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A recent analysis paints a complicated and often uncomfortable picture of Pakistan's standing on economic freedom, suggesting that official narratives of stabilisation are colliding with persistent structural weaknesses, as reported by The Express Tribune.
According to The Express Tribune, global measurements continue to place Pakistan among the lower-ranked economies, with long-standing concerns about governance, judicial reliability and market dynamism still weighing heavily. While authorities argue that the worst phase of the inflation crisis has passed and reform momentum is building, critics say improvements on paper have yet to transform daily economic life. Investors remain wary, particularly where contract enforcement and political influence over institutions are perceived to be unresolved. One of the sharpest contradictions lies in taxation. International methodologies may interpret Pakistan's low tax-to-GDP ratio as evidence of a lighter burden. However, people and firms already inside the net report the opposite experience. Higher marginal income tax rates and the continuation of additional corporate levies have significantly increased pressure on compliant sectors, raising questions about how "freedom" is actually felt in the marketplace. Employment patterns further complicate the outlook. Informality dominates, with the overwhelming majority of workers operating outside documented arrangements. Economists warn this suppresses productivity, narrows the revenue base and leaves millions without safety nets. Such figures are troubling for a country seeking sustainable development and export competitiveness, as cited by The Express Tribune. There are, undeniably, brighter spots. Price growth has moderated, privatisation efforts have re-entered policy discussions, and tariff rationalisation signals greater openness. Yet observers caution that without parallel institutional strengthening, these steps may not deliver lasting gains. Pakistan's trajectory appears mixed: reform announcements on one side, entrenched vulnerabilities on the other. Whether future assessments improve will depend on implementation, credibility and the state's ability to convince businesses that rules are predictable, fair and insulated from politics, as reported by The Express Tribune. (ANI)
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