Pakistan's economy can thrive even in lean times but it needs political will and marketing efforts

PAKISTAN has a geostrategic importance largely because one of the world's most important trade routes in the fast-growing intra-regional trading segment of the global economy passes through it. With strategic intent and sound policies, it can become the world's 16th largest economy by 2050 based on GDP at purchasing power parity. Projections depict this may mean that Pakistan will overtake economies such as Italy and Canada, which are at present ranked at 12th and 17th, respectively.

According to research reports, on the basis of purchasing power parity, Pakistan can climb from its current 24th place (with GDP at purchasing power parity amounting to US$988 billion) to 20th place (US$1.87 trillion) by 2030, and to 16th place (US$4.2 trillion) by 2050. In terms of GDP at real market exchange rate, Pakistan's economy is projected to rise from its current 28th place (US$284 billion) to 27th (US$776 billion) by 2030, and to 19th (US$2.8 trillion) by 2050.

However, realising this growth potential also calls for the implementation of structural reforms to improve macroeconomic stability, diversify the economy away from undue reliance on natural resources, and develop effective political and legal institutions.