In Pakistan, past experience shows, every attempt at significant economic and governance reforms, which can inherently disrupt the status quo or challenge vested interests, must attract some kind of instinctive, ritualistic resistance from various sources: businesses, judiciary, civil and military bureaucracy, politicians, and even the public. Consequently, inertia has overtaken the moribund economy, making any tangible progress and change difficult, if not outright impossible.

There are reasons for this. Policymaking in Pakistan often swings between “panic and paralysis”. The state either makes abrupt decisions without weighing their pros and cons or delays obvious decisions until the moment is long past. Neither approach inspires confidence among the investors and the citizens. Rather, this affects economic growth and investment, turning Pakistan into a laggard across the South Asian region. The nation’s growth has tumbled to an annual average of 1.7 per cent in the last three years when the investment as a ratio of the country’s GDP at 13.8pc remains one of the lowest in the world.

There have been examples where the policymakers choose to introduce sudden, sweeping measures with little thought or preparation. And there are instances where they move so slowly that one begins to wonder whether there is any intent at all. The government’s decision in 2022 to introduce energy conservation measures, including the early closure of markets and shops, in order to narrow the twin current account and fiscal deficits due to a surging energy import bill amid shrinking fiscal space and increasing foreign exchange crunch, and the opposition it met, is one example of how difficult it has become to undertake reforms in this country.

The backlash from traders, business owners and even the general public to the decision made in haste was immediate and intense. The government’s response was to retreat and scrap the proposal as quickly as it was announced. Indeed, consultation with the market leaders might have........

© Dawn Business