pakistan8217s economy challenges

Pakistan’s Economy: Challenges and Opportuni…

A country’s economy is the foundation of its development, sovereignty and national security. A strong economy not only improves the quality of life of its citizens but also strengthens a nation’s standing in the international community. Pakistan’s economy today stands at a critical juncture. While there are encouraging signs of stability, many structural challenges continue to hold back sustainable growth. As a result, the economy has become a central concern for citizens, businesses, investors and policymakers alike.

Over the past few years, Pakistan has endured one of its most difficult economic periods. High inflation significantly reduced people’s purchasing power, while repeated increases in electricity and gas tariffs drove up production costs for industries. At the same time, the depreciation of the Pakistani rupee made imports more expensive, placing additional pressure on businesses and households. The burden fell most heavily on middle and low-income families, many of whom struggled to meet even their basic daily needs.

Despite these hardships, recent economic indicators offer cautious optimism. Inflation has eased compared to previous highs, foreign exchange reserves have shown improvement, remittances have remained resilient, and efforts to increase exports are beginning to produce positive results. However, stronger macroeconomic indicators alone do not automatically translate into better living standards. Sustainable progress can only be achieved when economic growth creates employment opportunities, revitalises industries and leads to meaningful increases in household incomes.

One of Pakistan’s most persistent economic challenges is the lack of policy continuity. Successive governments often replace or abandon the initiatives of their predecessors in favour of new priorities. This inconsistency weakens investor confidence and undermines long-term economic planning. Many successful economies have demonstrated that sustained growth depends on stable national policies that remain consistent regardless of political transitions.

Tax reform is another area that demands urgent attention. The country’s tax base remains disproportionately small compared to its population, placing an unfair burden on compliant taxpayers while a significant portion of the economy continues to operate outside the formal tax system. Broadening the tax net, simplifying tax procedures, enhancing transparency and effectively addressing tax evasion would provide the government with greater fiscal space to invest in infrastructure, education and public services.

Agriculture continues to be the backbone of Pakistan’s economy, yet the sector faces numerous challenges. Water scarcity, limited adoption of modern farming techniques, rising input costs and the growing impact of climate change have reduced agricultural productivity and increased the hardships faced by farmers. Investing in modern agricultural technologies, improving water management and providing farmers with better financial and technical support could substantially enhance production and boost agricultural exports.

Pakistan’s information technology sector also presents remarkable opportunities. With a large and increasingly skilled young population, expanding freelance services and growing participation in the digital economy, the country has significant potential to earn valuable foreign exchange. Realising this potential requires greater investment in digital education, reliable internet infrastructure, research, innovation and an environment that supports entrepreneurship.

The energy sector remains equally important to economic growth. High electricity and gas prices continue to increase industrial production costs, reducing the competitiveness of Pakistani products in international markets. Greater investment in renewable energy, reducing transmission losses and improving energy management could help lower costs and strengthen industrial productivity.

Foreign direct investment is another key driver of sustainable economic development. Investors are naturally attracted to countries that offer political stability, transparent regulations, an efficient judicial system and a business-friendly environment. Pakistan can significantly improve its investment climate by reducing bureaucratic hurdles, strengthening institutions and implementing investor-friendly policies that encourage long-term confidence.

Economic progress, however, is not solely the responsibility of governments. Citizens also have an essential role to play by paying taxes honestly, using energy responsibly, supporting local industries and respecting the rule of law. A resilient economy is built through shared responsibility between the state, businesses and the public.

Pakistan is not short of resources or potential. What it needs is better governance, prudent management of available resources, policy consistency and broad national consensus on economic priorities. Continued investment in education, industry, agriculture, exports and human capital can enable the country not only to overcome its economic challenges but also to emerge as a stronger and more competitive economy in the region.

