To rescue Pakistan from economic catastrophe, the top-priority is national unity.

M A Hossain, 

In the wake of ongoing economic turmoil, Pakistan stands at a critical juncture, contending with severe financial challenges despite its abundant resources. Once hailed for its potential and economic growth, the nation now faces the specter of bankruptcy. In the South Asian region, even a few years ago, Pakistan was considered a country of infinite possibilities. Investors were showing eagerness to invest in Pakistan. Even the economic growth of Pakistan was far ahead of most of the South Asian nations. According to statistics, in 2009-2010, Pakistan’s GDP was 4.1 percent and was expected to grow further in the subsequent years. With such a background-one may ask -what has gone wrong in Pakistan? Why is this nation of infinite possibility now heading towards economic bankruptcy?

For decades, Pakistan has steered a complex socio-political landscape, marked by factionalism and discord. This fragmentation has encumbered progress and eroded public trust in institutions. While various factors contribute to the current quandary, including governance inefficiencies and external pressures, the foremost obstacle remains the lack of cohesive national identity and solidarity.

In times of crisis, nations must unite under a common purpose, transcending political divides and personal interests. The economic challenges confronting Pakistan demand collective action and unwavering commitment from all stakeholders. It is no longer sufficient to attribute blame or engage in partisan rhetoric; instead, concerted efforts towards reconciliation and collaboration are imperative.

National unity serves as the bedrock for economic stability and sustainable development. A united front enables the formulation and implementation of comprehensive reforms, essential for restoring investor confidence and stimulating growth. Moreover, it fosters resilience in the face of external pressures, ensuring that Pakistan's sovereignty and interests are safeguarded.

The path to national unity requires introspection and dialogue across all segments of society. It necessitates a shared vision for the future, grounded in principles of inclusivity, justice, and prosperity for all citizens. Political leaders must rise above narrow agendas and prioritize the collective welfare, recognizing that the fate of the nation transcends partisan interests.

Furthermore, the role of civil society, academia, and the media is paramount in promoting dialogue and fostering understanding among diverse communities. By fostering a culture of tolerance and cooperation, these institutions can bridge divides and cultivate a sense of belonging among all Pakistanis.

Importantly, the military establishment, as a crucial pillar of the state, must align its efforts with civilian authorities to pursue the common good. While security concerns remain paramount, a collaborative approach to governance and development is essential for long-term stability and progress.

In addition to domestic efforts, Pakistan must engage constructively with the international community, leveraging partnerships for mutual benefit. Economic diplomacy and trade alliances can open new avenues for growth and diversify the economy, reducing dependence on traditional sources of revenue.

At its core, the quest for national unity is a moral imperative, transcending economic considerations. It embodies the spirit of resilience and solidarity that defines the Pakistani nation, inspiring hope and confidence in the face of adversity.

Meanwhile, Pakistan can take several urgent measures in salvaging its economy from bankruptcy. Here are some suggestions:

 

Privatizing Pakistan's state-owned enterprises:

As Pakistan faces economic challenges, exploring avenues for revitalization becomes imperative. Among the various strategies available, offloading state-owned enterprises (SOEs) to prospective foreign investors stands out as a promising solution. This approach not only injects much-needed capital into the economy but also fosters efficiency, innovation, and competitiveness in key sectors. However, such a significant step requires careful consideration of its implications and execution.

State-owned enterprises have long been a cornerstone of Pakistan's economy, playing a significant role in various sectors, including energy, telecommunications, and transportation. However, inefficiencies, mismanagement, and corruption have plagued many SOEs, stifling growth and draining public resources. Privatization offers a compelling alternative, unleashing the potential for transformation and revitalization. 

It may be mentioned here that, by offloading SOEs to foreign investors, Pakistan can attract capital investment, technology transfer, and expertise, driving innovation and modernization. Foreign investors bring not only financial resources but also global best practices and market access, positioning privatized enterprises for sustainable growth and competitiveness in the international market.

