Political ambiguity has been bandied about for a while, but what does it actually mean when talking about Pakistan? We cannot simply hold one individual or one incident responsible because that would not be accurate as the country has been facing political meltdowns ever since its existence. But keeping in view the events of this past year we can definitely mark them as ones that played the key role in Pakistan’s political, and economic apocalypse.
The removal of former Prime Minister Imran Khan by a vote of no confidence in April 2022 was one of the events that took place the previous year and is what gave rise to the current political unrest. Since that time, the nation has been experiencing a key phase of steadily declining economic conditions.
The arrest of former Prime Minister Imran Khan on May 9 2023 and the involvement of Pakistan Military was the final nail in the coffin on top of everything else. In the past where the administration or in some cases the judiciary was attacked, individuals are now targeting the Pakistani military. The country hasn’t yet recovered from these sad events. The ensuing nationwide demonstrations served as a bulwark against the pervasive uncertainty. The nation’s economy is directly impacted by these politics.
Numerous factors contribute to Pakistan’s economic turmoil. Political instability and poor administration have played a major role in undermining investor trust in the nation and fostering corruption and backroom deals that harm the fiscal health of the nation.
Here are just a few indicators of the country’s economic problems: foreign exchange reserves are at dangerously low levels, inflation is at its highest level in decades, GDP is sluggish, and the central bank has dramatically boosted interest rates to handle a weak currency. The effects of increased food and petrol prices are felt most by the common people, while the wealthy and capable escape amid all of this. Unemployment is at its peak. According to an estimate around 450,110 individuals left the country in the first 7 months in pursuit of jobs. The country’s economic problems have only been made worse by the damage caused by the floods.
When we look back at the economic situations from April 2022 and compare them to the current conditions as of August 2023, we can clearly detect a difference. Industrial growth decreased from 7.19% to -2.94% (negative) and agricultural growth decreased from 4.40% to 1.55%. The nation’s exports were not sufficient to make up for the losses; instead, they fell from $28.83 billion to $21.2 billion. The cumulative impact of all these factors caused the nation’s GDP to fall from $383 billion to $341 billion, which in turn caused the overall GDP growth to drop from 6.1% to 0.29%.
The term “inflation” has spread throughout society like a wild fire, and it is now a frequently discussed topic. All of the aforementioned facts attest to the country’s experience with inflation. According to the economic statistics report of Pakistan from April 2022 to August 2023, the CPI inflation experienced a huge dive from 11% to 28.2%, with food inflation reaching a height of 37.9%.
The declining value of the Pakistani rupee vs the dollar is another ongoing problem. Since the PDM government took office, we have been inundated with reports that the value of the dollar relative to the Pakistani rupee has increased. As a result, every two weeks, the public are hit with a price increase for petrol that is equivalent to a bombshell. One may see the significant difference if they compare the price of the dollar in Pakistani rupees from April 2022, when it was 186 Pakistani rupee, to now, when it is 302 Pakistani rupee.
The five-year legislative term coming to its end and the inauguration of the new caretaker administration couldn’t have come at a worse time, further aggravating the situation. Pakistan has a debt load of approximately 124.3 billion dollars already. A financial lifeline from the International Monetary Fund will be more difficult to obtain at this crucial yet sensitive pre-election period, hence making the country’s economic problems worse.
Now, the question arises as to who is actually at fault. Who is to blame for Pakistan’s current predicament that’s we are fully immersed in? The truth is that all of the ruling elites who have been using Pakistan for their own personal gains are responsible in pushing Pakistan down the slippery slope of economic collapse. There is no end in sight to the Pakistani nation’s current political upheaval.
Things are getting worse day by day. Our leaders are occupied with criticizing each other all the while one half of the nation sits and watches the whole drama unfold and the other half escapes the country. None of this will solve our problems. If we as a nation settle our differences and stand together, only then can we make Pakistan prosperous.
