Nobility behind rising inequality and social frustration.
\n Islamabad
\nA prominent business leader has warned that Pakistan\u2019s economic stress, worsened by elite capture of public resources, threatens social stability, especially as inflation, unemployment, and poverty erode the resilience of the masses. This should invoke a sense of urgency and shared responsibility among policymakers and citizens.
\nShahid Rashid Butt, former president of the Islamabad Chamber of Commerce, said that recent findings from the World Inequality Database show that the top 10% income group receives about 43% of national income. In comparison, the bottom 50% receive only 13%. Such concentration of wealth restricts broad-based consumption, limits domestic savings, and undermines the long-term development of a skilled workforce.
\nHe highlighted that nearly 40 percent of children face stunting, and over 25 million remain out of school, underscoring the need for increased investment in health and education. This should motivate civil society and policymakers to prioritize social services for a more equitable future.
\nShahid Rasheed Butt noted the growing outflow of skilled youth as both legal and undocumented migration accelerates. Employers report challenges in retaining experienced workers, while small manufacturers cite high input costs and increased taxes as reasons for scaling back operations. Official data for the last fiscal year shows weak industrial output and limited export growth despite repeated policy pledges to support industry.
\nSmall businesses and labour representatives dissent from the current policy direction, saying repeated increases in indirect taxes have raised living costs without strengthening service delivery or regulatory performance. They argue that a rollback of elite benefits, greater transparency in public spending, and reforms in judicial and regulatory institutions must accompany revenue measures.
\nMr Butt stressed that reducing elite influence over economic policymaking, such as implementing transparency measures and anti-corruption reforms, is crucial for rebuilding confidence in public institutions and ensuring equitable growth.
\nFiscal decisions in the upcoming budget cycle should include tax redesign targeting wealth concentration, increased allocations to the social sector, and measures to restore investor and consumer confidence, thereby addressing economic disparities and promoting stability.
\nPakistan\u2019s economic direction cannot stabilise without a clear break from the preferential treatment enjoyed by influential individuals. The gap between policy intent and implementation widens when institutions lack autonomy and when resource allocation reflects elite interests rather than national priorities. Decision-making must shift towards evidence-based planning, more vigorous regulatory enforcement, expanded job creation, increased productivity, and protection of the vulnerable. Investment in human development, transparent budgeting, and predictable regulations are essential for regaining public trust and preventing deeper social and economic fragmentation.<\/p>\n","protected":false},"excerpt":{"rendered":"
Nobility behind rising inequality and social frustration. Islamabad A prominent business leader has warned that Pakistan\u2019s economic stress, worsened by elite capture of public resources, threatens social stability, especially as inflation, unemployment, and poverty erode the resilience of the masses. This should invoke a sense of urgency and shared responsibility among policymakers and citizens. Shahid […]<\/p>\n","protected":false},"author":2,"featured_media":386448,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-518432","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n