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Solution Pak301 GDB Solution Spring 2022
The political instability has dampened Pakistan’s export performance and GDP growth. Short-term political horizon and political insecurity prevented the successive civilian governments to control the rent seeking behavior of the business, bureaucratic, political and feudal elite. This resulted in a structural deformity in our economy because of which we are caught in a perennial debt creating cycle of measly exports and munificent imports, fueling a consumerist economy.
The current political instability prognosticates bleak prospects for foreign as well as domestic investors. The current political fracas has diverted the attention of national economic managers from the unfolding economic crisis resulting in free fall of rupee and a climate of uncertainty impacting adversely upon the growth and development prospects of the national economy.
There is an urgent requirement for all stakeholders to take cognizance of the issue and play their part in restoring political stability to help national economic managers refocus on economy.
There is a need to declare an economic emergency to take urgent steps to arrest the currency slide and widening current account deficit. In the long term, structural changes to enhance industrial productivity and exports is de rigueur along with measures to promote inclusive growth to discourage elite capture of state resources.
