PAKISTANIS are not unfamiliar with the boom-and-bust cycles that occur every few years, or the large costs they impose. But the present crisis has lingered far longer than they expected, with no resolution in sight. Starting as a balanceof-payments crisis caused by the post-Covid global commodity supercycle and the previous government`s pursuit of growth, it has now overtaken every sphere of the economy. The government and the central bank have lowered the GDP growth for the present financial year to below 2pc, while many experts believe the country is more likely to post negative growth for the second time after the pandemic-hit FY20. The summer floods destroyed standing crops on large swathes of agricultural land across the country, especially in Sindh, and industrial output is shrinking thanks to factory closures resulting from restrictions on the import of raw material and equipment to save our dwindling foreign currency reserves and delay a sovereign default. The increase in interest rates to contain price inflation, which soared to an all-time high of 31.5pc last month, is putting a crushing burden on the finances of companies, and the slowing global textile and clothing demand has led to a significant drop in exports. The construction industry, too, is groaning under rising prices of inputs such as steel and cement. Businesses are closing operations or cutting production and laying off workers to save costs.

The near-term outlook is far gloomier than what the nation has witnessed in the last 75 years. Many are predicting that recovery from the present crisis will be slow and painful for everyone, even if the elusive IMF funding programme comes through and other multilateral and bilateral lenders step up to help Pakistan in these times of economic distress. What is sad is that our politicians and policymakers are refusing to see or admit the implications of their disastrous past and present policy choices for the economy in general and the vast majority of people, who are struggling to adjust to crushing new realities, in particular. The resistance to basic market reforms needed to secure foreign funds and put the economy on the recovery path are still being ignored for political reasons, with businesses demanding subsidies and concessions to recover their profitability at the expense of the common people. Little wonder, no lender is ready to help us unless we start helping ourselves.