This is apropos a Business Recorder op-ed “Risks to global economic recovery” carried by the newspaper last Friday. The writer, Dr. Omer Javed, has pointed out, among other things, that “That misery breeds radicalization, polarization, and overall instability is a fact. Political stability, which is an important determinant of economic recovery and stability, has largely reduced over the years in countries under the neoliberal assault. Hence, rising political instability, especially in the wake of the pandemic, remains an important risk factor for global economic recovery. ...Political instability is, therefore, on the rise even in developed countries, since given the severity of the pandemic leaving a lot to be desired in terms of policy actions and size of stimulus there.”
In Pakistan’s case in Pakistan, however, there is a dire need for greater political stability in view of the fact that the incumbent government of Pakistan Tehrik-e-Insaf (PTI) has clearly upped the ante in its war of wits with the Opposition by formally setting up a committee to investigate the Broadsheet scandal. This development will never augur well for the prospects of political stability in the country. Not only can political instability breed market volatility, it can also hurt economic growth.
MAHWISH RAZA (LAHORE)
Copyright Business Recorder, 2021