By S.M. Inam
Prime minister Shehbaz Sharif was right to acknowledge the importance of Pakistan’s overseas citizens after record remittances of $3.6bn flowed into the country in December, marking a striking 16.5% increase over previous months. For a cash-strapped economy under constant external pressure, such inflows matter enormously. They help stabilize foreign exchange reserves, ease balance-of-payments stress and, in many respects, keep the economy afloat when other sources of financing dry up. The gratitude expressed towards the diaspora was therefore justified, and long overdue.
Yet celebration alone risks masking deeper structural weaknesses. Remittances may now exceed the funds Pakistan receives through international financial programs, but they are not a substitute for sustainable economic reform. They are a lifeline, not a long-term strategy. Treating them as proof that government policy is on the right track oversimplifies a far more complicated reality, one in which confidence from abroad contrasts sharply with frustration at home.
Pakistan’s digital financial ecosystem illustrates this contradiction clearly. With more than 120 million users now relying on mobile banking applications for personal and commercial transactions, the scale of digital adoption is impressive by any standard. In theory, this should be a foundation for inclusive growth, financial transparency and efficiency. In practice, however, chronic internet disruptions and persistent electricity outages continue to undermine progress. A digital economy cannot function reliably when connectivity is erratic and power cuts are routine. If the government is serious about modernization, it must first deliver the basics. Without dependable infrastructure, digital ambition remains little more than a slogan.
More troubling still is the persistent gap between rhetoric and accountability. Economic reform cannot gain credibility in a system where influential tax evaders continue to wield power, and where their relatives occupy positions in key institutions. This undermines both public trust and the integrity of the reform agenda. Ordinary citizens are repeatedly asked to tighten their belts, while those at the top appear insulated from sacrifice. When powerful bureaucracies and state institutions continue to enjoy generous allowances, fleets of new vehicles, expensive mobile phones and subsidized luxury housing, calls for austerity ring hollow.
Leadership by example is not optional in times of economic strain; it is essential. If political leaders and senior officials are unwilling to accept meaningful reductions in their own privileges, appeals for public patience will inevitably fall flat. Citizens are not blind to contradictions. They can see ministries being merged or closed in the name of efficiency while parliamentary spending continues unchecked. They notice that while development budgets are slashed, the costs associated with the Prime Minister’s House, Governor Houses and the Presidential Secretariat reportedly continue to rise. They also note that ministers’ allowances have increased rather than been curtailed.
Such inconsistencies carry consequences. They erode the credibility of reform efforts and deepen a sense of injustice. Pride in the diaspora’s contribution is justified, but it becomes performative if it is not matched by concrete measures to protect overseas Pakistanis from exploitation, improve consular services and ensure that remittance channels remain affordable and secure. Overseas workers send money not because of government policy alone, but out of obligation to families who continue to bear the brunt of inflation, unemployment and declining public services.
The wider social implications cannot be ignored. When economic pressure falls disproportionately on ordinary citizens while political and bureaucratic elites retain their privileges, resentment builds. History suggests that such resentment rarely remains confined to private conversations. It surfaces on the streets, in protests, and in growing distrust of institutions. In this context, remittances and digital innovation, while valuable, cannot act as a shield against instability.
Pakistan’s economic challenge is not simply one of revenue, but of fairness and credibility. Sustainable reform requires a clear break from the culture of exception that has long protected the powerful. It requires broadening the tax base honestly, cutting elite privileges decisively and investing in infrastructure that supports productivity rather than patronage. It also demands transparency, so that citizens can see where sacrifices are being made and by whom. The diaspora has done its part, repeatedly and generously. The question now is whether the state is willing to do the same. Gratitude must be followed by governance. Without that, record remittances will remain a temporary relief, not a turning point, and the deeper causes of economic and social strain will continue to fester beneath the surface.
(The writer is a former government officer and a senior analyst on national and international affairs, can be reached at inam@metro-morning.com)