The need of the hour is to place long-term economic interests above short-term political considerations. A strong economy is the cornerstone of a strong state. By making informed and consistent policy choices today, Pakistan can lay the foundations for lasting prosperity, economic resilience and a better future for generations to come.

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Rather than replacing legal professionals, AI has the potential to become a reliable assistant that enhances both efficiency and accuracy. For Pakistan, where the judicial system continues to struggle with delays and an ever-growing backlog of cases, the responsible use of AI could bring much-needed reform. Thousands of litigants wait years for the resolution of their disputes, often because courts are overburdened and administrative processes remain largely manual. AI can assist in organizing digital records, managing court schedules, classifying legal documents, and simplifying legal research for judges and lawyers alike. These improvements could significantly reduce delays, improve case management, and make the justice system more efficient without compromising judicial independence. Importantly, AI should support judicial decision-making rather than replace it, as the final responsibility for interpreting the law must always remain with judges. Beyond improving efficiency, AI also offers an opportunity to strengthen access to justice. A significant portion of Pakistan’s population cannot afford legal representation or lacks access to basic legal information. AI-powered legal assistance platforms, particularly those available in Urdu and regional languages, could provide citizens with preliminary guidance on their legal rights, court procedures, and available remedies. Such tools would not replace qualified lawyers but could empower individuals by helping them understand the legal system before seeking professional assistance. In a country where legal awareness remains limited, technology can become a powerful means of promoting legal literacy and strengthening public confidence in the justice system. The emergence of AI is equally significant for legal education. 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A lawyer who relies solely on AI without verifying its results risks providing incorrect legal advice or presenting flawed arguments before the court. Furthermore, the use of AI raises important concerns regarding client confidentiality and data protection. Lawyers have a professional and ethical obligation to protect sensitive client information, and any use of AI must ensure that confidential data is handled securely. These concerns highlight the importance of developing ethical guidelines governing AI’s use within the legal profession. Pakistan currently lacks a comprehensive legal framework specifically regulating Artificial Intelligence. While existing laws address cybercrime and certain aspects of electronic transactions, they do not adequately address issues such as AI accountability, transparency, liability, algorithmic bias, or the protection of personal data in AI-assisted legal services. 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  • A lesson from 1979