Moreover, privatization fosters accountability and transparency, as private owners are incentivized to maximize efficiency and profitability. This shift from state control to private ownership reduces bureaucratic red tape and political interference, enabling enterprises to operate with greater agility and responsiveness to market dynamics.

The benefits of privatization extend beyond economic considerations to social and environmental dimensions. Privatized enterprises are often better equipped to address social responsibilities, including job creation, skill development, and community engagement. Furthermore, private ownership incentivizes environmental sustainability, as companies prioritize resource efficiency and adopt green technologies to enhance competitiveness and mitigate risks.

However, the privatization of SOEs must be approached with caution, considering potential risks and challenges. Key considerations include safeguarding national interests, ensuring fair competition, and protecting the rights of workers and consumers. A transparent and well-regulated privatization process is essential to mitigate risks of corruption, asset stripping, and monopolistic practices.

Additionally, policymakers must assess the strategic importance of each SOE and prioritize sectors where privatization can yield the greatest benefits. Strategic planning and stakeholder consultation are crucial to ensure alignment with national development goals and public interests.

Furthermore, the Pakistan government should implement supportive policies and regulatory frameworks to facilitate privatization and attract foreign investment. Measures such as tax incentives, regulatory reforms, and dispute resolution mechanisms can enhance investor confidence and create an enabling environment for privatization initiatives.

Offloading state-owned enterprises to prospective foreign investors presents a compelling opportunity for Pakistan to unlock economic potential and drive sustainable development. Privatization offers a path towards efficiency, innovation, and competitiveness, positioning privatized enterprises for success in the global market. However, careful planning, transparency, and stakeholder engagement are essential to navigate the complexities of privatization and ensure its success. With strategic vision and bold action, Pakistan can harness the transformative power of privatization to build a more resilient and prosperous economy for the future.

Exploring foreign partnerships for resource exploration:

Pakistan's vast natural and mineral resources hold immense potential for economic growth and development. However, realizing this potential requires strategic partnerships and investment in exploration and extraction. By negotiating contracts with foreign companies, Pakistan can leverage their expertise and capital to unlock the value of its resources, fostering economic prosperity and sustainable development.

Pakistan boasts a diverse range of natural and mineral resources, including oil, gas, coal, minerals, and renewable energy sources. Despite this abundance, the full extent of these resources remains largely untapped due to limited investment in exploration and extraction infrastructure. By engaging with foreign companies, Pakistan can accelerate the development of its resource sector, creating employment opportunities, generating revenue, and stimulating economic growth.

Negotiating contracts with foreign companies offers several advantages for Pakistan. Firstly, foreign companies bring technical expertise, advanced technologies, and best practices in resource exploration and extraction. Their experience and know-how can enhance the efficiency and effectiveness of operations, reducing exploration risks and increasing the likelihood of discovery.

Secondly, partnering with foreign companies attracts much-needed investment capital, mitigating the financial burden on the Pakistani government and taxpayers. Foreign investment not only funds exploration activities but also supports infrastructure development, including transportation, power, and water facilities, necessary for resource extraction.

Thirdly, collaboration with foreign companies enhances transparency, accountability, and governance in the resource sector. International standards and practices ensure adherence to environmental regulations, safety protocols, and fair labor practices, protecting the interests of local communities and stakeholders.

Moreover, negotiating contracts with foreign companies facilitates knowledge transfer and capacity building, empowering local professionals and fostering the growth of domestic industries. Through skills development programs, technology transfers, and joint ventures, Pakistan can build a sustainable ecosystem for resource development, creating a legacy of prosperity for future generations.

However, successful negotiation of resource contracts requires careful consideration of various factors, including legal frameworks, fiscal terms, environmental regulations, and social impact assessments. Transparent and competitive bidding processes, accompanied by robust regulatory oversight, are essential to ensure fair and equitable agreements that maximize benefits for Pakistan and its people.

Furthermore, effective stakeholder engagement is critical to address concerns and grievances of local communities, indigenous groups, and environmental activists. Consultation, dialogue, and collaboration with stakeholders foster trust, build consensus, and promote social license to operate, essential for the long-term sustainability of resource projects.

