The last two years have been the worst in Pakistan’s economic history, according to Atif Mian, a prominent Pakistani-American economist and professor at Princeton University. Mian has highlighted that the country is entrenched in a “poverty trap,” a situation resulting from decades of poor economic policies. He stressed that only a policy overhaul can reverse this downward spiral.
Pakistan’s Economic History: A Declining Trajectory
Atif Mian’s recent statements, shared on social media, paint a grim picture of Pakistan’s economic trajectory. Using data from the 1980s, Mian noted that Pakistan’s growth rate has been on a steady decline, ultimately leading to the current economic stagnation. The economist emphasized that the past two years, 2023 and 2024, have been particularly disastrous, with unprecedented inflation rates and minimal GDP growth. Mian compared this period to global crises like those in 2009 and 2020, but pointed out that the recent economic downturn is largely due to Pakistan’s own policies, not external factors.
Urgent Need for Policy Reform
Mian argued that the root cause of Pakistan’s economic woes lies in its long-standing policy failures, which have trapped the country in a cycle of poverty. He explained that poverty traps are difficult to escape without coordinated policy changes. Incremental reforms, he noted, will not be sufficient to reverse the economic damage.
Instead, a detailed and sustained policy shift is necessary to unlock the country’s potential and bring about prosperity, as seen in countries like Vietnam and South Korea. However, Mian expressed concern that without such changes, Pakistan’s economic future remains bleak.
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