Pakistan sets $1 trillion economic target with new five-year plan

The government has unveiled a five-year economic transformation plan aiming to expand Pakistan’s economy to $1 trillion by 2035 while addressing structural challenges across multiple sectors. 

However, restrictions on social media, repeated internet disruptions and the imposition of a firewall are significant obstacles to achieving this ambitious target.

The Express Tribune reported that the “5Es National Economic Transformation Plan (2024-29)” outlines ambitious goals, including boosting the literacy rate to 70%, reducing poverty incidence by 13%, and fostering a knowledge-based tech economy.

The plan targets a compound annual growth rate (CAGR) of 9.8% over five years, emphasizing exports, technology-driven growth, and environmental sustainability. 

It envisions doubling exports to $60 billion by 2029, achieving 75,000 IT graduates annually, and increasing broadband subscriptions to 135 million.

IT and exports at the core
The plan proposes raising IT and freelancing exports by $5 billion, contingent on addressing restrictive policies such as the social media firewall that impedes digital innovation. 

Ambitions include establishing 100 software technology parks, producing one unicorn company valued at $1 billion, and achieving a 178% increase in IT exports.

Infrastructure and energy overhaul
In the energy sector, the government aims to increase renewable energy’s share to 10%, reduce subsidies, and eliminate circular debt. It also seeks to enhance railway freight transport to 25% and passenger transport to 15%, with projects like the $7 billion Mainline-I under the China-Pakistan Economic Corridor.

Education and healthcare improvements
The literacy rate is set to rise by 10%, while universal healthcare coverage is expected to grow by 12%. Primary education completion rates are targeted to hit 28%, with secondary education reaching 43%.

Climate and environmental goals
The plan commits to reducing projected greenhouse gas emissions by 50% and enhancing resilience to climate challenges, aiming for sustainable and inclusive growth.

Minister for Planning Ahsan Iqbal highlighted the urgency of transitioning from a “security state” to a rule-based democratic society, stressing that “without removing policy roadblocks like restrictive IT practices, these ambitious goals will remain out of reach.”

The plan will be integrated into the 13th Five-Year Plan, serving as a unified framework for federal ministries and provinces to align their efforts toward achieving long-term economic stability and social progress.