    In the winter of 1979, a neighbour’s house caught fire. The Soviet Union had marched into Afghanistan, and the flames of war were licking at the walls of Kabul. From across the ocean, a distant power arrived at Pakistan’s door. It did not come with soldiers. It came with money, guns, and a promise: *”Let us fight this fire together. Use your roof. Use your roads. We will stand with you. We will not let the fire reach your house.”* Pakistan opened its door. What else could it do? The Soviet army sat on its western border. The world was divided into two camps, and neutrality was a luxury no frontline state could afford. For ten years, Pakistan became the staging ground for a war that was not its own. It hosted three million refugees. Its cities swelled. Its tribal areas became training grounds for fighters armed and funded by outside money. Weapons arrived by the shipload through Karachi. Pakistani officers coordinated strategy. Every bullet fired at a Soviet convoy in the Hindu Kush passed through Pakistani hands. The distant power paid the bills. It sent the Stinger missiles. It called the resistance fighters “freedom fighters” and Pakistan a “frontline state.” But the war was never truly about Pakistan’s safety. It was about bleeding the Soviet Union in a distant mountainside, using Pakistani soil as the operating theatre and Afghan bodies as the currency. Then, in 1989, the Soviet Union withdrew. The fire in the neighbour’s house went out. And the distant power that had promised eternal friendship turned its attention elsewhere. The billions dried up. The diplomatic interest evaporated. Afghanistan, the battlefield, was left to warlords who turned the weapons on each other. Pakistan was left with three million refugees who would not go home, a Kalashnikov culture that would not disappear, and a border that would never again be quiet. The weapons that had been given to fight the Soviets did not rust. They remained. They moved into streets, into disputes, into corners of the country where the state had never fully reached. The guest who had brought the fire extinguisher had started a blaze that spread to the host’s own house — and then moved to a new neighbourhood. The distant power won its strategic objective at the cost of Afghan and Pakistani soil, then walked away. Its own cities were never bombed. Its own children never became refugees. Its economy never staggered under the weight of someone else’s war. Pakistan, which had signed no formal treaty of alliance but had acted as an ally in every meaningful sense, was left holding the pieces. This is what happens when alliances are forged in the middle of a fire. The stronger partner does not need your victory. He needs your usefulness. He needs you to hold the front, to absorb the blow, to stand in a place where he does not wish to stand. And when the war ends, he will shake your hand and go home — while you remain amid the embers, wondering why the fire you helped extinguish has reignited in your own courtyard. History records a curious pattern. The alliances that have endured — the ones that outlasted their founders and shaped the world for generations — were almost never built while the house was burning. NATO was forged in 1949, not because the bombs were falling on Paris, but because the memory of war was still fresh and the desire to prevent it was shared. The parties had time to read the text, to negotiate the terms, to build institutions that could survive a change of government on either side. An alliance born in the middle of a fire is a different creature entirely. It is an emergency measure. And emergency measures have a way of becoming permanent arrangements that no one planned and no one fully controls. When you sign while the heat is at your back and the smoke is in your eyes, you do not have time to ask who owns the hose, who pays for the water, and who walks away when the flames are out. The Afghan episode is not ancient history. It is in our own lifetime. It is written in the smoke that still rises from our western border. And it is written in the simple fact that the weapons once aimed at a northern invader eventually turned inward, because no one had written a clause for what happens after the guest leaves. Pakistan has every right to defend itself. Pakistan has every right to seek friends in a dangerous world. But history offers a quiet observation for those who are listening: **the strongest alliances are built in peacetime, not borrowed in panic.** The fire is real. The neighbour’s house is burning. Yet the hand that offers protection in the middle of a war is holding a different ledger than the hand that offers partnership in the middle of calm. That is not a warning against friendship. It is simply what the record shows.

