This perception has arisen from a number of factors including slow economic growth, ever-increasing foreign debt, continued bailout programs, lack of cohesion among institutions, absence of clear and firm direction from the leadership, and serious political differences among political parties, leading to impasse. Engaged in. Which dissipates most of the energy and creates doubts on credibility and validity.
The growing spread of militancy, political uncertainty and increasing dominance of the Pakistani military establishment over the democratically elected government along with repression of other political parties, their activists and overall political freedoms have further compounded the country's problems.
It is because of these factors that Pakistan finds itself in a bad situation and I feel ill-equipped and ill-equipped to deal with the challenges.
Currently, Pakistan lags behind the world and most of its neighbors in human development and economic indicators.The country is stuck in an ever-increasing debt cycle as the government constantly looks to other countries for short-term loans or expansion of its existing foreign debt.
Pakistan's newly elected Finance Minister Muhammad Aurangzeb was in the US to hold detailed table talks with the IMF seeking another bailout program of $10 billion. Upon his return, he said that the IMF was "very receptive" to considering a "big-long program."
Efforts have been forced to seek external financing in terms of investment through privatization and bailout programs, completely unaware of the critical factors underpinning progress and development.
Labor productivity, one of the most important and decisive factors for the prosperity of the economy, in the country has remained among the lowest in the world for the last three decades.Compared to regional neighbours, Pakistan's labor productivity growth has been around 1.3 per cent per year, while all its neighbors have been far ahead.
Between 1990 and 2018, China leads the labor productivity race with a strong growth rate of 8.12 percent, India stood at 4.72 percent and Bangladesh achieved a growth rate of 3.88 percent.
Unlike its neighbours, Pakistan has seen large declines in labor productivity in at least six out of twelve sectors, including mining, utility transport, real estate, construction and trade.
And due to slow progress in key sectors, policymakers have been forced to rely on external debt to ensure economic progress.
In January 2024, the State Bank of Pakistan said that the country's external debt repayment obligation in the next 12 months is about $29 billion, which is about 45 percent of the country's dollar income.Pakistan has recently introduced a new platform, the Special Investment Facilitation Council (SIFC), to provide better, easier and faster business facilitation for foreign direct investment.
Whereas the formation of SIFC with additional powers to Army Chief General Asim Munir on financial matters is a step taken to provide one-stop shop solution to investing countries and companies and provide ease of doing business; Many believe its formation is "at the wrong time", adding that pushing for the formation of a Council with additional powers would be counterproductive and would further increase uncertainty.
Experts have warned that the current path Pakistan is on poses serious risks and threatens to lead to complete anarchy, adding that the country is on the brink of collapse and any wrong move now could lead to disaster. Can cause.
The growing spread of militancy, political uncertainty and increasing dominance of the Pakistani military establishment over the democratically elected government along with repression of other political parties, their activists and overall political freedoms have further compounded the country's problems.
It is because of these factors that Pakistan finds itself in a bad situation and I feel ill-equipped and ill-equipped to deal with the challenges.
Currently, Pakistan lags behind the world and most of its neighbors in human development and economic indicators.The country is stuck in an ever-increasing debt cycle as the government constantly looks to other countries for short-term loans or expansion of its existing foreign debt.
Pakistan's newly elected Finance Minister Muhammad Aurangzeb was in the US to hold detailed table talks with the IMF seeking another bailout program of $10 billion. Upon his return, he said that the IMF was "very receptive" to considering a "big-long program."
Efforts have been forced to seek external financing in terms of investment through privatization and bailout programs, completely unaware of the critical factors underpinning progress and development.
Labor productivity, one of the most important and decisive factors for the prosperity of the economy, in the country has remained among the lowest in the world for the last three decades.Compared to regional neighbours, Pakistan's labor productivity growth has been around 1.3 per cent per year, while all its neighbors have been far ahead.
Between 1990 and 2018, China leads the labor productivity race with a strong growth rate of 8.12 percent, India stood at 4.72 percent and Bangladesh achieved a growth rate of 3.88 percent.
Unlike its neighbours, Pakistan has seen large declines in labor productivity in at least six out of twelve sectors, including mining, utility transport, real estate, construction and trade.
And due to slow progress in key sectors, policymakers have been forced to rely on external debt to ensure economic progress.
In January 2024, the State Bank of Pakistan said that the country's external debt repayment obligation in the next 12 months is about $29 billion, which is about 45 percent of the country's dollar income.Pakistan has recently introduced a new platform, the Special Investment Facilitation Council (SIFC), to provide better, easier and faster business facilitation for foreign direct investment.
Whereas the formation of SIFC with additional powers to Army Chief General Asim Munir on financial matters is a step taken to provide one-stop shop solution to investing countries and companies and provide ease of doing business; Many believe its formation is "at the wrong time", adding that pushing for the formation of a Council with additional powers would be counterproductive and would further increase uncertainty.
Experts have warned that the current path Pakistan is on poses serious risks and threatens to lead to complete anarchy, adding that the country is on the brink of collapse and any wrong move now could lead to disaster. Can cause.
