Pakistan's ambition to achieve upper-middle income status by 2047 is contingent upon the strategic utilisation of its demographic dividend, advantageous geographic positioning and the effective implementation of policy reforms. "The per capita income of Pakistan has improved in recent years, yet the nation grapples with such challenges that keep it behind other countries in the region and the global arena," points out Sajid Amin, Deputy Executive Director and founding head of Policy Solutions Lab at Sustainable Development Policy Institute (SDPI). Talking to WealthPK, he elaborated that one of the significant impediments to per capita income growth in Pakistan was the persistently high population growth rate. "The rapid increase in the population puts pressure on available resources and dilutes the benefits of economic growth, making it challenging to raise the income levels for each individual." He emphasised the necessity of strategic investments in education and skill development.

"By aligning workforce capabilities with market demands, Pakistan can ensure that its burgeoning population becomes a driving force for innovation and productivity, essential for elevating per capita income." "To truly reach upper-middle income status, Pakistan must undergo a structural transformation. Heavy reliance on a few industries, coupled with insufficient diversification, makes the economy vulnerable to external shocks and hinders its ability to adapt to changing global dynamics," he underscored. Amin argued that such a shift was imperative for unleashing the full potential of the economy and ensuring sustainable and inclusive growth. Meanwhile, Hamza Saeed Orakzai, Director of Strategic Planning at Special Technology Zone Authority (STZA), told WealthPK that the pursuit of upper-middle-income status should be accompanied by a commitment to sustainable development. "Pakistan's ability to achieve upper-middle-income status is linked to its capacity to embrace technological advancements. A commitment to research and development, fostering a culture of innovation, and adopting cutting-edge technologies can position Pakistan competitively and contribute to sustained economic growth."

He said that to create a robust technology ecosystem and digitisation, the government must ensure that its policies support collaboration among the academia, startups, established tech companies, and foreign investors. "Stability in policy helps forge strong partnerships, leading to knowledge sharing, skill development, and overall sectoral growth," he asserted. Saeed Orakzai maintained that presently, the government was actively addressing challenges and working towards improving the economic well-being of its citizens. "Commendable steps include initiatives to nurture human capital development, implement institutional reforms, overhaul tax structures and boost investment and trade." "If executed effectively, these measures hold the potential to chart a path towards sustained economic growth, ultimately leading to an increase in per capita income," he stressed. In December 2023, Bloomberg projected a recovery for Pakistan's economy, anticipating a 2.1% growth rate in the Gross Domestic Product for the fiscal year 2023-24. It further indicated an anticipated increase in the growth rate to 4.8% in the fiscal year 2024-25.

Credit: Independent News Pakistan (INP)