An economy does not collapse in a single day. It weakens gradually, sometimes silently, until the consequences become painfully visible in the daily lives of ordinary citizens. Pakistan today is not merely facing inflation or currency depreciation; it is confronting the symptoms of a structurally broken economic system — one in which production declines, industries shut down, and opportunities shrink despite a growing population. Years of inconsistent policies, political instability, excessive reliance on imports, rising public debt, and mismanagement of public resources have left the country vulnerable to repeated crises. Compounding these challenges is a bitter political divide, where successive governments engage in tit-for-tat politics, prioritizing short-term gains and party interests over long-term national development. While politicians quarrel and blame each other, millions of Pakistanis bear the brunt: small shopkeepers close their shops, farmers see their crops go to waste, students delay or abandon education, and families struggle to afford even the most basic necessities. The economic pain is no longer abstract — it is a daily reality, felt in kitchens, marketplaces, hospitals, and classrooms across the nation.

The shrinking middle class is the clearest sign of economic distress. Teachers, government clerks, shopkeepers, and private employees — once considered financially stable — now face constant insecurity. Healthcare has become unaffordable, quality education is out of reach for many, and even basic nutrition is compromised. When a working person must choose between medicine and food, the economy is not simply weak; it is broken.

The industrial sector reflects the same crisis. Pakistan’s textile industry, the backbone of exports, has suffered severely due to high electricity tariffs, costly imported raw materials, rising interest rates, and inconsistent economic policies. Industry associations report that over 150 textile units have closed or suspended operations, while hundreds of ginning factories — often estimated near one thousand — have become inactive, particularly in cotton-producing regions. Each closure removes thousands of livelihoods and weakens export capacity, directly contributing to rising unemployment, especially among skilled and semi-skilled workers.

Unemployment has become one of Pakistan’s most pressing crises, particularly among youth. Universities and technical institutes continue producing thousands of graduates every year, yet the job market cannot absorb them. Industrial decline, inefficient public sector enterprises like PIA, and underutilized agriculture all limit employment opportunities. The consequences are severe: families lose purchasing power, consumer spending declines, and a generation faces stagnation, frustration, and limited prospects.

This lack of opportunity has fueled one of Pakistan’s most alarming challenges: brain drain. Highly educated citizens are leaving the country in large numbers. Doctors migrate to the United Kingdom and Gulf states, engineers and technicians move abroad, and IT professionals relocate to North America and Europe. The reasons include economic uncertainty, lack of merit, limited research opportunities, and unstable career growth.

Pakistan invests in educating its youth, yet the benefits of their skills strengthen foreign economies instead of its own. A country that exports its talent while importing goods cannot achieve sustainable development.

Agriculture, often described as the backbone of Pakistan’s economy, also suffers from structural inefficiency. Pakistan produces roughly 70 million tons of milk annually, yet only about 4% of this is commercially processed and marketed. The remainder flows through informal channels, leading to wastage, low farmer income, and lost export potential.

Pakistan’s livestock sector highlights another dimension of neglect. Although it contributes roughly 15% to the national GDP, it receives less than 1% of the federal budget allocation. This underfunding ensures minimal investment in modern practices, processing facilities, and value addition. As a result, productivity remains low, export potential is wasted, and rural farmers gain little economic benefit. Without proper support, a sector that should drive growth continues to stagnate, reinforcing the mismatch between potential and actual economic output.

While Pakistan is portrayed in school and university curricula as primarily an agricultural country, the reality is starkly different. Despite fertile land, large-scale crop production, and massive milk output, the country underutilizes its own resources. Small farmers struggle to access markets, industrial processing remains limited, and value addition is minimal. Instead of driving domestic growth and export potential, agriculture often fails to provide adequate livelihoods or contribute effectively to national development. This disconnect between perception and reality highlights a structural weakness: the economy relies on imports, inefficient industries, and informal systems rather than leveraging the vast agricultural potential that textbooks promise.

Public sector enterprises further strain national finances. Pakistan International Airlines (PIA) has experienced persistent financial losses for decades and requires repeated government bailouts funded by taxpayers. The state has repeatedly attempted privatization of PIA to reduce fiscal losses and inefficiency. This reflects a broader problem — the government’s limited capacity to manage commercial enterprises effectively while simultaneously relying on public funds to cover their deficits.

Political instability compounds these economic challenges. Frequent changes in government, confrontational politics, and a tit-for-tat approach to administration prevent consistent policymaking. Every new government often reverses the decisions of its predecessor rather than building on them, creating uncertainty for investors, industries, and ordinary citizens. Long-term development projects stall, industrial and energy policies fluctuate, and public trust erodes. In such an environment, economic planning becomes reactive rather than proactive, and reforms that could strengthen production, exports, or infrastructure are delayed indefinitely. The result is a vicious cycle: economic decline fuels political tensions, and political instability deepens economic decline.

The root of the crisis lies in structural imbalance. Pakistan relies heavily on imports — especially fuel, machinery, and industrial inputs — while exports remain limited, mainly concentrated in textiles. Whenever the rupee depreciates, import costs rise immediately, and inflation spreads across the economy. Instead of increasing production, the country often finances consumption through borrowing, increasing debt rather than growth.

Public debt now consumes a significant share of national revenue. A large portion of the budget is spent on debt servicing instead of education, healthcare, industry, and infrastructure. To maintain foreign reserves, Pakistan frequently turns to international lenders. While such arrangements prevent financial collapse, they often result in higher taxes and levies on ordinary citizens, further deepening economic strain. Heavy taxation not only reduces disposable income and curtails consumer spending but also discourages business investment, making it harder for entrepreneurs to expand operations or create jobs. This creates a vicious cycle: as the government imposes higher taxes to meet financial obligations, purchasing power falls, economic activity slows, industries struggle, unemployment rises, and more families are pushed toward poverty. Without reform, high taxation combined with structural inefficiency stifles growth and traps the economy in stagnation.

Yet Pakistan is not without potential. The country has a young population, fertile agricultural land, mineral resources, and a growing digital and freelance sector. Recovery is possible, but it requires structural reform rather than temporary relief. The state must expand the tax base responsibly, encourage exports beyond textiles, support small and medium industries, invest in technical education, and ensure energy stability. Consistent policies, transparency, and accountability are essential to restore investor confidence.

The responsibility for this bleak economic condition cannot be ignored. Those whose decisions, negligence, and mismanagement have contributed to the crisis must be held accountable. Economic recovery is not possible without reforming institutions and restoring merit. Pakistan urgently needs systemic overhaul — not temporary adjustments — by ensuring transparency, enforcing accountability, and appointing the right people to the right positions. Only competent leadership, professional management, and honest governance can rebuild confidence, revive production, and guide the country toward stability. Without accountability, there can be no reform; without reform, there can be no economic recovery.

A broken economy can be repaired, but only through consistent policy, honest governance, and long-term planning. If production replaces dependence, merit replaces favoritism, opportunity replaces uncertainty, heavy taxes are balanced with incentives, and political divisions are bridged for the sake of national interest, Pakistan can move from economic survival toward sustainable stability — and restore hope to its people.

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