Staggering losses from political turmoil

The ramifications of prevalent instability are not confined to politics but permeate the economy and the society at large

Staggering losses from political turmoil


“P

akistan’s economy suffered a staggering loss of Rs 190 billion daily due to the closure of roads and shutdowns caused by the opposition’s protest calls… tax collection decreased due to lockdown and protests and exports were affected by the disruptions in business. The protests cause additional expenses on security in a bid to maintain peace. The Ministry of Finance has also prepared a report on the losses incurred due to the protests, according to which, the GDP suffers an estimated loss of Rs 144 billion daily. According to the report, the decrease in exports due to the strikes causes a daily loss of Rs 26 billion. Foreign direct investment is also affected causing a loss of Rs 3 billion daily… loss faced by the provinces in the industrial sector is more than Rs 20 billion.” —Muhammad Aurangzeb, Federal Finance Minister, The News, November 24, 2024

A stable political environment is a foundation of effective governance, vital for the progress and prosperity of any nation. Political instability brings an array of challenges, disrupting the smooth running of governmental affairs and adversely affecting every segment of the society. Pakistan’s political history offers a classic example of this phenomenon. Chaos and unrest have become routine, eroding the country’s socio-political fabric and weakening national institutions.

The growing danger of political divisions, exacerbated by time, has cultivated an atmosphere of deep-seated hatred among opposing groups. Moreover, successive governments have consistently exploited institutions and government departments for political gains, thereby damaging the credibility and functionality of the state’s governance framework.

The ramifications of prevalent instability are not confined to politics but permeate the economy and the society at large. Pakistan’s economy, which has long struggled to achieve sustainability, remains starved of both local and foreign investments. Investor confidence, a crucial driver of economic growth, is perpetually undermined by the unstable environment.

Creating a business-friendly ecosystem requires a unified, cohesive approach where all stakeholders align their efforts towards shared goals. Chronic volatility of the political landscape has consistently sabotaged such endeavours. Stability, the bedrock of development, remains elusive as protests routinely derail progress.

The recent decades have seen an increase in often-violent protests in Pakistan. Political factions, driven by narrow interests, frequently mobilise supporters to stage demonstrations that bring the country to a standstill. This approach prioritises spectacle over substance, disrupting daily life and exacting a heavy toll on the economy.

To counter these disruptions, governments typically resort to measures like roadblocks, cutting off connectivity and imposing restrictions — strategies that exacerbate rather than alleviate the situation. Such actions directly impede business operations, forcing closures and severing critical supply chains, with cascading effects across the nation.

The recent protests, led by Pakistan Tehreek-i-Insaf, are emblematic of this destructive cycle. With their leader in jail on corruption and other charges, PTI supporters have repeatedly flooded the capital with the objective of securing his release through mob pressure. This blatant disregard for the legal and judicial processes — hallmarks of any civilised society — is shocking and lamentable. Rather than respecting institutional mechanisms, the party’s actions have strained the fragile political and economic systems. Equipped with the intent to confront law enforcement agencies, these protests escalated into violent clashes, turning Islamabad into a battleground. Such spectacles undermine the rule of law and shake public and investors’ confidence.

The economic consequences of the turmoil are glaring. The Pakistan Stock Exchange, once lauded as one of the region’s top-performing markets, plummeted dramatically during these clashes, registering a historic single-day loss of 3,505 points. This stark reaction highlights the volatility that investors face when operating in Pakistan. The recent statement about the staggering daily economic loss of Rs 190 billion by Finance Minister Muhammad Aurangzeb due to road closures and shutdowns, illustrates the heavy cost of these political disruptions. Such losses are a direct result of shortsighted strategies that prioritise political expediency over economic stability.

The repercussions of protest-driven instability are familiar. During PTI’s 126-day dharna (sit-in) in 2014, the country suffered irrecoverable setbacks, including delays in the flagship China-Pakistan Economic Corridor projects. The initiative, which initially promised an investment outlay of $45 billion, was hampered by political theatrics that undermined Pakistan’s credibility as a dependable partner. The costs of such actions extend beyond immediate financial losses; they compromise the country’s long-term growth potential and international standing.

The persistent practice of some political factions to place their agendas above national interests reveals a troubling myopia. Protests, an essential democratic right, are being weaponised to create and accelerate chaos, rather than advocate for justice or reform. This destructive approach forces businesses to shut down, disrupts education and paralyses public services, causing immense hardship for ordinary citizens.

When law enforcement agencies mishandle these situations — whether through excessive force, poorly executed strategies or perceived bias — the problems get compounded. Instead of maintaining law and order without prejudice, these agencies are accused of fueling distrust among the populace.

Adding another layer of complexity is the role of fake news in exacerbating unrest. In today’s hyper-connected world, misinformation spreads like wildfire, amplifying tensions and deepening divisions. During protests, social media platforms become battlegrounds for competing narratives, with fake news often weaponised to manipulate public opinion. Unverified reports and doctored images inflame passions, making it increasingly difficult to discern fact from fiction. Both protesters and government supporters exploit these tactics, further polarising an already fractured society.

The PTI protests started on its founder’s call on November 24, 2024 were no exception. On one hand, stories of alleged government brutality circulated widely, inflaming supporters and rallying sympathisers. On the other hand, state-aligned narratives painted the protest as violent and illegitimate. This avalanche of misinformation muddied the waters, hindering constructive dialogue and making resolution elusive.

The costs of such political dysfunction extend far beyond the immediate economic toll. They erode public trust in democracy, weaken the rule of law and compromise the state’s ability to govern effectively. The prioritisation of personal and party interests over the nation’s welfare has pushed Pakistan to the brink, fostering a culture of impunity and short-termism.

In order to break free from this destructive cycle, Pakistan’s political and institutional actors must commit to a long-overdue recalibration of priorities. Politicians must recognise the long-term damage inflicted by their actions and adopt a more responsible, nation-first approach. Protests, while an essential component of democratic expression, should be peaceful and focus on fostering dialogue rather than perpetuating disorder and turmoil.

Law enforcement agencies, too, must reform to regain public trust. Their role should be one of impartial mediators, committed to maintaining peace and upholding the law without bias. Transparent and consistent management of protests will go a long way in restoring faith in their integrity. The state must take decisive action to combat the spread of fake news. Media literacy programmes, independent fact-checking initiatives and stricter regulations for social media platforms are essential steps towards nurturing a more informed and united public.

The lessons of Pakistan’s turbulent political history are clear. Chaos breeds stagnation. Stability paves the way for progress. The nation’s potential remains immense. Realising it requires an unwavering commitment to unity, responsibility and collective good. Protests, governance and law enforcement must all serve positive change, not be the instruments of divisions, chaos, instability and destruction. Only by prioritising the welfare of the nation above all else can Pakistan hope to unlock its true potential and chart a path towards enduring prosperity.


Dr Ikramul Haq, an advocate of the Supreme Court and writer, is an adjunct teacher at Lahore University of Management Sciences.

Abdul Rauf Shakoori is a corporate lawyer based in the USA.

Staggering losses from political turmoil