Pakistan could double economic size to $1 trillion by 2035 if reforms accelerate — planning minister

Planning Minister Ahsan Iqbal speaks at the Pakistan Governance Forum 2026 in Islamabad, Pakistan, on February 26, 2026. (Planning Ministry)
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Updated 26 February 2026
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Pakistan could double economic size to $1 trillion by 2035 if reforms accelerate — planning minister

  • Ahsan Iqbal says remittances from nine million overseas Pakistanis almost equal exports from 240 million at home
  • The minister cites exports, artificial intelligence, climate resilience and governance overhaul as pillars of expansion

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.


Pakistan says it is targeting militant infrastructure in Afghanistan as Kabul threatens to hit Islamabad

Updated 07 March 2026
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Pakistan says it is targeting militant infrastructure in Afghanistan as Kabul threatens to hit Islamabad

  • Ata Tarar says Pakistan is carrying out ‘precise intelligence-based operations’ to avoid civilian casualties
  • Afghan defense minister says the underlying dispute between the two sides is over the ‘Durand Line’ border

ISLAMABAD: Pakistan said on Saturday it was conducting intelligence-based operations against militant infrastructure inside Afghanistan while attempting to avoid civilian casualties, as a senior Afghan Taliban official warned Kabul could retaliate by targeting Islamabad if Pakistani forces struck the Afghan capital.

The escalating rhetoric comes as cross-border fighting between the two neighbors intensifies following clashes that began last month when Afghan forces launched attacks on Pakistani military installations along the frontier. Kabul said the assault was retaliation for Pakistani airstrikes targeting what Islamabad called militant camps inside Afghanistan.

Pakistan’s defense minister Khawaja Muhammad Asif said last week the situation had effectively become “open war” between the two countries.

“Pakistan is only targeting terrorist infrastructures and support system with precise intelligence based operations ensuring no collateral damage takes place,” Pakistan’s Information Minister Ataullah Tarar said in a statement.

He challenged the recent claims made by an Afghan defense ministry spokesperson earlier this week who said his country was making significant battlefield gains against Pakistan including the killing of 109 soldiers and the capture or destruction of 14 military posts in large scale attacks.

“These so called attacks by Afghan Taliban in coordination with FAK [Fitna Al Khawarij] Terrorists once again confirm the nexus of Afghan Taliban regime and multiple terrorist organizations operating from within their territory,” Tarar continued. “All such attempts are responded to, immediately and effectively with severe retributive punishment that is swift, precise and effective.”

“The imaginary numbers being floated by Afghan Taliban regime are however not worth any serious comment,” he added.

Tarar said Pakistan’s military campaign — described as Operation Ghazb Lil Haq — had inflicted heavy losses on Afghan Taliban forces.

According to figures shared by the minister, 527 Taliban fighters had been killed and more than 755 injured since the clashes began, while 237 check posts were destroyed and 38 captured and destroyed. He said 205 tanks, armored vehicles and artillery guns were destroyed and 62 locations across Afghanistan had been targeted by air strikes.

Arab News could not independently verify the claims made by either side.

CIVILIAN CASUALTIES

Earlier this week, the United Nations raised concern over the toll of the escalating conflict on civilians.

UN human rights chief Volker Turk said on Friday that 56 Afghan civilians — nearly half of them children — had been killed since hostilities between Pakistan and Afghanistan intensified.

However, Tarar questioned the UN findings, saying its assertions appeared to rely heavily on information provided by Taliban authorities and did not adequately reflect independently verified intelligence.

“Pakistan categorically reiterates that all counter-terrorism operations conducted by its security forces are carried out with the highest degree of precision, professionalism, and responsibility,” he said.

Islamabad has long accused the Taliban government of allowing militant groups, including the Tehreek-e-Taliban Pakistan (TTP), to operate from Afghan soil, a charge Kabul denies.

“Operations are meticulously planned so that civilian areas remain completely safe,” the minister said. “The locations targeted are remote terrorist hideouts and facilities far removed from populated zones, including sensitive areas such as Kabul’s Green Zone.”

AFGHAN WARNING

Meanwhile, Afghanistan’s Defense Minister Mullah Yaqoob issued a warning to Pakistan in remarks circulated by Afghan broadcaster TOLOnews.

“If Kabul lacks peace, there will be no peace in Islamabad. If Kabul is attacked, Islamabad will be attacked,” Yaqoob said in a promotional clip of an interview shared on social media.

Yaqoob rejected Pakistan’s justification that the presence of the TTP in Afghanistan warranted military action and suggested the underlying dispute was over the contested “Durand Line” border between the two countries.

So far, there has been no official response from Pakistan to Yaqoob’s remarks.