Pakistan’s economy is like a runner on a treadmill whose pace is controlled by the International Monetary Fund’s (IMF) conditions. With each bailout, the treadmill speeds up, and our poor runner sweats blood in the form of reduced subsidies, indirect tax hikes, and tariff increases. The real question does not circle around the speed of the treadmill; it now focuses on how to get off.

Unfortunately, Pakistan’s economic landscape epitomises contradictions. Our country’s economic policies have evolved over time, myopically focusing on short-term solutions that mainly cater to debt servicing rather than fostering sustainable revenue generation that strengthens the Gross National Product.

Instead of creating a win-win situation for businesses and the government, Pakistan remains trapped in a self-defeating cycle where businesses are forced to absorb costs, making them less competitive and reducing their output.

The power sector has proved to be the most worrisome; its policies are riddled with contradictions. Whilst electricity prices have been reduced by Rs2.12 per unit for consumers of government-owned distribution companies (Discos) and Rs3 per unit for K-Electric consumers, the government continues to discourage the adoption of solar energy. The contradiction lies in lowering the........

© Dawn Business