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    It’s not about the prisoner’s health only its about Pakistan. When a state holds a political leader in prison, it assumes a responsibility that goes beyond the enforcement of a court sentence. It assumes responsibility for the person’s safety, dignity and health. That principle should be beyond politics. In Pakistan, however, even a prisoner’s eyesight has become part of the country’s bitter political struggle. The continuing controversy over Imran Khan’s health is therefore about much more than one man. It raises a fundamental question about the relationship between the citizen and the state: what happens to individual rights when political conflict becomes so intense that every state decision is viewed through the prism of partisan politics? Imran Khan, Pakistan’s former prime minister and one of its most influential political figures, has been in prison since 2023 in connection with multiple legal cases. His supporters have repeatedly raised concerns about his health and access to appropriate medical care. More recently, particular concern has focused on his eyesight. Reports in early 2026 said that Khan had developed a retinal condition affecting his right eye. His family and political representatives questioned whether he had received adequate specialist treatment, while the authorities maintained that he was being properly cared for. A government-appointed medical board subsequently reported improvement in his eyesight. The conflicting accounts should not be allowed to become another chapter in Pakistan’s political war. There is a remarkably simple way to address the problem: independent medical assessment and complete procedural transparency. If Khan is medically stable, independent specialists should be able to establish that fact. If he needs treatment, it should be provided without delay. If his family disputes the government’s medical assessment, credible specialists should be permitted to review it. There should be no political advantage in either concealing a medical problem or exaggerating one. This should be obvious in any functioning democracy. Yet Pakistan’s political history makes it anything but simple. For decades, political power in Pakistan has been accompanied by institutional confrontation. Governments have used legal and administrative mechanisms against their opponents, only to find themselves out of power and vulnerable to similar treatment later. Political parties that once demanded accountability have subsequently complained of victimisation when they became targets themselves. The result is a vicious cycle in which accountability is increasingly viewed through the language of revenge. Imran Khan’s imprisonment has become one of the most visible manifestations of that crisis. His supporters see him as the victim of an establishment-backed campaign to remove him from politics. His opponents argue that the cases against him are matters of law and accountability and that political popularity cannot place anyone above the law. Both arguments can be debated. Courts can determine questions of guilt and innocence. Voters can judge political performance. Parliament can debate constitutional questions. But none of these arguments should determine the standard of medical care available to a prisoner. That distinction is essential. The state has the authority, within the law, to imprison a person. It does not acquire unlimited authority over that person’s body or dignity. Detention restricts liberty, it does not erase humanity. This principle becomes even more important when the prisoner is a former head of government. The treatment of such a person inevitably becomes a test of institutional maturity. The government may have legitimate reasons for keeping Khan imprisoned, but it should have an equally compelling interest in ensuring that his medical treatment cannot reasonably be portrayed as political punishment. The irony is that transparency would serve everyone. It would protect Khan from inadequate treatment. It would protect his family from uncertainty. It would reassure his supporters. And it would protect the government from accusations that medical care is being manipulated for political purposes. Instead, Pakistan often chooses the opposite path. Official statements are followed by political counterstatements. Medical reports become partisan documents. Families make allegations. Governments issue denials. Social media turns uncertainty into outrage. And a question that should have been answered by doctors becomes another battlefield between political camps. This is not merely a communications failure. It is an institutional failure. A credible democratic state must have mechanisms capable of resolving such disputes without requiring citizens to choose which political side they trust. Pakistan could establish precisely such a mechanism. High-profile prisoners could be examined by independent medical boards selected through transparent professional criteria. Prisoners could have access, where appropriate, to independent specialists. Medical records could be maintained according to professional standards, while necessary information could be shared with families and the courts. Where a serious disagreement arises, an independent medical opinion should be available. Such safeguards should not be created specifically for Imran Khan. They should apply to everyone. The ordinary prisoner matters too. Pakistan’s prisons contain thousands of people whose health concerns rarely receive national attention. They may not have political parties, lawyers appearing on television every evening, influential families or millions of supporters on social media. Yet their right to humane treatment is no less important. Indeed, the treatment of ordinary prisoners may be the more meaningful measure of the state’s commitment to human rights. But Khan’s case provides Pakistan with an unusual opportunity. Because his imprisonment is already under intense national and international scrutiny, the government can demonstrate that the state is capable of separating political disagreement from humanitarian responsibility. That would require political courage. A government does not become weaker by allowing an opponent proper medical treatment. It becomes weaker when it appears afraid of transparency. A government does not demonstrate authority by controlling every narrative. It demonstrates authority by allowing facts to withstand scrutiny. This is particularly significant for Pakistan’s international reputation. Pakistan frequently presents itself as a democratic state committed to constitutionalism, human rights and the rule of law. Yet international credibility is not built through diplomatic declarations alone. It is built through conduct, especially when circumstances are politically uncomfortable. The treatment of political opponents is one of the clearest indicators of democratic health. A democracy cannot be judged only by how it treats

