THE ECONOMIC COUNDRUM OF PAKISTAN: THE DEBATE OF CRYPTOECONOMICS.

 

 Pakistan is a country with its economy in hot water. The debate of economics in Pakistan is very much interrelated, but in this article, it is going to be much diverse. Recently, earnest debates have been circulating all around the media and public about the question," Can Cryptoeconomics be an option?". Cryptoeconomics is about the decentralization of central authority, which holds the economy of a country. But my diverse argument is that I have no problem with cryptoeconomics or traditional economics; my apple of discord is how one can benefit the masses better than the other, and this is the tenet that is not addressed in all the bills and acts presented in the assembly. This article debunks how Pakistan came to the disaster response of the economy.

Clarifying the history of the economy of Pakistan, the first surrounding ring of fire was Partition, which was an atrocity. The data of assets was 17 for India and 5 for Pakistan and the same in military division,65 percent for India and 35 percent for Pakistan. After Independence, General Ayub's era holds significant importance in uplifting the economy of Pakistan. An article by Ali Mudasir in Modern Diplomacy stated that the economy grew three times faster and the Beuro-capitalist model was adopted for an economic boom, but the effort went to waste in Bhutto's era when the socialist model and a policy of nationalization were adopted. General Zia's regime also demarcated the same model of economy. A little bit of improvement came due to the Cold War in Afghanistan with the help of financial aid for the war, but it also diminished in the 1980s when the industrial sector collapsed. The Musharraf regime also experienced the same downfall, and the same is going on till today.

The current situation is that Pakistan is invertebrated because its backbone, the economy, has crashed. Shakib Sherani has unravelled the fact of the current economic decline in his article,"The State of Economy" published in Dawn on June 12, 2025, that according to the government's statistics, from the recently published 7th Population and Housing Census-2023, over 18 million Pakistanis are unemployed. Along with it. According to the World Bank report, over 45% of the population is now below the economic waterline of $4.5 per day. Similarly, Kurram Hussain, a senior economist, in his article,"Thrashing Around" published in Dawn on June 12, 2025, stated that the Finance Minister justified that "direction of travel" is correct , even if the distance covered is unsatisfactory. Now I want to question that if the direction of travel is correct, then what is the cause of our degraded revenue and goods production? This statement of direction of travel is a serious mark of inefficient governance, and its inconsistent arguments as well as claims.

Notably, in the contemporary era, China, EL Salvador , India, and other catalytic economies  are all on the same front, the famous cryptoeconomics .So, Can Crypto economy be an option for economic boom for Pakistan?Lets throw light on crypto in the economic dynamics of Pakistan.The traditional approach of Pakistan is drowning it in dark water undoubtedly,t hat's why a model change is now our dire need and cryptoeconomics is the best option for it. Evidence of the previous argument is the data of a few countries, Dubai, the 2nd crypto exporter, has 400 crypto businesses, which are proving a means of quick growth.Similarly, El Salvador with crypto named Chivo has a net worth of $124 million ,and India is also rapidly investing and developing in this sector. As a result, if the model of cryptoeconomics with all its regards and concerns is adopted in Pakistan, the economic aftermath of this step will be that Pakistan will be the China of the  future. This argument is also elaborated by Dr.Imran Khan, Dr. Karim Haider Syed and Dr. Majid Ali in their article Political Economy of Pakistan and Cryptocurrency.

The influence of Cryptoeconomics on Pakistan is clear and explicit, but what are the hurdles and obstacles in implementing this model of quick growth?Lack of trust stands as a thorn in the throat in the context of cryptoeconomics in Pakistan. The current politico-socio-economic situation has put the people in despair from the state's claims, some evidences of which are the Baloch nationalists and Pushtun nationalists. The lack of belief has led them to start separatist movements. Apart from it, crypto doesn't remain same, which results in a sense of doubt while investing in it. Another problem with crypto is the educational dynamics of Pakistan. Profit-making from crypto requires strategies, hard work, and technical skill,s but in Pakistan, educational disparity is common in Pakistan. My blog, Education on the Verge of Destruction in Balochistan, explicitly illustrates this argument. Additionally, freakeconomics and the limited scope of crypto also make it difficult to implement in Pakistan. The article The Crypto Coundrum and Pakistan also signifies the same blistering challenges.

Being solution-oriented is an integral part of a researcher, so transplanting these problems with potential solutions is necessary. First and foremost, lack of trust can be rooted out by eminent and efficient governance, which will instill confidence in the market.T he state-made depreciation of the Rupee against the dollar will result in economic holocaust, so political and affluent individuals will have to say goodbye to increased imports of luxury items. Apart from it, Zoffen.T. Ebrahim has stated in Dawn that formula milk, a poison in disguise for young children, is gifted with leverage of taxes, so artificially prevailing dark mafias, i.e, narcotics, should be heavily taxed .Resultantly as articulated by Maryam khan's article, "Words ,Woes and Way Out" in Pakistan's Freak economics, a firm resemblance between political and civil institutions, clear and strategic approach and implementation of above mentioned remedies are staunchly needed to pull out pakistan of being a pendamonium and making it heaven and paradise.

In conclusion, Pakistan is ruled with draconian laws, but history reveals that once it was a home to the famous Indus Valley civilization, to heroes such as Bhagat Singh and Bacha khan, and intellectuals as Allama Iqbal and Masood Ahmad. So, Pakistan can cherish and prosper very well if ruled properly and utilized coherently. Rafiullah Kakar about the priceless minerals of Balochistan stated that they are going to waste as the state is unserious about the revenue they possess. Gilgit Baltistan is touching limitless heights in the tourism industry ,but the state has ended it in raw tourism, without any facilities and policies for it. This is why Pakistan has slaughtered itself with its dagger. Iqbal has beautifully stated it in his verse

Your civilization will commit suicide with its own dagger (knife)

The nest built on the weak branch will not be permanent,stable