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Pakistan’s crisis differs from world | The Express Tribune
1729471601-0/image-(8)1729471601-0-640x480.webp "Pakistan’s crisis differs from world | The Express Tribune")
Multiple elite clusters capture system as each extracts benefits in different ways
Pakistan’s ruling elite reinforces a blind nationalism, promoting the belief that the country does not need to learn from developed or emerging economies, as this serves their interests. PHOTO: FILE
KARACHI:
Elite capture is hardly a unique Pakistani phenomenon. Across developing economies – from Latin America to Sub-Saharan Africa and parts of South Asia – political and economic systems are often influenced, shaped, or quietly commandeered by narrow interest groups.
However, the latest IMF analysis of Pakistan’s political economy highlights a deeper, more entrenched strain of elite capture; one that is broader in composition, more durable in structure, and more corrosive in its fiscal consequences than what is commonly observed elsewhere. This difference matters because it shapes why repeated reform cycles have failed, why tax bases remain narrow, and why the state repeatedly slips back into crisis despite bailouts, stabilisation efforts, and policy resets.
Globally, elite capture typically operates through predictable channels: regulatory manipulation, favourable credit allocation, public-sector appointments, or preferential access to state contracts. In most emerging economies, these practices tend to be dominated by one or two elite blocs; often oligarchic business families or entrenched political networks.
In contrast, Pakistan’s system is not captured by a single group but by multiple competing elite clusters – military, political dynasties, large landholders, protected industrial lobbies, and urban commercial networks; each extracting benefits in different forms. Instead of acting as a unified oligarchic class, these groups engage in a form of competitive extraction, amplifying inefficiencies and leaving the state structurally weak.
The IMF’s identification of this fragmentation is crucial. Unlike countries where the dominant elite at least maintains a degree of policy coherence, such as Vietnam’s party-led model or Turkiye’s centralised political-business nexus, Pakistan’s fragmentation results in incoherent, stop-start economic governance, with every reform initiative caught in the crossfire of competing privileges.
For example, tax exemptions continue to favour both agricultural landholders and protected sectors despite broad consensus on the inefficiencies they generate. Meanwhile, state-owned enterprises continue to drain the budget due to overlapping political and bureaucratic interests that resist restructuring. These dynamics create a fiscal environment where adjustment becomes politically costly and therefore systematically delayed.
Another distinguishing characteristic is the fiscal footprint of elite capture in Pakistan. While elite influence is global, its measurable impact on Pakistan’s budget is unusually pronounced. Regressive tax structures, preferential energy tariffs, subsidised credit lines for favoured industries, and the persistent shielding of large informal commercial segments combine to erode the state’s revenue base.
The result is dependency on external financing and an inability to build buffers. Where other developing economies have expanded domestic taxation after crises, like Indonesia after the Asian financial crisis, Pakistan’s tax-to-GDP ratio has stagnated or deteriorated, repeatedly offset by politically negotiated exemptions.
Moreover, unlike countries where elite capture operates primarily through economic levers, Pakistan’s structure is intensely politico-establishment in design. This tri-layer configuration creates an institutional rigidity that is difficult to unwind. The civil-military imbalance limits parliamentary oversight of fiscal decisions, political fragmentation obstructs legislative reform, and bureaucratic inertia prevents implementation, even when policies are designed effectively.
In many ways, Pakistan’s challenge is not just elite capture; it is elite entanglement, where power is diffused, yet collectively resistant to change. Given these distinctions, the solutions cannot simply mimic generic reform templates applied in other developing economies. Pakistan requires a sequenced, politically aware reform agenda that aligns incentives rather than assuming an unrealistic national consensus.
First, broadening the tax base must be anchored in institutional credibility rather than coercion. The state has historically attempted forced compliance but has not invested in digitalisation, transparent tax administration, and trusted grievance mechanisms. Countries like Rwanda and Georgia demonstrate that tax reforms succeed only when the system is depersonalised and automated. Pakistan’s current reforms must similarly prioritise structural modernisation over episodic revenue drives.
Second, rationalising subsidies and preferential tariffs requires a political bargain that recognises the diversity of elite interests. Phasing out energy subsidies for specific sectors should be accompanied by productivity-linked support, time-bound transition windows, and export-competitiveness incentives. This shifts the debate from entitlement to performance, making reform politically feasible.
