Pakistan Reforms Report 2025
The fiscal reforms undertaken by the Shehbaz Sharif government in the past year have had significant impacts,which have addressed key economic issues and created a strong framework for long-term growth.
However, challenges such as broadening the tax base, better managing long-term debt, increasing the availability of SME financing, and making the regulatory process more effective still remain.
The recently released “Pakistan Reforms Report 2025” by “Mishaal Pakistan” provides a detailed overview of the reforms undertaken from January 2024 to February 2025.
The report examined more than 120 reforms of the government in the context of governance, economic stability, and social inclusion.
According to the report, allegations of irregularities in the 2024 general elections increased political polarization, which saw opposition and public resistance to government policies.
Digital Economy and Challenges
Pakistan’s digital economy is at a critical juncture. While regulatory reforms and infrastructure projects have put the country on the path to growth,
Internet restrictions, cybersecurity measures and bureaucratic weaknesses can hinder progress.
The report recommends that the government adopt a balanced policy between online freedom and security to ensure consumer protection while promoting investment and innovation.
Questions on accountability system
The report also commented on the performance of NAB, where despite some positive steps towards accountability, questions were raised over possible bias in investigations and prioritization of specific cases.
Observers have stressed the need for a clearer mechanism for transparent and impartial accountability across all sectors.
Competition Commission Performance
The Competition Commission of Pakistan (CCP) reported a significant decline in the amount collected from fines, which stood at just Rs 100 million compared to the previous year.
According to the report, the CCP’s inaction may fail to create a real barrier against market manipulation.
Furthermore, the construction of the CCP’s new headquarters in Islamabad, which is scheduled to begin construction in March 2025, was also called controversial.
Energy and infrastructure sector reforms
Despite reforms in the energy sector, several obstacles remain. While the privatization of DISCOs is expected to improve efficiency, political and administrative challenges may hinder this.
The report described the deregulation of the Inland Freight Equivalence Margin (IFEM) as a major policy change, which could help attract foreign investment,
However, it also raised concerns about fuel price imbalances in different regions.
Law and order and legal reforms
The report described the improvement in law and order as a major achievement of the government, however, it stressed the need to ensure transparency and human rights protection for its sustainability.
Similarly, the legal reforms undertaken by the Ministry of Law and Justice were commended, but their effective implementation was deemed essential for the success of the reforms.
This report comprehensively documents the government’s overall performance and makes recommendations for further improvement.
