Survival isn’t strategy

Selina Rashid Khan
June 22, 2025

Survival isn’t strategy


R

unning a small or medium-sized business in Pakistan today feels like a marathon through quicksand. Every day the ground is shifting beneath your feet. Having been at it for 18-odd years with Lotus, I, along with everyone else, continue to be subject to the tumult that socio-political instability brings, compounded by regional geopolitical tensions. This has turned the very act of doing business into a daily test of resilience and ingenuity. The entrepreneurial spirit is resilient, but it is not inexhaustible.

The challenges are relentless and multifaceted. Inflation, which once soared to historic highs, may have moderated statistically, but the reality on the ground is still punishing. Cost of everything, from raw materials to utilities, remains volatile, and even a modest uptick reverberates through every line item of a business’s budget. Efforts to reduce or offset costs are often undermined by poor policy, the latest example being the imposition of an 18 percent GST on imported solar panels, making them significantly more expensive. This will almost certainly slow solar adoption due to limited local manufacturing capacity. For SMEs, which contribute nearly 40 percent of Pakistan’s GDP, these fluctuations are existential threats.

A lot of the infrastructure that businesses rely on is crumbling under the weight of neglect and new pressures. Power outages, for example, routinely disrupt operations and drive up costs. The electricity came and went three times in the one hour I took to draft this piece. The internet, once a competitive advantage for Pakistani entrepreneurs, has long become a source of anxiety. In fact, as I write this, the internet service provider has sent me a message saying the internet is ‘down’ until further notice. Recent government crackdowns and increased surveillance have crippled internet speeds by up to 40 percent, damaging the digital backbone of countless businesses.

For those of us in communications, PR and digital services, every hour of lag or downtime is a lost opportunity, a missed deadline and a blow to our reputation. Also, social media is now subject to unpredictable censorship and throttling.

The mental toll of working in such uncertainty is immense. Every day brings a new layer of unpredictability: will the internet hold? will a campaign launch be derailed? will a flight be cancelled due to airspace closure?

Speaking of airspace, the recent closures in the Middle East, including Iran, Iraq and Jordan, have meant airlines such as Emirates, Lufthansa and Qatar Airways are rerouting flights through northern and western Pakistani airspace. This has placed massive pressure on Pakistan’s air traffic infrastructure, leading to postponement of many domestic flights. This has had a domino effect far beyond aviation. All of this has simply made it harder for businesses to connect with partners, attend key meetings and move goods efficiently. For a country striving to be part of the global economy, these disruptions are devastating.

Perhaps most corrosive of all is the mental cost; the constant need to adapt, to anticipate the next crisis, to reassure clients and staff while privately grappling with your own doubts. This is the invisible cost of doing business in Pakistan today. When every day feels like a crisis, efficiency suffers, innovation stalls and the joy of building something meaningful is replaced by a grinding sense of survival.

Yet, despite these challenges, there are moments of stubborn hope. The ingenuity of Pakistani entrepreneurs; the loyalty of teams who show up despite the odds; and the enduring belief that things can get better keep us going. But make no mistake, unless there is urgent, systemic change, reliable infrastructure, transparent governance and a commitment to digital freedom, the risk is not just to individual businesses, but to the very fabric of our economic future.

There is no longer room for piecemeal solutions. These have only eroded our business ecosystem and built up a trust deficit. What we need now is decisive action for stability and innovation. Pakistan’s businesses have to be allowed to do what they do best: create, connect and compete on a global stage. Until then, we run harder, smarter and with a growing sense of urgency, necause standing still is not an option.


The writer is founder & CEO of Lotus Client Management & Public Relations

Survival isn’t strategy