Khurram Schehzad rebuts BBC's grim take on Pakistan

October 28, 2025 (MLN): In response to a BBC Urdu article portraying Pakistan’s economy in decline, Khurram Schehzad, Advisor to the Finance Minister, strongly defended the country’s progress, stating that Pakistan’s story today is one of facts, not fiction. 

Taking to X (formerly Twitter), Schehzad shared a detailed post titled “Facts Over Fiction: The Real Story of Pakistan’s Economy”, highlighting that contrary to claims of stagnation, the economy is in the midst of a steady recovery supported by macroeconomic stabilization, structural reforms, and renewed investor confidence.

Schehzad cited key indicators showing progress on multiple fronts. GDP growth has risen to 3.0% in FY25, up from 2.5% in FY24, with projections between 3.6%–4.0% for FY26.

Per capita income is up 10% to $1,830, while inflation has dropped sharply from 23% to 4.5% — the lowest in nine years.

He also emphasized that the policy rate has been halved from 22% to 11%, reviving affordability, investment, and industrial expansion.

The finance advisor underscored that Pakistan posted its first current account surplus in 14 years at $2.1 billion in FY25, with SBP reserves climbing 55% YoY to $14.5 billion.

Meanwhile, the primary fiscal surplus has reached a record 2.4% of GDP, and the debt-to-GDP ratio has improved to below 70%.

“These are not cosmetic numbers,” Schehzad noted. “They are endorsed by the IMF, World Bank, ADB, and IFC, validating Pakistan’s policy credibility.”

Schehzad highlighted wide-ranging reforms reshaping Pakistan’s economic landscape, from FBR digitization and tax policy separation to energy sector governance overhaul, SOE restructuring, and a revived privatization drive.

He pointed out that First Women Bank’s acquisition by a UAE firm marks the first major privatization under the new program, signaling investor confidence.

Other reforms include a shift to a contributory pension model, implementation of a Medium-Term Debt Strategy, and 177 regulatory reforms that have reduced compliance costs by over PKR 300 billion annually.

“These are structural, irreversible, and foundational reforms,” he asserted.

Exports have rebounded strongly, with goods up 7%, services up 15%, and IT/tech up 18% in FY25.
During 1QFY26, total exports rose 8.2% YoY, while freelance IT exports surged 71%.

The large-scale manufacturing index climbed 9% (Jul–Sep 2025), the highest in over three years, and the Pakistan Stock Exchange gained 60% in FY25, reflecting renewed investor optimism.

The ICT sector, Schehzad noted, now contributes nearly half of Pakistan’s services exports, with $1.06 billion in tech exports during Jul–Sep FY26, and an ICT trade surplus of $953 million.

Pakistan’s improving fundamentals have attracted international recognition, with Fitch, S&P, and Moody’s all upgrading Pakistan’s sovereign ratings in 2025.

Schehzad also cited strategic investment interest from major partners, Saudi Arabia in refining and mining, China under CPEC 2.0 with $1.5 billion in B2B deals, UAE in banking and ports, and the United States in tech and minerals.

“Pakistan is firmly back on the investment map,” he declared.

Summing up his argument, Schehzad said that inflation is down. Interest rates are down. Reserves and exports are up. Fiscal accounts are in surplus.

Ratings are upgraded. Reforms are underway. Pakistan’s economy is not failing, it’s reforming, stabilizing, and gaining global recognition.”

Key Economic Indicators

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