Economic failure

Letter May 17, 2023
Economic failure

KARACHI:

For the past year, Pakistan has been experiencing political instability and is on the brink of an economic collapse. Recently, several companies announced temporary closures while others have permanently closed their doors. Many other businesses were compelled to take a series of decisions to cut costs and maintain profitability. Some companies have benefited from the situation by laying off employees and simultaneously raising the prices of commodities. Others have had to cut production, which resulted in a decline in exports.

Import bans also intensified the situation as different industries lacked crucial raw materials and resources to keep operating. This situation has had a negative impact on the country’s GDP. It is hampering the growth of the business sector and reducing prospects of innovation. This will have long-term and far-reaching implications. Therefore, the government must restore political stability and work on economic recovery by working with internal stakeholders and external lenders including the International Monetary Fund.

Fahad Ahmad

Peshawar

Published in The Express Tribune, May 17th, 2023.

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