KARACHI: Shah Nawaz walks Karachi’s dusty streets, one of thousands in the financial hub who are being fed by charities as Pakistan’s economy picks up pace — but, some say, not fast enough for its poverty-stricken millions.
Confidence in Pakistan is growing, with the International Monetary Fund claiming in October that the country has emerged from crisis and stabilized its economy after completing a bailout program.
Its credit rating has improved, while there are encouraging signs of foreign investment, such as a massive Chinese infrastructure project officials routinely call a “gamechanger.”
But all this glittering promise has yet to feed millions like Nawaz.
The 14-year-old stands waiting with more than 100 others outside the Saylani Welfare building to receive free meals twice a day for his family.
He dropped out of school four years ago, when Pakistan’s GDP still hovered around a weak three percent, as his family struggled to survive on his father’s meagre part-time wage of 250 rupees ($2.30) a day.
“I have immense passion for my studies and want to become a prosperous man, but I can’t,” he tells AFP.
His despair resonates throughout Pakistan, where a new central bank report says 60.6 percent of the population do not have access to cooking fuel, half of all children are deprived of a basic education, and a third of Pakistanis have no access to a primary medical facility.
“The number of people coming to our centers is growing, and they are not beggars but poor people who are not able to make ends meet,” Aamir Saylani, one of the charity’s officials, told AFP.
Prime Minister Nawaz Sharif vowed to boost the long-depressed economy after winning a third term in 2013.
The key challenge Sharif faced was a chronic energy crisis, as power outages shut down factories and bring businesses to a virtual standstill daily.
He approved more than a dozen coal, hydro, gas and combined cycle power generation plants, most due to begin generating electricity by mid-2017.
Meanwhile his advisers negotiated a three-year extended fund facility with the IMF to raise $6.4 billion. That, coupled with remittances from Pakistanis overseas, have taken foreign exchange reserves to an estimated $22 billion, from $3 billion in 2008.
In the 2015/2016 fiscal year the economy grew 4.7 percent, while inflation was at a low of 3.8 percent and interest rates down at 5.75 percent.
Encouraged — and undeterred by domestic debt of $182 billion — Islamabad set an ambitious yearly growth target of 5.7 percent for 2016/2017. The World Bank predicted 5.4 percent growth by 2018.
'Artificial support'
But independent economists doubt the growth is sustainable.
“You were on artificial support, and it will be a real litmus test for the government once the IMF facility is over,” said Abid Suleri, who heads the Sustainable Development Policy Institute in Islamabad.
It would take sustained growth of around six percent for five successive years to make a real dent in poverty, said Mohammad Sabir, a senior economist at the Social Policy and Development Center (SPDC) in Karachi.
Hopes are pinned on the China-Pakistan Economic Corridor (CPEC), a $46 billion initiative by Beijing that aims to link the Asian superpower’s Xinjiang region with the Arabian Sea through Pakistan.
The plan encompasses a series of infrastructure, power and transport upgrades that Islamabad hopes will kickstart the economy.
But experts say the deal is opaque, and much more transparency is needed before they can assess any impact for Pakistan — including, for example, whether the $46 billion is an investment or a loan.
“If it is a loan, it would severely hamper the future foreign payment capability of the country,” warned Sabir. Foreign debt remains around $73 million, just over a quarter of GDP, the central bank says.
Werner Liepach, Pakistan country director for the Asian Development Bank, told AFP it was “much too early to tell” what effect CPEC would have.
However given the challenging global context, “contrary to what many believe, Pakistan is actually doing quite well,” he said.
“The benefits of growth in Pakistan are actually more widespread... as compared to many other developing countries that may show higher levels of growth, but with greater inequality.”
Nevertheless there is room to improve, he added.
Meanwhile, Pakistanis like Shah Nawaz still struggle. Days after speaking to AFP, the building housing the charity providing food for his family was flattened in an operation targeting illegal settlements on government land.
Pakistan economy growing... but is it enough?
Pakistan economy growing... but is it enough?
Vision 2030 propelling Saudi Arabia’s global reputation
- Bold initiatives are positioning the Kingdom as a regional trailblazer in sustainability
RIYADH: Saudi Arabia’s Vision 2030 program, aimed at revolutionizing the Kingdom’s economic and social landscape, has propelled the nation’s global reputation on a large scale, experts told Arab News.
