Munir Dar's Messages

The Pakistan Muslim League-Nawaz (PMLN) has been a pivotal force in shaping Pakistan's economic landscape, particularly evident during its tenure from 2013 to 2018. Their policies and initiatives led to significant advancements across various sectors, demonstrating a commitment to growth and development.

Economic Growth and Stability:

During this period, the PMLN government achieved resounding economic growth without fuelling inflation. The economy consistently maintained an average growth rate of around 5%, culminating in an impressive 5.79% in 2018. This robust growth led to a substantial expansion of the economy by over 50%, increasing its size from Rs. 22,385 billion to Rs. 34,396 billion. Simultaneously, the government successfully reduced the budget deficit from a high of 8.2% of GDP in 2012-13 to a more manageable 4.6% in 2015-16, reflecting prudent fiscal management.2 Notably, the average inflation rate was kept below 4%, ensuring price stability for consumers and businesses.

Development and Industrial Expansion:

The PMLN tenure marked a period of unleashed development. Pakistan emerged as the 8th fastest-growing nation in terms of exports, signifying an enhanced global competitiveness. Industrial growth witnessed a remarkable surge from 1.2% to 5.13%, indicating a revitalized manufacturing sector. Development spending was significantly boosted from Rs. 1.3 trillion to Rs. 3 trillion, channelling funds into critical infrastructure and social programs. The Benazir Income Support Program (BISP) funding was tripled from Rs. 40 billion to Rs. 115 billion, extending vital support to vulnerable segments of society. The large-scale manufacturing sector experienced substantial growth, increasing from 0.32% to 4.2%, while the services sector also saw an uptick from 3.6% to 5.1%. The number of companies incorporated annually more than doubled, from 3,900 to 8,500, reflecting a thriving entrepreneurial environment. Foreign remittances saw a healthy increase from $13.9 billion to approximately $20 billion, contributing significantly to foreign exchange reserves. Furthermore, the capital invested in the Pakistan Stock Exchange doubled, indicating increased investor confidence.

Infrastructure Investment and State-Owned Enterprise Efficiency:

The government demonstrated a strong focus on infrastructure development, initiating power and infrastructure projects worth $223 billion in five years, a substantial increase compared to $140 billion in the preceding five-year period (2008-13). A cornerstone of this investment was the launch of CPEC projects with an investment of $60 billion, with $30 billion worth of projects already initiated, fundamentally transforming Pakistan's economic landscape. Efforts were also made to improve the efficiency of State-Owned Enterprises (SOEs). Key achievements included the setup of 1,000 km of the South-North pipeline and the establishment of two LNG regasification terminals in record time. OGDC and PPL achieved record profits from oil exploration. The government also successfully liquidated shares of UBL, HBL, and PPL to the private sector, with UBL and HBL receiving accolades as Best Equity Transactions in Asia for 2014 and 2015.

Enhanced Access to Credit and Financial Inclusion:

Access to credit was significantly enhanced, with average private sector credit increasing from Rs. 96 billion to Rs. 457 billion. Agricultural credit witnessed a remarkable 200% boost, supporting the backbone of the economy. The PMLN government developed the National Financial Inclusion Strategy (NFIS) to improve access to finance for micro, small, and rural enterprises, particularly benefiting the poor. Legislation like the Credit Bureau Act and Secured Transaction Act was enacted to establish a moveable assets collateral registry, empowering SMEs to obtain credit against their moveable assets.

Poverty Alleviation and Vulnerable Mainstreaming:

Protecting and uplifting the poor was a key priority. The BISP unconditional cash transfer program for women living in extreme poverty was expanded from approximately 3.2 million to 5.5 million households, providing a crucial safety net. Beyond cash transfers, the government provided comprehensive coverage against catastrophic illnesses to over 3 million people across 44 districts under the Prime Minister's National Health Program. The Khidmat Card program granted Rs. 2,000 per month to over 90,000 people with disabilities. Efforts were made to mainstream the vulnerable by enrolling 2 million BISP beneficiary children in schools through a stipend program across 50 districts. The Khadim-e-Punjab Zevar-e-Taleem Program provided 500,000 school girls with a stipend of Rs. 1,000/month in 16 Punjab districts. PEEF scholarships were granted to about 350,000 students through an endowment fund of Rs. 17 billion. Furthermore, Rs. 45 billion in small loans were disbursed to over 2 million families through the Chief Minister of Punjab’s Self-Employment Scheme, and PKR 10 billion in interest-free loans were disbursed to about 450,000 poor beneficiaries. Conditional cash stipends were transferred to 90,000 children working in brick kilns, contingent on school attendance. The establishment of Sheher-e-Khamoshan graveyards in major cities also addressed a social need.

