Economic position of Pakistan is incompatible with its economic potential. It has wide range of natural resources encompassing, reserves for chemical, industrial, and textile businesses. It also possesses prevalent network of rivers i.e. support for agro-production and huge potential of hydroelectric energy generation. As well as, it has opulent mountainous ranges containing precious minerals like copper, gold, granite etc. Above and beyond, the country is rich in other economic ignitors like agro-industry, livestock, construction industry, tourism, and small manufacturing industries. Despite such huge economic capability and ingenious global-market-penetration capacity, the country still fails to turn its status as a developed economy.
Surely, one will eagerly strive to dig out the stumbling block that halts economic development in the country. Reason is apparent i.e. archaic, oblivious and biased policy mechanism, comprised of, obsolescent policy framework, egocentric political frat and inapt intervention of transnational entities in policy structure.
Policymaking fraternity in Pakistan seems inept at managing the crisis with prescience due to unawareness of modern-global policy making tools. They appear to be inexperienced in dealing with the colossal economic disorder because of frail strategic approach for resource management and lack of expertise to prioritize best choice during policy formulation. This incompetence, in policy machinery, paves the way for an unending jumble of economic crisis in the state.
Moreover, the policies in Pakistan remained prey of vested interests of political leaders. The elected public representatives appear to be more focused on personal gains regardless of public welfare. So forth, the country’s political culture is transformed from serving people to tug of war for reigns of governance. This paradigm shift in political role of leaders created an environment of wandering competition between different political groups. On one hand certain political groups have joined together to jolt their common opponent through all possible gambits. On the other hand the latter try to revive its governance control by hook or crook. Resultantly, the economic affairs of the state are ruined by the unsympathetic leaders, who, deemed to fail in addressing the remedies to eradicate the current economic turmoil from the country.
Additionally, the transnational companies cause a severe threat to economic activity in Pakistan. They play a major role in downgrading the policy making process in the country. The companies influence the policy makers to drive the policies in their favor to boost their market share for retaining their decades-long monopoly in open market. This monopolized market structure minimizes the opportunity for new entrepreneurs and creates a gap in demand and supply of commodities. Resultantly, a market in-equilibrium appears in the country which further exaggerates the rise in prices and leave people with minimal choice of commodities.
Consequently, the above perils drowned the country into economic catastrophe. Foreign debt burden, imbalance of payments, high inflation rates, low production and depreciation of currency created a dilemma of muddle for financial institutions of the country. Most of the industries including automobile, textile, stock market, agricultural production and transportation are at the brink of fiasco. The incumbent government is looking feebly towards IMF for bailouts on hard conditions that further will increase debt burden on the ex-chequer of Pakistan. State bank reserves are declining swiftly. Consequently, tax burden on public commodities is increasing day by day. Simultaneously, consistent increase in dollar rate puts pressure on Pakistani rupee. Import of products like Mineral fuels including oil, electrical equipment, iron, steel, pharmaceuticals, Animal/vegetable fats, oils, waxes, plastics, plastic articles, organic chemicals, oil seeds, in short, each and every commodity of day to day utility has become more costly. Down to that an overall inflation is raising its head which further ignites poverty in the country. Moreover, hike in petroleum prices owing to twofold reason i.e. global price increase due to Russia-Ukraine War and IMF conditions to impose petroleum development levy, aggrandized heavy tolls on transportation, food industry and other economic activities around the country.
Thus, for a prosperous economic state, it is need of the hour to ponder over the above roots of the current economic turmoil and eradicate the menaces with prudence and efficient manner. Policy makers should adapt modern approaches while policy formulation. They should include most of the options with clarity and succinct way to remove all kinds of uncertainties and to prioritize the best one amongst the chosen ones for implementation. Politics should be for public service not for self-interests. Political groups should reevaluate their vision and endeavor for the country to make it a shining star in the galaxy of the world. Policy implementation should be equitable and equal. Intervention of transnational business groups and pressure groups in policy procedures should be condemned. Market competition must be supported through easy and doable policies for new entrepreneurs. So that, a healthy competition between the entities may be created to maintain market equilibrium and eradicate monopoly of fewer business units.
