Pakistan’s Economy: 77 Years of Turmoil and Troubled Tango of Tail chasing
by Ali Arman
Pakistan’s economic struggles seem like a recurring nightmare. Each attempt to break free follows a similar pattern: the all-powerful military establishment turns to or strongarm the week political governments turn to bankers for a rescue mission of Pakistan’s evergreen and never-ending financial crisis which inface is deeply rooted into the political crisis of Pakistan, created most of the time by the military establishment itself. So, Pakistan’s 77 years of history since its freedom from British colonial rule has been mostly the troubled tango of this tailspin. Where power grabbing Military Establishment creates a problem by weakening the political process which naturally ends up in financial trouble and then they keep picking and choosing the puppet political leaders who do not challenge them, to resolve the issue. But as soon as those political leaders start getting independent and start making their own decision then this tango of trouble is restarted again in some unexpected twist. This approach almost always deepens the crisis rather than solving it. I believe that relying solely on bankers for economic recovery has limitations and proposes a more comprehensive strategy. It is my belief that Pakistan has reached a turning point. The time has come for fairly elected democratic governments to have the freedom to formulate policies, knowing they will be held accountable by the public in the next election.
While bankers excel at financial manoeuvring, their expertise has limitations. They manage transactions, loans, and investments, mastering the intricacies of the banking system. However, their focus may lack the broader perspective needed to tackle complex economic issues.
Economic revival requires a nuanced understanding of macroeconomics, policy analysis, and global trends – areas where bankers might struggle. Economists delve into national and international economic landscapes, offering insights beyond a banker’s daily tasks. Bankers are crucial but depending solely on them overlooks the multifaceted nature of economic challenges.
Unfortunately, Pakistan’s repeated reliance on bankers for economic leadership has had unintended consequences. The mismatch between a banker’s skillset and the broader expertise needed for effective economic management has resulted in temporary fixes, not lasting solutions. This can worsen the situation, leaving the nation grappling with the fallout of misdirected efforts.
To effectively address Pakistan’s economic woes, a holistic approach that combines financial acumen with comprehensive economic expertise is necessary. Establishing a diverse economic advisory team with professionals who understand macroeconomics, policy formulation, and global trends can improve the country’s resilience in the face of economic shocks.
Bankers play a vital role, but their expertise alone cannot achieve lasting economic revival. Pakistan’s challenges demand a multidimensional approach that transcends the realm of banking. By embracing a more holistic strategy, Pakistan can pave the way for sustainable economic growth and navigate the complexities of the global economic landscape.
Unfortunately, Pakistan’s repeated reliance on bankers for economic leadership has had unintended consequences. The mismatch between a banker’s skillset and the broader expertise needed for effective economic management has resulted in temporary fixes, not lasting solutions. This can worsen the situation, leaving the nation grappling with the fallout of misdirected efforts.
In the wake of the devastating 2007 financial crisis, bankers have increasingly been viewed as part of the problem, not the solution, to global economic woes. This sentiment resonates deeply in Pakistan, where repeated reliance on bankers for economic leadership has yielded limited success.
Pakistan’s recent appointment of Mr. Muhammad Aurangzeb, the CEO of the country’s largest bank, as Finance Minister exemplifies this problematic trend. While Mr. Aurangzeb undoubtedly possesses an impressive career in global finance, his expertise lies primarily in banking operations. He may not be the economic mastermind needed to steer Pakistan out of its current financial turmoil.
This choice by the powerful military establishment who is pulling the strings behind this new political setup which has been put in place by allegedly the worst prepoll and post poll rigging suggests a concerning short-sightedness. Their focus might be on securing a quick fix with the IMF to obtain further loans and provide temporary economic relief to the population. Such a strategy could be seen as a ploy to bolster their own agenda, potentially aimed at weakening the political opposition – particularly the popular leader Imran Khan and his party, PTI. Despite winning a significant majority in the 2024 elections, Khan and his party were allegedly excluded from power through blatant rigging, both before and after the polls.
This focus on short-term solutions, however, disregards the need for long-term economic development. Pakistan requires a leader with a comprehensive understanding of economic forces, not just a skilled banker adept at navigating financial institutions.
