Pakistan’s Economic Recovery: Remarkable Progress under Steady Governance

BEIJING, (APP - UrduPoint / Pakistan Point News - 29th May, 2026) After overcoming prolonged economic headwinds, including rampant inflation and depleted foreign reserves, Pakistan has achieved a remarkable economic turnaround in 2026 under the prudent and resolute leadership of Prime Minister Shehbaz Sharif’s administration.

Through well-calibrated economic policies, rigorous institutional reforms and robust international coordination, the government has successfully steered the nation away from potential fiscal risks and set in motion a solid, sustainable economic recovery.

This news stated by Prof Cheng Xizhong, Senior Research Fellow at the Charhar Institute, a non-governmental Chinese think-tank on diplomacy and international studies based in Beijing.

He highlighted that key macroeconomic indicators have registered substantial and encouraging improvements. Backed by disciplined fiscal consolidation and a landmark funding arrangement with the IMF, Pakistan’s foreign exchange reserves have risen steadily to USD 22.58 billion as of May 2026. Domestic inflation has been significantly curbed, while the country’s GDP growth is projected to reach 3.5 per cent in the ongoing fiscal year. Surging overseas remittances and the vigorous revival of domestic manufacturing sectors have further underpinned robust growth momentum, fully manifesting the administration’s outstanding economic governance capability and effective crisis management.

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The second-phase advancement of the China-Pakistan Economic Corridor continues to act as a core engine driving national revitalisation. A wide array of industrial upgrading projects and livelihood initiatives have been implemented nationwide, generating hundreds of thousands of local employment opportunities, optimising industrial structures and enhancing Pakistan’s export competitiveness. Such fruitful pragmatic cooperation has delivered concrete benefits to grassroots communities across the country, he added.

Whilst lingering challenges including external debt pressure and regional security complexities remain, the Shehbaz Sharif government has secured extraordinary achievements in economic stabilisation and public welfare enhancement through pragmatic, people-centred governance. With sustained institutional reform and deepened multi-lateral cooperation, Pakistan is well positioned to maintain stable economic expansion and usher in a more prosperous and resilient future, he concluded.

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