LAHORE: While Pakistan’s challenge is centred around its economy, there is something else that needs our attention: the country’s image. The perception in the global stage regarding us is flawed mostly because we have not marketed our strengths effectively. We have focused on the country’s drawbacks, blaming the parties that ruled earlier.
Governments may come and go, but when every shift in power is accompanied by a barrage of gloom about the economy, the damage extends far beyond party lines. It affects how the world perceives Pakistan, impacting investment, trade and employment.
When we paint a bleak picture of Pakistan (that includes the media and opposition leaders), the world listens. Investors in developed economies seldom form opinions independently — they rely on reports and analyses prepared by think tanks. Those think tanks, in turn, rely heavily on what they see in Pakistani media. A constant stream of talk shows and headlines declaring economic collapse is enough to deter investors. No foreign consultant needs to add commentary; our self-generated negativity becomes their evidence.
Economic progress does not thrive on data alone; it depends on the collective sentiment a nation projects about itself. In Pakistan’s case, economic confidence has too often fallen victim to political sensationalism.
Our representation in global economic or investment forums is weak compared with our competing economies. This imbalance has long-term consequences. Investors and buyers form impressions in these international gatherings. When the global economic environment turns uncertain, countries that project confidence attract business, while those associated with risk are sidelined. For years, Pakistan’s business visitors have faced high insurance premiums comparable to those imposed on Iraq, Syria or Afghanistan. Such perceptions discourage international buyers from visiting Pakistan, leading to fewer orders and missed opportunities for exports.
Economic growth also demands consistency. Yet in Pakistan, political rivalry often overshadows economic logic. Parties in opposition routinely reject the very policies they once endorsed when in power. This cycle of contradiction creates uncertainty. Businesses invest when they can trust that policy direction will remain stable across election cycles. Unfortunately, every change in government seems to bring a new set of priorities, unsettling investors who view Pakistan as a high-risk destination.
Even when sound policies are framed, implementation remains weak, either due to political fragility or inefficient institutions. Many of the common man’s problems — health, education, sanitation, policing, and even employment — are local in nature. Yet the absence of elected local governments leaves a critical vacuum. A strong local government system, where citizens can approach their union council representatives directly, could resolve everyday issues more efficiently than relying on overburdened provincial or national lawmakers.
Pakistan’s low savings and investment rates reflect deep-rooted structural weaknesses. With savings hovering around 14 per cent of GDP and investment barely reaching 13 per cent, sustained high growth remains out of reach. No country has achieved durable prosperity with such low capital formation.
Equally worrying is the dominance of the informal economy. While documented businesses pay a 17-18 per cent sales tax and corporate taxes, a vast informal sector contributes little to nothing. Instead of expanding the tax base, authorities continue squeezing the compliant few — discouraging transparency and pushing more businesses underground.
Despite challenges, not all signals are negative. Pakistan’s continued adherence to IMF programs — though controversial — has helped maintain a minimal level of external confidence. But this reliance must evolve into self-sustaining reforms. Political leaders need to understand that economic stability cannot survive partisan warfare. Sensationalism may yield political mileage, but it erodes investor trust and damages the national image.
Pakistan’s economic future depends on responsible communication, consistent policies, stronger local governance, and modernization of tax administration. Above all, it requires a collective understanding that this country belongs to all of us. To build confidence abroad, we must first restore it at home.
