By Mian Abuzar Shad, President, LCCI
The Islamic Republic of Pakistan is navigating a period of unprecedented uncertainty, marked by political turbulence, regional upheavals, and global economic realignments. This moment in our national journey demands not only reflection but decisive action. As President of the Lahore Chamber of Commerce and Industry (LCCI), I have had the privilege of engaging deeply with Pakistan’s industrial, diplomatic, and strategic communities. These experiences have shaped a firm belief: if Pakistan is to survive—and ultimately thrive—it must embark upon a bold path of economic transformation anchored in political stability and institutional reform.
Our economic fragility, long a cause for concern, is now intertwined with global and regional shifts that threaten to undermine our national integrity. The persistent instability in Afghanistan, the drawn-out repercussions of the war on terror, and the volatile American policy toward Iran have collectively destabilized the broader region. Pakistan, sharing borders and energy dependencies with these flashpoints, has found itself at the receiving end of their consequences.
The spillover effects are numerous and damaging. Disrupted trade routes, elevated security expenditures, curtailed investor confidence, and erratic supply chains have all taken their toll. Energy prices remain volatile, fiscal discipline is increasingly difficult to maintain, and businesses—large and small—face daily uncertainty. My interactions with regional stakeholders have revealed a consensus: Pakistan’s economic woes cannot be viewed in isolation. They are embedded in a broader regional dynamic, one that must be managed through pragmatic diplomacy and strategic recalibration.
Beyond regional tensions, the global economy itself is evolving at a rapid pace. Technological disruption, the relocation of supply chains, and an international emphasis on environmental sustainability are reshaping trade and industry worldwide. Unfortunately, Pakistan has yet to adequately position itself within this new economic order. We remain heavily dependent on foreign loans, mired in regulatory inefficiencies, and unable to harness our demographic and industrial potential.
This is not merely a governance issue—it is a structural crisis. We must replace our reactive, aid-dependent model with one that prioritizes self-reliance, industrialization, and competitiveness. A digital economy, powered by local innovation and supported by efficient infrastructure, is not a luxury but a necessity. Export diversification must become a central tenet of our economic policy. For too long, we have placed disproportionate reliance on a narrow range of commodities and sectors, leaving our economy exposed to global shocks.
Equally crucial is the transformation of our governance apparatus. Transparency, meritocracy, and institutional strength are the foundations of sustainable economic growth. Unfortunately, our bureaucracy is still plagued by inertia, corruption, and overlapping jurisdictions. A streamlined, responsive, and professional civil service must be at the heart of our transformation strategy. Through my years of leadership at LCCI and interactions with policymakers, I have seen the immense potential of institutional reform—when backed by political will.
However, none of these reforms can take root in an environment of persistent political insecurity. Pakistan’s democratic journey has been marked by interruptions, inconsistencies, and crises of legitimacy. The absence of continuity in governance has led to erratic policymaking, weakened state authority, and a growing disconnect between the government and the governed. Investors flee where there is instability. Citizens lose faith when institutions fail. Economic plans falter in the absence of consensus and commitment.
Political insecurity is not a peripheral issue—it is the core impediment to economic progress. If Pakistan is to regain the confidence of both its people and the international community, it must stabilize its political landscape. This requires mature leadership, cross-party collaboration, and an unwavering focus on national interests above partisan considerations.
In such times of crisis, the role of the Pakistan military becomes increasingly vital. Throughout history, the military has served as a stabilizing force, often stepping in to protect national cohesion in moments of institutional failure. As I have discussed with security experts and state officials, the distinction is clear: the government administers, but the military safeguards the state. In our current circumstances, this role must not be politicized, but recognized as a national asset to be deployed strategically.
The military’s discipline, organizational capacity, and strategic foresight can help ensure that Pakistan does not descend further into chaos. Its role in maintaining internal security, guarding economic corridors, and securing foreign investments—particularly under initiatives like CPEC—cannot be overstated. But true progress will only come when civilian and military institutions work in tandem, respecting constitutional boundaries while pursuing shared national goals.
At the international level, Pakistan continues to play a frontline role in global security, particularly in counterterrorism. The cost we have borne—both in lives and economic disruption—has been enormous. Yet the world’s recognition of our sacrifice remains inadequate. Global powers must now move beyond rhetorical support. Pakistan needs meaningful cooperation in the form of technology transfer, security coordination, trade access, and development assistance. Without such collaboration, the roots of extremism will remain intact and our economy will remain hostage to instability.
In light of the prevailing crises, I issue a call for decisive, unified action. The time for half-measures has passed. I urge the National Command of the State to take bold and immediate steps to implement an efficient governance model and usher in a comprehensive economic reform agenda. The preservation of the state—and the prosperity of its citizens—depends on this transformation.
At the same time, I appeal to global leaders to acknowledge Pakistan’s pivotal position in the region. We are not just another developing country; we are a critical node in South Asia’s security and economic architecture. The future stability of this region—and by extension, the global order—requires a stable and prosperous Pakistan. We must be supported, not isolated.
Through my engagements across industry, diplomacy, and strategy, I remain convinced of one truth: Pakistan is not without hope. We have a resilient population, a strategic geographic location, abundant natural resources, and a vibrant entrepreneurial class. What we need is vision, leadership, and unity. If we rise above our divisions and act with urgency, we can still rewrite the narrative of decline into one of resurgence.
Let this be our defining moment. Let us not look back years from now and regret missed opportunities. The window for action is narrow—but it is still open. With courage, clarity, and collaboration, we can build a Pakistan that not only survives but leads.
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