Pakistan’s Economic Woes: Top Business Leader Urges Reconciliation with India

Pakistan’s economic challenges continue to persist, prompting the nation’s top business leaders to urge Prime Minister Shehbaz Sharif to re-evaluate Pakistan’s relations with its neighbors, particularly India. During a recent visit to Karachi, renowned business leader Arif Habib emphasized the potential economic benefits of improving ties with neighboring nations, with a specific focus on India. Pakistan’s decision to downgrade diplomatic and trade relations with India in 2019, following India’s abrogation of Article 370, is widely seen as a contributing factor to its current economic woes. Since then, Pakistan’s economy has faced significant headwinds, including skyrocketing inflation and a severe depletion of foreign reserves, forcing the country to seek assistance from the International Monetary Fund. India’s subsequent revocation of Pakistan’s Most Favored Nation (MFN) status and withdrawal of a security exception clause within the World Trade Organization further exacerbated the economic situation in Pakistan. Habib’s suggestion to mend fences with India was made during a question-and-answer session, where he also urged Sharif to engage with Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan, who is currently imprisoned on corruption charges. Habib expressed belief that these two steps could lead to positive outcomes. Prime Minister Sharif, while acknowledging Habib’s suggestions, expressed reluctance to take credit for positive developments. He emphasized the importance of maximizing available opportunities and prioritizing exports and economic growth. Sharif distanced himself from Habib’s specific proposal regarding India, although he did acknowledge that the privatization process in Pakistan would be conducted transparently, inviting foreign companies to participate. The Prime Minister stressed the need for the government to play a supportive role in policymaking rather than directly running industries, advocating for a shift away from a ‘rent-seeking mindset’ towards a focus on productivity and hard work.