The challenges that lie ahead of Pakistan are more deeply embedded in the socio-economic and political structures of the country, and present a far wider challenge than to simply achieve stability in the medium term. Pakistan needs to address structural problems that cannot be resolved solely with an IMF bailout. Addressing these challenges will require injecting more wisdom into democratic politics, and investing in the people in the long term.

Although, increasingly, representative democracy has stretched its limits to embrace policy experts holding crucial posts in the government, as was the case with preceding governments, the current interim government is a composition of seasoned policy experts and technocrats responsible for key positions in the government. This view of politics has gained credence in international politics, and empowers experts to spearhead various fronts of governance. One viewpoint suggests that this is due to the inefficacies of democratic politics, which is said to have become more unpredictable, volatile and at worst, ineffectual in its outcomes. The degraded economic and political decision making in Pakistan may only validate this view.

The current Finance Minister, Ms. Shamshad Akhtar has resolved to devise strategies to enhance the tax base to maximize revenue collection. The caretaker government may have the space to work towards economic and financial stability in the medium term, and take reformist measures for macroeconomic stability. However, in the long run, the country needs a deeper political commitment to address the structural issues that plague the economy, and political stability in tandem. Technocrats may understand the workings of the system, but democratic politics is about the fundamentals of the society, the philosophical questions around the allocation of resources which translate into viable economic and political outcomes. Increasing the tax base is not only about devising medium term technological mechanisms, but also building trust with the masses through democratic means. Eventually, it will mean instilling democratization in the state’s institutions where the citizenry believes in paying taxes, and where regulatory frameworks are put in place to integrate the diverse facets of the economy for a wider tax base. These are not purely economic questions, but questions relating to the rule of law as well.  

Overall, Pakistan’s economic and political future hangs in uncertainty. Caretaker Prime Minister and his team of technocrats may be able navigate the immediate rescue before an imminent risk of default looms large again. However, as a society we have no choice but to move away from the degraded economic and political decision making to avoid near death experiences of this country.