The symbiotic relationship between economics and politics has been understudied, particularly in the context of Pakistan's long-term alliance with China, Saudi Arabia, and the United Arab Emirates (UAE). A 2011 International Monetary Fund (IMF) study found that political instability significantly reduces economic growth. However, a more recent podcast by a Harvard professor suggests that politics and economics are intricately linked and that understanding this relationship is crucial for changing governments and societies. In Pakistan's case, the country's reliance on assistance from multilateral agencies, led by the US, has made it vulnerable to economic and political pressures. The IMF has implemented 24 programs in Pakistan, but these have largely failed to account for the capacity of the administration to implement reforms and the unique conditions of the country. The changing world order, with the rise of China and other emerging economies, is also having an impact on Pakistan's economy. The country's long-term alliance with China, Saudi Arabia, and the UAE has become more complex, as these countries have notified Pakistan that they will not provide roll-overs or loans unless it is on a rigidly monitored IMF program. The current IMF program in Pakistan focuses on achieving full cost recovery of utilities through passing on the buck to consumers, but this approach does not address the country's deeper structural issues. A more expansively inclusive strategy is needed to disentangle the country from flawed policies of the past and adapt to the changing world order.
https://www.brecorder.com/news/40342375/politics-and-economics