KARACHI:
Pakistan is a country blessed with an abundance of natural resources, mesmerising landscapes and sceneries, etc. The country has immense potential to move towards the path of prosperity and sustainable growth. Unfortunately, many of the resources have not been fully utilised due to the indecisive policies of those at the helm.
The conflict between Ukraine and Russia has disrupted global supply chains resulting in a surge in global petroleum products. This coupled with poor fiscal policies for decades has resulted in an economic crisis in Pakistan. Economic and political instability have also contributed to the worsening security situation and aggravated a social crisis. Inflation has reached an all-time high, the value of the rupee is consistently depreciating, foreign exchange reserves are depleting, and local industries are shrinking.
To limit the impact of the crisis, the government needs to introduce austerity measures including limiting its own expenses. The Energy Conservation Plan should be implemented, and all stakeholders must be taken into confidence. The government must revive confidence in the business sector through incentives and partnerships with local, regional, and international investors. The government should also consider expanding local industries to reduce reliance on imports and increase exports. There is also a need to reduce reliance on coal and fossil fuels for power generation and switch towards renewable energy sources to ensure sustainable growth.
Muhammad Omer Khanzada
Islamabad
Published in The Express Tribune, March 26th, 2023.
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