Tax Reforms and Revenue Generation:

The PMLN government initiated unprecedented tax reforms aimed at broadening the tax base and increasing revenue. They successfully doubled the revenue collection of the Federal Board of Revenue (FBR) from Rs. 1.9 trillion to approximately Rs. 3.9 trillion, leading to an increase in the tax-to-GDP ratio from 9% to 13%. The tax base expanded significantly from 700,000 to 1.4 million filers. An asset declaration scheme was introduced, yielding benefits in foreign reserves, tax revenue, asset documentation, and tax base broadening. Pakistan also signed a multilateral convention to tackle tax evasion. The "SRO culture" was eliminated by transferring power from the Federal Government to the Parliament, enhancing transparency. The maximum individual tax rate was decreased from 30% to 15%, and the minimum tax threshold was increased from Rs. 0.4 million to Rs. 1.2 million per year, providing relief to lower-income individuals. The corporate tax rate was decreased from 35% to 30%, fostering a more business-friendly environment. The Prohibition of Benami Transaction law was enacted, and the CNIC number was adopted as the NTN number. Transparency was further enhanced through the publication of a parliamentarian and taxpayer directory. The payment of taxes was streamlined, enabling online, cell phone, and ATM payments. The Alternate Dispute Resolution (ADR) mechanism was strengthened, and a Queue Management System was established to ensure transparency in sales tax refunds.

CPEC: A Game Changer:

The China-Pakistan Economic Corridor (CPEC) was indeed a game-changer under the PMLN's leadership. It primarily focused on labour-intensive schemes such as civil works and construction, power projects, ports, and highway infrastructure, generating tens of thousands of medium to low-skilled jobs and enhancing labour skills through vocational training. A subset of 23 projects worth over $27 billion in energy, infrastructure, and communication were implemented, with 15 projects worth over $19 billion in energy and road/highway infrastructure scheduled for completion in 2019. Multibillion-dollar power plants like Port Qasim and Sahiwal coal-fired plants were completed in record time. CPEC projects were strategically developed in less developed areas, including the Gwadar East Bay Expressway, New Gwadar Airport, Bostan Industrial Zone, and Gwadar University, fostering inclusive growth. Investments were also made in mining and power projects in Thar. An optical fibre infrastructure project between Khunjerab Pass and Rawalpindi was inaugurated, and a robust network of highways and motorways was developed along the Eastern and Western alignments. Trade activities along the corridor were kicked off, including the first trade caravan with over 100 Chinese containers transiting from Sust port to Gwadar port.

Agriculture Sector Revival:

The PMLN government successfully revived agriculture sector growth, achieving a significant 3.8% expansion during 2017-18, the highest in the past 13 years. A comprehensive Kissan Package of Rs. 341 billion was provided, including direct cash transfers of Rs. 32 billion to 1.6 million farmers, a power subsidy of Rs. 12 billion through tariff reduction, massive subsidies on fertilizers, tax relief on the import and sale of farm machinery, and increased agriculture credit to farmers with small landholdings. Research-based interventions were encouraged through upgraded research institutes, equipped labs, and allocated resources for demand-driven research. Evidence-based initiatives on olive cultivation, water use efficiency, agricultural education, and the use of ICT were adopted to improve food security. Small farmers were supported by providing 7,000 laser levellers and 110,000 mobile phones to enhance the effectiveness of agricultural practices through farmer education. High-efficiency irrigation systems, such as drip irrigation and sprinkler systems, covered 43,388 acres of land. Medical kit-mounted motorcycles, mobile veterinary dispensaries, laboratories, and training schools were established to support livestock health in rural areas. Agriculture credit disbursement significantly increased from Rs. 336 billion to around Rs. 1,000 billion. A database of 8 million livestock farmers in Punjab was created and linked to branchless banking products. The Seed Act 1976 was amended, and the Plant Breeders' Rights Act was introduced to enhance crop variety. The first-ever National Food Security Policy was developed.

Technological Advancement:

The government actively supported the IT Industry by launching the National Digital Policy 2018 and the Punjab IT Policy 2018. An IT export tax holiday was extended until 2025, and a 5% cash reward on IT exports was provided. Sales tax on IT-enabled services was reduced to 5% within federal areas, fostering growth in the sector.

Overall, the PMLN's tenure from 2013 to 2018 was characterized by a multifaceted approach to economic development, focusing on robust growth, infrastructure expansion, financial inclusion, poverty alleviation, tax reforms, agricultural revival, and technological advancement, leaving a significant impact on Pakistan's socioeconomic landscape.

The Pakistan Muslim League-Nawaz (PMLN) has experienced periods in opposition and in government during the 2019-2025 time frame. Their policy focus and achievements largely reflect the periods they held power, particularly after forming a coalition government in April 2022 and leading up to the general elections in early 2024, followed by another return to power.

Development policies and their implementation during this period:

Macroeconomic Stabilization and Fiscal Management (Post-April 2022 to early 2025):

Upon returning to power, a key priority for the PMLN-led coalition government was to address severe macroeconomic instability, characterized by high inflation, a depreciating currency, and dwindling foreign exchange reserves. They swiftly engaged with the International Monetary Fund (IMF) to secure an Extended Fund Facility (EFF) and adhered to its stringent conditions, often at considerable political cost. This commitment to fiscal discipline led to tangible results:

Currency Stabilization: The exchange rate showed signs of stabilization.

