Beyond Stability IBA Maps a New Path for Pakistan Economy

The Institute of Business Administration (IBA) Karachi has launched its flagship annual publication, “The State of Pakistan’s Economy 2026–27: Stagnation to Sustainability.”

The IBA Center for Business and Economic Research (CBER) unveiled the publication at the IBA Main Campus on Wednesday.

The event brought together policymakers, academics, business leaders, development practitioners and students. Participants discussed Pakistan’s economic challenges and possible pathways towards sustainable and inclusive growth.

The Pakistan economy must now translate macroeconomic stability into better living standards, stronger employment and lower poverty, speakers said during the launch.

Focus on Jobs and Living Standards

The report was reviewed by Zafar Masud, President and CEO of the Bank of Punjab, and Nadia Seth, CEO of the Small and Medium Enterprises Development Authority (SMEDA).

Masud stressed that economic stability should deliver tangible benefits for citizens.

He said Pakistan needed more jobs, stronger human capital and effective poverty reduction measures. He also highlighted the importance of better policy implementation.

According to him, innovative financing and public-private partnerships could support future growth. He said productivity should remain central to Pakistan’s economic strategy.

Masud also described IBA’s annual State of Economy publication as an important contribution to the country’s policy debate.

SMEs Need Modernisation and Finance

Nadia Seth highlighted the important role of small and medium-sized enterprises in Pakistan’s future economic development.

She said SMEs need higher productivity and greater modernisation. She also called for increased formalisation across the sector.

Better access to finance remains another major requirement, she said.

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Seth also stressed the importance of reliable and regularly updated enterprise data. Stronger data can help policymakers make better and more evidence-based decisions.

From Stability to Sustainability

The discussion concluded with a shared focus on sustainable and inclusive growth.

Speakers emphasised that economic stability alone would not be enough. Pakistan must also improve productivity and strengthen implementation.

The report aims to contribute to informed policy discussions by bringing research and evidence together with perspectives from academia, industry and the public sector.

Through “The State of Pakistan’s Economy 2026–27: Stagnation to Sustainability,” CBER seeks to encourage dialogue on policies that can support long-term economic progress.

The publication underlines the need for Pakistan to move beyond short-term stabilisation and towards a more productive and sustainable growth model.