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Plight of Poor Governance

Pakistan can pave the way for a more prosperous and resilient economy by promoting a culture of good governance and prioritizing economic stability over short-term political gains.

By Shahrukh Mehboob | August 2023


Since its inception in 1947, Pakistan has been plagued by numerous economic crises that have stunted its growth and development. These crises have roots in multiple factors, with poor governance standing out as a primary and undeniable contributor. As a result, Pakistan’s economic challenges persist, and the issue of inadequate governance remains a significant factor exacerbating these problems. Despite the endeavors of various governments to tackle economic issues, the country continues to grapple with critical problems that demand urgent attention.

Poor governance often paves the way for widespread corruption and mismanagement of public funds. Corruption undermines trust in public institutions, diverts resources away from essential sectors, and hinders economic development. Furthermore, it creates an unfavorable business environment, discouraging investments and impeding overall economic growth. Another significant consequence of weak governance is the erosion of the “Rule of Law,” a fundamental principle of any civilized and democratic society. The Rule of Law ensures that everyone, whether individuals or institutions, is subject to the same laws without any subjective discretion.

In a democratic system, the judiciary plays a pivotal role as the guardian of the Rule of Law, making it an essential pillar of democracy. For the judiciary to effectively fulfill its duties and functions, it must be respected and protected, as it holds a central position in the system. A robust legal framework is essential for promoting economic stability and growth. However, Pakistan has faced challenges in its legal system, including delays in the judicial process, lack of contract enforcement, and inadequate protection of property rights. These shortcomings discourage both domestic and foreign investment, hindering the country’s overall economic progress.

Furthermore, weak governance has resulted in ineffective policy implementation and inconsistent decision-making processes. Frequent changes in government policies, often influenced by short-term political gains rather than long-term economic considerations, have created uncertainty for investors and businesses. This uncertainty discourages both domestic and foreign investments, stifling economic growth and job creation.

Inefficient Tax System

Effective governance is vital for implementing an efficient tax system. Pakistan has faced challenges in expanding its tax base, reducing tax evasion, and improving tax collection. Weak governance contributes to a lack of transparency, ineffective tax policies, and inadequate enforcement mechanisms, resulting in reduced government revenues and fiscal imbalances.

Political Instability

Frequent changes in government, political conflicts, and unstable policy environments can undermine investor confidence and economic stability. Poor governance practices, such as nepotism, favoritism, and lack of accountability, often contribute to political instability. Uncertainty surrounding government policies and directions can deter both domestic and foreign investment.

Inadequate Infrastructure Development

Effective governance plays a vital role in infrastructure development. However, poor governance practices in Pakistan have hindered infrastructure projects, resulting in inadequate transportation networks, unreliable energy supply, and inadequate public services. These limitations negatively impact productivity, trade, and overall economic performance. Addressing these issues requires a multifaceted approach that includes legal reforms, institutional strengthening, and improved governance practices. Pakistan has taken some steps to address governance challenges, such as establishing anti-corruption bodies, implementing judicial reforms, and introducing tax reforms. However, sustained efforts are needed to ensure these measures bring tangible improvements.


The habit of relying on external assistance has deeply ingrained itself within the country’s political culture, where questioning this dependency is rarely seen among those in power or within the Establishment. Instead, leaders often take the lead in seeking financial aid from friendly nations, perpetuating a cycle of seeking ‘lifeline’ funds whenever economic crises arise. This pattern indicates a significant failure in economic governance, as the country continually moves from one crisis to another without the ability to prevent or mitigate future challenges.

Instead of seeking internal solutions, the nation looks to outsiders as temporary fixes for its chronic economic issues. This approach undermines the country’s economic independence and self-sufficiency, reducing it to the unfortunate position of a supplicant. The nation’s survival depends not on its abilities or policies but on the benevolence of other countries and international institutions.

Pakistan has faced challenges in expanding its tax base, reducing tax evasion, and improving tax collection.

Consequently, the country’s economic decisions and policies may be influenced by the interests and conditions set by these external sources of aid, which may not always align with the nation’s long-term objectives. To break free from this cycle of dependency, the country must focus on strengthening its economic governance and domestic institutions. Emphasizing self-reliance, sound economic planning, and effective implementation of policies can create a more sustainable and stable economic environment.

By reducing reliance on external assistance and fostering a culture of accountability and responsible economic management, the nation can regain control over its economic destiny and achieve true independence in the global arena.

From a legal perspective, strengthening the rule of law, enhancing judicial efficiency, and ensuring the independence of the judiciary are crucial. Legal reforms should focus on streamlining business regulations, protecting property rights, and creating a favorable environment for investment. Additionally, comprehensive anti-corruption measures and effective enforcement mechanisms are essential to combat corruption and promote transparency.

The economic crises that have plagued Pakistan are intricately linked to poor governance in legal and political spheres. Weak rule of law, ineffective legal frameworks, and limited financial regulation have eroded investor confidence and hindered economic progress. Simultaneously, corruption, policy inconsistency, and political interference in economic institutions have exacerbated economic vulnerabilities and hindered sustainable growth.

Addressing Pakistan’s economic challenges requires a comprehensive approach to reforming governance structures, strengthening the rule of law, and enhancing transparency and accountability. By promoting a culture of good governance and prioritizing economic stability over short-term political gains, Pakistan can pave the way for a more prosperous and resilient economy.

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