Pakistan is currently facing one of the most severe economic crisis since its creation. If we see in the past, we can find out a similar economic crisis after the sanctions were imposed on it after Pakistan conducted nuclear explosions successfully at Chaghi, District of Baluchistan. The ever changing geo political environment and recent unprovoked Russian invasion of Ukraine has further polarized an already disturbed political environment. Pakistan being Geo-Strategically located in the heart of South Asia has been a battlefield of world powers since its creation. Being the only Muslim country having credible nuclear arsenals, it has been under the radar of different foreign agencies and mafias.
With the country's economy struggling under the bailout package from IMF, there has been a constant surge in current account deficit. The exchange rate is sky rocketing due to the un certain political situation and a never ending drama being displayed by all stake holders. The foreign reserves are depleting very rapidly with the capacity to bear imports of not more than 6 x weeks. The Russian Invasion of Ukraine and an unprecedented heat wave at global level has already created an inflation at global level. The sudden change of Government in the country with an alleged foreign intervention has further worsened the economic activities. The increase in interest rates by the State Bank of Pakistan has contributed to discourage investors to pour in more investments. A continuous weakening of Rupee against the Dollar has badly hampered the confidence of foreign investor. In the middle of this economic turmoil, there is a dire need to undertake immediate steps in both short term and long term domains.
- Economic Centric Policies. Pakistan since its creation has been made part of almost every geo political issue specially related to Asia. Geo-strategically located at a critical position, it has been facing threats not only along its all borders but also internally. Pre and Post Cold War era and being an important Non-NATO ally during the so called War on Terror has deep imprints not only on foreign and economic politics. Being part of different blocs and looking towards foreign aid has seriously hampered its own very potential to rise and stand on its own feet. The economic conditions are still unclear with CPEC being a center point of attention and a target of every hostile agency. The sudden withdrawal of US/NATO from Afghanistan and Taliban take over has once again provided an opportunity for TTP to reorganize its against erstwhile FATA. The situation in Baluchistan has become extremely sensitive with a number of intelligence agencies working on hostile agendas. There is a dire need to learn from our mistakes that we have been doing being part of different blocs during the last about 80 years. The only way out is to adopt a tactful economic centered policy by avoiding confrontation on every level. Keeping economy at the top priority should be the guiding principle for every Pakistani living inside or abroad.
- Stable Political Government. The Internal Security and Political Stability are the key considerations for both local and foreign investments. Unpredictable political situation coupled with bad governance can only bring harm to an already fragile economy of Pakistan. All stake holders including political parties must unite under one umbrella, keeping the economic revival of the country at the top priority. Stable political situation will have a very positive impact on both local and domestic investors. It is the responsibility of each citizen of this county to put in honest efforts to ensure peace, harmony and mutual respect amongst all. It is a high time to put aside all personal rifts to avoid an inevitable anticipated economic disaster.
- Ban on luxury and unnecessary imports. Keeping in view the rapidly depleting foreign reserves, there is a need to ban all luxury imports specially vehicles, cosmetics and dry fruits. The buying from different online platforms must be avoided at national level. Government must apply an absolute ban on all luxury imports with tough practical application.
- Expanding export base. Currently, Pakistan exports accounts to extremely low as compared to its imports. The reliance on imports since independence with reluctance to improve local infrastructure has been a root cause of having a very narrow export base. Textile, Sports Equipment and Surgical Instruments are the very few exports that Pakistan is producing currently. There is a dire to create awareness at national level to improve local production using existing resources. The Government must make an endeavour to provide opportunities and platforms to investors by providing subsidies and public private partnerships programs. The expansion of Bangladesh garment industry at local level is a case in point. Pakistan having a good potential to produce high quality cotton can compete Bangladesh by optimally utilizing its potential through both short term and long term plans.
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