ISLAMABAD (Special Correspondent) – Adviser to the Prime Minister on Privatization Muhammad Ali on Thursday stressed the need for sustainable economic growth through structural reforms, private-sector investment, and export-led development, identifying agriculture, textiles, and information technology (IT) as key sectors that could help Pakistan strengthen its economy. Addressing the CEO Summit, he said Pakistan needed to learn from countries such as China, South Korea, Vietnam, and Bangladesh, which had built their economies by focusing on existing strengths and developing them consistently over time.

Key Points

• Muhammad Ali identified agriculture, textiles, and IT as essential pillars for Pakistan’s long-term economic stability.
• The government is focusing on the “TRUST” framework to target competitive sectors, unlock private capital, and scale exports.
• Key structural reforms are required in energy management, taxation systems, and the restructuring of state-owned enterprises.
• Pakistan must shift from raw material production to higher value-added goods to improve global market competitiveness.

Lessons From Global Economic Models

The adviser said that Pakistan faced severe economic challenges during 2022 and 2023, including fiscal constraints, low productivity, production curtailments, high inflation, and elevated interest rates, which slowed economic activity. “We cannot go through that sort of test again. So we need to do something to avoid it in the future,” he said, emphasizing the importance of perseverance, patience, focus, and coordinated policymaking in navigating economic difficulties.

Citing international examples, he noted that China had initially built on its agricultural strengths after launching economic reforms in 1978. South Korea developed industries such as textiles and plywood during the 1960s, while Vietnam transformed itself from a rice importer into a major exporter. Bangladesh similarly developed its garment industry by capitalizing on existing strengths, proving that sustained policy continuity enables long-term progress.

The TRUST Framework for Economic Growth

Presenting a framework called “TRUST” for Pakistan’s economic growth, Muhammad Ali said it focuses on targeting sectors where the country has competitive strengths, implementing sustainable reforms, unlocking private capital, scaling up exports, and developing talent. He noted that sectoral priorities should be determined through five key considerations: proven strength, institutional infrastructure, global demand, employment generation, and foreign-exchange earnings. Minister Qaiser Ahmed Sheikh has also previously called for similar reforms to boost national trade and investment.

Applying these criteria, he identified agriculture, textiles, and IT as sectors offering the most significant opportunities. Pakistan’s agricultural sector requires a new wave of development focused on improving crop yields, storage facilities, and value-added exports. In textiles, the country must move beyond yarn and fabric production towards finished garments and brands. Regarding IT, he noted that the youth are already active in global freelancing, and further organization of this sector could capture significant global demand. Support for such initiatives often aligns with broader national goals, much like the efforts supported by the Pakistan Textile Council in their work with the government.

Addressing Structural Reform Challenges

Turning to implementation, Muhammad Ali said sustainable reforms are essential to translate these sectoral priorities into economic gains. He identified energy, taxation, and state-owned enterprises (SOEs) as three major areas requiring reform. On energy, he said high power costs undermined industrial competitiveness and stressed the need for affordable, reliable supplies, suggesting that transferring management to the private sector would improve efficiency.

He further emphasized the need to document the economy to broaden the tax base. He argued that too few taxpayers currently carry a disproportionate share of the burden, and greater documentation would increase revenues without relying on the same narrow segment. Finally, he highlighted the reform of state-owned enterprises as a critical component of the government’s agenda. The NHA and Privatization Commission are currently exploring similar avenues to improve the efficiency of national assets.

Frequently Asked Questions

What is the TRUST framework?

The TRUST framework is a strategic approach for Pakistan’s economic growth that focuses on targeting competitive sectors, implementing sustainable reforms, unlocking private capital, scaling up exports, and developing talent.

Which sectors did Muhammad Ali identify as key for growth?

Muhammad Ali identified agriculture, textiles, and IT and digital services as the primary sectors offering opportunities for employment creation and export growth.