COVID-19 and Pakistan Economy || Political Deadlock || Democracy in Pakistan
Pakistan and Its Systems
The current political deadlock or constitutional emergency is a dilemma in Pakistan. The hung parliament (a parliament with no part majority) has created a doldrum situation in the country. In this way, the political, economic, and financial situation of Pakistan is at crossroads.
Currently, the incumbent government is running the affairs of the state with merely a minor majority which is further creating lots of problems for the government. The permanent threat from the opposition parties is hanging on the head of the incumbent government officials. And this situation is the one side that has created a situation of uncertainty. And on the other side, diverting the attention of the government towards very tinny issues. For instance, government officials spend their energies on surviving and giving the opposition a tough time. This thing further results in low attention towards the public social and economic problems.
Furthermore, the opposition also seems interested in the solution to common public problems. As currently, people are facing the issues of unemployment, inflation, and closure of business activities due to the COVID-19 phenomenon.
By and large, the people and economy of Pakistan are suffering due to COVID-19 as well as the current political situation which is prevailing in Pakistan.
Economic Turmoil of Pakistan
The current economic condition of Pakistan is very bad. The value of money is deteriorating against the dollar which is further enhancing the foreign debt as well as import bill. This scenario further distrusts the interest of foreign investors as well as local investors.
Further, it is a fact that the Pakistani economy is a loan-based economy or FBR-based economy where the entire burden of revenue collection is on the Federal Board of Revenue which is the tax collection department in Pakistan. This thing is shaking the roots of the economy.
We can see that other states in Europe, America, Africa, and even Asia have based Industry and Service sectors or they are agri-based economies. Whereas, in the case of Pakistan all these sectors are not performing well due to many factors.
Political Unrest in Pakistan is hitting back Economy
Many of the political and economic analysts of the world are of the view that “economy is politics”. It means that when your economy will be strong, you will be strong politically. So, we can see the example of the US, United Kingdom, Germany, Russia, France, Japan, and China. The economy of these states is very strong which further enhanced their political value and standing in the world.
A Way Forward
It is the need of the hour to create a political consensus for a larger public interest. For the survival of everyone and for the betterment of the country. It is necessary to put aside the vested interest and give preference to the National Interest. Because the current economic situation in Pakistan needs mutual cooperation and national-level sincerity among the leaders of different political parties. The situation of chaos and uncertainty is on the one hand creating a bad environment for the local investors and business community. On the other side, this political situation is also creating a feeling of indifference among the heart of foreign investors. So, negotiation and political situations of all matters are the primary things to do in the current situation.
Also Read: COVID-19 and Pakistan Economy