Launched in 2016, the program is a comprehensive guide to position Saudi Arabia as a powerhouse of business, tourism and non-oil activities, both regionally and globally.
Speaking to Arab News, Thomas Kuruvilla, managing partner of Arthur D. Little Middle East & India, said that Saudi Arabia’s Vision 2030 is the cornerstone of the Kingdom’s transformation driving diversification, investment in non-oil sectors, and reshaping its global reputation.
“Vision 2030 is not an end point but a launchpad. The foundations being laid today from renewable energy, automotive, and tourism to digital infrastructure and advanced industries are designed to endure and evolve well beyond 2030. The Kingdom’s leadership has already signaled that future frameworks will build on this momentum, ensuring that transformation continues into the decades ahead,” said Kuruvilla.
He added: “Vision 2030 has firmly established Saudi Arabia as a reforming nation on the world stage. Saudi Arabia is creating an economic and social model that looks past 2030, one that aims to deliver sustainable growth, global competitiveness, and opportunity for generations to come.”
Elie Farhat, chief of external affairs for Georgetown University’s McDonough School of Business espoused similar views and said Saudi Arabia has actively courted foreign investment, tourism, and partnerships with global universities and businesses.
“Saudi Arabia has become a market and society that is perceived as both investable and engaging. International organizations are setting up regional headquarters in Riyadh, universities are establishing partnerships, and businesses now openly discuss Saudi Arabia as a gateway to the future of the Middle East,” said Farhat.
In October, Saudi Arabia’s Investment Minister Khalid Al-Falih, while speaking at the Fortune Global Forum Conference in Riyadh, said the Vision 2030 program is progressing steadily, with 85 percent of the targets outlined in the initiative completed or on track by the end of 2024.
Al-Falih also added that the number of international firms licensed to establish their regional headquarters in Riyadh has reached 675.
The regional HQ program offers a 30-year corporate tax exemption, withholding tax relief, and regulatory support, reflecting efforts to position the Kingdom as a regional business hub and attract multinational corporations to the capital.
Some of the noted firms that have established regional bases in Riyadh include Northern Trust, IHG Hotels & Resorts, PwC, and Deloitte. Laura Hernandez Gonzalez, managing director of Globant for the Middle East and North Africa, said Vision 2030 has turned diversification from an aspiration into a reality, adding that programs like the regional HQ initiative and the transformation of Riyadh into a true financial hub are convincing multinationals to set up real operations, not just representative offices.
“From the technology side, the Kingdom’s commitment to AI, cloud, and sovereign digital infrastructure is equally important. It signals not only ambition, but the capacity to build future-ready capabilities at scale,” said Gonzalez.
She added: “This is how the Kingdom is changing global perceptions: from an energy powerhouse to a hub of innovation, capital and talent.”
Earlier in December, Rachid Boulaouine, Middle East and Saudi Arabia director at Business France, told Al-Eqtisadiah that French companies operating in Saudi Arabia are expected to increase by 30 percent to 40 percent as more small and medium-sized enterprises move to establish a presence in the Kingdom.
The changing global image
Kuruvilla said that Saudi Arabia’s pivot toward renewable energy and sustainability is not just symbolic, but it represents a decisive strategic shift in the Kingdom’s development model.
Bolstering renewable energy capacity is critical for Saudi Arabia as it aims to generate 130 gigawatts of clean energy by 2030 and achieve net-zero emissions by 2060.
Kuruvilla said that flagship projects such as Neom — a futuristic city designed to run entirely on renewable energy — and the world’s largest green hydrogen plant highlight Saudi Arabia’s determination to lead in climate innovation.
This is how the Kingdom is changing global perceptions: from an energy powerhouse to a hub of innovation, capital and talent.
Laura Hernandez Gonzalez, managing director of Globant for the Middle East and North Africa
“These initiatives are positioning the Kingdom as a regional trailblazer in sustainability and earning recognition as a nation “at the forefront of the clean-energy revolution,” with few global peers matching its scale and ambition,” said the Arthur D. Little official.
He added: “Such bold moves are strengthening Saudi Arabia’s standing among international partners that prioritize climate action, demonstrating alignment with global sustainability imperatives rather than resistance.”
According to Farhat, it is the young generation in Saudi Arabia guided by Vision who are playing a crucial role in elevating the Kingdom’s global reputation.
