Muhammad Faiq Shah
Pakistan stands at a critical juncture, burdened by a governance system that seems to be crumbling under its weight. Bad governance, marked by political gamesmanship and a lack of institutional accountability, has deeply hampered the country’s ability to foster progress. Instead of prioritizing the rule of law and the betterment of its people, political elites continue to engage in self-serving maneuvers, further plunging the nation into turmoil. The consequences of such short-sighted politics are dire: economic instability, diminished investor confidence, and an absence of a sustainable growth agenda.
For decades, Pakistan’s political landscape has been marred by leaders more focused on power struggles than on governance. Politics, rather than being a vehicle for progress, has become an arena for survival. Parties prioritize political gains over national interests, often disregarding the pressing needs of the masses. Governance, in this context, is reduced to a mere afterthought, an inconvenience in the pursuit of political dominance. This relentless tug-of-war among political factions has not only undermined the rule of law but has eroded public trust in the system. A 2023 survey by Gallup Pakistan revealed that only 27% of Pakistanis trust the political system, a steep decline from previous years, illustrating the extent of public disillusionment.
The economic consequences of this instability are stark. Pakistan’s economy, once seen as an emerging market with potential, is now struggling to stay afloat. The nation’s GDP growth has plummeted, falling from 5.8% in 2018 to a mere 0.3% in 2023, according to the World Bank. Foreign and domestic investors, critical drivers of economic growth, have become wary of the nation’s unpredictable political climate. In 2022 alone, Foreign Direct Investment (FDI) inflows dropped by 22%, with figures falling to $1.88 billion from $2.4 billion the previous year, as per the State Bank of Pakistan. The Pakistan Institute of Development Economics (PIDE) has also reported that political instability and lack of policy continuity have discouraged both foreign and domestic investment, causing capital flight and contributing to the country’s deepening economic woes.
Moreover, the country has yet to devise a sustainable growth agenda that could steer it out of this quagmire. Economic policies are often reactionary, responding to immediate crises rather than addressing long-term structural issues. Pakistan’s public debt has ballooned to over 89% of its GDP in 2023, as reported by the International Monetary Fund (IMF), with most of the funding being allocated to debt servicing rather than developmental projects. PIDE’s research highlights that, despite significant investments in infrastructure, development projects rarely achieve their intended outcomes due to poor governance and weak institutional frameworks. This lack of foresight exacerbates Pakistan’s vulnerabilities, as sectors critical to sustainable growth, such as education, infrastructure, and energy, continue to be neglected. The country’s ranking on the Human Development Index (HDI) fell to 154th out of 189 countries in 2023, signaling the grim state of human capital development.
Equally concerning is the role of state institutions, which should be the custodians of national prosperity. Unfortunately, many of these institutions are locked in a power struggle, undermining their ability to function effectively. Whether it is the judiciary, bureaucracy, or the military, these institutions, instead of collaborating for the country’s progress, are entangled in conflicts that further deepen the nation’s instability. PIDE’s analysis has shown that 70% of development projects in Pakistan suffer from implementation delays, cost overruns, and mismanagement, primarily due to institutional inefficiencies and political interference. Transparency International’s 2023 Corruption Perceptions Index ranked Pakistan at 140 out of 180 countries, reflecting the deep-rooted governance issues.
The challenges Pakistan faces are daunting, but not insurmountable. To break free from this cycle of instability, there needs to be a shift in priorities. Politics must once again be centered around governance, law, and the people’s welfare. Political leaders must be held accountable to deliver on promises of progress rather than engaging in power games. Institutional reform is critical in ensuring that state bodies work towards a common goal: the prosperity and stability of Pakistan.
The path to recovery is not easy, but it is essential. A nation cannot thrive on rhetoric alone. Pakistan must develop a comprehensive growth strategy that prioritizes education, infrastructure, and innovation. Economic stability will only return when investors regain confidence in the country’s political and economic environment. Political leaders must recognize that their actions have far-reaching consequences. PIDE’s recommendations stress that unless Pakistan addresses the core governance issues, political and economic instability will continue to undermine national development. It is high time that Pakistan’s political class rises above the fray and focuses on what truly matters: governance for the people, rule of law, and a sustainable future for the nation.
Muhammad Faiq Shah is the Founder of the Amun Taraqqi Party (ATP) in Pakistan and the Founding Chairman of the Friends of Society Organization (FSO). He can be reached via Email: [email protected]
