Gov Performance FY25 was a overpromised and underdelivered in short

The government of Pakistan yesterday released the data of each economic sector of Pakistan, and, in short, it was worse than expected. Yesterday there was an expectation that the government of Pakistan might be able to pull off some good numbers, and there was some optimism within the media and public. However, when Pakistan's finance minister announced the survey results and figures, it tended to be that even the people who suggested the worst number were wrong, as it was worse than expected. 

Each important Pakistani economic sector performed below par and worse. Even agriculture performed the worst in 15 years, as it only managed to post more than 0.5% growth. Some crops were negative by more than 10%. The government of Pakistan tried to spin the numbers and blame environmental issues; however, the major issue is demand and taxes. Yes, inflation is lower compared to last year, but why? It is because purchasing power has been in a decline, and that is why the prices of items are not rising. Once purchasing power is back, then again Pakistan might face inflation issues due to import-led growth. 

Lowering inflation or increasing the tax net is not an achievement, but it shows why every sector performs worse compared to recent years. It has to be said that Ishaq Dar's 2023 year was better compared to FY 25. The government of Pakistan needs to understand that everything is not related to just increasing taxes and lowering inflation. People need jobs, and people need to purchase services or goods to create a revenue cycle to bring back the purchasing power. Moreover, the government of Pakistan just cannot increase taxes without encouraging private sector investment, export-led growth, and employment increases. Therefore, that is why government numbers were a horror story for each important economic sector of Pakistan.