Pakistan’s Economy and External Pledges: an Irony
Prime Minister Shahbaz Shareef’s recent engagement at the World Economic Forum Summit in Jeddah has collected significant attention, particularly regarding Saudi Arabia’s pledge of a massive investment deal in Pakistan. Saudi Minister for Investment Khalid Al-Falih commended the Prime Minister’s proactive approach, lauding him as ‘a man of action’ and expressing solidarity in their shared mission. However, scepticism looms among policymakers and economists due to past experiences, where assurances of support from foreign entities have not always materialized into tangible outcomes.
International community has pledged 10 billion USD in January 2023 for the reconstruction and development of flood effected regions, however, the Government of Pakistan has yet received only 5 percent of it. This underscores the importance of self-reliance and reducing dependency on foreign aid, loans, and investments. Addressing governance inefficiencies and enhancing production capacity are vital steps in narrowing the import-export gap, which stood at $44 billion in FY 2023.
In the high times, Pakistan must prioritize internal reforms to foster economic stability and sustainable growth, which include: bringing political stability, crafting long-term apolitical economic strategies, empowering the youth through skill development initiatives, ensuring both internal and external security, empowering women to inculcate gender equality and embracing digital transformation to modernize systems and processes. By focusing on these dynamics, Pakistan can lead a path towards prosperity that is less reliant on external support and more driven by internal resilience and innovation.
