I recently joined a small delegation of Pakistani Australian businessmen on a trade and investment investigation mission. During this visit, I witnessed a Pakistan eager to move out of its stagnant economy and the political deadlock. The tenacity and the determination of the people of Pakistan to rise out of their socio economic and political conditions were palpable.

The people of Pakistan, deeply nationalistic, in love with their history, poetry, culture, and nation, are hungry for change – eager to take on the challenges ahead. Many were openly critical of the government’s mishandling of the country’s economic woes and of the army’s “interference” in the nation’s political affairs. Yet despite their frustration, they remained hopeful that Pakistan would re-emerge as a confident democratic nation-state.

Failure to address the political deadlock, however, risks jeopardising Pakistan’s “emerging” economy and the government could face the wrath of a frustrated population. Restoring confidence in the economy, empowering the private sector, building on export capacity, and lifting millions out of poverty are crucial steps in avoiding civil unrest, as “terrorism” remains an ever-present threat. (Minute Mirror, 5 March 2025 edition.)

It is my contention that for Pakistan to address its stagnant economy and to resolve its political crises, it must adopt a two-pronged approach. First, the Shahbaz Sherif PML-N Government must initiate political dialogue with Imran Khan’s PTI and work toward a nation-building political reconciliation agenda, an agenda for a national unity government. Second, the country must create a positive environment for Industry leaders, entrepreneurs, and businesses — whether large or small — to drive an export-led economic recovery.

To counter its economic downturn, the government has announced ambitious targets aimed at transforming Pakistan’s economic landscape over the next decade and beyond as Prime Minister Shahbaz Sharif unveils his US$60 billion export boosting strategy. (See Minute Mirror newspaper, Friday 21,02,2025).

These targets include:

• Gross domestic product: Achieve a sustainable annual GDP growth rate of 6% by 2028.
• Increase annual exports to US$60 billion by 2028.
• Attract an additional US$10 billion in private investment per year.
• Generate one million additional jobs annually.
• Elevate the national GDP to US$1 trillion by 2035 and further to US$3 trillion by 2047.

(Source: Ministry of Commerce Pakistan)

Political reconciliation in Pakistan must begin with the release of Imran Khan and then progress should be made towards negotiation for a power-sharing coalition government. Without political consensus, the deadlock will persist, hindering crucial economic recovery efforts and long-term stability. A national unity government would provide a stable political climate necessary for the country to pass urgent economic reforms, reduce uncertainty and instil confidence among foreign investors and international financial institutions like the IMF and the Asian Development Bank.

Some critics may dismiss this proposition as fanciful and unrealistic. Historical precedent, however, suggests otherwise. While achieving reconciliation requires significant political will, it is possible if all sides were to put Pakistan first.

The 2008 transition of power following the assassination of Benazir Bhutto is an example of how “Political reconciliation efforts among various parties led to a peaceful transition to power, showcasing how collaborative effort can stabilise a fractured political landscape". Similarly, the 2010 peace accord with Balochistan, as put forward by the government of president Asif Ali Zardari and prime Minister Yousaf Raza Gilani, can lead to meaningful progress.

Political reconciliation as it has been defined, “‍refers to the process by which conflicting political factions work towards understanding, forgiveness, and cooperation to promote peace and stability. In the ​context of Pakistan, where various ethnic, linguistic, and political groups co-exist, fostering reconciliation is essential. It serves as a pathway to bridge the divides and create‌ a more cohesive national identity.” (Journal of Historical Studies Vol. VI. No. II (Jul-Dec 2020) PP 162-177, 162 Politics of Reconciliation: A Conduit to Reduce Dilemma of Democracy in Pakistan.) Provincial political parties must also be involved in any reconciliation process.

Regardless of their political loyalties, however, Pakistanis agree on one thing: the country’s political, economic and judicial institutions must be strengthened not weakened.

Pakistan’s current fundamental problem, some have argued, centres around two of its most important leaders who “still cannot get over themselves. One considers himself a great politician but refuses to do politics, while the other once called himself the biggest champion of civilian supremacy yet now refuses to stand up for it.” according to a _Dawn Lahore_ newspaper editorial (p6, Sunday 23 Feb 2025). The editorial concludes, “Obstinacy has gotten the country nowhere in the last three-odd years. The cycle of violence and retribution will need to stop so that things can improve. Until it does, there can be little hope for socio political and economic stability in Pakistan.” With this conclusion one cannot but agree.