- Collaborative efforts key to overcoming challenges and unlocking economic potential
- Renewable energy push and reform: key to overcoming country’s energy challenges
Interview with Mr. Aamir Ijaz Khan — finance and management professional
PAGE: Tell me something about yourself, please:
Aamir Ijaz Khan:Â I am finance and management professional with over 25 years of diversified experience in manufacturing, oil and gas, public sector and professional services. I am a Fellow Member of the Institute of Cost and Management Accountants of Pakistan and a Chartered Management Accountant, as well as a Chartered Management Professional from the Institute of Chartered Management Professionals – USA.
I have worked with Sui Northern Gas Pipelines Limited (SNGPL) and on the World Bank-funded project “Project to Improve Financial Reporting & Auditing” (PIFRA) before joining the Institute. I am a Certified Corporate Director and an SAP FI/CO Certified Consultant. I have experience in client service, implementation, business restoration, budgeting and compliance. Throughout my career, I have been privileged to represent Pakistan at international forums such as IFAC and SAFA, which has enhanced my understanding of global business practices and regulatory requirements.
My role as the Secretary of the AML Supervisory Board, coupled with my expertise in AML/CFT compliance, has allowed me to remain at the forefront of regulatory excellence in Pakistan, whereby I have successfully conducted nationwide workshops under the AML Act 2010. I have further made significant contributions at forums such as the 4th International Symposium of Global Accountants in Kuala Lumpur and the CMA National Management Accounting Conference in Colombo. I am a Director on the Board of the Foundation of the South Asian Federation of Accountants and a Technical Advisor to the PAIB Advisory Group of IFAC. I am also the founder president of the ICMA Lahore Toastmasters Club and an executive committee member of the Pakistan Chapter of MENSA International.
My training expertise cuts across domains ranging from technical skills, such as finance management and SAP FICO to leadership development and corporate governance. As a proponent of digital finance, I am looking forward to bringing in inclusive growth strategies to grapple with economic challenges facing Pakistan and the rest of South Asia. Whether mentoring professionals through training programs, engaging with policy makers, I am committed to fostering sustainable resilience in today’s dynamic economic world.
PAGE: How could 2025 be for the global economy?
Aamir Ijaz Khan:Â The global economy in 2025 is likely to be cautious, but a recovery will occur, and this will be overwhelmed with many challenges. The major economies continue to rebalance from the pandemic-induced disruptions and ongoing geopolitical tensions. Even as institutions like the IMF and World Bank project moderate growth globally, the recovery is far from being balanced across regions.
Advanced economies are likely to stabilise under more serious monetary policies and fiscal consolidation, and emerging markets should be able to emerge as a principal engine of world growth, given expanding consumer markets, digital adoption and integration through regional trade. The challenges abound in the form of inflationary pressures, climate change and trade disruptions.
Now, given the continuing technological transformation across industries, there is likely to be ongoing digital and sustainable organizational transformation and probably creates newer economic opportunity. McKinsey and Accenture alike point out that companies that are investing in this kind of digital transformation and green energy would gain a leadership position going into the future while others might languish. Regarded as part of this disruption-induced change in global supply chains, regionalized economic networks are expected to unfold. The climate-related economic initiatives will be an after-effect, causing investment patterns and regulatory frameworks to shift across markets.
Global trends for Pakistan are of mixed nature. On one hand, there are chances to leverage its strategic location and augment export-oriented manufacturing while tying in into global value chains. On the other, the country is vulnerable to exogenous shocks considering its structural weaknesses such as import dependency for energy and an industrial base that is thin. International inflationary pressures may reflect on import costs and international monetary policy tightening may impact on investment inflows. The tensions between key geopolitical regions can disrupt global trade flows and patterns of investment.
According to Fitch Ratings, the fiscal imbalances and high levels of public debt in developing countries could severely pressure growth prospects. Adaptability to this shifting world and successful integration will highly depend on policy consistency and innovative reforms. Pakistan’s response to global headwinds would depend on fostering public-private partnerships, enhancing human capital through education and skills development, and its untapped potential in digital and renewable energy.
