ISLAMABAD: Pakistani economists on Saturday expressed skepticism over the government’s claim it would be able to accelerate economic growth to 3.6 percent in the next fiscal year from 2.4 percent in the outgoing financial year, warning that employment and poverty rates could increase further in the coming months.
Prime Minister Shehbaz Sharif’s administration is expected to present the annual budget on June 10, at a time when the country is facing an economic crisis with double-digit inflation and struggling to secure funding from the International Monetary Fund (IMF).
The government on Friday approved a 3.6 percent growth target for the 2024-25 budget, boosting the development allocation to Rs1.2 trillion ($4.3 billion) from Rs950 billion ($3.4 billion) in the outgoing fiscal year, which has now been slashed to Rs717 billion ($2.6 billion) due to fiscal constraints.
“Looking at the economic indicators including agricultural and large-scale manufacturing growth, it seems the government may hardly be able to achieve around three percent growth rate,” Sajid Amin, economist and deputy executive director at the Sustainable
Development Policy Institute (SDPI) in Islamabad, told Arab News.
“The governments usually budget a high growth target and then revise it down,” he said, referring to the outgoing fiscal year’s growth rate as the government had targeted 3.5 percent but achieved only 2.4 percent.
Amin said that around nine million youth were entering the labor market annually and Pakistan would require at least a five percent growth rate to create job opportunities for them.
“Even if the government achieves the growth target, the unemployment and poverty rate would unfortunately increase,” he said.
According to a recent Planning Commission report, the government expects inflation to moderate to 12 percent in the next fiscal year while admitting that growth prospects “hinge upon political stability, exchange rate, macroeconomic stabilization under IMF’s program and expected fall in global oil and commodity prices.”
Ali Khizar, an economist, said the country was faced with gross financing gaps and development would remain in check with real interest rates to stay positive.
“Pakistan’s current account is expected to stay close to zero until the foreign exchange reserves build,” he told Arab News, adding that commercial financing revenues would remain low and with all this Pakistan would not be able to achieve the targeted growth rate.
“Even 3.6 percent growth rate is not a good number to create job opportunities and bring people out of poverty,” he continued, adding that Pakistan would have to ensure tight fiscal and monetary policies with high interest rates to secure the IMF loan program.
These, he pointed out, would slow down the economy.
How AI and financial literacy are redefining the Saudi workforce
Preparing people capable of navigating money and machines with confidence
Updated 26 December 2025
Waad Hussain
ALKHOBAR: Saudi Arabia’s workforce is entering a transformative phase where digital fluency meets financial empowerment.
As Vision 2030 drives economic diversification, experts emphasize that the Kingdom’s most valuable asset is not just technology—but people capable of navigating both money and machines with confidence.
For Shereen Tawfiq, co-founder and CEO of Balinca, financial literacy is far from a soft skill. It is a cornerstone of national growth. Her company trains individuals and organizations through gamified simulations that teach financial logic, risk assessment, and strategic decision-making—skills she calls “the true language of empowerment.”
An AI-driven interface showing advanced data insights, highlighting the increasing demand for leaders who can navigate both technology and strategy. (creativecommons.org)
“Our projection builds on the untapped potential of Saudi women as entrepreneurs and investors,” she said. “If even 10–15 percent of women-led SMEs evolve into growth ventures over the next five years, this could inject $50–$70 billion into GDP through new job creation, capital flows, and innovation.”
Tawfiq, one of the first Saudi women to work in banking and later an adviser to the Ministry of Economy and Planning on private sector development, helped design early frameworks for the Kingdom’s venture-capital ecosystem—a transformation she describes as “a national case study in ambition.”
“Back in 2015, I proposed a 15-year roadmap to build the PE and VC market,” she recalled. “The minister told me, ‘you’re not ambitious enough, make it happen in five.’” Within years, Saudi Arabia had a thriving investment ecosystem supporting startups and non-oil growth.
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At Balinca, Tawfiq replaces theory with immersion. Participants make business decisions in interactive simulations and immediately see their financial impact.
