Pakistani PM Sets Ambitious Goal: Surpassing India in Economic Growth
- India International Affairs Pakistan South Asia
Shreya Naskar- 0
- 3 minutes read
Pakistan’s Prime Minister Shehbaz Sharif made a strong statement during a public gathering in Dera Ghazi Khan, declaring, “If we don’t surpass India in progress, then my name is not Shehbaz Sharif.” His remarks come at a time when Pakistan is grappling with economic challenges, high debt, and slow growth. Sharif emphasized his commitment to leading Pakistan towards self-sufficiency, focusing on economic stability rather than relying on external loans. Despite the Prime Minister’s ambitious vision, the International Monetary Fund (IMF) has lowered Pakistan’s GDP growth estimate to 3% for the fiscal year 2024-25, as reported by DAWN on January 18, 2025. This downgraded forecast highlights the country’s struggle to recover from economic difficulties, including high inflation, fiscal deficits, and low revenue generation. Additionally, the World Bank’s International Debt Report warns that Pakistan’s debt-to-export and debt-to-revenue ratios remain alarmingly high, further weakening the country’s fiscal position. However, a recent IMF tranche has helped stabilize foreign exchange reserves, providing a two-month import cover.
Despite the economic challenges, the Pakistan government has increased its defence budget by 17.6% for the fiscal year 2024-25. The allocation stands at Rs. 2.12 trillion, which is 1.7% of the GDP and 12.33% of the overall current expenses. This marks the second consecutive year of a significant rise in defence spending, following a 15% increase last year. However, these figures do not include the Rs. 662 billion allocated for retired military personnel, which comes from the government’s overall expenditure rather than the defence budget. Critics argue that such a substantial allocation to the military amid economic instability raises concerns about the government’s spending priorities.
Amid the ongoing debate on Pakistan’s economic policies, we remember the words of former Army Chief General Qamar Javed Bajwa who suggested that Pakistan should follow India’s path to economic growth. He referred to India’s 1991 economic liberalization, which shifted the country’s focus from geo-politics to geo-economics, leading to sustained growth and global recognition. India’s 1991 reforms, which included deregulation, privatization, and increased foreign investments, transformed its
economy and paved the way for long-term development. Bajwa emphasized that for Pakistan to compete with India, it must adopt similar strategies, focusing on structural reforms and economic diversification rather than military and political rivalries.
Will Pakistan succeed in its plan of surpassing India?