As 2023 draws to a close, Pakistan stands at a crucial juncture, reflecting on a year marked by unprecedented economic challenges and heightened political anticipation. The year saw the Pakistan Democratic Movement government grappling with the highest inflation rates in living memory, peaking at alarming levels and significantly impacting the nation’s economic stability. This period of economic strain was further complicated by a sharp surge in terrorist activities, not only undermining national security but also exerting a significant drag on the country’s resources and public morale. Amidst these trials, the looming general elections scheduled for February 2024 have become a focal point of national discourse, stirring a mix of anticipation and apprehension. The imminent electoral exercise is set against a backdrop of economic turmoil and societal unrest, posing critical questions about Pakistan’s path forward and the potential for a transformative shift in its political and economic landscape.

The economic slowdown in Pakistan was noticeable as the country’s real gross domestic product was estimated to have shrunk by 0.6 percent in the fiscal year 2023. This slump followed two back-to-back years of remarkable growth, with GDP expanding by 6.1 percent in FY22 and 5.8 percent in FY21. The contraction in 2023 was blamed on numerous factors, including substantial damage to crops and livestock caused by floods, difficulties in securing essential inputs like fertilisers, supply chain disruptions due to import restrictions, high fuel and borrowing expenses, political uncertainty and weakened demand. These challenges impacted not just the agriculture sector, on which 44 percent of the workforce depends, but also industry and service sector activities. The decline in private consumption, motivated by weaker labour markets and soaring inflation, likely diminished the earnings of millions of workers, particularly those in........

© The News on Sunday