By: Mian Abuzar Shad
President, Lahore Chamber of Commerce & Industry
In 2024, we have celebrated our 77th Independence Day. This is ample time for nations to progress, but we remain stuck in cat-and-mouse games and statistical deceptions. Whenever a glimmer of prosperity appears, it is either obstructed or sabotaged, leaving everything at a standstill.
Let me first address the issue of poverty in Pakistan, which, according to official reports, has seemingly decreased on multiple occasions, but the ground reality tells a different story. Current data suggests that 37 per cent of the population lives below the poverty line. However, the real figure is likely much higher. In 2023, inflation exceeded 30 per cent, making access to basic necessities increasingly difficult. Between 2020 and 2022, nearly 20 million people fell below the poverty line due to the COVID-19 pandemic.
According to the Global Hunger Index, Pakistan ranked 99th out of 121 countries in 2023, while the UN reports that 75 million people in Pakistan are deprived of basic needs such as education, healthcare, and a decent standard of living. Rural poverty is twice as high as urban poverty. In Balochistan, poverty is at its peak at 40.7 per cent, followed by Sindh at nearly 45 per cent, KP at over 30 per cent, and Punjab at 16.3 per cent.
The primary causes of poverty in Pakistan include debt repayments and fiscal deficits. We spend $30 billion annually on debt servicing. While the government has set the minimum wage at PKR 37,000, over 70 per cent of workers still earn less than PKR 25,000 per month. Additionally, 22.8 million children are out of school, limiting opportunities for better employment. Only 40 per cent of the population has access to basic healthcare, further aggravating poverty.
When it comes to water resources, our policymakers and politicians seem apathetic. Compared to 1950, water levels have decreased by 600 per cent, yet the construction of dams remains a contentious issue. Take the Kalabagh Dam as an example; some factions react as if even discussing it is an affront. Let us set aside the politics and at least focus on water storage. This alone can prevent floods, which disrupt millions of lives and livelihoods. For instance, the 2022 floods affected 33 million people and caused over $35 billion in damages. A single dam like Kalabagh could have mitigated such losses.
Now, let’s turn to Pakistan’s mounting debt. According to a recent report by the State Bank of Pakistan, the government borrowed approximately PKR 4.25 trillion between March and October 2024, bringing the total national debt to PKR 69.114 trillion. This raises a pertinent question: If the government claims that billions of dollars have been secured through agreements and the stock market is booming, then why the need for such massive borrowing is emerging?
The issue of debt is not new. In 1947, Pakistan’s debt stood at just PKR 30 billion. By 1971, it had risen to PKR 97 billion, a 223 per cent increase. During General Zia’s tenure, debt reached PKR 523 billion. By the 1990s, the debt exceeded PKR 1 trillion and has since skyrocketed to staggering levels. From 2017 to 2018, debt grew by 17 per cent, reaching PKR 24.953 trillion. Under the Imran Khan government, debt increased by 97 per cent, totaling PKR 49.242 trillion. Following the February 2024 elections, another PKR 4.25 trillion was borrowed within just eight months.
While the stock market may soar, touching new heights, what tangible benefits does this bring to our economy, industrialists, traders, or the public?
On the political front, external interference in Pakistan’s internal matters is growing. For instance, Donald Trump’s adviser, Richard Grenell, has repeatedly commented on the release of former Prime Minister Imran Khan. Such interference, combined with an already fragile economic state, could lead to further political complications.
Governance requires patience, tolerance, and reconciliation. However, our political landscape seems devoid of these virtues. Political issues should be resolved in Parliament, where unity is often displayed when increasing salaries and perks of the ruling class, so why not when addressing national challenges? The initiation of dialogue is commendable, but it must continue to prevent external forces from taking advantage.
As a Pakistani, I urge the government to focus its efforts on economic recovery rather than political confrontation. Transparency, justice, and efficiency in governance are essential to restoring public trust and fostering political stability. Furthermore, policy reforms are needed to address economic challenges effectively and reduce poverty.
The time has come to prioritize the welfare of the people over personal and political agendas, ensuring a sustainable and prosperous future for Pakistan.
