While Pakistan began another exercise this month, in the midst of a generalized skepticism, the country’s leaders presided over a contrast between the atmosphere in the streets and their self-proclaimed achievements.
On the right side, Pakistan is safely safely with its dangerous perspectives just two years ago, surrounded by warnings of a future defect in the reimbursements of the external debt while the roupie faced volatility. However, a later return to another IMF loan program helped Pakistan find solvency – although temporarily.
However, the gap between the atmosphere in the streets and the corridors of power highlights a major dilemma. While Prime Minister Shehbaz Sharif and members of his cabinet claim to lead Pakistan to greater prosperity, there is no shortage of cynics with powerful counter arguments.
The successive leaders of Pakistan failed to take into account the warning signs. In a country where almost 40% of the population, or around 100 million people, live below the poverty line, which has led Pakistan with a “Subacha Hai” or everything is good that the mantra can trigger a calculation error in the future.
In tandem with this powerful reality lies the deep challenge of climate change, largely illustrated by current disasters linked to rain through Pakistan. In this extended trend, it is difficult to find a region where monsoon rains have not created an unexpected effect. The changing weather changes have been a powerful reminder that Pakistan food security is increasingly in question.
The recent slowdown in agricultural production in Pakistan, which increased by 0.6% during the last financial year (July 2024-June 2025), deserves special attention for more than one reason.
Continuous losses of agriculture immediately raise convincing questions about the future of the cycles linked to the cultures of Pakistan, dating back several centuries. This is a relevant question given the devastating consequences which certainly flow in the event that problems related to food insecurity are not resolved.
Closely linked to the possibilities of generation of jobs and / or generation of significant income linked to agriculture, which makes it a crucial sector for the economy of Pakistan. Unless the revenues of the poorest farmers are raised and protected effectively, Pakistan can be forced to prepare for a potentially widespread social and economic upheaval in the years to come. In other words, Pakistan must do everything it can to protect those who already live in abject poverty without hope for the future.
The industrial sector of Pakistan is also surrounded by convincing questions, especially as a large -scale manufacturing contracted by 1.6% during the last financial year. For the moment, the improvement of the Pakistan current account has been mainly facilitated by the funds of the life of the Pakistanis in the world. It is a continuous trend that helped the country remain afloat.
However, a guarantee to protect Pakistan’s ability to comply with its obligations in foreign currency must possibly be linked to a solid increase in exports supported by a variety of sources. In this trip, the diversification of exports ranging from surpluses of agriculture to the industrial sector is an absolute must.
And finally, the official fanfare this week behind the launch of a simplified income declaration system for employees deserves a more in -depth examination. The biggest hole surrounding the tax collections does not reside in the already overwhelmed salaried class in Pakistan. Instead, it surrounds the key sectors of the economy which do not contribute to national income tax in Pakistan or contribute considerably below their contributions.
On many occasions, Pakistan remembered such gaps, mainly motivated by the failure of the country’s leaders to apply the brief of the state closely. But given the challenges with multiple facets on the economic front of Pakistan, it is now essential to change the past in favor of a more progressive future.
In the end, Pakistan’s ability to overcome its current economic challenges lies in its ability to vigorously undertake the expected reforms. These reforms will succeed when Pakistan leaders establish a clear path to follow and direct the example. Chairing an inflated public sector, the government supervised two recent cases which sent an unfavorable message.
First, the cause of the revival of international Pakistan airlines (PIA) belonging to the State is like bringing back a dead horse to life. Even if it is ultimately privatized, the great PIA debt would have been accountable to the government as responsibility. This is a case that instantly recalls a recommendation from the well -known businessman Mian Mohammad Mansha. Years ago, he publicly called the immediate privatization of the PIA, even for a single US dollar, provided that its new owner has assumed all its passives, including debt.
Second, the plan recently revealed to relaunch the steers of Pakistan based in Karachi with the support of Russia is yet another case which has marked a U-turn. Should Pakistan extend its imprint in the public sector, given the way in which its economy has deteriorated under the weight of companies belonging to a government? To this convincing question, the answer must clearly be in the negative.
Warning: the views expressed in this play are the own writers and do not necessarily reflect the editorial of PK Press Club.tvRial policy.
The writer is a journalist based in Islamabad who writes on political and economic affairs. It can be reached: [email protected]
Originally published in the news
