Government Approval Plummets Amid Economic Governance Failures
The government's approval rating is experiencing a sharp and concerning decline, with analysis indicating that this downward trend is primarily linked to its handling of the economy. This situation appears to be a self-inflicted wound, stemming from what many perceive as a complete neglect of ordinary citizens and local businesses over the past two years. It represents a classic scenario where the government seems to be operating for its own benefit rather than for the welfare of the people.
The Path to Recovery: A Simpler Prescription
The solution, for those willing to listen, is relatively straightforward. It involves a strategic dialing back of current policies. This includes:
- Implementing smaller and less destructive taxation measures.
- Ending confrontational brinkmanship with the judiciary, which consistently erodes market confidence.
- Re-engineering operational competitiveness to swiftly halt de-industrialisation.
- Reducing, or at least controlling, the ever-expanding footprint of the state on the economy.
While there are recent murmurs about a renewed focus on economic growth, Pakistan's history teaches us that such efforts will fail unless they are accompanied by genuine reforms. These reforms must aim to establish transparency, equity, and, crucially, rein in an inefficient and often corrupt bureaucracy. Without these foundational changes, any initiative is likely to result in another botched exercise.
The Core Issue: Economic Discontent
The government must realize that no amount of foreign policy posturing or numerous international tours will improve its ratings domestically. The underlying problem with its popularity is rooted in widespread economic discontent. Interestingly, the current administration finds itself in a similar position to where the PTI once stood—managing an economy that may not be catastrophic but leaves the Pakistani people chronically dissatisfied. These issues cannot be resolved through executive fiat alone.
Analyzing the Prevalent Economic Problems
There are several ways to interpret these ongoing challenges. The simplest reading focuses on inflation, which remains unacceptably high for public comfort. This is exacerbated by current interest rates that are regionally uncompetitive and, despite being high, have largely failed to control stubborn inflation, which continues to resurge with intensity.
This indicates that the long-term solution lies in creating efficiencies and productivity gains within domestic manufacturing. The goal is to gradually replace imported supply chains with local alternatives—a painstakingly slow process that requires competent managerial handling, an area where Pakistan's economic governance has consistently shown weakness.
Furthermore, with interest rate adjustments proving ineffective, the burden falls on fiscal policy choices to balance equitable growth and inflation. This would require a grand bargain where the government voluntarily reduces its size and demonstrates tangible budgetary restraint, though such measures seem unlikely given current trends.
Superficial Gains and Underlying Vulnerabilities
The government often highlights achievements like a stable currency and a buoyant stock exchange. However, upon closer inspection, both show significant vulnerabilities. The currency faces increasing pressure daily from inflation and a mounting current account deficit, exacerbated by an inelastic import list. Meanwhile, the stock exchange's rise, lacking real new domestic or foreign direct investment, points dangerously toward an unsustainable bubble.
The Inevitable Conclusion: Need for a Structural Reset
In essence, if the government wishes to succeed economically, its current policies are insufficient. A comprehensive reset of the entire economic structure appears to be an inevitable prerequisite for meaningful progress. This reset must address deep-seated issues to restore public trust and drive sustainable growth.
