Think tank report shows cost of Pakistan’s institutional processes and frictions is whopping: it’s 39% of its GDP

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<strong>At a time when political uncertainty is once again peaking in Islamabad with Pakistan Prime Minister Imran Khan losing majority, Pakistan Institute of Development Economics (PIDE) in a study revealed that the “the country’s institutional processes and frictions” have had a huge impact on its gross domestic product (GDP). According to the think tank, </strong><strong> it cost a whopping 39 per cent of Pakistan's GDP. </strong></p>
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PIDE’s Senior Research Economist, Ahmed Waqar Qasim, who brought out the report, ‘Sludge: The Administrative Burden” described ‘sludge’ as an unwanted and unjustified situation leading to frictions where processes become cumbersome and people find it difficult to get things done.</p>
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<a href="https://www.urdupoint.com/en/business/pide-reveal-average-revenue-of-street-vendor-1489586.html">The Urdu Point</a> said that for the public sector think tank for the first time attempted to quantify sludge through time consumed, cost involved and psychological cost.</p>
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<strong>Also read: <a href="https://www.indianarrative.com/economy-news/no-confidence-motion-against-imran-khan-could-derail-pakistan-s-fragile-economy-158429.html">No confidence motion against Imran Khan could derail Pakistan's fragile economy</a></strong></p>
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Economic growth and political stability are intertwined.</p>
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The study was presented at PIDE’s first ever Research for Social Transformation and Advancement' (RASTA) conference.</p>
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Another report — "Political Dynasties and Local Economic Development in Pakistan” that was also unveiled at the conference, noted that in Pakistan the share of elected political dynasties in Parliament is one of the highest in the world.</p>
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According to the news organisation the study showcased how politicians exercise considerable de facto political power to redirect resources towards their regions which has a substantial cost for least developed regions.</p>
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Earlier, Karachi based Dawn said that a major driver of the near-term uncertainty is the economic crisis, Pakistan has found itself in from 2018 onwards.</p>
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“Like the past, political uncertainty is breeding economic uncertainty in Pakistan. All of this will cause even more pain for millions of households across the country in the coming months,” the newspaper said.</p>