Our economic strategy: one step at a time

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LAHORE: Pakistan has adopted a strategy to improve the torn fabric by tampering on the brink of economic elimination – a stitch at a time. This approach involves selecting issues of postponing others, delaying others, in an attempt to avoid massive unrest and time, unless the system is well repaired to make wider reforms.

The method of ‘one stitch at a time’ prefers some important challenges, such as macroeconomic stability. It took almost three years to achieve this stability, which highlighted the painful pace of recovery in a critical economy. During this period, the government consciously refers to better reforms, knowing that the simplicity of stability has put a burden on the public. It fears that deep reforms can incite unrest.

Planners are banking on the idea that once there is some place to breathe, more deep structural reforms will be possible. It is a practical survival strategy, which is more political facts than the ideal economic theory. Its root is in the political feasibility: sweating reforms often meet resistance, while gradually buying steps time and maintains the social system.

The initial goal is to restore minimal stability – strengthening foreign exchange reserves, managing loan service and controlling inflation to ensure basic economic functionality. The government is highlighting the initial wins to increase the confidence of the people, such as better tax collection and export privileges.

Yet there are defects in the strategy. Once the economy begins to stabilize, political will approach the weakest, the interests, and the hurry of reforms decreases. This is already clear in Pakistan, where every proposed reforms face strong resistance from pressure interests.

At one point, the state should take a strong stand. If a structural deterioration – such as tax evasion, smuggling, elite arrest and inadequate energy – are not focused, the recovery will be taken away and the economy will suffer from these interests.

Another danger is public frustration. The very slow pace of rehabilitation is eliminating confidence in the promise of future reforms, especially when inequality remains intact and public services fail to improve. The weak governance in Pakistan is increasing this challenge. If strict decisions are permanently postponed, the point of ‘one stitch’ at a time is tied up as a substitute for decisive governance.

Strategies can work – if used as part of a step -by -step project with clear layout, accountability and timelines. But if it becomes inactive, it becomes dangerous. It is important to act without changing reforms. The roof is difficult to fix in the rain, but waiting for the sunlight can leave the house repair.

Other countries have faced similar crises. India’s 1991 Balance of Payment crisis led to the reform of bold liberalization, though the government, which imposed it, deprived them of the next elections. In the 2010s, Greece made clean financial and structural reforms under EU pressure at a higher social cost. Bangladesh adopted another gradual approach, making its export sectors, women workers’ participation, and permanently reforming the microfinance system.

Pakistan, too, will have to stabilize-in collaboration with the tax policy, the power sector, the development of a reform piety for public-owned businesses and economic documents. There is a need to create political consensus on what comes to avoid policy overturning. Policy makers have to include the public through transparency and compulsive reform story. Only through openness and explanation can the public’s trust – and help – can be protected.