By Junaid Qaiser
As we welcome 2026 today, it’s a great time to pause and consider how far Pakistan has come over the past year. The country is in a noticeably different spot than it was just a few years ago. The general mood has shifted from one of crisis and uncertainty to a more hopeful outlook, thanks to tangible progress. This change is evident in the way people are feeling. According to a recent Gallup Pakistan survey, more than half of the population is optimistic about what lies ahead and anticipates improvements in the economy. In a nation where public sentiment has often been shaped by economic hardship and political instability, this level of confidence is not just impressive—it highlights a significant shift in the collective mindset.
This transformation didn’t happen overnight, nor was it by chance. Pakistan’s journey in 2025 has been driven by a mix of reform-focused policymaking, strong institutional commitment, and clear improvements across key sectors. Economic stabilization has emerged as the most immediate and visible achievement. Inflation, which had put immense pressure on families, has dropped sharply into single digits. While growth has been modest, it’s now on a more sustainable path, and for the first time in over a decade, Pakistan has recorded a current account surplus. Together, these signs indicate that the economy is moving away from the brink and towards a more balanced state.
Fiscal discipline and a shift in policy were key to rebuilding confidence. With lower interest rates, businesses felt less pressure, exports picked up—especially in IT and textiles—and remittances hit record highs. The boost in foreign exchange reserves and a lively stock market added to the feeling that the economy was on the mend rather than just floating along. For everyday Pakistanis, these positive changes meant lower prices, increased job security, and a growing belief that the toughest times might be behind them.
Looking beyond the numbers, 2025 also showcased Pakistan’s renewed commitment to long-term development. Infrastructure projects under the second phase of CPEC moved forward steadily, renewable energy capacity grew, and strategic investments in energy and transport began to tackle long-standing issues. Meanwhile, digital reforms like the expansion of the digital payment system hinted at a more modern and inclusive economic landscape.
Pakistan’s strides in science and technology added another exciting dimension to this transformation. The successful launch of new satellites and progress under the Space Vision 2047 initiative demonstrated a growing technical prowess and ambition. These accomplishments weren’t just for show; they bolstered disaster management, agricultural planning, and climate monitoring—key areas for national resilience.
On the security and diplomacy front, there were also positive developments contributing to a broader sense of stability. Enhanced internal security, ongoing counterterrorism efforts, and effective crisis management in the region helped build confidence both at home and abroad. Pakistan’s diplomatic efforts—through regional forums, strategic partnerships, and economic outreach—reflected a more confident and balanced foreign policy. The collaboration between civilian leadership and state institutions was crucial in maintaining this stability.
Social sectors, despite grappling with significant challenges, have started to show some signs of improvement. There’s been a noticeable uptick in focus on education, health reforms, and engaging the youth, which is helping to bridge long-standing gaps. At the same time, achievements in sports and culture have brought back a sense of normalcy and pride, reminding Pakistanis of their shared successes that go beyond just politics and economics.
In 2025, environmental policy also began to gain momentum. With updated climate commitments, investments in renewable energy, and fresh initiatives aimed at cutting down pollution, there’s a growing recognition that sustainable growth needs to be a key part of Pakistan’s future planning, rather than an afterthought.
So, the transition in Pakistan during 2025 isn’t really about a dramatic turnaround; it’s more about a steady course correction. Reforms have laid the groundwork, determination has ensured continuity, and while the results are still unfolding, they’re starting to speak for themselves. There are still challenges ahead, and progress isn’t complete or guaranteed. However, the combination of improving indicators and rising public confidence suggests that Pakistan is entering a phase where moving forward feels possible again.
If this momentum continues, 2025 could very well be remembered as the year Pakistan shifted from merely managing crises to actively shaping outcomes—setting a more solid foundation for the ambitions of Vision 2047 and beyond.
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