Restoring Pakistan's global image:

In Pakistan's quest for economic revival, one fundamental imperative stands above all: repairing the country's global image. The perception of a nation among the international community significantly influences foreign investment decisions. As such, urgent measures to enhance Pakistan's reputation are indispensable for attracting the capital necessary for sustainable growth and development.

Pakistan's global image has suffered from various challenges, including security concerns, political instability, and governance issues. Persistent negative perceptions deter foreign investors, undermining confidence in the country's economic potential and deterring capital inflows. To reverse this trend, policymakers must prioritize initiatives aimed at enhancing Pakistan's reputation and fostering a conducive investment climate.

Central to repairing Pakistan's global image is addressing security perceptions. While significant strides have been made in improving security in recent years, persistent threats of terrorism and instability continue to overshadow the country's progress. Policymakers must implement robust security measures, enhance law enforcement capabilities, and strengthen intelligence cooperation to reassure investors of Pakistan's commitment to ensuring safety and stability.

In parallel, efforts to improve governance, transparency, and the rule of law are essential for enhancing Pakistan's credibility and attractiveness to foreign investors. Streamlining bureaucratic processes, combating corruption, and ensuring judicial independence signal a commitment to fostering a business-friendly environment conducive to investment and economic growth.

Moreover, effective communication and branding strategies are critical in shaping perceptions of Pakistan on the global stage. Policymakers must proactively engage with international media, investors, and opinion leaders to highlight the country's strengths, achievements, and investment opportunities. Leveraging digital platforms and diplomatic channels can amplify positive narratives about Pakistan, counteracting negative stereotypes and misconceptions.

Furthermore, fostering people-to-people connections and cultural exchanges can build bridges of understanding and trust between Pakistan and the international community. Educational exchanges, cultural festivals, and tourism initiatives showcase Pakistan's rich heritage, diversity, and hospitality, challenging stereotypes and fostering goodwill abroad.

Collaboration with reputable international organizations and multilateral institutions can also enhance Pakistan's credibility and standing in the global arena. Participating in forums, conferences, and summits enables Pakistan to showcase its commitment to international cooperation, development, and peace, reinforcing its image as a responsible global citizen.

Additionally, proactive engagement with the Pakistani diaspora can leverage their expertise, networks, and resources to promote investment and development initiatives in the homeland. Diaspora engagement programs, investment incentives, and business facilitation services can mobilize diaspora capital and expertise for the benefit of Pakistan's economy.

Pakistani policymakers need to understand, repairing a country's global image is imperative for attracting foreign investment and unlocking the country's economic potential. By addressing security concerns, improving governance, enhancing communication strategies, and fostering international cooperation, policymakers can rebuild trust and confidence in Pakistan's prospects for growth and prosperity. As Pakistan navigates the path towards economic revival, nurturing a positive global image is not merely an option but a strategic imperative for success in the interconnected world of the 21st century.

Unity beyond political differences in Pakistan:

As Pakistan grapples with a looming economic crisis, the urgency for concerted action has never been more pronounced. The nation stands at a critical juncture, where partisan divides must be set aside in favor of collective efforts to address the pressing economic challenges. Political parties must recognize the gravity of the situation and prioritize the national interest over individual agendas, working together to chart a path towards economic stability and prosperity.

For too long, political differences have hindered progress and impeded effective governance in Pakistan. The adversarial nature of politics has often overshadowed the needs of the people, exacerbating economic woes and eroding public trust in the political system. In times of crisis, however, the nation cannot afford the luxury of discord. Instead, unity and collaboration are imperative for overcoming adversity and steering the country towards a brighter future.

The economic challenges facing Pakistan are multifaceted, encompassing issues such as inflation, unemployment, fiscal deficits, and external debt burdens. Addressing these complex issues requires a comprehensive and coordinated approach, transcending partisan lines and harnessing the collective wisdom and resources of all stakeholders.