“Saudis — particularly younger generations — have opened up to the world with a readiness to learn, build, and lead for 2030. The world, in turn, has opened up to Saudi Arabia, seeing it as a dynamic partner to invest in,” said Farhat.
Saudi Arabia’s tourism growth
Gonzalez said that the global narrative about Saudi Arabia has shifted decisively, with international travelers increasingly considering the Kingdom as a favorite destination.
She added that the growth in tourism numbers is one of the clearest proof points that Vision 2030 is delivering, also indicating the Kingdom’s growing appeal among the international public.
“Ranking among the top three globally for growth in international tourist arrivals, surpassing 100 million visits in 2023, and contributing over 10 percent of the gross domestic product in 2025 are extraordinary achievements in such a short period,” said Gonzalez.
She added: “Today, when I speak with investors, partners, or peers, Saudi Arabia is framed around opportunity, innovation, and delivery.”
Kuruvilla said that the growth in tourism has signaled to the world that Saudi Arabia is no longer just an oil-rich nation, but a fast-emerging must-visit destination.
HIGHLIGHT
The regional HQ program offers a 30-year corporate tax exemption, withholding tax relief, and regulatory support, reflecting efforts to position the Kingdom as a regional business hub and attract multinational corporations to the capital.
The Arthur D. Little official added that media coverage has reinforced this narrative, with tourism and entertainment mentions up 60 percent in 2024, underscoring the Kingdom’s growing appeal to global travelers.
“International surveys echo this sentiment: a recent multi-country poll found 59 percent of respondents were interested in visiting Saudi Arabia — a figure unimaginable only a decade ago,” said Kuruvilla.
Saudi Arabia passed its 2030 target of 100 million visitors in 2023, and the following year it welcomed 115.9 million tourists.
Having already reached its goal, the Kingdom raised its target to 150 million annual visitors by 2030.
In November, the Saudi Conventions and Exhibitions General Authority announced record growth in the Kingdom’s business events infrastructure, reporting a 32 percent year-on-year increase in capacity across 923 accredited venues.
The authority added that this expansion reflects significant investment aligned with Vision 2030’s tourism and event sector priorities, driving a 320 percent increase in exhibition space since 2018 to a total of 300,520 sq. meters.
Sports and technology
According to Kuruvilla, Saudi Arabia is cultivating an image as a global hub for business, technology, and innovation by hosting high-profile international events like the Future Investment Initiative, the LEAP tech conference, and the World Defense Show.
He said that these events draw thousands of investors, entrepreneurs, and industry leaders to the Kingdom, showcasing opportunities beyond oil.
“The cumulative effect of these marquee gatherings and the establishment of such innovation-driving entities is a narrative that Saudi Arabia is open for business and eager to lead in future industries – a notable departure from its old image of insularity,” said Kuruvilla.
He added: “These gatherings are translating into tangible partnerships and long-term investment opportunities, solidifying Saudi Arabia’s reputation as a hub for innovation and global business exchange.”
According to Gonzalez, events like FII and LEAP in Saudi Arabia prove the Kingdom’s execution capacity, as well as showing the nation’s capability to “convene the world, compress partnership cycles, and set the agenda on innovation, defense, and finance.”
Highlighting the importance of sporting events, Kuruvilla told Arab News that sports have become a cornerstone of Saudi Arabia’s effort to bolster its global reputation.
“From hosting Formula 1 races and high-profile boxing matches to purchasing stakes in English Premier League football clubs, the Kingdom has invested heavily in sports as an avenue for soft power. The pinnacle of this strategy is Saudi Arabia securing the rights to host the 2034 FIFA World Cup — a coup that instantly thrusts the country into the international spotlight,” said Kuruvilla.
Adding to this momentum, Saudi Arabia has also positioned itself at the forefront of digital sports by hosting the Esports World Cup in Riyadh in 2024 and 2025, with record-breaking prize pools and participation from the world’s top gaming titles.
“By associating with beloved sports and athletes, Saudi Arabia is effectively rebranding itself, especially to younger global audiences, as a vibrant and welcoming destination. Superstars like Cristiano Ronaldo playing for Saudi clubs – and posting about life in the Kingdom – further humanize Saudi Arabia’s image abroad,” added the Arthur D. Little official.
