ISLAMABAD: The Policy Institute has called for a national reconciliation process to restore political stability and advocated for comprehensive debt restructuring as an essential measure to rescue the country’s faltering economy. The institute a credible think-tank on national issues, issued a report Wednesday which contained several recommendations titled as “Mapping the Policy Agenda 2024–2029.”
The report analyzes the key challenges faced by the country and proposes a comprehensive strategy to address them. It recommends political reconciliation through dialogue, strengthening democratic institutions while redefining the military’s role, implementing economic reforms focused on subsidies, fiscal management, taxation, and debt restructuring, countering security threats by remapping the militant landscape and addressing radicalization, resolving the Balochistan issue politically, and empowering the Foreign Office to prioritize economic diplomacy.
The report identifies the lack of political stability as the foremost issue and notes that only by restoring stability in the political realm can the government gain the necessary breathing space to address governance challenges. In this regard, it suggested the initiation of a comprehensive dialogue and reconciliation process. Faisal Ahmed, head of research at IPI, stated that such a process should recognize and address the concerns of all involved parties so that a common ground that facilitates constructive engagement and dialogue can be found. The report suggested that the reconciliation process should be owned and backed by the military. This it argued would legitimize the process, ensuring broader acceptance among the public and political entities, and fostering trust among political factions, encouraging essential dialogue and compromise. This would provide the stability that is crucial for economic reforms and attracting foreign investment. To tackle the economic crisis, it was proposed that the government should push for a comprehensive debt restructuring plan that would relieve financial pressure and spare scarce resources for critical sectors. “Without decisive action, the risk of following in the footsteps of countries that have suffered under the weight of unsustainable debt is all too real. Restructuring offers a viable alternative, one that requires courage, strategic foresight, and a steadfast commitment to the nation’s long-term economic health and sovereignty,” the report maintained.
The report argued that many fears associated with debt restructuring are unfounded. It proposed that institutions like the IMF should be engaged not just as alternatives to restructuring but as supportive partners in this endeavour. Security analyst Ambassador Abdul Basit, while discussing the security challenge in the report, recommended remapping of the current militant landscape, particularly in light of the Taliban’s takeover of Afghanistan. He also called for addressing youth radicalization, targeting the roles of gender in extremist groups, and the impacts of social media and misinformation; resolving the issue of missing persons in Balochistan through political efforts; and actively disrupting evolving alliances and sanctuaries of militant groups. Pakistan, the report suggested, must focus on optimizing key external relationships to support its economic revival. It urged empowering the Foreign Office to take a leading role in executing foreign policy, particularly adapting to prioritize economic imperatives, and spearheading the development of a national consensus on foreign policy direction among government, military, and political parties.
Additionally, to enhance the Foreign Office’s capacity, it proposed the induction of international trade specialists, development economists, and country experts on crucial bilateral partners. This, it emphasized, will equip Pakistani decision-makers with the necessary insights and advice for charting optimal foreign policy options. Energy sector expert Zeeshan Tayyeb recommended significant reforms for the petroleum sector, including its deregulation and a comprehensive overhaul of related policies.
He emphasized addressing bureaucratic obstacles within key entities such as the Federal Board of Revenue (FBR), the Ministry of Energy, the State Bank, and the Oil and Gas Regulatory Authority. Tayyeb also highlighted the need to resolve issues concerning tax refunds, turnover tax, the margins of marketing companies, and foreign exchange losses. Establishing a framework for investment, he maintained, will attract foreign direct investment and create a competitive environment.