Pakistani business circles draw comfort from the surging nationalist sentiment after repelling Indian aggression, coupled with easing inflation, stronger reserves, higher remittances and improved fiscal and trade balances.

Though Pakistan lags behind regional peers on human development, they believe these factors, for now, insulate the country from a youth-led uprising like those in Sri Lanka, Bangladesh, or Nepal.

“The country may not be out of the shadows yet, but after a long time, things seem to be looking up. It is now up to the government to consolidate gains, manage flood losses effectively, negotiate waivers with the IMF [International Monetary Fund] and rebuild better partnerships with the private sector,” a business leader said anonymously, voicing private sector concerns.

A brief four-day conflict with India in May reaffirmed Pakistan’s defence capability and was celebrated nationwide. For citizens who gauge progress by changes in their own livelihoods, upbeat macroeconomic indicators alone had failed to inspire confidence.

Credibility gaps in governance persist. IMF-guided stabilisation measures have strained family budgets through higher taxes and withdrawn subsidies, while the prolonged post-pandemic economic crisis has eroded whatever cushion households once had. Weak, jobless growth and a steady decline in living........

© Dawn Business