The economy of Pakistan is currently on the edge of collapse. The recent floods have only made this already poor situation worse, and our economy has sustained tremendous losses.
We can try to escape this terrible reality, but it is unavoidable that Pakistan would have to default if no forceful, urgent actions are taken.
The government must declare an economic emergency immediately. It should be done with the support of all parties involved. It is also crucial to develop and put into effect short-, mid-, and long-term economic policies. The objective should be to execute measures that will advance the nation.
All governments, regardless of affiliation, should be subject to these policies, which must be independent of any political party. If necessary, Pakistan should approve a constitutional amendment that would allow it to carry out this program without looking for political gain.
In order to boost exports, the PDM government successfully discouraged the import of luxuries; nevertheless, this strategy appears to be fading gradually. Our economic strategy must be built on export promotion, with a focus on strengthening the manufacturing industry. The industrial sector is essential to economic growth.
It is crucial to emphasize human security. If we don’t change our attention to properly emphasize human security, Pakistan cannot prosper. In order to do this, our economic, trade, foreign, food, security, export, import, industrial, and climate change policies must all be coordinated.
After the publication of the 2021 National Security Policy Document, there was a turn toward human security. And it is vital that this continues to serve as the cornerstone of all future security initiatives.
Without human security, the social fabric will crumble, and with it, any chances of a stable economy crumble too.
A suitable monitoring and assessment system is required for the nation. This system must keep an eye on how these policies are being applied and coordinated, and it must also make appropriate adjustments and changes.
Another area where there seems to be no harmony is in our commercial diplomacy. It is necessary that Pakistan should have a well-researched and well-thought-out commercial diplomacy policy. This policy needs to be bolstered by related institutions and qualified and trained people. Although it is a utopian idea, the well-being of the country needs to come above petty alliances and nepotism. People selected for these posts must be trained and capable.
Their primary goal should be to enhance bilateral trade and exports, bringing in foreign direct investment and creating and strengthening ties with neighbors as well as other relevant countries around the world.
Given that women make up more than half of the population, keeping them out of the workforce has a seriously negative impact. All individuals, especially urban and rural women, must have access to possibilities for entrepreneurship, business ownership, and money for there to be economic growth. Any nation’s GDP suffers when such a sizable portion of the population is kept out of the workforce.
The government should come up with plans to divert savings away from the real estate market and toward potentially more productive sectors of the economy or long-term investment funds. Building people’s trust in the economy will be a difficult undertaking to do.
The Extended Fund Facility (EFF) and the International Monetary Fund (IMF) cannot be the only fallback to our economy. Productive and prosperous economic growth will not be seen if we stay ensnared in the IMF system.
Pakistan must work toward its economic security objectives of human resource development, poverty alleviation, and political stability, which are of utmost importance. The past year, specifically, has demonstrated how political instability and bad economic policies can bring a country to the doorstep of default.
For the majority of international investors, investing in Pakistan can be a difficult and challenging procedure. They refrain from bringing their capital into the nation due to the dangers of an unsteady economy. Therefore, having an investor-friendly structure is essential to promoting FDI.
The Board of Investment (BoI) must seek to encourage investment by streamlining the procedures and do all reasonable efforts to increase its ranking on the ease of doing business index.
