A deceptive stability blankets Pakistan, but beneath the surface, the economy hurtles toward catastrophe. Dubbed a ‘failing state’ by observers, the country grapples with stagnation where genuine development should thrive.
Flashback to the crisis: reserves dwindled to weeks of imports, inflation peaked at 38%, and the rupee plummeted. Now, a $3 billion IMF standby arrangement and pledges from allies like Saudi Arabia and China have stabilized the currency and averted immediate default. Celebrations ensued, yet reality intrudes swiftly.
No growth spurt in sight. Industrial output slumps, exports stagnate at low-value goods, and foreign investment shies away from political volatility. The elite capture benefits through subsidies and tax loopholes, leaving the poor to shoulder the burden of reforms.
Security challenges compound the mess. Militant resurgence in border regions demands hefty defense spending, while climate disasters – floods ravaging farmlands – strain an already threadbare budget. Youth bulge turns into a ticking bomb without skills training or opportunities.
The path forward demands rupture from old habits: privatize loss-making state firms, broaden the tax base, and foster tech-driven sectors. Political unity, elusive amid feuding parties, is crucial. As global powers recalibrate ties, Pakistan’s leadership faces a stark choice – reform or ruin.