Pakistan’s economy is in a dire situation. Following massive economic mismanagement, Pakistan’s debt has doubled, and the rupee has crashed to dangerous levels. The inflation-driven economic storm has weakened the middle class, and the lower segments are facing extinction threats.
Although the new government is facing a serious challenge of economic recovery, it must create conditions for the middle class to gradually recover and ensure the lower segments are protected to prevent social unrest.
History is full of economic solutions that can be applied to Pakistan’s situation. One example is the USA’s emergency economic response, where the middle and lower classes were given tax incentives with down payments in cash to weather the inflationary storm, funded by sharing corporate profits. The fund was also used to invest in future infrastructure.
SOHAIL UR RASHEED SARWAR,
Islamabad.
