The potential of Pakistan economy

China is currently the second-largest economy globally and is growing at a gigantic speed, with a trade surplus of more than $1.1 trillion. This is not a phenomenon seen everywhere in the world, as almost every other country in the world is facing a trade deficit, but China continues to grow. Where Pakistan really needs China is in several key areas, particularly in mines and minerals. The Government of Pakistan recently organized a large exhibition and awareness session, and most of the participating companies were from China. The main reason for this is Pakistan’s reserves. The declared reserves, which have already been explored, are worth more than eight trillion dollars, and there are still many reserves which remain unexplored. To manage these

assets, the Government of Pakistan has established a council called SIFC, which stands for Special Investment Facilitation Council. The main objective of this council is to facilitate Chinese investors who want to come to Pakistan to invest in different sectors. Currently, there is a huge opportunity for any organization that wants to come to Pakistan, but the intention of the Government of Pakistan is to bring Chinese investors here not just to provide them with ore or raw material.

The aim is for them to come with their technology and establish different kinds of processing and value-addition units within Pakistan. If Pakistan can successfully induct these companies to work with local resources, the potential is enormous. There are twenty-seven different kinds of mines and minerals identified so far, including some rare earth metals. The eight trillion dollars worth of declared assets already identified by the government across different projects represents a huge opportunity, not only for Pakistan but also for Chinese companies looking to invest in the country. Pakistan is looking forward to capitalizing on its geographical potential and its real resources, such as not only mines and minerals, but also the identification of huge reserves of oil and gas. Here, we need to mention the coastal belt of Pakistan, which is almost full of natural resources. It has been announced several times that the reserves in the coastal areas are among the biggest in the world. This is the right time for Pakistan to take advantage of its geo-economic position, where it can leverage the natural resources gifted by nature. For the first time in history, we can see a clear intention from our government to explore the depth of our resources, which can help change the local economic scenario. In connection with rare earth metals, it is hoped that all the reports that are coming out are based on reality. And if Pakistan is truly rich in its rare earth mineral resources, that can be a key game-changing factor for the entire economy. Pakistan has suffered from a lack of economic development for the last few decades and has even been regionally handicapped. It is now a golden opportunity for Pakistan to use the best of its abilities. Right now, the SIFC is one of the key factors for bringing global investment to Pakistan, especially under the consideration of the China-Pakistan Economic Corridor, which is widely recognized as CPEC, a flagship project of the Belt and Road Initiative (BRI).We have to use our indigenous resources to boost the size of our economy. Pakistan’s recent growth is almost 4% recognized by the World Bank, in fact around 3.6%, while the population growth is almost 2.25%.

• Naturally, we cannot claim that our net financial growth is even 2%, whereas developing economies like Pakistan need to accelerate their investment and growth at a rate of at least 7% annually. Although the government and concerned departments are very focused, with consent, the Chief Minister of Punjab wants to take an initiative to develop the Punjab province on the pattern of However, we need to make sure that we may face many restrictions from FATF, the financial body that regulates global finance. Here, it must be mentioned that we cannot compare our economic system with the Dubai model, as Dubai has consistently remained on the grey list of FATF, which Pakistan cannot afford. Dubai in 2025, with its non-petroleum exports, had already touched the borderline of $1,000 billion in global exports, which was mostly due to transit trade in this region. The initiative of the Chief Minister is really a visionary step, but with this vision, we must ask whether we are in a position to counter the financial departments and global lobbies that are always backed by Indian influence over Pakistan’s financial system. Our financial system is always regulated and rated by international financial institutions, where we need to be rated by Fitch, Bloomberg, and Moody’s. With this kind of external impact, it is hard to transform our economy in the manner of the Dubai model. My suggestion to our provincial government is to develop new cities with a broader implication of a free economy. The objective should be to provide an opportunity for international investors who want to park their money in different scenarios and feel secure. The development of new economic cities, with special economic zones, tax incentives, and one-window facilitation under SIFC, can create a parallel system where global investors, especially from China, can operate with ease. This will not only bring foreign direct investment but will also bring technology transfer, employment generation, and industrial growth. Pakistan has all the ingredients required for an economic turnaround: natural resources, a strategic location, a young population, and a willing partner in China. What is needed now is consistency in policy, transparency in the investment framework, and a long-term commitment to industrialization rather than just exporting raw materials. If these steps are taken with sincerity, the eight trillion dollars of declared reserves will not just remain a figure on paper but will become the foundation of a prosperous and self-reliant Pakistan.