KARACHI:
Constant political instability has profoundly affected Pakistan’s economic growth over the years. Frequent changes in leadership, civil unrest, and a volatile security situation have created an environment of uncertainty that discourages foreign investment and hampers domestic economic activities.
The country’s political landscape characterised by power struggles and corruption allegations, often leads to policy inconsistency and delayed decision-making further impacting investor confidence. This instability also diverts government attention and resources from implementing long-term economic reforms, hindering efforts to address poverty, unemployment and infrastructure development. The security challenges associated with political instability harm trade and commerce. Frequent protests, strikes and demonstrations disrupt daily business operations causing supply chain disruptions and increasing business costs.
The prevalence of terrorism and internal conflicts deters foreign investors and tourists and requires significant government spending on security measures diverting funds from essential sectors like education and healthcare. The lack of political stability also negatively influences credit ratings making it difficult for Pakistan to access international markets and secure favourable borrowing terms. Political parties must realise that political stability and economic growth are intertwined. The country requires political and social cohesion to develop and grow.
Rakhshi Aftab
Karachi
Published in The Express Tribune, August 29th, 2023.
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