Structural reforms essential for sustained economic growth: Iftikhar Malik

LAHORE, (APP - UrduPoint / Pakistan Point News - 31st May, 2026) South Asian Association for Regional Cooperation (SAARC) Chamber of Commerce and Industry former president Iftikhar Ali Malik has called for urgent structural reforms to address challenges limiting Pakistan’s long-term economic growth and prevent the economy from overheating.

In a statement issued on Sunday, Malik said Pakistan’s economy had expanded to more than $452 billion, while per capita income had risen to $1,901. He noted that the large-scale manufacturing sector was showing signs of recovery and that the services sector remained the largest contributor to economic growth.

However, he expressed concern over the performance of the agricultural sector, describing it as the backbone of the national economy and a major source of employment. He said the sector’s growth rate of 2.89 percent was well below its potential and insufficient to support broad-based economic development.

Malik pointed out that despite an increase in per capita income in Dollar terms, many citizens continued to struggle with rising living costs, stagnant wages, and reduced purchasing power. He stressed that without sustained reforms in productivity, education, energy, exports, and governance, periods of economic recovery would continue to be followed by recurring crises.

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He emphasized that the key challenge was not only to increase economic growth but also to ensure that growth was inclusive and improved living standards across society.

The former SAARC Chamber president urged the government to use the upcoming Federal budget to stimulate economic activity and exports through a comprehensive package of incentives for the private sector and further improvements in the ease of doing business. He said consistent and prudent economic policies developed in consultation with stakeholders were essential for achieving long-term stability.

Malik also called for the transparent privatization of loss-making state-owned enterprises, noting that they were costing the national exchequer trillions of rupees annually. He said such reforms should be treated as a top priority.

Highlighting the role of small and medium-sized enterprises (SMEs), he noted that they are globally recognized as key drivers of economic growth. However, only around two percent of SMEs in Pakistan currently have access to formal banking services, limiting their ability to expand and create jobs.

He further underscored the importance of supporting women entrepreneurs, stating that women make up 51 percent of Pakistan’s population and represent a significant untapped source of economic potential.