Pakistan is incurring a significant economic loss of Rs. 190 billion each day due to lockdowns imposed by the federal government, according to a report from the Finance Ministry. These measures, deemed unnecessary by the ministry, have severely impacted the nation’s economy.
On the weekend, the country witnessed one of its most severe lockdowns in recent history. The government preemptively shut down all major transport routes 48 hours ahead of a planned protest by opposition groups in Islamabad. While the government described these actions as “repair work,” the situation appears to be more complex.
An internal report from the Finance Ministry estimates that these disruptions lead to a daily GDP loss of Rs. 144 billion, along with a reduction of Rs. 16 billion in export revenue and Rs. 26 billion in revenue for the Federal Board of Revenue (FBR). Additionally, foreign direct investment inflows are reduced by Rs. 3 billion each day.
The report highlights that such shutdowns disrupt supply chains, hinder industrial and agricultural production, and cause food prices to rise due to transportation challenges. The ministry has revised the daily GDP calculation to Rs. 198 billion, down from the projected Rs. 342 billion.
The Finance Ministry warns that ongoing political risks exacerbate the fiscal deficit, undermine GDP growth, and deter foreign investment, posing a significant threat to the country’s economic stability.