Pakistan is witnessing a prolonged period of political instability and the adverse consequences for the economy are quite visible. The present government has failed to fix its feet on the ground and has continued to lurch from one crisis to another. The countries considered to be the allies of Pakistan are showing reluctance in providing financial support and hence the overall balance of payments is in deficit. The foreign investors are losing confidence in Pakistan’s economy and their foreign investments are falling short. A relatively stable and resurgent economy has been destroyed in the last four years owing mainly to the bad governance not helped by political instability. The political parties must sign a ‘charter of economy’ before running for elections. They must agree on certain economic policies and reformation agenda for the future of economic growth and prosperity of the people of Pakistan. No political party alone can undertake these reforms. It requires a commitment from all the major political parties under the charter of economy. They must remember that economic stability and political stability are deeply interconnected. No amount of foreign assistance will propel growth unless the conditions of a country are stable and an honest government is in place. The market-oriented policies and a willingness to undertake reforms should be in place. Aid that goes into poor policy environment does not work. Instead it contributes to debt accumulation and restrains future economic growth. 


Karachi, October 17.