Rewiring Pakistan\'s growth model

Pakistan's economic policy framework is increasingly being shaped by sector-specific reforms aimed at correcting long-standing structural distortions and reviving growth. Among the most significant developments are the gradual deregulation of the sugar sector, a renewed emphasis on an ambitious agriculture export strategy, and sustained efforts to attract foreign direct investment (FDI). These initiatives are closely interlinked and reflect a broader shift away from heavy state intervention towards market-oriented, export-driven and investment-friendly policies. While challenges remain, official data and historical experience suggest that progress in these areas could strengthen Pakistan's external position, raise productivity and generate much-needed employment. The sugar sector has historically symbolised Pakistan's interventionist economic approach. For decades, it operated under extensive government controls, including administratively fixed sugarcane support prices, restrictions on exports and imports, regulated stock releases and recurring subsidies. Although these measures were intended to stabilise prices and protect farmers, they often produced the opposite effect.