Political parties must demonstrate leadership and statesmanship by putting aside short-term political gains and embracing long-term solutions for the greater good. This entails engaging in constructive dialogue, compromise, and consensus-building to forge a common vision and roadmap for economic recovery.

Key areas of focus for bipartisan cooperation include fiscal reforms, investment promotion, job creation, and social welfare initiatives. By working together, political parties can devise innovative policy measures, enact necessary legislative reforms, and mobilize public and private resources to stimulate economic growth and alleviate hardship.

Moreover, political parties must collaborate with relevant stakeholders, including business leaders, economists, civil society organizations, and international partners, to leverage expertise and mobilize support for economic revitalization efforts. Transparent and inclusive decision-making processes foster trust and ownership among all segments of society, ensuring broad-based participation in the nation's economic renewal.

It is essential to recognize that achieving economic stability requires sacrifices and compromises from all quarters. Political parties must demonstrate maturity and resilience in navigating the complexities of governance, prioritizing the common good over partisan interests, and upholding democratic principles and institutions.

Furthermore, fostering a culture of accountability and transparency is paramount to rebuild public trust and confidence in governance. Political parties must lead by example, adhering to ethical standards, and holding themselves accountable for their actions and decisions.

The economic crisis facing Pakistan demands unity, resolve, and decisive action from all political parties. By transcending differences and embracing cooperation, political leaders can harness the collective strength and ingenuity of the nation to overcome challenges and build a prosperous future for all Pakistanis. Now is the time for political parties to rise above partisan divides and demonstrate their commitment to the welfare and prosperity of the nation.

As Pakistan stands at a crossroads, the choice is clear: succumb to division and despair or rise united, determined to overcome challenges and build a brighter future. The path ahead is fraught with obstacles, but through unity and resolve, Pakistan can emerge stronger and more prosperous than ever before.

National unity is not merely an abstract concept but a pragmatic necessity for Pakistan's survival and resurgence. It is the key to unlocking the nation's true potential and charting a course towards sustainable development and prosperity. Now is the time for Pakistanis to set aside differences, forge a common purpose, and embark on a collective journey towards a better tomorrow.

M A Hossain, political and defense analyst based in Bangladesh. He can be reached at: writetomahossain@gmail.com

This article published at :

1. Intel drop.org, USA : 24 Mar'24

2. In-depth news.org, NG: 30 Mar'24

3. South Asia Journal, NJ, USA : 30 Mar'24

Chad’s Political Turmoil Sends Ripples Across The Globe.

M A Hossain, 

Situated amidst the vast expanse of the Sahel, a sprawling geographical region spanning over 4,000 miles along the southern perimeters of the Sahara Desert, Chad serves as a vivid portrayal of the nuanced interplay between internal dynamics and external pressures in the area. Recent events have thrust this landlocked nation into the global spotlight, illuminating the intricate balance between internal strife and external forces that define the Sahelian landscape. This heightened visibility underscores the complex web of challenges faced by Chad, highlighting the delicate equilibrium between domestic complexities and external influences that shape the region’s geopolitical landscape.

For decades, Chad has been hailed as a bastion of stability amidst the tumultuous landscape of the Sahel. However, the nation now stands at a critical juncture, wrestling with the reverberations of political violence that erupted within its capital, N’Djamena. This recent escalation serves as a poignant reminder of the precarious intersection between internal challenges and broader regional dynamics, casting a shadow of uncertainty over the nation’s future. As Chad grapples with these unsettling developments, the spectre of insecurity looms ominously, underscoring the fragility of its hard-won stability in the face of mounting pressures.

The roots of Chad’s current turmoil run deep, woven from a complex tapestry of sociopolitical unrest, economic desperation, and the contagion of military coups that have swept across the Sahel in recent years. Following the demise of President Idriss Deby Itno in April 2021, power passed to his son, Mahamat Deby, who assumed leadership of an interim Transitional Military Council (TMC). However, unlike his father’s authoritative rule, Mahamat Deby has struggled to consolidate his grip on power amidst mounting discontent from both military circles and the civilian populace.