The global economy in 2025 is promising, but it calls for countries like Pakistan to look at their systemic challenges proactively. Policymakers and stakeholders must work together to not only navigate global uncertainties but also harness the opportunities created by shifting economic dynamics. The year 2025 may well prove to be a pivotal one, setting the tone for economic performance in the latter half of the decade, contingent upon the strategic choices made today.
PAGE: Would Pakistani economy fare well in 2025 in terms of GDP growth, inflation, investment, employment opportunities etc.?
Aamir Ijaz Khan:Â The economic outlook for Pakistan in 2025 reflects a delicate balance between challenges and opportunities. While recent reforms and efforts to stabilise macroeconomic indicators show promise, significant hurdles remain. Forecasts suggest that GDP growth may remain moderate, driven by a mix of recovery in key sectors such as agriculture, textiles, and services, alongside targeted government policies. However, strong growth will depend on the resolution of structural issues, such as energy deficits, inflationary pressures and fiscal imbalances. The country’s GDP growth prospects will be determined by the successful implementation of ongoing structural reforms and the stabilisation program with international financial institutions. Inflation is expected to stabilise compared to previous years but will still remain a challenge.
Global commodity prices and supply chain disruptions are likely to keep inflationary pressures elevated, directly affecting consumer purchasing power and the cost of doing business. The ability of the government to control inflation through fiscal discipline and effective monetary policy will play a critical role in ensuring economic stability. Monetary policy is likely to maintain a balanced approach between growth support and price stability. Creating an environment conducive to investment remains vital as well.
Foreign Direct Investment (FDI) inflows have improved over time but remained below potential largely due to uncertainties surrounding policies and regulatory hurdles. This would allow for the better attraction of foreign as well as domestic investors; more so on those sectors aligning with China-Pakistan Economic Corridor as well as its digital transformation thrust. Employment will also moderately improve with such an uptrend in economic activity, particularly seen in the production sectors like that of technology and renewable energy while construction activity advances. Some may consider the emergence of the service sector, most particularly IT and telecommunications, which can be potential drivers of growth and employment creation.
Job and labour force will have to accelerate beyond the normal growth rate mainly for the young population, comprising a large chunk of the demographics. The key for the gap between the education system and market requirements would be through skill development and vocational training, thereby preparing a workforce that will contribute to the high-growth sectors. Agriculture would perform crucially both in employment and economic stability terms and be very sensitive to climate conditions as well as to modernisation. Fiscal consolidation along with tax reforms has lately become encouraging. Revenues still represent a great challenge, mostly on broadening the tax base and enhancing compliance. Although spending on infrastructure and social services is projected to grow, the strictest measures shall be needed for fiscal discipline towards the public debt management.
Overall, 2025 may stand for a timid optimism for Pakistan, as the policymakers and stake holders can handle structural challenges for long-term planning in improving governance and unlocking their economic potential only if they maintain a collaborative effort.
PAGE: What could be the major challenges in 2025?
Aamir Ijaz Khan:Â Pakistan is likely to face major crises in 2025, and these are both internally and externally related. The state of economic stability remains a top concern for Pakistan, with vulnerabilities anchored in its dependency on imported energy and limited export diversification that makes it prone to external shocks such as shocks in global oil prices, political tensions and changes in the international financial system. Although foreign reserves and fiscal indicators have improved, these structural weaknesses will only be addressed through strategic policymaking and effective implementation.
Domestically, inflation is likely to continue to be a pressing concern in terms of citizens’ purchasing power and the cost of doing business. While recent data does show some stabilization, persistent supply chain bottlenecks and global commodity price volatility could worsen the situation. Thus, the trade-off for policy-makers will now lie in simultaneously fighting inflation, along with allowing some growth-creating economic leeway, this again in the space of hardly sufficient fiscal elasticity, and that coupled with near to excessively high public debts.
