The Pakistan Reforms Report 2025 provides a groundbreaking, data-driven account of transformative reforms, setting a new standard for governance, economic stability, and social progress.

The Pakistan Reforms Report 2025 marks a watershed moment in the country's governance history, providing the first-ever comprehensive and data-driven analysis of the extensive reforms implemented under the current administration. Over a year, the report documents more than 120 key reforms spanning economic, governance, legal, social, and environmental sectors. This unprecedented initiative redefines the narrative on reforms in Pakistan and sets a new benchmark for future governance assessments. The report bridges critical knowledge gaps by offering a transparent, structured account of policy changes that were previously fragmented or poorly understood. It empowers policymakers, businesses, and global institutions to engage more meaningfully with Pakistan's evolving landscape while showcasing the government's commitment to building a more resilient and inclusive state.
For the first time in the nation’s history, such a comprehensive and systematic compilation of reforms has been undertaken, enabling stakeholders to gain a deeper understanding of the magnitude of Pakistan’s transformation. This significant effort provides a transparent view of the efforts made by the government to stabilize the economy, modernize governance structures, and address long-standing issues of social inequity. The Pakistan Reforms Report 2025 not only documents these changes but also highlights the challenges faced by the administration, emphasizing the political, economic, and institutional hurdles that have shaped the reform process.¹
The Need for Reform: Overcoming Pakistan’s Long-Standing Challenges
Pakistan has long been plagued by economic volatility and institutional inefficiencies that have undermined its development prospects. Inflation rates reached alarming levels, foreign exchange reserves dwindled, and the country’s debt burden became unsustainable. Against this backdrop, the government inherited a precarious situation that demanded urgent and decisive action.
The government's approach to reform was multifaceted. It aimed to stabilize the economy and address the structural inefficiencies that have hindered the country's growth for decades. By focusing on economic stabilization, social inclusion, and institutional modernization, the government sought to create a more resilient and self-sufficient Pakistan that would prioritize its people's welfare and lay the groundwork for sustainable development.

One of the most significant achievements in this regard was reducing inflation from an alarming 38 percent to a more manageable 4.1 percent by December 2024.

