Islamabad (Commerce Desk): Economists have warned that Pakistan’s economic challenges are not limited to interest rates, fiscal deficits, or the tax system, but are rooted in deeper structural issues.
According to experts, the current economic framework—largely based on debt and guaranteed returns—concentrates wealth within limited circles and slows down long-term growth.
They noted that an alternative economic model exists, based on ethical principles, which discourages exploitative lending, promotes risk-sharing, supports borrowers in distress, and encourages transparency in financial dealings.
The report highlights that in the current system, the burden mostly falls on borrowers, while lenders remain relatively secure, leading to economic slowdown and reduced business activity.
Experts emphasized that linking capital to real productive activities is essential, as profits earned without practical participation create economic imbalances. In contrast, partnership-based investment strengthens both businesses and the overall economy.
They further stated that strict loan conditions often lead to bankruptcies and unemployment, whereas measures such as debt restructuring and relief periods can help stabilize the economy.
According to analysts, transparency, documentation, and a strong legal framework are crucial for promoting investment. Pakistan faces multiple challenges, including rising public debt, low investment, weak industrial growth, and concentration of wealth.
They stressed that the country must reduce its reliance on debt and move toward a fair, transparent, and partnership-based economic system to achieve sustainable growth.
