Pakistan possesses valuable deposits of copper, gold, antimony, and rare earth elements, yet faces obstacles in leveraging these resources for economic advancement. The absence of a unified decision-making authority, coupled with reversible decisions and lack of accountability, hinders the exploitation of these minerals for growth. The country’s fragmented governance structure, with no centralized authority for mining approvals, and court interventions further impede progress in this area.
In the power sector, Pakistan boasts an installed electricity capacity of approximately 46,000 MW, surpassing the peak demand of 28,000–30,000 MW. Despite a significant increase in electricity tariffs from Rs 20 per kWh in 2020 to Rs 40 per kWh in 2025, power outages persist due to the mounting circular debt exceeding Rs 3 trillion. State-owned distribution companies report annual losses of Rs 500 billion, with outstanding payments to independent power producers totaling around Rs 1.2 trillion.
Foreign investors acknowledge Pakistan’s promising returns but express concerns over delayed contract enforcement, prolonged arbitration processes, court-issued stay orders, and conflicting regulatory directives. The article also underscores Pakistan’s youthful demographic, with 64% of the population under 30 and a growing working-age segment expanding by two million individuals annually.
While the demographic dividend and private sector demand for skilled labor exist, challenges persist in aligning the education system with workforce needs, coordinating between provincial and federal entities, establishing a national skills framework, and ensuring execution accountability. Despite labor market signals indicating demand, the state’s response remains inadequate, leading to a disconnect between supply and demand in the labor market.
The article suggests that IMF programs could address these issues by focusing on prices, taxes, subsidies, and accounting practices. However, these programs do not resolve issues related to decision-making efficiency, jurisdictional overlaps, or the lack of centralized budgetary control. The decentralized spending by provinces, coupled with central borrowing, contributes to accountability diffusion, reflecting systemic governance failures.
