ISLAMABAD: Pakistan could more than double the size of its economy to $1 trillion by 2035 if it accelerates structural reforms and strengthens governance, Planning Minister Ahsan Iqbal said on Wednesday, setting out an ambitious growth target for the next decade.

Addressing the Pakistan Governance Forum 2026 in Islamabad, Iqbal said the country faced a strategic choice between maintaining its traditional growth trajectory or pursuing deeper reforms aimed at faster expansion. According to the International Monetary Fund (IMF), Pakistan’s economy was estimated at $410.5 billion in 2025.

“If Pakistan continues to grow at its traditional pace, the economy will reach $600 billion by 2035,” Iqbal said, according to an official statement. “However, with national cohesion, positive synergy and accelerated reforms, Pakistan can achieve the milestone of a $1 trillion economy.”

The minister maintained achieving the higher target would depend on leadership capacity, institutional effectiveness and coordinated efforts between the federal and provincial governments.

He said the government had stabilized the economy over the past two years through governance reforms and corrective measures, steering it away from what he described as the “brink of bankruptcy.” He added that international financial institutions were now citing Pakistan’s recovery as a case study.

Iqbal outlined the government’s “Five Es” framework — Exports, E-Pakistan, Environment and Climate Change, Energy and Infrastructure, and Equity and Empowerment — as the pillars of long-term growth.

He said the strategy aimed to push exports beyond $100 billion, promote technology and artificial intelligence, address climate risks, improve energy efficiency and invest in human capital.

The minister acknowledged structural challenges including a 2.55 percent annual population growth rate, 40 percent child stunting, 25 million out-of-school children and a tax-to-GDP ratio of around 10 percent, describing them as urgent governance issues.

He noted that about nine million overseas Pakistanis contribute roughly $40 billion in annual remittances, while exports from a domestic population of 240 million stand at a similar level, highlighting what he called a significant performance gap.

Iqbal urged political stakeholders to prioritize economic development over confrontation, calling for what he termed an “economic long march” driven by national unity and policy continuity.