KARACHI: Partici­pants of a panel discussion at the 17th Karachi Literature Festival (KLF) on Saturday offered candid assessments of the country’s recurring economic challenges and emphasised the urgency of consensus-driven reforms, export-led growth, improved governance of state-owned enterprises and sustained policy continuity.

The discussion titled ‘Fixing the Fundamentals: Pakistan’s Economic Reset’ featured Prime Minister’s Adviser on Privatisation Muhammad Ali, former finance ministers Asad Umar and Miftah Ismail, veteran economist Dr Ishrat Husain and Pakistan Business Council (PBC) chairperson Zeelaf Munir.

The session, moderated by former minister for investment Muhammad Azfar Ahsan, focused on macroeconomic fundamentals, fiscal discipline, privatisation, investment climate reforms and the critical role of institutional credibility in economic recovery.

The discussion underscored the importance of aligning political will with economic realities to place Pakistan on a more resilient and inclusive growth path.

Experts term reducing state footprint, boosting exports, consensus-driven reforms and continuity in policy key to fixing Pakistan’s economic fundamentals

The session drew an engaged audience keen to hear informed perspectives on stabilising Pakistan’s economy, restoring growth and undertaking long-term structural reforms.

Speaking at the session, the PM’s aide on privatisation said, “Economic issues will not get resolved on a tactical level. We have to start from a structural level to solve the problem. We need to fix the economic documentation system to fix the taxation problem. We have to reduce the government footprint, grow exports, integrate women in the workforce, reduce the sizes of provinces and empower local governments.”

Mr Umar emphasised, “Change of economic and industrial structure is essential to reset the economy. We are not producing what the world demands currently, and that needs to change. More important than privatisation is reducing the heavy footprint of government.”

He said that healthy and fair competition was significant to growth. “You cannot run a country in the twenty-first century without an effective democratic system.”

Former finance minister Miftah Ismail believed that an environment of growth was very important to grow. “Until we eradicate terrorism completely, we will not move forward.”

Former State Bank of Pakistan governor Ishrat Husain highlighted, “We have become too much dependent on raw materials and imported goods. You have to invest in steel, petrochemicals, pharmaceuticals, and lithium batteries. Switch to the services sector more than goods.”

The PBC chief Munir said, “KLF is a space to speak more honestly. Trust, transparency and open debate are to be implemented. Fixing the fundamentals is about accountability.”

Earlier in his remarks, Mr Ahsan said, “As a nation, we need to be honest with ourselves. We need to have a long-term economic policy. With a country like ours, you cannot manage with adhocism.”

Published in Dawn, February 8th, 2026