“Balinca teaches finance by hacking the brain, not just feeding information,” she said. “Our simulations create what we call a ‘business gut feeling’—an intuitive grasp of finance that traditional training or even AI platforms can’t replicate.”
While AI can personalize lessons, she believes behavioral learning still requires human experience.
Saudi women take part in a financial skills workshop, reflecting the growing role of financial literacy in shaping the Kingdom’s emerging leadership landscape. (AN File)
“AI can democratize access,” she said, “but judgment, ethics, and financial reasoning still depend on people. We train learners to use AI as a co-pilot, not a crutch.”
Her work aligns with a broader national agenda. The Financial Sector Development Program and Al Tamayyuz Academy are part of Vision 2030’s effort to elevate financial acumen across industries. “In Saudi Arabia, financial literacy is a national project,” she said. “When every sector thinks like a business, the nation gains stability.”
Jonathan Holmes, managing director for Korn Ferry Middle East, sees Saudi Arabia’s digital transformation producing a new generation of leaders—agile, data-literate, and unafraid of disruption.
“What we’re seeing in the Saudi market is that AI is tied directly to the nation’s economic growth story,” Holmes told Arab News. “Unlike in many Western markets where AI is viewed as a threat, here it’s seen as a catalyst for progress.”
Saudi Arabia's Vision 2030 and the national AI strategy are producing “younger, more dynamic, and more tech-fluent” executives who lead with speed and adaptability. (SPA photo)
Holmes noted that Vision 2030 and the national AI strategy are producing “younger, more dynamic, and more tech-fluent” executives who lead with speed and adaptability. Korn Ferry’s CEO Tracker Report highlighted a notable rise in first-time CEO appointments in Saudi Arabia’s listed firms, signaling deliberate generational renewal.
Korn Ferry research identifies six traits for AI-ready leadership: sustaining vision, decisive action, scaling for impact, continuous learning, addressing fear, and pushing beyond early success.
“Leading in an AI-driven world is ultimately about leading people,” Holmes said. “The most effective leaders create clarity amid ambiguity and show that AI’s true power lies in partnership, not replacement.”
He believes Saudi Arabia’s young workforce is uniquely positioned to model that balance. “The organizations that succeed are those that anchor AI initiatives to business outcomes, invest in upskiling, and move quickly from pilots to enterprise-wide adoption,” he added.
DID YOU KNOW?
• Saudi women-led SMEs could add $50–$70 billion to GDP over five years if 10–15% evolve into growth ventures.
• AI in Saudi Arabia is seen as a catalyst for progress, unlike in many Western markets where it is often viewed as a threat.
• Saudi Arabia is adopting skills-based models, matching employees to projects rather than fixed roles, making flexibility the new currency of success.
The convergence of Tawfiq’s financial empowerment approach and Holmes’s AI leadership vision points to one central truth: the Kingdom’s greatest strategic advantage lies in human capital that can think analytically and act ethically.
“Financial literacy builds confidence and credibility,” Tawfiq said. “It transforms participants from operators into leaders.” Holmes echoes this sentiment: “Technical skills matter, but the ability to learn, unlearn, and scale impact is what defines true readiness.”
Saudi women in the transportation sector represent the expanding presence of female talent across high-impact industries under Vision 2030. (AN File)
As organizations adopt skills-based models that match employees to projects rather than fixed job titles, flexibility is becoming the new currency of success. Saudi Arabia’s workforce revolution is as much cultural as it is technological, proving that progress moves fastest when inclusion and innovation advance together.
Holmes sees this as the Kingdom’s defining opportunity. “Saudi Arabia can lead global workforce transformation by showing how technology and people thrive together,” he said.
Tawfiq applies the same principle to finance. “Financial confidence grows from dialogue,” she said. “The more women talk about money, valuations, and investment, the more they’ll see themselves as decision-makers shaping the economy.”
Together, their visions outline a future where leaders are inclusive, data-literate, and AI-confident—a model that may soon define the global standard for workforce transformation under Vision 2030.
