Barrister Usman Ali, Ph.D.
Pakistan’s latest economic estimates are not merely figures in a report , they are a warning. Preliminary data for fiscal year 2024–25 reveal a country under mounting strain. The poverty rate has climbed to nearly 29 percent, its highest level in eleven years. Roughly 70 million people now survive below the monthly poverty threshold of Rs. 8,484. Income inequality has risen to 32.7 , the steepest level since 1998 , while unemployment stands at 7.1 percent, a twenty-one-year high. Rural poverty has surged from 28.2 percent to 36.2 percent, and urban poverty from 11 percent to 17.4 percent. All four provinces , Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan , have witnessed marked deterioration. These numbers reflect more than economic decline; they signal deep social fracture.
When millions cannot secure basic necessities, when the middle class steadily contracts, and when young citizens confront an increasingly uncertain future, the crisis moves beyond economics. It becomes a question of national direction. If the benefits of growth remain confined to narrow circles, inequality ceases to be statistical , it becomes psychological and political. Disillusionment hardens into anger; anger matures into distrust. No society remains stable for long under such conditions.
At the center of this crisis lies a fundamental question: what are the priorities of the state? When public funds finance luxury vehicles, special aircraft, even helicopter commutes to the office , ceremonial projects, and unnecessary foreign tours while millions struggle to afford food and utilities, the contradiction is not merely political , it is moral. In times of economic distress, extravagance by those in authority does not appear as routine governance; it appears as detachment. Power begins to resemble privilege rather than responsibility. Public trust erodes, and without trust, reform becomes nearly impossible.
Correcting this imbalance requires more than announcements and carefully worded statements. It demands binding legal reform. Fiscal discipline must be entrenched through clear constitutional and statutory limits on official expenditures, perks, protocol, and non-development spending. Violations should trigger automatic and enforceable consequences , removal from office, disqualification, and immediate financial scrutiny. Every ministry and senior officeholder should be legally required to disclose detailed expenditure reports. The national treasury is a public trust; transparency is not optional.
Discretionary spending on government aircraft, luxury procurement, and non-essential acquisitions must be subject to parliamentary oversight and transparent approval processes. No administration should exercise unchecked authority over public resources. Moreover, official privileges should be directly linked to economic performance. If poverty, unemployment, or fiscal deficits rise, government luxuries should automatically contract. Leadership grounded in simplicity sends a powerful message: sacrifice is shared, not imposed.
Structural reform must extend to the tax system. Expanding the tax base, documenting large informal sectors, and shifting toward a more progressive and direct taxation framework are unavoidable steps. Continued reliance on indirect taxation disproportionately burdens the poor and deepens inequality. Equally essential is the elimination of unjustified exemptions and preferential treatment for powerful groups. Laws against tax evasion and financial misconduct must be applied consistently and without exception. Selective accountability corrodes the rule of law.
The broader economic model also requires recalibration. Sustainable prosperity cannot be built on consumption alone. Investment must shift toward productive capacity , agricultural value addition, industrial diversification, export-oriented manufacturing, support for small and medium enterprises, and expansion of technology and service sectors. Human capital development, vocational training, and women’s economic participation are critical pillars of long-term stability. A young population can be a demographic dividend, but only if equipped with opportunity.
Social protection programs must evolve beyond temporary relief. Cash assistance, while necessary in emergencies, cannot substitute for pathways to self-reliance. Integrating skills training, employment placement, and entrepreneurial support into welfare frameworks creates dignity alongside support. Stable employment strengthens households and reinforces macroeconomic resilience.
This moment demands clarity and resolve. Cosmetic adjustments and rhetorical assurances will not reverse structural decline. Without enforceable fiscal discipline, transparent governance, equitable taxation, and principled leadership, economic recovery will remain fragile. But if public resources are managed with restraint, integrity, and accountability, present instability can become a turning point.
Sustainable prosperity is not born of slogans. It is forged through discipline, fairness, and example.
