The Myopia Of Power: Pakistan’s Deepening Economic Crisis

Instead of reducing taxes and petroleum levy the government is increasing prices of fuel on daily basis. But, what is alarming is silence at the popular level because neither there are protests nor demonstrations or major political parties are taking a firm stand

The Myopia Of Power: Pakistan’s Deepening Economic Crisis

Repeated surge in the prices of petroleum products, electricity, gas and other essential items and the lack of popular response against the rising cost of living means 250 million people of Pakistan are unable to raise their effective voice against those who wield power and care less for the plight of common man. It also means surge of myopic approach on the part of power elites who have taken people for granted that they will accept periodic increase in the prices of fuel, gas and electricity without any cogent resistance. Regardless of the implications of Iran-U.S war and crisis in the Middle East, there is no plausible reason on the part of government to review prices of petroleum products on daily basis and enhance the prices of gas and electricity almost every month knowing that 250 million people of Pakistan cannot assert against escalation of such prices which cause lethal impact on their livelihood. Islamabad is oblivious to the fact that the prices of petroleum products, electricity and gas are highest in the region and there is no attempt on the part of government to provide genuine, instead of cosmetic relief, to consumers. Those living in comfort zones are least interested in mitigating the plight of people.

According to a renowned economist Dr. Hafeez Pasha around 50% of Pakistan’s population is now below poverty line and the elites lack the political will to take genuine austerity measures. Merely by announcing some relief to motor cyclists and 800 cc car users on the purchase of petrol will not make any difference because by raising petrol prices to 386 and diesel more than 400 rupees a liter the implications of such an increase are noticeable in escalation in prices of essential items. By going for 4 days a week under the pretext of smart lock down will also not make any difference but will reduce work productivity.

Instead of reducing taxes and petroleum levy the government is increasing prices of fuel on daily basis. But, what is alarming is silence at the popular level because neither there are protests nor demonstrations or major political parties are taking a firm stand on the manner in which the government is pursuing a myopic approach on raising prices of petroleum products, gas and electricity. Neither civil society nor media are raising their voice against the policies of government which is tantamount to economic suicide for common people.

 It is strange that 250 million people including 65% of youth population are holed up in a vicious cycle where the military establishment along with its junior civilian partners confidently crushes any movement which tries to challenge the status quo.

The prevailing situation reflecting silence on the part of media, civil society and political parties is contrary to their hue and cry when there was a slight increase in the prices of fuel, electricity or gas in the past. At that time, the media and civil society wasted no time in condemning the rise of fuel costs during the government of Prime Minister Imran Khan. In April 2022 when PTI government was removed from power by a vote of no confidence, the price of petrol was 150 rupees a liter, dollar was 160 rupees. Gas for home users was available for 24 hours unlike today when it is available for only 10 hours. Now, despite the surge in the prices of petroleum products, gas, electricity and other essential commodities, there is no popular outrage. PML (N) and PPP which were so critical of slight rise in the prices of petrol during Imran Khan’s government are today involved in economic slaughter of people. Does it means, that the people of Pakistan lack strength and courage to prevent government for playing with their lives?

There is sharp contrast in today’s indifference of people against the surge of prices of essential commodities and in 1968 when the then government of President Ayub Khan failed to cope with sugar crisis in the then West Pakistan and there was one rupee increase in the price of sugar per kg which led to massive popular outburst against the policies of Ayub Khan ultimately leading to his downfall in early 1969. It means in 1968 as compared to today people had more courage and consciousness. The government in 2026 has become so confident in increasing prices of fuel that one of Punjab’s ministers 6 months ago boldly stated that people will not do anything if prices of petrol are enhanced 150 rupees a liter. And when the government in April enhanced 150 rupees a liter in petrol prices there was silence. Even Jamaat-e-Islami’s protest against the imposition of petroleum levy is having no impact on daily increase in the prices of petroleum products.

Surge of myopic approach in dealing with economic predicament is a reality and needs to be analyzed from three angles. First, despite the talk of youth mobilization and Gen-Z’s possible role to challenge government’s failure to put the economy and governance on the right track there is no indication of youth assertion. It is strange that 250 million people including 65% of youth population are holed up in a vicious cycle where the military establishment along with its junior civilian partners confidently crushes any movement which tries to challenge the status quo. Otherwise, why in 1968 there was a popular outburst when sugar was increased only one rupee per kg but in 2026 nothing happens when in one month the prices of petrol and diesel are raised 150 rupees. 

One need to understand that there has been a paradigm shift in the culture of Pakistan which is status quo oriented and lacks the courage to challenge those who since long without any fear are taking steps to cover lavish expenditure of elites by increasing the prices of petroleum products, gas, electricity and other items. Second, the reason why people are not challenging the policies of government causing severe economic hardships is lack of proper leadership and planning. History teaches us the lesson that only such movements which are against a dictatorial rule, bad government, absence of rule of law and economic hardships can succeed if the leadership is fearless, courageous and is united.

Unfortunately, Punjab which is the most populous province of Pakistan and a bastion of power has never stood against economic and political injustices. The concentration of military, bureaucratic and political elites particularly in central Punjab denies civil society, youth organizations and human rights groups to lead a movement against growing economic crisis. The other three provinces are not in a position to effectively challenge status quo because Punjab dominated military, security agencies and bureaucracy crushes their efforts. Finally, opportunist approach of political parties, media and so-called civil society groups is also responsible for creating a void as far as leadership against status quo is concerned. Neither PPP, nor PML (N) or MQM possess the will to stand against the myopic approach to deal with economic crisis.

In 2020 and 2021 when pandemic was in its peak, Pakistan was able to save its people from colossal deaths. It was a global crisis and the world appreciated the manner in which Pakistan dealt with pandemic and was able to provide relief to people. But, in 2026 the government in order to grab more and more resources to pay for its luxurious life style, VVIP culture and pay foreign and domestic debt has found an easy solution to increase the prices of petroleum products, gas, electricity and other essential items. If people of Pakistan particularly it’s 65% youth called as Gen. Z is not rising against unabated economic exploitation, bad governance, absence of rule of law, genocide of merit, corruption and nepotism, it is because they lack proper leadership and are divided on ethnic, lingual, sectarian and class grounds. Till the time internal fault lines of Pakistan are addressed encompassing its political and economic spheres, 250 million people of this country will further sink in the vicious cycle of economic crisis. Even if the price of petrol reaches 600 rupees per liter and diesel 700 rupees per liter and electricity 150 rupees per unit, they will bear such costs because their ability to assert and challenge is now stagnant. 

The writer is Meritorious Professor of International Relations and former Dean Faculty of Social Sciences, University of Karachi.

E Mail: amoonis@hotmail.com