Third, Pakistan must reduce its SOE burden through a dual-track programme: commercial restructuring where feasible and privatisation or liquidation where not. Many countries, including Brazil and Malaysia, have stabilised finances by ring-fencing SOE losses. Pakistan needs a professional, autonomous holding company structure like Singapore’s Temasek to depoliticise SOE governance.
Fourth, politico-establishment reform is essential but must be approached through institutional incentives rather than confrontation. The creation of unified economic decision-making forums with transparent minutes, parliamentary reporting, and performance audits can gradually rebalance power. The goal is not confrontation, but alignment of national economic priorities with institutional roles.
Finally, political stability is the foundational prerequisite. Long-term reform cannot coexist with cyclical political resets. Countries that broke elite capture, such as South Korea in the 1960s or Indonesia in the 2000s, did so through sustained, multi-year policy continuity.
What differentiates Pakistan is not the existence of elite capture but its multi-polar, deeply institutionalised, fiscally destructive form. Yet this does not make reform impossible. It simply means the solutions must reflect the structural specificity of Pakistan’s governance. Undoing entrenched capture requires neither revolutionary rhetoric nor unrealistic expectations but a deliberate recalibration of incentives, institutions, and political alignments. Only through such a pragmatic approach can Pakistan shift from chronic crisis management to genuine economic renewal.
The writer is a financial market enthusiast and is associated with Pakistan’s stocks, commodities and emerging technology
Comcast topped Wall Street’s revenue and earnings estimates for the first quarter on Thursday, lifted by NBC’s sports slate in February and improving broadband customer losses.
The company said it lost 65,000 broadband customers compared with 183,000 losses in the same period last year. Heightened competition from wireless providers like Verizon and T-Mobile has led to quarterly customer losses for Comcast and its cable peers in recent years – which has weighed on these companies’ stocks in particular.
In response, Comcast in the last year has shifted its strategy and introduced more competitive pricing packages in a bid to reduce the broadband losses. The company has also leaned on its mobile business for growth, which added 435,000 new lines during the quarter. In total, Comcast now has 9.7 million mobile customers.
The company also reported 322,000 cable TV customer losses – fewer than the 427,000 in the same period last year.
Revenue for Comcast’s connectivity and platforms unit, which includes its Xfinity-branded broadband, cable TV, and mobile businesses, decreased 2% to $17.32 billion.
The company’s stock climbed as much as 8% in premarket trading.
Here’s how Comcast performed for the period compared with average analyst estimates, according to LSEG:
- Earnings per share: 79 cents adjusted vs. 73 cents expected
- Revenue: $31.46 billion vs. $30.43 billion expected
Comcast’s net income fell nearly 36% to $2.17 billion, or 60 cents per share, compared to $3.38 billion, or 89 cents a share, during the same period last year. Adjusting for one-time items including amortization and investments, Comcast reported earnings per share of $0.79.
Adjusted earnings before interest, taxes, depreciation and amortization were down roughly 17% to $7.93 billion.
Comcast’s overall revenue increased roughly 5% to $31.46 billion for the quarter.
Revenue got a boost from Comcast’s NBCUniversal, which aired a slate of sports – including the Super Bowl, Winter Olympics and NBA All-Star Weekend, during the quarter – that the company coined as “Legendary February.”
The media business, which is made up of NBCUniversal, recorded a nearly 61% increase in revenue to $7.28 billion during the quarter. Excluding the Olympics and Super Bowl – which provided significant boosts to advertising sales – revenue for the unit was up about 13%.
Live sports remains the highest rated programming on traditional TV and streaming, and beckon the most advertising dollars. The Super Bowl, in particular, breaks records annually when it comes to its pricey commercial spots. NBC received an average $8 million per 30-second ad, CNBC reported.
Domestic advertising for the media unit was up 135% to $3.45 billion for the quarter. Excluding the Super Bowl and Winter Olympics, it was up 4.7% to $1.54 billion.
NBC’s sports roster also helped lift streaming service Peacock during the quarter. Peacock subscribers increased 12% year over year to 46 million. Peacock nearly doubled revenue to $2.1 billion compared to the same period last year. The streamer recorded a quarterly loss of $432 million compared to a loss of $215 million in the prior year period.
