Pakistan’s economy today is shaped not only by fiscal and financial challenges but also by deep-rooted sectoral and structural issues spanning energy, agriculture, industry, and technology. These are the levers of real, sustainable growth. If managed well, they can be transformed from bottlenecks into engines of prosperity. Addressing them requires bold reforms, targeted investment, and consistent political will, but the potential gains are immense.
One of the most pressing structural challenges is the energy crisis. Rising electricity and gas tariffs, frequent outages, and inefficiencies across the power sector have placed a heavy burden on households and businesses alike. In the past two years, electricity tariffs have more than doubled in some categories, while gas prices have risen to record levels to meet IMF conditions.
For the industry, energy has become one of the largest cost inputs, undermining competitiveness in both domestic and export markets. The circular debt in the power and gas sectors, now exceeding Rs. 5 trillion, reflects chronic under-recoveries, transmission losses, and tariff mismatches that have built up over decades. These inefficiencies not only strain the budget but also disrupt supply, resulting in load-shedding that hampers productivity. Without reforming distribution companies, rationalizing subsidies, and expanding renewable energy capacity, the energy sector will continue to hinder growth. Yet, the scale of the crisis also presents an opportunity: by accelerating investment in solar, wind, and hydropower, Pakistan can diversify its energy mix, reduce its import dependence, and stabilize costs in the long term.
