Economic weaknesses

Letter August 28, 2024
Economic weaknesses

KARACHI:

Pakistan’s economy is grappling with several structural weaknesses that impede its growth and stability. One major issue is the large informal sector, which significantly limits tax revenue and weakens economic regulation. This underground economy operates outside government oversight, making it challenging to implement effective policies.

Outdated infrastructure also presents a hurdle, reducing productivity and business efficiency. Additionally, corruption and political instability create uncertainty for investors, deterring foreign investment. Moreover, the economy’s heavy reliance on imports and foreign aid leaves it vulnerable to external shocks. These structural weaknesses collectively slow down economic progress and undermine overall stability. Addressing these issues is essential for Pakistan’s economic growth and development.

Abdul Rahman

Kech