Adjusted EBITDA for the media segment decreased to a loss of $426 billion due to higher operating expenses related to the costs associated with the Winter Olympics and Super Bowl, as well as the cost of the NBA rights.
NBCUniversal is part of the overall content and experiences segment, which also includes the film studio and theme parks – each of which saw sales climb year-over-year.
Revenue for the film studio was up 21% to $3.43 billion, while Universal theme parks revenue increased 24% to $2.33 billion. The theme parks were boosted by the opening of Epic Universe last May.
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Expands focus beyond infrastructure financing to fiscal reforms, women’s economic inclusion, critical minerals
The Asian Development Bank (ADB) increased its financial commitments to Pakistan in 2025, approving $3.672 billion, which is 22 per cent higher than the $2.995 billion recorded in the previous year. The expansion reflects the bank’s growing engagement in new sectors, including Pakistan’s mineral resources industry.
According to ADB’s Annual Report 2025, the institution also provided $1.485 billion in new support to Pakistan’s public sector during the year, marking a rise of around one-third compared to $1.113 billion in 2024. A large share of these funds was extended under ordinary capital resources on commercial terms.
The bank highlighted a policy-backed guarantee mechanism in Pakistan designed to reduce lending risk for commercial banks and encourage financing for small and medium-sized enterprises. Through this mechanism, around $1 billion in private sector financing was mobilised.
ADB also supported Pakistan’s mineral development strategy by approving financing for a copper-gold mining project, aimed at strengthening global supply chains for critical minerals. The bank said it is also assisting in developing links between mineral extraction and manufacturing industries.
In addition, ADB is providing advisory assistance to Pakistan for preparing frameworks related to digital skills development, while also supporting investments aimed at improving girls’ participation in science, technology, engineering and mathematics (STEM) education.
Also Read: Construction of M6: NHA, ADB sign agreement
The report noted that Pakistan continues to face significant fiscal constraints that limit public investment in essential services. In response, ADB approved an $800 million programme consisting of a $300 million policy-based loan and up to $500 million in guarantees. This package is expected to help Pakistan raise an additional $1 billion in financing.
In education, ADB approved funding for at least 1,700 STEM laboratories across schools, with half of them planned for girls’ institutions, alongside a $100 million loan and a $7 million grant.
Globally, ADB’s total commitments from its own resources reached $29.3 billion in 2025, reflecting a 20 per cent increase from the previous year. The bank also reported strong private sector engagement, with $5.5 billion directed towards private sector development.
Across the region, South Asia received $9.7 billion, making it the largest recipient, followed by Southeast Asia, Central and West Asia, East Asia, and the Pacific.
ADB said it undertook major institutional reforms during the year, including changes to its charter to expand lending capacity by 50 per cent without requiring additional capital from shareholders. It also revised its energy policy, improved procurement systems, and introduced a new framework to support critical minerals value chains linked to clean energy and digital industries.
The bank said these reforms are intended to make its financing more flexible, faster, and better aligned with development needs across Asia and the Pacific.
Read More: ADB says budget gaps delayed loan
The bank also stressed gender disparities in Pakistan’s economy, estimating a financing gap of around 37 per cent for women-led enterprises. To address this, it committed $350 million to expand access to credit and support women entrepreneurs, with an estimated two million women expected to benefit.
In education, ADB approved funding for at least 1,700 STEM laboratories across schools, half of which will be established in girls’ institutions to promote participation in science and technology fields.
Regionally, South Asia remained the largest recipient of ADB funding with $9.7 billion in commitments, ahead of Southeast Asia and Central and West Asia.
The bank also reported $5.5 billion in private sector development commitments, reflecting its increasing focus on blended finance and risk-sharing instruments to mobilise commercial capital.
ADB implemented several institutional reforms during 2025, including amendments to its charter to expand lending capacity by 50 per cent without a general capital increase. It also revised its energy policy, streamlined procurement processes, and introduced a new framework for critical minerals development.
For Pakistan, the report suggests growing access not only to concessional financing but also to private capital mobilisation tools and risk-sharing mechanisms as the country continues to address fiscal and structural challenges.
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