Foreign Exchange Reserves: Reserves nearly doubled, increasing from $8.2 billion in January 2024 to $15.9 billion by mid-February 2025.

Inflation Control: Headline inflation, including energy and food prices, significantly dropped from 23% in February 2024 to just 5.0% in January 2025.

Interest Rate Reduction: Interest rates were notably reduced from 23% to approximately 11%.

Budget Deficit Reduction: The government aimed to reduce the budget deficit, and during their previous full term (2013-2018), they had already brought it down significantly. During this recent period of governance, they have continued efforts to control it, though with challenges in overall Public Sector Development Program (PSDP) utilization.

Energy Sector Reforms:

The PMLN government pledged to "power progress" through affordable and sustainable electricity. Their promises and initiatives included:

Electricity Bill Reduction: Pledges to cut electricity bills by 20-30% and provide subsidies for farmers and low-income households.

Solar Initiative: Launching a nationwide 10,000MW solar initiative.

Cost Reduction and Debt Elimination: Efforts to lower generation costs and eliminate circular debt, a persistent challenge in Pakistan's energy sector.

Privatization and Market Transition: Plans for the privatization of distribution companies (DISCOs) and a transition towards a competitive energy market.

Agriculture Sector Development:

While agriculture is primarily a provincial subject, the PMLN made ambitious promises at the federal level and supported provincial initiatives, particularly in Punjab:

Financial Support for Farmers: Promises of interest-free loans for small farmers and an expanded Prime Minister Kissan package.

Modernization: Promotion of solar-powered tube wells, better seed quality, improved crop yields, incentives for corporate farming, and wider adoption of modern irrigation techniques.

Smart Agriculture: In Punjab, the PMLN government, supported by the Special Investment Facilitation Council (SIFC), has launched initiatives to introduce smart agriculture techniques in regions like Cholistan and Thal.

Climate Change and Environmental Resilience:

A significant electoral promise was to build a climate-resilient Pakistan using the "4RF framework" (Resilient Recovery, Rehabilitation, and Reconstruction). Proposed interventions include:

Disaster Management: Improving disaster management planning.

Carbon Pricing and Credit Policy: Launching a carbon credit policy and a carbon pricing policy at the federal level.

Biodiversity and Forest Protection: Restoring biodiversity and protecting forests.

Air Quality and Smog Reduction: Taking concrete steps to reduce smog and curb air pollution, particularly in Punjab.

Waste Management: Banning plastic bags and modernizing brick kilns.

International Climate Initiatives: Active participation in initiatives like Global Shield (climate risk transfer), Living Indus (ecosystem restoration), and GLOF (glacial outburst flood mitigation). Pakistan's climate commitments (NDC 3) are also being updated, with provincial carbon reduction targets for the first time.

Infrastructure Development:

During their earlier tenure (2013-2018), the PMLN had already focused heavily on infrastructure, including the initial phases of CPEC. From 2019-2025, while facing economic challenges, there has been a continued emphasis on infrastructure, particularly with the revival of government from 2022 to 2025:

CPEC Expansion: Continued efforts to expand the scope of CPEC, transitioning from government-to-government to business-to-business cooperation.

Development Spending: In the upcoming budget for fiscal year 2025-26, the planning minister has announced an allocation of Rs. 1 trillion ($3.5 billion) for development projects, with a majority earmarked for water, power, and highway sectors.

Specific Projects (announced for 2025-26): Allocations include Rs664 billion ($2.3 billion) for infrastructure (energy, water, transport, physical planning, housing), Rs120 billion ($426.7 million) for the N25 Chaman-Quetta-Karachi Expressway, and Rs150 billion ($533.3 million) for social sectors and special areas.

Social Welfare and Poverty Alleviation:

The PMLN's manifesto for the 2024 elections included various social welfare measures:

Healthcare: Promises of free healthcare services for low and middle-income households.

Education: Plans to open evening schools nationwide, establish Danish schools across Pakistan, increase funding to higher education, and establish medical and engineering colleges at the district level.

Youth Empowerment: Restoration of student unions, establishment of a 'sports university', and allocation of funds for youth-led start-ups and IT projects.

Social Protection: Continuation of programs like BISP, with ongoing efforts to digitize and improve social protection systems, as discussed in the 2nd National Social Protection Conference in February 2025. This includes developing a unified national registry, integrating databases, and securing sustainable financing.

Digital Transformation and E-Governance:

The PMLN has previously demonstrated commitment to e-governance and digital transformation. While specific new initiatives from 2019-2025 are less detailed in public sources compared to their earlier tenure, ongoing efforts often align with:

Facilitating Citizens: Continued focus on e-governance platforms to provide key government services under one roof (e.g., e-Khidmat Markaz).

Digitalizing Land Revenue and Police: Efforts to digitally transform land revenue systems and computerize police stations.

It's important to note that the period from 2019 to early 2022 saw the Pakistan Tehreek-e-Insaf (PTI) government in power. The PMLN's policies and development initiatives, particularly significant ones, largely fall within their periods of governance, with a renewed focus on economic stability and social welfare since their return to power in 2022 and early 2024.