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As Pakistan woos finance, no manna for common citizens trapped in warped system

By IANS
July 18, 2026 4 Min Read

New Delhi, July 18 (IANS) The European Commission has issued a stern caution regarding Pakistan’s continued eligibility for preferential trade benefits under the Generalised Scheme of Preferences Plus (GSP+) unless it improves its human rights record at home, thus putting access to USD 837 million in tariff relief at risk, according to a report.

By linking tariff access to human rights compliance, Brussels is not only asserting conditionality over trade preferences but also incentivising structural governance reforms. For Pakistan, the stakes are significant, where loss of GSP+ privileges could disrupt textile exports and other critical sectors, weakening fiscal inflows and exacerbating economic fragility.

This development comes after reports earlier mentioned that Beijing, Islamabad’s key infrastructure and funding partner, has now become more cautious following security incidents involving Chinese officials in Pakistan. This has led to delays or reassessment in the disbursement of funds for critical projects.

Meanwhile, Islamabad is actively seeking to strengthen ties with the United States for financial and strategic support, aiming to offset the rising economic uncertainties. Pakistan is thus left navigating delicately through multilateral dependencies, international funding corridors, and domestic governance reforms.

It faces multiple challenges, from ensuring internal reforms to maintain critical EU trade advantages while simultaneously managing relations and cautious collaboration with China, and all the while courting Washington for finance. As their rulers sail choppy seas, the common people in Pakistan are paying the price for years of administrative failures and civil-military mismanagement, with citizens in conflict-prone regions bearing the heaviest burden.

For millions of ordinary Pakistanis, life is full of challenges that reflect decades of political instability and governance missteps. Rising inflation, erratic energy supplies, unemployment, and stalled social services have created a situation where poverty is no longer just a statistic but a lived reality.

While policymakers debate reform in capital corridors, there is no manna for the common citizen trapped in a system where economic hardship is routine, and opportunities remain few and far between. The dominance of military influence over civilian institutions has weakened democratic processes and judicial independence. Frequent crackdowns on political opposition, often through arbitrary detention or military courts, have eroded public trust in governance and inhibited free expression and civic participation.

The situation in Pakistan-occupied Jammu and Kashmir (PoJK) illustrates how the local population is entangled in broader geopolitical and administrative failures. The region has frequently been cited for infrastructure deficits, limited access to education, and inadequate healthcare provisions compounded by military operations.

The few business and industry establishments are struggling under restrictive policies, and most residents face daily disruptions due to political unpredictability. The human cost is profound: children miss schooling, livelihoods are unstable, and communities endure prolonged insecurity. These realities highlight the disconnect between national priorities and the immediate needs of those living under contested and militarised governance.

In Balochistan, Pakistan’s largest province by area, the paradox of plenty is apparent. Despite abundant natural resources, including minerals and gas, the province’s local population suffers from chronic deprivation. Infrastructure development – or whatever little has been – is slow, healthcare and educational institutions remain underfunded, and the security environment is tense due to insurgency and counterinsurgency operations.

Ordinary Baloch citizens face the combined weight of economic exclusion and the social impact of continuous military presence, creating cycles of unrest and distrust. The violence and neglect have resulted in displacement, restricted mobility, and a pervasive sense of marginalisation.

Meanwhile, Khyber-Pakhtunkhwa (KP), neighbouring conflict-prone tribal areas, portrays the cascading effects of misadministration combined with geopolitical pressures. The region often copes with the aftermath of conflict, irregular developmental initiatives, and volatile security conditions. The local population has to face inconsistent access to public services, without clear pathways for meaningful political participation, and limited economic opportunity.

The historical underinvestment in human capital, combined with ongoing military operations, is making ordinary life a struggle for survival and basic dignity. Across Pakistan, systemic flaws are evident. Bureaucratic inefficiency, corruption, and policy inconsistency reduce the effectiveness of social programmes, according to reports.

Additionally, the underlying power tussle and tension between Islamabad’s civilian governance and the military headquarters at Rawalpindi often lead to contradictory policies where national projects, even if launched, fail to reach citizens. These structural weaknesses mean economic growth rarely translates into opportunities for all.

Ordinary Pakistanis – especially in marginalised regions – face a reality where climbing out of poverty is constrained by invisible but rigid barriers imposed by institutional neglect. The cumulative effect of misadministration is clear in declining living standards, frustrated hopes, and a population struggling to maintain social cohesion amid widespread uncertainty.

Public health crises are compounded by inadequate infrastructure, while the young have to attend schools that either lack resources or fail to prepare them for an employment market constrained by structural inefficiency.

Moreover, rising prices for essential commodities leave families vulnerable, while insecurity in contested regions depresses local economic activity and stifles social mobility. The social contract between government and governed is under pronounced strain.

–IANS

jb/skp

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