Pakistan finds itself ensnared in a period of stagnant growth. If the World Bank’s projection of GDP growth for the next two years is correct, the average growth over four years (FY23-FY26) at 1.7 percent is to be the lowest four years of growth in the history of the country since 1950. If realized, this dismal forecast would mark a nadir in Pakistan’s economic trajectory.

Unemployment and soaring inflation have inflicted profound hardships, with the mere contemplation of further years of economic stagnation instilling dread in many. Moreover, even sustaining a growth rate of 2-3 percent without substantive reforms and (or) restructuring appears untenable.

Unlike previous crises of 2008, 1998, and 1973, the current economic downturn surpasses in severity, with consecutive years of record-low growth — it was negative last year, and this year’s forecast is below 2 percent. The fleeting euphoria of achieving stabilization merely postpones an impending catastrophe.

The socio-economic repercussions of this protracted ordeal are dire: dwindling job opportunities, declining real incomes, and a widening poverty chasm amidst a shrinking middle class. Meanwhile, the youthful demographic dividend remains underutilised.

Businesses hesitate to invest domestically, opting to channel resources........

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