  • The hands that clean Karachi

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There is no reliable and up-to-date official figure showing exactly how many Christian and Hindu sanitation workers are currently employed in Karachi. A World Bank-linked environmental and social assessment, however, recorded around 11,400 sweepers and sanitary workers employed by the city’s district authorities. It also noted additional workers employed through SSWMB contractors and a large informal workforce involved in door-to-door waste collection and material recovery. The 11,400 figure therefore does not represent Karachi’s entire sanitation workforce. The actual number is considerably broader once outsourced, daily-wage and informal workers are included. Sanitation work in Pakistan has for decades been disproportionately associated with religious minorities. Research by Amnesty International has documented the concentration of Christians and Hindus in sanitation work and found evidence of discrimination in recruitment, employment and working conditions. The issue therefore begins well before a worker picks up a broom. It is also about whether people from particular religious and social backgrounds are being denied opportunities to enter other occupations. The question of wages is equally important. The Sindh government has announced a minimum monthly wage of Rs43,000 with effect from July 1, 2026. While the announcement is significant for low-paid workers, the more important question for sanitation workers is whether the amount actually reaches them. A substantial part of Karachi’s sanitation work is performed through contractors, outsourcing arrangements and daily-wage employment. Previous reporting has documented workers employed through SSWMB contractors receiving wages below the applicable minimum wage. In one reported case, a minor working for an SSWMB contractor was receiving Rs15,000 a month when the minimum wage for unskilled workers was Rs32,000. The new Rs43,000 minimum wage therefore requires more than a government notification. It requires effective enforcement and monitoring, particularly where public sanitation services are outsourced. If a worker performs essential public work through a contractor, there must be clarity about who is responsible for ensuring that he receives the legally prescribed wage and other employment rights. For sanitation workers, however, low wages are not the only concern. The nature of the work itself can be fatal. In September 2025, three sanitation workers died in Karachi’s Usmanabad area after inhaling toxic gases while cleaning a manhole. The victims were identified as 22-year-old Vishal, 19-year-old Shahir and 42-year-old George. A fourth worker survived after being rescued. The deaths were followed by further fatalities. In October 2025, The Express Tribune reported that six sanitation workers had died from suffocation while cleaning sewers in Karachi in just over a month. The deaths occurred in Sohrab Goth, Garden and Landhi. According to the report, the victims were privately hired daily-wage workers who lacked adequate safety equipment and training. On April 17, 2026, three private sanitation workers died in Surjani Town after inhaling toxic fumes while cleaning a choked sewerage line. Police identified the deceased as Wilson, Waqas and Nazeer and said all three belonged to the Christian community. Such incidents follow a familiar pattern. A worker enters a sewer to clear a blockage. Toxic gases overcome him. Another worker may enter in an attempt to rescue him and can suffer the same fate. Without proper protective equipment, gas detection devices, training and rescue arrangements, a routine cleaning operation can quickly turn into multiple deaths. The exact number of sanitation workers who have died in Karachi is difficult to establish because there is no comprehensive publicly available official database covering municipal, private, contracted and informal workers. In October 2025, activist Naeem Sadiq told Arab News that approximately 100 manual scavengers die every year in Pakistan, including around 30 in Karachi. He also warned that the actual number could be higher because of underreporting. The figure is an activist estimate rather than an official government statistic, but it illustrates the scale of the concern. At the national level, Amnesty International documented 80 sanitation workers who died in 50 manhole incidents between 2011 and 2023. Of these, 40 were Christians, 22 Muslims and 18 Hindus. Most of the deaths were associated with poisonous gases and asphyxiation. The figures highlight a wider concern: minority workers are disproportionately represented in some of the most hazardous sanitation jobs, while also facing social and economic disadvantages. A survey by the National Commission for Human Rights of 42 sanitation workers in Karachi provides further evidence of poor working conditions. Thirty-three workers, or 78.6 per cent, said they had never been provided personal protective equipment. Twenty-four, or 57.1 per cent, reported workplace injuries. The same number reported verbal or physical abuse, threats, non-payment or other forms of discrimination. These findings raise a basic question about Karachi’s sanitation system: the issue is not only who will clean the city, but under what conditions the people cleaning it are expected to work. Another study involving 400 sewerage and sanitary workers in Karachi found that 228, or 57 per cent, were sweepers and 172, or 43 per cent, were sewerage workers. The study found that 96.5 per cent had not been immunised against typhoid, hepatitis and tetanus, while 91 per cent were not using safety equipment at work. For workers exposed daily to sewage, waste and potentially toxic environments, protective clothing, gloves, boots, masks, vaccination, health examinations and emergency support should not

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