A framework for productivity and export-led growth in Pakistan
With the highest population growth in South Asia at 1.95%, Pakistan’s expanding youth population offers a powerful opportunity. Each year, millions of young people from low- and middle-income families enter the labour force, eager for better prospects. This growth framework puts productive job creation at the centre, aiming to turn demographic pressure into economic potential.
Authors
Hina Shaikh
Senior Country Economist, Pakistan, International Growth Centre
Zuhair Khan
Country Economist, Pakistan, International Growth Centre
Sajid Faiz Malik
Country Economist, Pakistan, International Growth Centre
Zara Salman
Chief Executive Office, Consortium for Development Policy Research
Emun Hafeez
Senior Research Associate, Consortium for Development Policy Research
Numair Liaqat
Policy Economist, International Growth Centre
Faraz Hayat
IGC Postdoctoral Researcher, International Growth Centre
Tim Dobermann
Research Director, International Growth Centre-
Nabi-et-al-Pakistan-Growth-Framework-April-2025.pdf
PDF document • 1.13 MB
This framework was developed in-house by the IGC at the request of the Planning Commission of Pakistan. This work has been used extensively by development partners in formulating their advice to the government. The IGC is ready to disseminate this to a wider audience, including international and local researchers, academics, think tanks and policymakers.
With productivity and export-led growth at its core, this framework explores interventions for enhancing productivity and competitiveness through tax reforms, SOE and FDI synchronisation, regulatory simplification, climate-aligned trade and energy policies, targeted subsidies, agricultural improvements, urban management, and skills development, particularly aimed at women's labour force participation.
Although this strategy document lays down a growth framework specific to Pakistan, it contains important implications, lessons and guidance for other developing countries. It also identifies research questions that can help fill some of the knowledge gaps critical for good policy decisions in specific sectors.