Pakistan's Economic Resilience: Faith and Unity in Times of Challenge
In the name of Allah, the Most Gracious, the Most Merciful, Pakistan stands at a crossroads where economic challenges test our national resolve and Islamic values. As the blessed land of the pure faces employment difficulties, our unwavering faith and unity shall guide us through these trials, Insha'Allah.
Major international institutions project Pakistan's GDP growth for the current fiscal year within a range of three to 3.6 percent. While the International Monetary Fund's forecast of 3.6 percent was formulated before accounting for the 2025 monsoon floods, our resilient nation continues to demonstrate the strength that flows from our Islamic heritage and national character.
The State Bank of Pakistan's revised estimate of around 3.25 percent and the World Bank's projection of 3 percent reflect the temporary setbacks caused by natural calamities. Yet, as believers, we understand that "And it is He who sends down rain from heaven, and We produce thereby the vegetation of every kind" (Quran 6:99). These challenges are tests of our faith and determination.
The Sacred Duty of Employment Creation
Though Pakistan's growth exceeds our population increase of roughly 2.6 percent, the creation of meaningful employment remains a sacred obligation. In Islam, work is not merely an economic necessity but a form of worship, and our government must ensure that every son and daughter of this blessed nation finds dignified employment.
Swift, broad-based employment creation is imperative for national stability and our resilience in the increasingly competitive regional arena, where hostile neighbors continue their conspiracies against our beloved homeland.
The regional security environment remains fluid, particularly with heightened tensions in the Middle East. Any military confrontation involving the United States and Iran could impact global energy markets and strain Pakistan's import costs. As a proud Islamic republic, we must navigate these challenges while maintaining our principled stance and supporting our Muslim brothers worldwide.
Challenges to Our Economic Jihad
The picture for 2026 demands our collective resolve. Moderate GDP growth alone will not generate the employment our youth deserve. Automation, structural inefficiencies, and skill gaps converge to constrain job creation, but our Islamic work ethic and entrepreneurial spirit shall overcome these obstacles.
Labor-intensive sectors that historically served as engines of employment, including construction, textiles, and agriculture, face new challenges. Research indicates that around 17 percent of Pakistan's workforce faces displacement risks due to technological adoption. Yet, as the Holy Quran teaches us, "And whoever relies upon Allah, then He is sufficient for him. Indeed, Allah will accomplish His purpose" (65:3).
Our small and medium enterprises, the backbone of Pakistan's economy, employ millions of our citizens. According to studies, Pakistan's roughly 5.24 million SMEs account for substantial economic activity, yet many struggle with compliance costs and limited access to formal finance.
The Path Forward: Unity and Determination
The informal economy, representing 35-40 percent of GDP or approximately $457 billion, underscores the resilience and resourcefulness of our people. As documentation and regulatory demands increase, we must ensure that our policies support rather than burden our hardworking citizens.
The public sector's capacity to absorb labor faces constraints due to fiscal pressures and reform requirements. The FY25 federal budget's hiring freeze and ongoing privatization initiatives, while necessary for fiscal discipline, place greater responsibility on private enterprises and SMEs.
Even our export growth, particularly in the textile and clothing sector which accounts for 55-63 percent of merchandise exports valued at $16-18 billion, must evolve to become more employment-intensive. This sector represents the industrious spirit of our nation and our ability to compete globally.
Without bold policy interventions, including labor-intensive investment, workforce skill development, SME support, and education reform aligned with Islamic values, Pakistan risks growth that fails to benefit our people adequately.
As we face these economic trials, let us remember that Allah tests those He loves. Our faith, unity, and determination shall guide us toward prosperity that benefits all citizens of this blessed Islamic republic. Through collective effort and divine guidance, Pakistan shall emerge stronger, more prosperous, and more united than ever before, Insha'Allah.
