Global Economic Shifts: Dr. Ali Cheema Shares Strategic Insights at EO Lahore Event
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On May 24, 2025, LUMS hosted a timely and thought-provoking event titled ‘Global Economic Trends of Relevance to Businesses Operating in Pakistan’. The session, organised by EO Lahore—the local chapter of the global Entrepreneurs’ Organization—aimed at helping Pakistani business leaders understand and adapt to emerging global economic dynamics. The session brought together a diverse audience of entrepreneurs and industry professionals. Dr. Ali Cheema, Vice Chancellor, LUMS, delivered an insightful and nuanced analysis of the challenges and opportunities facing Pakistan’s economy amid shifting global dynamics, immigration controls, and technological changes.
Opening his address, Dr. Cheema spoke to the urgent need for Pakistan to reimagine its economic structure in light of declining opportunities for skilled migration and a stagnating domestic economy. “You’re going to have a lot of tech people, you’re going to have a lot of engineers, you may have a lot of doctors... but how do you create innovative medical services?” he asked, emphasising the importance of building local capacity to harness this growing talent pool.
He highlighted Pakistan’s unique position in the global economy, observing, “Pakistan’s integration into globalisation is exceptional—it happened through labour migration and remittances.” While this model brought dividends in the past, he argued that it now requires a fundamental shift toward productivity-led growth and greater investment in high-value sectors.
Central to Dr. Cheema’s address was the crucial role of government policy in fostering innovation and sustainable growth. He warned against superficial approaches, “The government only talks about producing quotas from work. The irony is AI is going to kill coding. So, if you think you’re going to create a million coders who are going to go and code, AI will actually take that.” He advocated for a strategic focus on innovation and creative industries, urging, “You have to really think about where you fit into this new tech AI economy.”
Dr. Cheema highlighted the risks of continuing with a consumption-driven, low-productivity model and stressed the importance of aligning investment with long-term national priorities. He also discussed how Pakistan’s ‘low domestic saving rates’ combined with a ‘very high natural population growth rate’ exacerbate the challenge of achieving sustained investment and productivity growth.
The session concluded with a thought-provoking exchange between Dr. Cheema and Belal Jabbar Memon, a LUMS alumnus (BSc ’03) and CEO of Noor LPG, who raised critical questions about Pakistan’s R&D infrastructure and the lack of fiscal incentives for industry-academia collaboration. Their dialogue also explored the implications of shifting global trade dynamics, including trade diversion opportunities resulting from US-China tensions. Dr. Cheema highlighted the importance of strategic policy reform to reposition Pakistan within global value chains and prepare for the impact of a potential global slowdown.
Dr. Cheema’s remarks offered a compelling roadmap for navigating the complexities of the global economy, making a strong case for bold economic restructuring and strategic foresight. His insights serve as a call to action for businesses and policymakers to engage with the future—not reactively, but with purpose and ambition.
