In the labyrinth of Pakistani politics, where personal ambitions have long overshadowed national interests, a critical moment of reckoning has arrived.
As 2025 unfolds, the nation finds itself at abyss where the cost of political discord can no longer be measured merely in poll numbers or parliamentary seats, but in the growing desperation of 241.49 million citizens caught in an economic malfunction.
The current political landscape resembles a Shakespearean drama where three protagonists – Nawaz Sharif, Asif Ali Zardari, and Imran Khan – command their respective acts on the national stage.
Yet this is no theatrical performance; the stakes are painfully real. While recent economic indicators offer a glimmer of hope – inflation moderating to 4.1 percent and foreign reserves at USD 16.45 billion – these improvements rest on foundations as delicate as a house of cards in a gathering storm.
The irony of Pakistan’s predicament lies in its unrealized potential. Here is a nation blessed with strategic geography, abundant natural resources, and a youthful population, yet perpetually struggling to break free from the chains of economic instability. The root cause is not a lack of capability but a chronic deficit of political consensus.
Consider the stark reality: industries operate at 61 percent capacity, foreign investment remains a mere trickle at $1.33 billion, and the power sector’s circular debt has ballooned to Rs 2.66 trillion. These are not mere statistics but symptoms of a deeper malaise – the failure of political leadership to rise above personal vendettas.
Each of the three political titans brings unique strengths to the table.
Nawaz Sharif’s industrial acumen once drove GDP growth to 5.8 percent. Zardari’s understanding of rural Pakistan could revolutionize an agricultural sector that employs 37.4% of the population and contributes 24% to the GDP of Pakistan. Khan’s tenure saw remarkable growth in remittances and IT exports. Yet these achievements now stand overshadowed by their inability to forge a common ground.
The path forward demands more than superficial political compromises. It requires a fundamental shift in how Pakistan’s leadership approaches governance. The creation of an economic security council, including all political stakeholders, could provide a structured framework for consensus-building. Regular leadership dialogues on economic matters must replace political point-scoring. The oversight of critical economic projects should be a joint responsibility, not a partisan battlefield.
As regional competitors surge ahead – Bangladesh at 4.5 percent growth, India at 6.5 percent – Pakistan cannot afford to remain trapped in political quicksand. The World Bank’s projected growth of 2.5 percent for Pakistan in 2025 could reach 3.2 percent, but only if political stability prevails. This gap between potential and reality represents millions of lost opportunities, thousands of unemployed youth, and countless families pushed below the poverty line.
The IMF’s continued engagement with Pakistan through its $3 billion Stand-By Arrangement (SBA) offers a critical lifeline, but its success hinges on political consensus for structural reforms. The Fund’s prescription – including broadening the tax base, reforming state-owned enterprises, and ensuring cost-recovery in the energy sector – requires unwavering political commitment across party lines.
The recent completion of two reviews signals progress, yet sustainable economic recovery demands more than temporary compliance; it requires a shared vision for implementing these reforms while protecting society’s most vulnerable segments.
Moreover, Pakistan’s socio-economic development indicators paint a stark picture that transcends mere fiscal metrics. With 40.5% of the population living below the poverty line, an education system struggling to meet modern demands, and healthcare accessibility remaining a persistent challenge, the need for unified political support for development initiatives has never been more urgent.
The successful implementation of social safety programmes, including the Benazir Income Support Programme (BISP), demonstrates the potential impact of sustained, cross-party backing for welfare initiatives.
The challenges ahead are formidable. An external debt of $133.46 billion looms large, climate change threatens agricultural sustainability, and energy shortages strangle industrial growth. These challenges demand a unified response, not a fragmented one. This imperative becomes even more critical against the backdrop of seismic shifts in the global order. Donald Trump’s return to the White House signals potential changes in America’s global economic policies and regional priorities.
Meanwhile, the deepening Russia-China alliance is reshaping global trade dynamics, with the Belt and Road Initiative gaining renewed momentum. The Middle East’s evolving landscape, marked by regional realignments and economic diversification efforts, presents both opportunities and challenges for Pakistan’s strategic positioning.
In this complex global chess game, Pakistan’s political disarray could prove particularly costly. The nation’s unique geographic position – bridging the Middle East and Asia, connecting China’s BRI to warm waters, and offering access to Central Asian markets – could either be leveraged for economic advantage or become a vulnerability if political infighting continues to deter international partnerships.
The ability to navigate these global currents, from securing energy deals amid Middle Eastern transformation to balancing relations between global powers, demands a coherent, unified foreign economic policy that transcends party lines.
The nation’s economic institutions need depoliticization, regulatory frameworks require strengthening, and bureaucratic independence must be protected. The IMF’s reform agenda, while challenging, provides a roadmap for institutional strengthening that could outlast political cycles.
From the bustling ports of Karachi to the mountainous terrain of Kashmir, from Peshawar’s historic markets to Balochistan’s developing corridors, a common sentiment echoes: the luxury of political theatre must give way to the necessity of economic action. The citizens’ message is clear – Pakistan’s future cannot remain hostage to political egos.
As dawn breaks on 2025, Pakistan’s political leadership faces a choice that will echo through generations. They can either be remembered as statesmen who set aside their differences to pull their nation from the economic precipice or as politicians who fiddled while their country burned.
The clock is ticking, and history’s judgment awaits. In an era where global economic alignments are rapidly shifting, where traditional alliances are being tested, and where regional dynamics are being rewritten, Pakistan cannot afford the luxury of political paralysis.
In the end, this is not merely about political legacy; it’s about national survival. The question is no longer who wins the next election but whether Pakistan can win its fight for economic stability. The answer lies in the hands of those who must now decide whether to be authors of Pakistan’s renaissance or architects of its continued struggle.
The symphony of survival demands harmony, not solo performances. Will Pakistan’s leaders finally hear the music?
Copyright Business Recorder, 2025
The writer is a researcher associated with Sustainable Development Policy Institute
The writer is associated with the Centre for Private Sector Engagement Unit at SDPI
Comments