Peshawar
New Year, Old Fear
What does the year 2025 hold for Pakistan’s political, economic, and digital landscape?
The arrival of a new year typically heralds a sense of optimism and renewal. Yet, as 2025 unfolds, Pakistan faces a daunting array of challenges threatening to derail its progress and deepen existing anxieties. The confluence of political instability, economic distress, and a widening digital divide casts a long shadow over the nation, demanding urgent and decisive action to steer it towards a more prosperous and equitable future.
Firstly, like previous years, the political landscape remains a source of profound concern. Deep-seated divisions continue to plague the nation, with political discourse frequently degenerating into acrimony and hostility. While Pakistan’s democratic institutions have evolved over time, their capacity to withstand systemic pressures and maintain a balance of power remains constrained. Over the years, key governance sectors have reflected subtle influences from various quarters, which critics argue could blur the lines between civilian authority and institutional independence. Such dynamics necessitate transparent governance, where decision-making processes reflect a collective, civilian-led consensus.
The challenges of managing populist narratives further complicate the political spectrum. As evidenced during the 2024 general elections, emotional appeals and misinformation have significantly shaped public opinion, often detracting from substantive policy debates. Social media platforms, while a critical tool for communication, have also been weaponized, spreading divisive rhetoric that fosters mistrust. The impact of this milieu will plague the year 2025 as well. Going forward, Pakistan’s ability to manage its political trajectory depends on fostering inclusive dialogue, respecting dissent, and addressing institutional reforms that reflect the aspirations of a democratic polity.
Secondly, the economic outlook also remains grim. Although inflation was maintained at single digits during the previous year and in the first month of 2025, dwindling foreign exchange reserves and mounting national debt present formidable obstacles in 2025. Pakistan’s reliance on international financial assistance, most notably from the International Monetary Fund (IMF), has provided short-term relief but at significant social cost. The austerity measures accompanying IMF programs have disproportionately affected marginalized groups, reducing subsidies on essential commodities while increasing taxes.
The global energy crisis continuing from 2023 into 2024 led to shortages and skyrocketing energy and fuel prices. With the global crisis taking new shapes, the challenges will cascade in 2025. Also, the 2024-25 budget, which saw a shortfall for the agriculture sector, is casting a shadow on the agriculture sector, contributing nearly 24% to the national GDP. On the other side, food insecurity is likely to remain a pressing issue, with the World Food Programme estimating that over 40% of the population experiences some form of food deprivation. These challenges will most likely affect rural communities and low-income households disproportionately in 2025 as well, many of which lack access to essential services and safety nets.
Overreliance on traditional sectors such as agriculture and textiles leaves the economy vulnerable to global market fluctuations. Investments in technology, renewable energy, and value-added industries could offer pathways for sustainable growth. Additionally, fostering trade partnerships and enhancing regional connectivity through initiatives like the China-Pakistan Economic Corridor (CPEC) could bolster long-term economic resilience. However, these efforts require prudent planning and implementation, avoiding pitfalls of mismanagement and corruption.
Thirdly, the digital landscape in Pakistan presents a dual-edged sword. On the one hand, technology offers avenues for economic growth, social progress, and improved access to information. On the other hand, the persistent digital divide hinders equitable access to these opportunities. According to the Pakistan Telecommunication Authority’s 2024 report, internet penetration remains uneven, with urban centres enjoying significantly greater access than rural areas. This disparity limits the ability of millions of Pakistanis to participate in the digital economy, access online education, and leverage telehealth services.
Beyond access, concerns over online safety, censorship, and misinformation loom large. Reports of cyberbullying and harassment have surged, disproportionately affecting women and marginalized groups. Furthermore, social media has become a battleground for political agendas, with platforms often hosting divisive content that fuels polarization. Addressing these issues requires robust investments in digital infrastructure, the promotion of digital literacy, and the development of a legal framework to safeguard online rights.
As 2025 unfolds, Pakistan faces a daunting array of challenges threatening to derail its progress and deepen existing anxieties.
Encouragingly, initiatives aimed at digital inclusion are gaining momentum. Programs focused on delivering affordable internet in underserved regions and fostering digital entrepreneurship have begun to show promise. However, scaling these efforts in 2025 requires sustained government support, private-sector collaboration, and civil society engagement.
Now, the question is, how can we navigate these issues strategically? To navigate these turbulent waters, Pakistan must adopt a multifaceted strategy rooted in inclusivity, resilience, and accountability.
Political stability is the cornerstone of progress. Strengthening democratic institutions and ensuring transparent and inclusive governance are imperative. Reforming political processes to prioritize dialogue over confrontation will help mitigate the polarization that undermines societal cohesion. While institutional interplay remains sensitive, ensuring a balance of power that respects constitutional mandates can pave the way for sustainable governance.
Economic reforms should focus on creating jobs, alleviating poverty, and diversifying revenue streams rather than populist stunts aimed at benefiting political workers of certain parties only. Sustainable agriculture, renewable energy projects, and value-added industries hold immense potential. Social safety nets must be expanded to cushion the impact of economic shocks, particularly for vulnerable populations.
Bridging the digital divide is essential for inclusive development. Expanding access to affordable, high-speed internet and investing in digital education will empower marginalized communities. Initiatives to combat online harassment and misinformation should be complemented by laws that protect digital rights and promote accountability among social media platforms.
A cohesive society is vital for progress. Countering hate speech, promoting critical thinking, and encouraging responsible use of social media are essential steps in this direction. The government should encourage educational institutions, media organizations, and civil society groups to play a crucial role in fostering tolerance, empathy, and informed citizenship. This will require an expansion of civic spaces, which have shrunk in the past under strict legal frameworks.
As 2025 unfolds, Pakistan’s journey through these trials will serve as a testament to its enduring spirit and capacity for transformation. The stakes are high, but the rewards of perseverance, innovation, and unity are even greater. While the challenges are immense, Pakistan’s resilience is rooted in its people. By prioritizing inclusive growth, fostering democratic practices, and leveraging the potential of its youth, the country can chart a path towards sustainable development. Success will require a collective effort, marked by a shared vision for a prosperous and equitable future.
Based in Gilgit, the writer is a development practitioner with Masters in Governance, Development, and Public Policy from the Institute of Development Studies, University of Sussex, and an MA in Philosophy of Humanities from the IIS London. He can be reached at shakeelahmedshah@yahoo.com
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