Social divisions in Pakistan that are based on politics, religion, and ethnicity pose a serious threat to social cohesion as well as having negative effects on the country’s economy. These divisions foster an atmosphere of distrust and conflict, impeding the growth of powerful institutions required to foster economic growth.
Due to distrust and conflict within the society, one of the negative effects of a divided society is a decline in productivity. Additionally, the distribution of resources may become biassed towards the requirements of one group, resulting in unequal economic opportunities for members of various groups.
.Another effect of a divided society is increased spending on security. Keeping law and order becomes more important, which leads to increased public spending. This spending ultimately hinders long-term development and may increase poverty levels.
Due to social division, foreign investment, which could support job creation and economic growth, is discouraged in Pakistan. Investment risk is increased because investors are hesitant to make investments in unstable social and political environments.
This is demonstrated by the recent slowdown in the CPEC projects due to political and social unrest in Pakistan.
Another problem brought on by a divided society is the rising rate of brain drain. Talented people who experience marginalisation look for opportunities elsewhere, which depletes the nation’s human capital.
A divided society also makes it more likely that there will be violence and unrest, which can have a disastrous effect on the economy. Regular riots, strikes, and other disturbances have caused businesses to close and supply chains to become disrupted, which has a particularly negative impact on small businesses.
Policymakers and civil society should prioritise addressing the root causes of social tensions. It is essential to create a cohesive, prosperous society that benefits all of its members. Even though they are a quick-selling commodity, hate and division always cause long-term losses for both buyers and the state.
In order to attract foreign investment, Pakistan must demonstrate political stability and a commitment to addressing social and economic inequalities. By encouraging trust between various groups, promoting equality and inclusion can aid in the development of a society that is more cohesive.
To lessen the effects of social divides and encourage economic growth, the government must devote resources to the social sector rather than just security and law and order.
There is no denying that social tensions have an effect on Pakistan’s economy. In order to address these divisions and advance a more inclusive and prosperous society, it is essential that all parties involved collaborate. Failure to do so will only make the issues worse, with devastating economic repercussions.