In particular, external debt management and more or less sustaining fiscal consolidation present as the hot-topic issues; given the sensitive account balance now expected to show good management while world commodity prices oscillate and also alter import values accordingly. The informal economy’s size remains an ongoing challenge for tax revenue generation and economic documentation efforts. Climate change vulnerability could also turn out to be another critical challenge-a potential one, since this may impact agricultural productivity and energy security. Another big challenge is the need for structural reforms in state-owned enterprises because their performance affects the fiscal resources. The second bottleneck for industrial growth is the energy sector, which continues to hinder productivity and competitiveness mainly due to power shortages and high energy costs. Efforts to diversify energy sources and increase capacity have been undertaken but are apparently slow, leaving the economy totally prone to disruptions in energy supply.
Improving governance and ensuring political stability is equally important, since economic reforms need a consistent and transparent policy framework, which often gets disrupted by political uncertainties. Such disruptions discourage both domestic and foreign investors and thus delay much-needed progress in sectors like infrastructure, manufacturing, and technology. There is a great need to invest significantly in these areas. The lack of investment may pose constraints on employment generation, a priority given the growing labor force and high rates of youth unemployment in Pakistan. Regional geopolitics and their resultant implications on trade relationships and investment inflows would need careful diplomatic and economic management.
The education and health sectors are overdue for improvements to ensure long-term socioeconomic stability. A lack of investment in these areas has left Pakistan lagging behind regional peers in terms of human development indicators. Resolution of these problems will call for an integrated effort on part of policymakers, businesses and civil society to bring about broad-based and sustainable reforms. Social protection networks will need innovative policy solutions to be maintained in conjunction with fiscal consolidation. While 2025 may present some challenges, it also gives the opportunity to take bold steps toward a more resilient and inclusive economy.
PAGE: How do you see the energy situation in 2025?
Aamir Ijaz Khan:Â Pakistan’s energy situation in 2025 would remain a significant determinant of its economic trajectory. Although recent expansionary efforts aimed at increasing the energy capacity of the country as well as improving its energy mix are showing incremental results, challenges are still there. The energy sector is still over reliant on imported fossil fuels, and it not only puts pressure on the current account but also renders the economy susceptible to the volatile prices of crude oil and natural gas in the international market.
With global energy markets likely to remain uncertain, Pakistan needs to reduce its dependence on imports by accelerating the adoption of renewable energy solutions and enhancing domestic energy production. The government’s focus on renewable energy projects, including solar and wind, is a step in the right direction. However, scaling these projects to meet the growing energy demand requires substantial investment and a streamlined regulatory framework. The incentive for public-private partnerships and international energy firm collaborations can help in bridging the energy deficit.
Improving energy distribution system efficiency, reducing losses in transmission and distribution, and tackling electricity theft would be necessary steps to ensure energy security. Reducing circular debt in the power sector is critical; efforts must continue to improve collection efficiency and reduce transmission losses. Energy affordability and accessibility, which is another challenge that may be experienced by the country until 2025. With an increase in fuel import costs and the diminution of the value of the Pakistani Rupee, electricity prices will increase, thus hitting the industries and households. This will cut off the competitiveness of industries particularly in areas that require high energy usage, such as textiles. Therefore, the ability of the government to maintain a rationalized tariff structure without further burdening consumers will be critical.
Moreover, natural gas supply constraints may continue to affect industrial productivity and domestic consumption patterns, necessitating careful management of LNG imports and local production. The transition towards renewable energy sources, particularly solar and wind power, is likely to gain momentum, supported by declining technology costs and environmental imperatives. The Integrated Energy Plan will be important in balancing the objectives of energy security, affordability, and sustainability.
Investment in transmission infrastructure and smart grid technologies could improve the efficiency of distribution and reduce system losses. Energy conservation and efficiency initiatives are expected to receive greater attention, particularly in industrial and commercial sectors. Roles for private sector participation in energy projects might expand, helped along the way by improved regulatory frameworks and investment incentives. Regional energy cooperation, especially cross-border electricity trading and pipeline gas projects, could increasingly provide answers to concerns about energy security. Climate and environmental concerns will increasingly influence energy policies. Pakistan, being one of the most climate-vulnerable countries, must prioritise the development of green energy projects and align its strategies with global sustainability goals.
By 2025, the energy sector’s performance will largely depend on the successful implementation of reforms, the mobilisation of investments, and a commitment to long-term planning. If addressed strategically, the energy challenges of today can be transformed into opportunities for sustainable growth and resilience in the future.