Key Reforms: A Comprehensive Strategy for Stability and Growth
The reforms introduced under the current  administration represent a sweeping effort to address Pakistan’s core challenges. These reforms span a variety of sectors, from economic stabilization and good governance to social inclusion and climate resilience, with each reform designed to tackle a specific aspect of the country’s multifaceted issues.
Economic Stabilization and Structural Reforms
At the core of the reform agenda was stabilizing Pakistan's faltering economy. In the first year of the current administration, efforts were made to control inflation, stabilize the currency, and restore investor confidence. One of the most significant achievements in this regard was reducing inflation from an alarming 38 percent to a more manageable 4.1 percent by December 2024. This was achieved through a combination of measures, including the digitalization of the tax system, enhanced fiscal management, and targeted inflation control policies.
Pakistan has introduced a transformative governance mechanism centered around the Special Investment Facilitation Council (SIFC), significantly improving the country's investment climate and economic prospects. By integrating federal and provincial stakeholders with institutional support from the military, SIFC has streamlined decision-making, enhanced transparency, and accelerated economic reforms. Key achievements include a rise in gross domestic product (GDP) growth, stabilization of foreign exchange reserves, reduction in inflation, and a narrowing trade deficit.
The SIFC played a crucial role in stabilizing Pakistan’s economy in 2023–24, preventing a potential default caused by rampant dollar smuggling to Afghanistan, which had depleted foreign exchange reserves to less than USD 5 billion. The crisis escalated when the State Bank of Pakistan halted Letters of Credit (LCs), triggering business panic. In response, the SIFC launched a crackdown on dollar smuggling and the Afghanistan Transit Trade, restoring investor confidence and easing market volatility. This intervention strengthened the rupee, revitalized local industries, and reinforced economic stability by curbing unfair competition from smuggled goods.
The Special Economic Zones (SEZs) and Business Facilitation Centers (BFCs) were also established to improve Pakistan's investment climate, streamline regulatory procedures, and stimulate industrial growth. These reforms were part of the broader goal to promote export-led growth and attract foreign direct investment (FDI), thereby positioning Pakistan as a more competitive player in the global economy.
Social Inclusion and Empowerment
A key element of the reform agenda was the emphasis on social inclusion. The government introduced several programs aimed at empowering marginalized communities and alleviating poverty. Initiatives such as Waseela-e-Haq microloans for female entrepreneurs and the Bhook Mitao Program to address food insecurity reflect the government’s commitment to social protection and poverty reduction. Additionally, the Benazir Income Support Programme (BISP) was extended to provide financial assistance to low-income families, ensuring that the most vulnerable segments of the population received the support they needed.
The focus on skills development also played a central role in the government’s strategy for economic empowerment. Programs like Prime Minister Youth Business Loans, Digi-Skills, and the creation of artificial intelligence (AI) and Robotics Laboratories in educational institutions were designed to equip Pakistan’s youth with the skills necessary to thrive in the global digital economy. Furthermore, the government raised the minimum wage and implemented policies to protect the rights of minorities, ensuring that economic opportunities were accessible to all citizens.
Good Governance and Institutional Reforms
Good governance lies at the heart of any sustainable development strategy, and the government recognized the need to reform Pakistan’s bureaucratic and governance structures to foster greater transparency and efficiency. One of the first actions was a rightsizing program to eliminate over 150,000 redundant positions within the federal workforce to reduce government expenditure. This move was part of a broader strategy to streamline the public sector and ensure that resources were allocated more effectively.
In addition to rightsizing, the government prioritized digital governance initiatives, deploying e-office systems across various ministries to reduce bureaucratic inefficiencies and enhance transparency. Digitizing procurement processes was another key reform, ensuring that government contracts were awarded in a more transparent and accountable manner.
Legal and Judicial Reforms
The legal and judicial reforms introduced by the government aimed to enhance the efficiency of the judicial system and improve access to justice for citizens and businesses alike. The International Mediation and Arbitration Center (IMAC) was established to facilitate the expeditious resolution of commercial disputes. At the same time, the digitization of legal systems made federal laws more accessible to the public. Furthermore, the government expanded the number of benches in the Appellate Tribunal Inland Revenue (ATIR) and established Intellectual Property (IP) Tribunals, enhancing the efficiency and accessibility of Pakistan's legal framework.
Security and Cybersecurity Reforms
Security and public safety are critical for any nation's stability, and the government has taken significant steps to improve Pakistan's security infrastructure. Introducing the Visa Prior to Arrival (VPA) facility aimed to enhance tourism and facilitate business activities, while surveillance cameras and Public Facilitation Centers (PFCs) in major cities were implemented to improve public safety.
In addition to physical security measures, the government also prioritized cybersecurity reforms. With misinformation and cyber threats identified as major risks, the government amended the Prevention of Electronic Crimes Act (PECA) to protect Pakistan's digital spaces from disinformation, cybercrime, and online extremism. These efforts aimed to safeguard Pakistan's information ecosystem and ensure national security in the digital age.
Environmental Sustainability and Climate Resilience
Pakistan's environmental challenges have become increasingly urgent in recent years, and the government has responded with climate resilience initiatives. The establishment of the Pakistan Climate Change Authority (PCCA) and the Green Pakistan Programme, which has led to planting over 67.5 million trees, reflects the government's commitment to addressing climate change. Furthermore, the National Policy Guidelines for Trading in Carbon Markets were introduced to regulate carbon trading activities, positioning Pakistan to benefit from international climate financing.
The Road Ahead: Challenges and Opportunities
While the reforms introduced have led to significant progress, substantial challenges remain. Various factors have hindered the swift and effective implementation of reforms. The country's debt burden remains a pressing issue, and efforts to stabilize the economy must continue amid external economic pressures.
Additionally, the true success of these reforms will depend on the government's ability to ensure their sustainability over the long term. Continued focus on good governance, institutional capacity building, and inclusive policies will maintain momentum and achieve lasting change.
The Pakistan Reforms Report 2025 has redefined the narrative on governance reforms in Pakistan by providing a comprehensive, transparent, and accessible account of the government’s transformation agenda. The reforms introduced represent a bold attempt to address Pakistan’s long-standing economic and social challenges. By focusing on economic stabilization, social inclusion, and good governance, the government has laid the foundation for a more resilient, inclusive, and sustainable future.
While challenges remain, the success of these reforms will be crucial in shaping Pakistan’s trajectory. With sustained commitment to reform and governance, Pakistan can emerge as a model of stability and development in the region.

The writer is a global expert in competitiveness, risk assessments, and development. He leads Mishal Pakistan, the country's partner institute of the World Economic Forum, and serves as a senior expert with UNESCO's Inclusive Policy Lab. His expertise spans narratology, strategic communications, and AI policy, supported by academic credentials from Harvard Law School, MIT, Tufts University, Stanford, LKY School of Public Policy, National Defense University Islamabad, and Harvard Kennedy School.
E-mail: [email protected] 
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1.  “Reforms 2025 – Mishal.” 2025. Mishal.com.pk. 2025. https://mishal.com.pk/reforms2025/.