THE political developments in Islamabad over the last week vindicated the stance of the business community that takes democracy and politicians with a pinch of salt.

Unlike their counterparts in the West who have historically championed the cause of democracy with other segments of civil society, the business class in Pakistan has always preferred a strong centralised rule over weak civilian setups.

“There were downsides of their periods, but it is a fact that desperate for legitimacy, all past dictators were more receptive to our demands and provided a relatively more stable environment for growth,” said a Karachi-based business leader citing a higher average GDP growth rate in Pakistan during the 1960s, the 1980s and the 2000s under Generals Ayub, Zia and Musharraf.

Read: Economic cost of political instability

Business leaders are cautious publicly, but express doubts privately about the capacity of Pakistani politicians to deal with tough economic challenges head-on.

Arguing that political uncertainty hurts like nothing else does, corporate leaders reiterate the demand for a Charter of Economy

“It is unfortunate that just when the country was emerging from the dark shadows of the pandemic and the world was busy dealing with the fallouts of the Russia-Ukraine conflict, the political leadership in Pakistan found itself immersed in power games. How irresponsible is this?” asked a tycoon.

Counting current downside risks to the economy — the eroding value of the currency, falling reserves, spike in commodity prices, widening current account and fiscal deficits, mounting debt, etc — he lamented the lack of focus in dealing with the challenges that can have serious ramifications on living standard and business viability.

“And this is done by all players in the ring in the name of service to people and the country,” he mocked. Commenting on the genesis of the political chaos and the role of his class in current affairs, he said: “To me, this is more an irony of politics and democracy. What options do we have but to put up with the current crop of politicians? Not just that, if asked for money, we instantly oblige. Businesses in Pakistan, like elsewhere, can’t afford to be on the wrong side of the current or future government,” he added with an undertone of bitterns laced with sarcasm.

Dreading a groundswell of discontent against the growing inequality in terms of wealth and opportunity, the business community is not at all comfortable with what it calls the ‘dangerous theatrics’ of politicians. Even ardent supporters of PTI in the past were fiercely critical of the government using the religion card for political ends, and the policy of inciting people to take to the streets to express their sentiments.

“We saw what happened in Washington in 2021 when former US president Trump refused to gracefully accept the defeat and incited his supporters, embarrassing his nation as the world watched the hooligans storming the US Capitol. Four people died and the property was damaged, but the blow it dealt to the US image was worse than what any of its rivals could have inflicted. It is almost suicidal to tread the same path in a divided, polarised and militarised Pakistan,’ another businessman, on the condition of anonymity, shared his thoughts on Prime Minister Imran Khan’s recent speeches. “I am heartbroken and regret having voted for him.”

Another top exporter was critical of the government’s handling of foreign policy issues. “What are they thinking? It is beyond me to see the wisdom of dragging the West into domestic politics at a point when even the man on the street knows they are focused elsewhere. How can the leadership forget that despite China-Pakistan Economic Corridor, the economy is oriented towards the West? Even a passing look at Pakistan’s trade and debt profile is sufficient to show the depth of these ties. It is the destination of almost half of our exports and one-third of imports. Except for China, all other donors are either based in the West or wait for its nod before offering support. Pakistan can’t afford any recklessness on this count.”

Keeping fingers crossed, the business community wished for early resolution of political tangles to shift the focus back to the economy and the tackling of growing challenges.

Ehsan Malik, CEO, Pakistan Business Council (PBC), which is the platform of the big business, in his carefully worded response, repeated his stance on ensuring consistency in economic policy.

“Investors value policy continuity more than who happens to be in power. This is the reason the PBC advocates a Charter of Economy for a cross-party consensus on what is good for the country’s economy and for its people.

“In virtually all socio-economic measures Pakistan trails South Asia that is by no means a model to emulate. We hope that whichever party is in power, it builds a consensus with others to uplift the quality of people’s life. Businesses cannot thrive in failing societies.

“Governments change but consistency and continuity of policies ensure that what’s good for the country continues. PBC has worked with all parties in the past. So have businesses. The economic challenges call for unity and consistency of direction.”

Musadaq Zulqarnain, Chairman of Interloop Ltd, the biggest textile company listed on the Pakistan Stock Exchange, resented uncertainty and called for settling political issues quickly to return to normalcy which is crucial for business growth. Responding to a query regarding the view in his circle on current affairs, he wrote: “I am not sure as I seldom engage in political discussion with business colleagues. My sense is that everyone is worried to some extent about the uncertainty. The economy isn’t in good shape, especially on the current account side, and populist measures are going to put pressure on fiscal balance as well. As such, the interim period should be as short as possible, a maximum of four to five months. Fresh, free and fair elections must be held as soon as possible.”

He also hammered the need for a consensus minimum economic programme. “As I keep saying, economic policy needs a broader consensus and the country is in dire need of a charter of economy endorsed by main political parties and all stakeholders if we want to get out of the current predicament.”

Published in Dawn, The Business and Finance Weekly, April 4th, 2022