The Middle East conflict has magnified and exposed the fragility of Pakistan’s global supply chain, even as the nation was already trying to address ecological, social, and economic challenges. These challenges are further compounded by political instability, border conflicts, overdependence on external loans, and deindustrialisation.

After a tumultuous 2025 marked by devastating floods, the May 2025 conflict with India, the upsurge in internal and external terrorism, and the ramifications of economic restructuring, 2026 offered a positive outlook for economic stability and sustainability. Hence, this is the opportune time to take stock of these internal challenges and look for ways to instil stability and national pride in domestic products and services.

However long the Middle East conflict lasts, the after-effects of the crisis will haunt global economies for a long time, and Pakistan will undoubtedly incur a huge cost. It is a dismal fact that businesses, especially the industrial sector, are suffering from closures and reduced operating shifts. Moreover, the increase in operational costs, such as electricity and gas rates, lowers efficiency and productivity, and lessens the impact of economies of scale.

In such a situation, even workers are unsure whether they will continue to be employed or maintain their secure jobs, or will they face long spells of unemployment, looking for any kind of jobs just to sustain their families. The government too must take harsh and unpopular decisions to keep the economic ship floating, and has to juggle financial resources to cater to various development or non-development outlays. Pakistan cannot be disconnected from the consequences of the global turmoil.

Pakistan has rarely attempted or achieved a responsible consumer-led initiative to popularise and purchase domestic products; in fact, a liberal import policy encourages the exact opposite

The citizens are, and have always been, between a rock and a hard place; inflation, unemployment, academic and medical expenses, and the backbreaking infrastructure and utility rates have always impacted them negatively. Unfortunately, they do not have a voice to agitate the state and have become docile and tolerant of these economic and social pressures due to inconsistent policies and the evolving global scenario. However, the fact is that the dice is loaded against the government, and the fiscal space is narrow and bumpy.

How can the three social partners (employers, workers, and government) come on the same wavelength to shield the country from these challenges? A common agenda is imperative, and this agenda should be under the umbrella of national pride, unity, and sacrifice.

Therefore, it is proposed that a Tripartite Labour Conference be immediately convened with a single-point agenda. The usual demands for minimum wages, contract workers, hire-and-fire powers, etc, should not be on the agenda, and participants should instead focus on developing a consensus on institutionalised national economic self-reliance. The key objectives would be the promotion of made-in-Pakistan products, the advancement of localised economies, the purchase of domestic goods and services, and ensuring that consumers understand the direct impact of these objectives and targets, thus creating a patriotic and responsible utilisation of national resources.

Pakistan has rarely attempted or achieved a responsible consumer-led initiative to popularise and purchase domestic products; in fact, a liberal import policy has impacted the promotion of local products. Moreover, most locally produced goods are largely dependent on imported raw materials. This is the misfortune that has kept Pakistan dependent on external resources to fuel the economy. Investors and entrepreneurs must transform themselves from being assembly-line converters to becoming creators and pioneers to drive any meaningful change.

How long will the pharmaceutical sector, instead of being innovative and involving itself in research and development, rely on importing active pharmaceutical ingredients from China or India? How long will the concerned authorities intentionally remain indifferent to and turn a blind eye to smuggling, under-invoicing, and misdeclaration? Can the prevalent mindset of resorting to ad hocism and shortcuts instead of judiciously producing quality products or providing customer-friendly services ever be changed, and what of the long-standing ethnic, parochial, and religious sectarian divisive forces that also impact the economy?

The nation must take measures to achieve industrial and agricultural development with higher productivity and global standards, to enhance exports and bring the country out of the clutches of the high-debt economy, and pursue a policy of real-time austerity in all walks of life, thus applying national wealth for meaningful employment opportunities for the young generation who are desperate to migrate.

It is time to make “Pakistan first” a truly patriotic slogan. The onus of handling economic pressures lies on all citizens and the three social partners because the economy is dependent on global influences, internal priorities, and societal indifference.

The writer is the President of the Employers Federation of Pakistan.

Published in Dawn, The Business and Finance Weekly, April 6th, 2026