In an effort to address the ongoing deadlock in the country’s corridors of power, influential industrialists and tycoons have taken the lead in jump-starting negotiations among key stakeholders. These prominent figures, often referred to as the “one-percenters,” have expressed deep concern over the state of affairs, as significant investments are at risk. The economy is suffering from indecision, mismanagement, political instability, and relentless stagflation, posing severe threats to the profitability and even the continuity of businesses.
Recognizing the gravity of the situation, representatives from the business community have undertaken the task of engaging with various political stakeholders, aiming to persuade them to break the political deadlock. However, it remains unclear what incentives or solutions they can offer apart from appealing to reason—a quality that has been scarce in recent times. Each party involved is focused on their own survival, with little consideration for the national interest.
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The failure of the previous government to engage effectively with the International Monetary Fund (IMF) and secure a much-needed bailout package has exacerbated Pakistan’s multifaceted crisis. Timely corrective measures to address the struggling economy could have led to a different outcome. Now, reviving an IMF program seems nearly impossible, and the country is on the brink of default. Pakistan has managed to stave off disaster so far by significantly restricting imports, which has had a detrimental impact on the economy and hindered growth.
A formal default would unleash further catastrophe, underscoring the urgency for political parties and the establishment to return to the negotiating table. However, the current players lack the expertise required to govern a shattered economy, and they cannot afford the political cost of doing so. The government, military, and PTI leadership have invested too much energy in internal conflicts, neglecting the economic time bomb that inches closer to zero. It is high time for them to refocus on reality and defuse the impending crisis.