In October 2022, a contentious choice to prolong the Transitional Military Council’s (TMC) authority, despite assurances of a prompt shift towards civilian governance, sparked violent demonstrations that exposed the longstanding grievances embedded within Chad’s socio-political framework. President Deby’s dogged quest for centralized power, mirroring the tactics of neighboring junta-led regimes, has deepened existing fault lines and stoked ethnic animosities, further destabilizing an already precarious environment. This decision not only shattered hopes for a smooth transition but also reignited simmering tensions, underscoring the fragility of Chad’s political landscape. As dissent festers and divisions deepen, the nation finds itself teetering on the brink of upheaval, grappling with the consequences of leadership decisions that have inflamed rather than assuaged societal tensions.

Recent developments have exacerbated Chad’s political turmoil, as even members of President Deby’s own family defect to the opposition, signalling fractures within the ruling Zaghawa ethnic group. The detention of Deby’s uncle and the targeted killings of opposition figures serve as stark reminders of the regime’s ruthless suppression of dissent, casting a foreboding shadow over the impending presidential elections scheduled for May and June.

Amidst this atmosphere of heightened tension, the specter of armed conflict looms ominously, particularly within the Zaghawa ethnic enclave, where government forces and opposition factions brace for potential confrontations. Adding to the complexity is the alleged involvement of external actors, including the notorious Wagner Group, whose presence further fuels fears of protracted violence and regional destabilization. The convergence of internal fissures, external influences, and simmering grievances presents a volatile cocktail that threatens to plunge Chad into deeper turmoil, with ramifications extending far beyond its borders.

As Chad grapples with internal turmoil, its delicate stability faces additional threats from external pressures, such as the withdrawal of French troops and a nationwide strike triggered by soaring fuel prices. This convergence of challenges risks creating a dangerous power vacuum and exacerbating the simmering discontent within the nation, with far-reaching consequences that extend across the Sahel region.

Yet, amidst the shadows of uncertainty, a glimmer of hope emerges- a recognition that lasting stability cannot be achieved through force alone, but through comprehensive governance reforms, economic empowerment, and regional collaboration. The crisis in Chad serves as a poignant reminder of the dangers inherent in prioritizing short-term security measures at the expense of long-term stability. It underscores the urgent need for a holistic approach that addresses root causes and embraces inclusive governance as the cornerstone of sustainable peace and prosperity in the region.

It is imperative for international stakeholders, notably Western powers, to reevaluate their involvement in the region by moving away from endorsing autocratic regimes and adopting a more equitable approach that champions human rights and democratic principles. Through strategic investments in governance reforms, economic development initiatives, and robust conflict resolution mechanisms, the global community can play a pivotal role in laying the groundwork for enduring peace and prosperity across the Sahel. This shift in strategy reflects a commitment to fostering inclusive governance structures and addressing the underlying socio-economic disparities that fuel instability, thereby promoting sustainable development and enhancing regional stability.

While the path forward for Chad remains precarious and shrouded in uncertainty, within the chaos lies a unique opportunity-an opportunity to chart a fresh course towards stability and security in the heart of Africa. By acknowledging the lessons learned from past challenges and embracing a vision of governance that is inclusive and cooperation that spans the region, Chad has the potential to emerge from its current crisis with newfound strength and resilience. Although the journey ahead may be fraught with obstacles, the destination- a Sahel characterized by peace, prosperity, and progress-is a goal worthy of the collective effort. It is through perseverance, unity, and a steadfast commitment to positive change that Chad can navigate through the crucible of crisis and emerge stronger than ever before, serving as a beacon of hope for the entire African continent.

M A Hossain, political and defense analyst based in Bangladesh.  He can be reached at: writetomahossain@gmail.com

This article published at :

1. Indian Defence Review, India: 05 Mar'24

2. Pakistan Today, Pak: 07 Mar'24

3. Weekly Blitz, BD : 04 Mar'24

4. Urdu24news, Pak : 07 Mar'24