Pakistan today stands at a critical crossroads where political polarisation has emerged as one of the most serious and persistent obstacles to national prosperity. The country is grappling simultaneously with soaring inflation, a widening fiscal deficit, declining foreign exchange reserves, rising unemployment, and shrinking industrial activity. While these challenges are often discussed in isolation and attributed to external shocks or economic mismanagement, the underlying structural issue remains the deep and chronic political divide.

This persistent instability has paralysed governance, weakened state capacity, disrupted continuity of policies, and prevented the formulation and implementation of long-term economic planning essential for sustainable growth.

Political disagreement is a natural and healthy component of any democratic system; it encourages debate, accountability, and improved decision-making.

However, in Pakistan this disagreement has steadily degenerated into extreme polarisation, where political competition has transformed into personal hostility and institutional confrontation. Opposition is treated as an existential threat rather than a constitutional role, while dialogue and compromise are portrayed as political defeat. This confrontational mindset has fostered a culture of revenge politics, in which successive governments prioritise undoing the actions of their predecessors over governing effectively. As a result, critical economic reforms remain incomplete, governance structures remain fragile, and the state remains trapped in perpetual crisis management instead of pursuing long-term national development.

One of the most damaging consequences of political division is policy inconsistency. Economic growth requires predictability. Investors—both domestic and foreign—need assurance that tax regimes, energy policies, trade frameworks, and regulatory structures will not be overturned with every political transition. In Pakistan, however, each incoming government tends to dismantle the initiatives of its predecessor, not on merit but due to political rivalry. The outcome is capital flight, declining industrial output, reduced exports, and a steadily eroding investment climate.

The political divide has also weakened state institutions. Instead of strengthening parliament, the civil service, regulatory authorities, and accountability mechanisms, political actors often attempt to influence or undermine them for short-term political advantage. When institutions lose credibility and autonomy, governance deteriorates. Poor governance, in turn, results in corruption, inefficient public spending, and failure in service delivery—all of which directly impede economic prosperity and widen public distrust in the state.

Social cohesion is another major casualty. Political polarisation has seeped deep into society, dividing citizens along partisan lines and fostering intolerance. A nation fragmented internally cannot focus collectively on productivity, innovation, and human development. Countries that achieve sustained economic progress do so by building consensus around national priorities such as education, healthcare, exports, industrial growth, and technological advancement. Pakistan, unfortunately, remains trapped in cycles of protests, sit-ins, and political uncertainty that drain economic resources and weaken national morale.

Furthermore, political instability undermines Pakistan’s standing in the international arena. Economic diplomacy, trade negotiations, and foreign investment are closely linked to a country’s political stability and policy credibility. When Pakistan is perceived as politically volatile, its negotiating position weakens, investor confidence declines, and long-term economic partnerships remain uncertain. This instability also increases reliance on external borrowing, further constraining economic sovereignty.

For Pakistan to move towards prosperity, a minimum level of political consensus is indispensable—particularly on economic fundamentals. This does not require ideological uniformity, but it does demand agreement on core national objectives such as macroeconomic stability, export-led growth, energy sector reform, documentation of the economy, and sustained investment in human capital. Many countries with diverse political systems have achieved progress by insulating economic policy from political turbulence. Pakistan must adopt a similar approach.

In conclusion, Pakistan’s path to prosperity does not solely depend on external loans, foreign aid, or short-term economic stabilisation measures. It fundamentally hinges on political maturity, respect for democratic norms, and the restoration of trust in state institutions. Bridging the political divide requires more than rhetorical appeals for unity; it necessitates a conscious transition from confrontational politics to consensus-based governance, especially on economic and institutional reforms. Political leadership must work towards a national economic charter that transcends electoral cycles, ensures continuity of policies, and safeguards critical reforms from partisan disruption.

Without political stability, no economic strategy—whether IMF-supported programmes, export promotion initiatives, or industrial revival plans—can deliver sustainable results. A persistently divided political environment discourages investment, weakens governance, and exhausts national resources in managing recurring crises. Conversely, political reconciliation and institutional stability can unlock Pakistan’s vast economic potential, enable effective utilisation of human and natural resources, and restore confidence among citizens, investors, and international partners.

Bridging the political divide is therefore not merely a political necessity—it is an unavoidable economic imperative. Without it, prosperity will remain elusive; with it, Pakistan can move decisively towards sustainable growth, social cohesion, and a secure future for generations to come.

Dr Alamdar Hussain Malik
Advisor : Veterinary Sciences
University of Veterinary and Animal Sciences, Swat
Former Financial Adviser,Finance Division
Government of Pakistan