: building a form of growth that is durable and resilient. This next stage must strengthen reserves rather than deplete them, expand employment, enhance purchasing power, and place Pakistan firmly on an export‑led, sustainable growth path.
At this stage, the question is fundamentally on
e of governance. How do we move from policy ambition to real, tangible improvements in the lives of people across Pakistan? Two priorities are critical for strengthening economic governance; embedding the private sector more systematically into policy formulation, and a decisive shift towards a digital, cashless Pakistan.
First, governance must be informed by those who generate economic value. Policy and implementation are most effective when shaped by operational realities and market experience. Recent reform efforts have placed the private sector more centrally in policy dialogue. The Prime Minister recently formed nine working groups all chaired and led by private sector representatives for policy recommendations on various economic issues. He has spent significant time over the past few months with these working groups to consider their outcomes and recommendations. Some have already been fully implemented. The recent restructuring of the Export Development Fund, to make it a private-sector led board, is one example. At the same time, there is growing recognition that small and medium enterprises must have a stronger voice, as SMEs are essential to broad-based growth and job creation. This shift reflects a move towards meaningful collaboration rather than symbolic consultation, ensuring that reforms are grounded in competitiveness, realism, and readiness for implementation.
Ultimately, governance is about cohesion—between policy and execution, between federal and provincial actors, and between the state and the private sector.
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Second, and equally central to governance reform, is the transition to a cashless, digitized economy. Reducing human interface in systems such as that of the Federal Board of Revenue through digitization improves transparency, documentation, and compliance. When payments are digitized, the economy becomes more documented, fiscal management improves, and revenue mobilization strengthens. These are not merely technological upgrades, but structural governance reforms that enhance accountability and build trust.
Structural reforms are also advancing across multiple fronts. Tariff reforms, already under implementation, aim to reduce the cost of raw materials, machinery, and intermediate goods, and to increase overall competitiveness in the economy. Strategic transactions such as PIA signal our commitment to the privatization program, reducing government footprint, expanding private sector participation and sustaining reform momentum. Our objective is to drive export‑oriented growth that boosts productivity, strengthens foreign exchange reserves, and generates long‑term, quality employment.
Economic governance reforms also demand stronger federal-provincial coordination. With a national development budget of PKR 4.2 trillion, outcomes can be improved through better alignment in the National Economic Council. Following the 18th Amendment, responsibilities are distributed across tiers of government. If export-led growth is our North Star, cohesion between different tiers of government, the private sector, and civil society becomes indispensable. At the same time, better fiscal management can enhance the development envelope's value for money by improving how existing allocations are coordinated and utilized. In this context, an open and honest national conversation about aspects of the NFC is also important to ensure that fiscal transfers align with shared growth objectives.
The Prime Minister is personally leading efforts to embed accountability within federal ministries. Clear objectives, quantified baselines, defined KPIs, and three-year targets have been agreed through structured roadmap processes. Responsibilities and timelines are clearly assigned, and cross-agency dependencies are mapped to improve coordination and delivery. Reform, therefore, is moving beyond announcements towards performance-driven implementation.
Looking ahead, economic governance must also anticipate technological shifts. Artificial intelligence presents an opportunity for productivity gains and more efficient economic management. The Prime Minister has directed authorities to develop AI-driven tools for service delivery and policy oversight.
Ultimately, governance is about cohesion—between policy and execution, between federal and provincial actors, and between the state and the private sector. We have achieved macroeconomic stabilization. Now we must deliver, through sustained delivery anchored in coordination, accountability, digitization, and partnership. This is how we will sustain the momentum of reform, and this is how we will rebuild enduring trust in the state for generations to come.