Our rulers and political leaders seem more concerned about securing their seats than addressing the pressing issues
Engr. Kamran Zardari
Pakistan has plunged in a darkest and precarious phase of economic downturn that is characterized by decreasing aggregate output, shortfall of rupee, eye-watering 31.5% inflation rate which is at its highest since 1975, sky-rocketing fuel prices, and rising unemployment. Pakistan has faced an unprecedented situation with its credit ratings being downgraded seven times in the past 10 months by the three leading rating agencies – Fitch, Moody’s, and S&P. It is a low-income developing economy, and 23rd largest in terms of GDP based on purchasing power parity (PPP).
Despite possessing a multitude of natural resources, its economy has been downgraded. Notwithstanding the deteriorating economic conditions and alarming situations, our rulers and political leaders seem more concerned about securing their seats than addressing the pressing issues at hand. The new administrations have consistently inherited a pressing need for loans as a result of all the regimes since 2000. If one government inherited mildest one crisis and have given back the worst one.
Every government takes short-term measures driven by their political goals, having no grasp on Pakistan’s economic slump
Every government takes short-term measures driven by their political goals, having no grasp on Pakistan’s economic slump. Besides, lack of reforms, bad governance, our dependence on foreign aids, and corruption have brought us, where we are today, knocking the IMF’s door.
Pakistan has been going through worsening conditions lately, after COVID-19 the devastated floods have broken the camel’s back and now, the IMF’s severe conditions have further made it difficult to live in, Regrettably, we have no alternative options available, and the International Monetary Fund (IMF) appears to be the only agency offering a glimmer of hope.
In January, representatives of value-added textile associations reported that approximately seven million individuals employed in the textile and textile-related industries have lost their jobs as a result of declining exports and the government’s inability to manage the economic downturn.
Political instability is also one of the factors which leads to an economic crash because it discourages foreign investment
This increasing unemployment has caused poverty and unprecedented reduction in living standards. There is a lack of any strategic solution by the government to steer the country in the right direction. All going in Pakistani politics is a blame game.
Political instability is also one of the factors which leads to an economic crash because it discourages foreign investment. All these factors have brought us to the edge of a gruesome fate.
In this era of modernization Pakistan also need to improve its information technology (IT) sector, as said by authors in the book ‘Why Nations Fail’ innovation and technology are two powerful weapons for prosperity of a nation. Pakistan must adopt modern methods to move towards optimization in agriculture sector. Out of five million hectares of land just two million hectares are used while three million hectares remain unused. Agriculture is the largest sector of Pakistan’s economy which contribute 24 percent of Gross Domestic Product (GDP) and accounts for half of the employed labor force.
Additionally, the transfer of ownership from public to private hands can result in increased profitability, productivity, and investment in privatized firms. This, in turn, can decelerate corruption and accelerate economic growth. Improving governance is an urgent necessity. The government must take long-term measures, not driven by its political goals in order to encourage foreign investment. This is not the time to blame one another or to sit on the fence, in fact it is the time, where all the political leaders along with technocrats must sit together to find all possible alternatives to bring back the country on its track. If we fail to act by now, we risk regressing towards an economic collapse.
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The writer is based in Shahdadpur, District Sanghar Sindh
