In a significant policy shift, Pakistan is moving away from a subsidy-driven economic model to a strategy centred on export-led growth and enhanced competitiveness, a federal minister announced on Wednesday.
Speaking at the Pakistan Governance Forum, Federal Minister for the Board of Investment, Qaiser Ahmed Sheikh, outlined the government’s plan to base the nation”s economic framework on value-added production and strategic reforms rather than financial inducements.
The forum was inaugurated by Prime Minister Shehbaz Sharif, who reaffirmed his government”s dedication to structural adjustments, improved governance, and achieving sustainable economic development.
During a high-level session titled ‘From Subsidies to Strategy: Delivering Competitiveness Through Reform,’ Minister Sheikh detailed that elevating the country”s position in the global value chain and boosting value-added exports are central pillars of this economic transformation.
He underscored that long-term, sustainable economic progress requires deep-seated structural reforms that go beyond short-term stabilisation measures. The minister noted that regulatory clarity, predictability, and effective institutional coordination are crucial for attracting both domestic and foreign investment.
The session, moderated by Ambreen Waheed from the Planning Commission of Pakistan, included insights from a distinguished panel featuring Manzoor Ahmed of World Trade Advisors, Louie Dane from FCDO, Sarmayacar founder Rabeel Warraich, and World Bank economist Anna Twum.
Minister Sheikh highlighted the work of the Board of Investment under the Cabinet Committee on Regulatory Reforms (CCORR), confirming that numerous comprehensive reform packages have been introduced, with hundreds of reforms at various stages of implementation to reduce regulatory burdens and modernise outdated legal frameworks.
He identified Small and Medium-sized Enterprises (SMEs) as the “backbone of the national economy,” stressing they must be empowered through simplified regulations and better integration into export value chains. He also urged the Federal Board of Revenue to adopt a facilitation-oriented approach to bolster investor confidence.
Drawing on his personal experience, the minister referenced his tenure as President of the Karachi Chamber of Commerce and Industry nearly four decades ago, which he said provided a firsthand understanding of the challenges faced by entrepreneurs.
He pointed to specific initiatives like the Business Facilitation Center (BFC), which offers coordinated one-window services to investors, and emphasised the importance of digital transformation in regulatory processes.
The minister commended the Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal, for organising the forum and for spearheading forward-looking programmes such as Uraan Pakistan.
Concluding his remarks, Sheikh reaffirmed the Board of Investment’s unwavering commitment to advancing these reforms to foster a competitive and investor-friendly environment, in line with the Prime Minister’s economic vision.