One year on, critics challenge Pakistan govt’s claims of economic success

Pakistani experts and opposition leaders have challenged Prime Minister Shehbaz Sharif's recent assertions of economic success, as his coalition government marks one year in power amid significant public discontent.

The ruling Pakistan Muslim League-N (PML-N) has touted economic stability as its main achievement, but critics point to continued hardships faced by ordinary citizens and question the accuracy of the government's positive economic indicators.

Tall claims

Prime Minister Sharif, addressing a special cabinet meeting Tuesday at the Jinnah Convention Center, praised his team's efforts and highlighted that "not a single case of corruption had surfaced by the opposition" during their tenure.

Meanwhile, Punjab's first woman chief minister, Maryam Nawaz, marked her own first anniversary with a controversial 60-page advertisement featuring 170 photos of herself, which sparked public outrage for being funded with taxpayer money.

Minister of State Barrister Aqeel Malik described the government's first year as "a journey of stability, progress and success," citing reduced inflation from 38% to 2.4%, lower interest rates, and numerous positive economic indicators including improved foreign reserves, stock market performance, current account surplus, increased remittances, and growing foreign investments.

All is not well

However, Opposition Leader Omar Ayub from Pakistan Tehreek-e-Insaf (PTI) directly contradicted these claims, calling the inflation data "wrong" and asserting that "poverty and inflation have increased" along with utility prices and essential goods. Ayub also claimed that approximately two million youth have left Pakistan in the past two years, representing a significant brain drain.

Even within the ruling party's circle, criticism has emerged. Mian Atta Rauf, President of the Supreme Court Bar Association and a PML-N affiliate, stated that "the performance of the government is not what it should have been, in which it has failed miserably," particularly regarding security in Balochistan and Khyber Pakhtunkhwa provinces and judicial independence.

PTI's Omar Ayub addresses the National Assembly on October 21, 2024.Facebook / National Assembly

On the other hand, Rauf supported the government's controversial 26th Amendment, noting that "the judiciary has sent many elected prime ministers home because it used unlimited powers, which were taken away from them in the 26th Amendment."

Media freedom remains another contentious issue, with journalist organizations expressing concerns over increasing restrictions. Pakistan Federal Union of Journalists President Afzal Butt claimed that the government has been intensifying a crackdown on press freedom, specifically citing the PECA Amendment Act and internet shutdowns.

"Many anchors have been taken off the air due to pressure," Butt stated, adding that "the year 2024 has not been a good year for the government regarding free expression and press freedom."

True recovery?

"Governments can do little to fix the economy but a lot to kill it," said Dr Nadeem-ul-Haq, former vice chancellor of the Pakistan Institute of Development Economics (PIDE).

"The economy runs on its own. Governments slow down investment and growth by bickering, imposing excessive regulations, enforcing heavy taxation, and being suspicious of economic success. Begging for money does little for the economy. It is always driven by domestic activity, not foreign aid or foreign direct investment."

He said what is needed is a smaller government, fewer regulations, an open economy, and a stable, predictable tax and policy environment—none of which have been implemented.

"Nor has any government introduced the necessary reforms. So I don’t blame this government or any other. Reform never happens here. All governments are beholden to the civil service, and they prefer the status quo," he added.

Malik maintains that the government's "tough and necessary economic decisions" have restored business confidence and put Pakistan on a path to stability after averting the threat of default that loomed when Prime Minister Sharif took office last year.