Lately, a prevailing narrative is floating around: “Pakistan is facing the worst socio-economic and political crisis in its 75-year history.” However, what often goes unnoticed is that Pakistan’s decline has been ongoing since its independence. The pervasive culture of ‘doing less while wanting more’ has plagued Pakistan’s governance landscape throughout its history. Ruling elites have prioritized short-term gains to serve their own interests rather than implementing substantial measures for the country’s benefit.
Undoubtedly, political instability stands as a glaring reason behind Pakistan’s economic downfall. Not even a single Prime Minister in Pakistan’s political history has completed a full term, with oscillations between democratic and military rule being the norm. Even during democratic regimes, instability persists.
When a new government assumes power, its initial step typically involves shutting the initiatives and programmes of its predecessors and establishing its own. Subsequently, by the time it begins executing its policies, iy is overthrown by another entity.
For instance, when General Zia came into power in 1978, he imposed a blanket ban on students’ unions and enforced strict media censorship. After his demise in 1988, Benazir Bhutto took office as Prime Minister, granting freedom to the media, and formulating liberal policies. However, she too was overthrown on charges of corruption and bribery resulting in the government of Mian Nawaz Sharif, who in order to secure his conservative vote bank suspended the progressive and liberal developments. This pattern has persisted since independence, with each government or leader pursuing their own preferences and diverting policies in different directions.
The implications of this political instability are severe. Political leaders, while entering office, assume that the opposition may attempt to overthrow their government, leading them to focus solely on survival rather than achieving meaningful development. Consequently, power struggles ensue, resulting in short-term policies instead of long-term sustainable solutions.
These practices extend beyond the purview of government institutions alone; they necessitate mobilizing the masses as well. In the absence of a vibrant and inclusive public, a country can never truly progress. Undoubtedly, this demands a willingness to challenge the status quo and foster an all-inclusive environment where progressive and sustainable approaches are not only favored but deemed indispensable.
Presently, Pakistan finds itself in the same predicament, where the government’s primary focus lies in surviving the term and securing future elections, rather than engaging in long-term developmental planning. The ruling elite fails to realize that the short sightedness in the policy-making process not only hampers the present situation of a country but also leaves behind a mark that keeps tarnishing the very fabric of this nation. Political polarization and absence of confidence building measures give impetus to survival politics which halt the way for structural reforms across institutions.
No country on this planet can ever ensure socio-economic prosperity unless it has its political stability in line. The economic development in a country like Pakistan requires several structural changes. Attracting foreign investments in pivotal development sectors is the paramount factor in accomplishing stability. To facilitate such progress, political stability stands as an indispensable prerequisite.
Despite boasting valuable assets, including a skilled labour force and abundant raw materials, foreign companies exhibit hesitancy when it comes to establishing ventures in a nation plagued by political and economic instability. This apprehension stems from the belief that in an unpredictable environment, the adherence to agreements and the continuity of policies are compromised.
For instance, a company may establish a manufacturing facility in Pakistan under the administration of one government, benefiting from a favourable 5 percent tax rate and a flexible economic landscape. However, if another government assumes power, sudden revisions may ensue, such as a significant tax increase of 15 percent or a complete overhaul of economic policies. Consequently, the absence of political stability restrains foreign investors and companies from making substantial commitments to Pakistan. The adverse repercussions of political uncertainties extend even to the local industry, which grapples with the deleterious effects of high inflation and a volatile political climate. The local industry emphasizes the utmost importance of price stability, recognizing that the absence of a state-provided safety net exacerbates their challenges.
Unfortunately, there seems to be no immediate solution to stabilize Pakistan’s current state. Even receiving tranches from the IMF, has only offered temporary relief. What the country truly needs are substantial structural changes, which unfortunately, no stakeholder in this country appears to be pursuing.
Without such changes, we risk regressing to the starting point, falling back into the twin deficit trap, encompassing tight fiscal and monetary policies. This cycle has occurred repeatedly, and we find ourselves currently trapped within it. Simultaneously, the government’s priorities lie in philosophy of doing less while expecting more, focusing solely on short-term gains without fostering actual long-term development.
The myriad challenges confronting Pakistan at present do not require ground-breaking innovations or revolutionary approaches for resolution. The prevailing political and economic turmoil stems from the implementation of irrational policies adopted across the realms of governance, economy, and politics. Thus, the solution lies in altering the status quo within these critical spheres. Through formulating crucial regulatory frameworks and confidence building measures among key stakeholders, we can effectively deal with the plethora of challenges currently faced by our country.
These practices extend beyond the purview of government institutions alone; they necessitate mobilizing the masses as well. In the absence of a vibrant and inclusive public, a country can never truly progress. Undoubtedly, this demands a willingness to challenge the status quo and foster an all-inclusive environment where progressive and sustainable approaches are not only favored but deemed indispensable.
