Wednesday, May 29, 2024

Pakistan on Silent Economic Decline

During the recent Eid holidays, OCM (Optimus Capital Management) shared two infographics that showed different trends in the economic growth of Pakistan and India.

The infographics highlighted the concerning decline in Pakistan’s economy over the past few decades. Growth rates in Pakistan have dropped significantly from over 6% in the early 1990s to an average of just 3.4% in the last 15 years. Predictions indicate this downward trend will continue, with an average growth rate of just 2% over the next five years. This ongoing slowdown is expected to worsen income inequality and unemployment in the country.

In contrast, India has managed to maintain a steady economic growth trajectory since the 1990s. This success can be attributed to India’s investments in education, technology, and a flourishing private sector.

Dr. Ashfaque Hasan Khan, a Senior Economist, expressed his concerns about Pakistan’s economic stagnation. He believes ineffective policies and an over-reliance on international financial institutions such as the IMF are contributing factors. Dr. Khan pointed out that strategies like currency devaluation, high-interest rates, and austerity measures have hampered Pakistan’s competitiveness and industrial growth.

Despite these challenges, OCM CEO Asif Qureshi stressed the value of using publicly available data to analyze economic trends. He emphasized the importance of considering local policies and global geopolitical influences when assessing a nation’s economic health. By doing so, he believes countries can make more informed decisions and work towards improving their economic situations.

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