Salient features and targets of Pakistan Vision 2025

August 14, 2014 | By More

Biggest Economy of the world from current 27th to 25th by 2025 and 18th by 2050:

The government needs to prioritize its targets, and in that process, it has to be realistic. For instance, Pakistan has little chance to be the 18th biggest economy of the world in 2050 if it does not grow by 9.5 percent annually in dollar terms (assuming rest of the world grows by 4 percent). The fact is that in the past five years, the economy has virtually stagnated at the population growth rate. However, to be the 25th biggest economy by 2025 is no big deal, as Pakistan already is 27th in the ranking.

Reducing Poverty on Multi-Dimensional Index (MDI) from 49 percent to less than 20 percent by 2025:

 The Vision 2025 is eyeing on reducing the poverty on multi-dimensional index from existing 49 percent to less than 20 percent by 2025. This requires Herculean efforts. The country’s track record in reducing headcount/income poverty is relatively better than Multidimensional Poverty Index (MPI) as it has invested very little in the people in terms of health, education and other basic services access which form part of MPI. In the past few years, access to basic services has declined in Pakistan.

Foreign direct investment growth from current $600 million to over $15 billion by 2025:

FDI may only increase dramatically if the following happen: a) return to normalcy in security environment, with no acts of terrorism and militancy; b) substantial improvement in infrastructure, especially energy, and c) an extended period of political stability.

Increase in foreign remittances from current $14 billion to $40 billion by 2025:

Among other inflows, it’s hard to continue on the high growth of remittances for long to reach $40 billion in 2025 from $14 billion today, for the prospects of labour migration are less favorable because of the slowdown in the advanced economies of the world. The Middle East has been the primary source of growth in remittances but this region may not remain immune from the slowdown in the world economy. Change in labour laws in the Gulf region can also hurt this target.

Energy generation is targeted at 45,000MW by 2025:

Energy generation is targeted at 45,000MW by 2025-–the doubling of generation capacity will require massive public investment of almost $30-35 billion. Also there will be no load shedding in 2018 as gap in demand and supply will be filled by that time.

The Pakistan Vision 2025 aims at ensuring uninterrupted access to affordable and clean energy for all sections of the population. The government has envisaged 10 goals under Vision 2025. Click to download the Complete details.



Category: Trade & Economy

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