THE recent protests in Islamabad and the government’s response underscore a fundamental reality: Pakistan’s economic stability is intrinsically tied to its political stability. For nearly four to five days, the federal capital, motorways, highways and significant parts of Punjab were paralyzed. This unprecedented halt in economic activity not only delivered a severe blow to the domestic economy but also tarnished Pakistan’s image on the global stage.
Official government estimates reveal a staggering daily loss of approximately 190 billion rupees. These figures paint a grim picture of the economic consequences of political unrest. Daily GDP contractions of 144 billion rupees, export revenue losses of 16 billion rupees and tax collection shortfalls of 26 billion rupees have been reported. Furthermore, the agriculture sector endured a loss of 26 billion rupees per day, the industrial sector 20 billion rupees and the services sector a massive 66 billion rupees. Additionally, reduced foreign investment resulted in an estimated daily loss of 3 billion rupees.
These losses do not account for the substantial expenditure incurred in mobilizing police and law enforcement personnel to Islamabad or the governmental resources deployed to suppress the protests. The financial damage from the disruption of motorway and highway toll collections, coupled with the human and material losses suffered by citizens and law enforcement agencies, further adds to this economic burden.
A report by the Ministry of Finance candidly acknowledges the adverse impact of political instability on the economy, signalling to the world that Pakistan is politically and economically unstable—a perception that deters foreign investment. The ripple effects of such turmoil extend to the daily lives of citizens, who face difficulties accessing hospitals, educational institutions and even basic amenities like internet and telecommunication services. Weddings, funerals and other gatherings are disrupted and the economy stagnates, leaving labourers and daily wagers in dire straits. Farmers struggle to transport their produce to markets and industrial production grinds to a halt.
Among the hardest-hit sectors during the recent unrest was the export industry, particularly textile exporters. The protests disrupted supply chains as shipping containers, critical for transporting export goods, were seized to block roads. Many containers filled with export goods were left stranded, while some factory owners withheld shipments to avoid potential damage or theft during the chaos. These delays incurred significant financial losses and increased costs for exporters, as they had to pay for rebooking containers.
Pakistan’s textile exports, primarily destined for the United States and Europe, were particularly affected. The timing could not have been worse, as these markets are currently in the peak Christmas season, a period of heightened commercial activity. Informing foreign buyers that their orders face indefinite delays due to political instability raises serious questions about Pakistan’s reliability as a trading partner. Such incidents risk alienating international clients, who may hesitate to place future orders with a country marred by unpredictability.
Pakistan’s exporters already grapple with high production costs due to elevated electricity and gas prices and lack of competitive interest rates. Adding to their woes, repeated road closures during protests and the arbitrary seizure of transport containers exacerbate challenges in meeting export targets. These disruptions further compromise the country’s ability to attract foreign exchange, an urgent necessity given the ongoing economic crisis. It is evident that supply chain interruptions directly hinder economic growth, with industrial output and export targets bearing the brunt. Political parties and the government appear oblivious to these pressing realities, with their actions often undermining national economic objectives.
—The writer is contributing columnist, based in Turbat, Balochistan.
(gulabumid2370@gmail.com)
