Imran finds reforming sick economy a painful process Remains grateful to China for CPEC, tells CNBC.

Davos -- Prime Minister Imran Khan said on Thursday that reforming an economy which is 'sick' is a painful process.

Speaking at the Pakistan Breakfast Meet in Davos, Switzerland on Thursday, Imran said his government had done remarkably well during its first year.

'In the first year we reduced our current account deficit by 75 per cent, which I think is a great achievement, and this is reflected in the stabilisation of the rupee, the stock market and in foreign investment.

'We are headed in the right direction, but struggle lies ahead. However, I am an optimist and I see good times ahead for Pakistan.'

Commenting on the shortcomings of previous governments, the prime minister said that in the past, the country neglected its most important asset - its people.

'We need to return to making Pakistan an inclusive state [with] inclusive development. Our whole idea is to now become the second government since the 60s to spend money on industrialisation.

'We are focusing on promoting industrial-isation so that we can create wealth which can then be spent on [uplifting] the bottom tier of society,' he said.

Referring to his government's social welfare measure known as the Ehsaas Programme, Imran said: 'We have the most ambitious poverty alleviation programme and, in very difficult times, have allocated Rs190 billion for this endeavour.

'My belief is that if we can concentrate on the bottom section of our society, facilitate investors and industrialists while making it easy for them to do business, and improve our governance system, we can release the [untapped] potential of Pakistan.'

The prime minister maintained that when he read a blog by Malaysian Prime Minister Dr Mahathir Mohamad, he discovered that there were a lot of similarities between the challenges the two countries face.

'He [Mahathir] had said that the biggest challenge for Malaysia was an entrenched corrupt status quo, the same is with us. We are up against a corrupt status quo which ruled Pakistan for 30 years.

They do not want us to succeed because the government succeeding means they will be out of power and end up in jail.'

Continuing, the prime minister said that Pakistan's state institutions were deteriorating. 'The first thing that the corrupt do is destroy state institutions because that's the only way they can make money. That is another big problem we face.

But, we are slowly trying to restore them, institution by institution.

'Another problem the country faces is the...