The whole world is currently experiencing several simultaneous crises. The war between Russia and Ukraine has compounded inflation, climate change, and debt concerns. Pakistan is one of the economies of the developing world facing economic fragility.

Pakistan ensured its economic recovery a little in 2021 from the lows reached in the pandemic. However, the country is facing strong headwinds due to the worst ever floods since 2010 and inflation. Economic experts say the major contributing factor to current global inflation is the war between Russia and Ukraine. Experts also say the war depresses global growth mainly through increased oil prices and even pushes the developing world into a recession in 2023. Sri Lanka is the latest example of the worst economic crisis because its economy has collapsed recently. 

In Pakistan, Karachi-related news always matters. So, a rising question is how Pakistan can prevent its economic hub, Karachi, and other industrial cities, from plunging into the crisis sea. Pakistan needs to closely observe the situation in Sri Lanka and develop strategies to get rid of the economic crisis.  

In this blog, we will let you know how Pakistan can take innovative approaches to get support on the front lines of development. This is where the country can win the battles against its multiple crises.

Areas Where Pakistan Must Pay Attention To Tackle Crises

Indeed, the war between Russia and Ukraine is currently a significant factor in global inflation, affecting the most important developments in countries. Numerous economic experts, policymakers, and other key stakeholders say the developing world needs to focus on its digital development, climate action, trade and subsidies, private sector, and human capital. 

So, Pakistan needs to focus on the following areas to develop and implement strategies and confidently tackle the current crisis.    

Digital Technologies

Digital technologies are transforming many employments and services. These technologies have the potential to ensure growth and prosperity in the long term. However, the most crucial aspect of the latest technologies is that they can build resilience to shocks. 

Unfortunately, some developing countries, including Pakistan, are still unconnected or do not yet reap the benefits of such technologies. 

Pakistan needs a collective commitment from its energetic public and private sectors. This approach will enable the country to close the gaps and create a reasonable digital economy.

Climate Change And Development

Pakistan needs to address both climate change and development. Beyond the high-level commitments, the country must move to realistic, tangible action. This action includes ensuring the large-scale investments to support a transition to a low-carbon economy and build resilience.

Focus On The Private Sector

Pakistan is an affected economy that needs investment to create a vibrant private sector. This way, the country can enable private sector organizations to generate employment and reduce unemployment rates. Ultimately, private entities will be able to contribute to economic growth. 

Human Capital

Pakistan needs to be innovative in building and protecting its human capital. So, the country must focus on its human resources by improving its knowledge, skills, and health to make them a valuable economic asset. The government can bolster human capital to support more robust and inclusive growth through sustained political commitment and financing.

Pakistan must take innovative approaches to tackle the country's global crisis that increases inflation. For this, practical strategies include keeping markets open and encouraging the flow of investment. The government must broaden its investment base and avoid concentrating wealth in small population segments. Focusing on digital technologies, supporting the private sector, implementing tangible climate change and development actions, and bolstering human capital are key to success.    

Final Words

We hope this blog has helped you understand how Pakistan can eliminate inflation and other crises. Stay with Pakistan Observer to get all national and local news, like Karachi and Islamabad news, and keep yourself well-informed always!