The economic landscape of Khyber Pakhtunkhwa (KP) is facing a dual crisis of declining exports and eroding public purchasing power, according to a senior provincial official. Barrister Muhammad Ali Saif, the Central Information Secretary of the Pakistan Muslim League-Nawaz (PML-N) in KP and Special Assistant to the Chief Minister, has raised serious concerns about the federal government's economic policies exacerbating these challenges.
Sharp Decline in Provincial Exports
Revealing alarming data, Barrister Saif stated that KP's exports plummeted by 12.5% during the first half of the current fiscal year (July-December 2025). This significant drop highlights a contraction in the province's key industrial and manufacturing sectors, which are vital for foreign exchange earnings and employment. The decline signals deeper structural issues within the regional economy that require immediate policy intervention.
The export slump is not an isolated problem but is compounded by a severe internal economic strain. Saif emphasized that the purchasing power of the common citizen has drastically shrunk. He attributed this erosion directly to the persistent and high inflation rates that have plagued the country, making essential goods and services increasingly unaffordable for the average family in KP and across Pakistan.
Federal Policies Under Fire
In a pointed critique, the PML-N leader placed the blame for the economic downturn squarely on the federal government's approach. He accused the center of failing to provide substantial relief to the masses despite the growing hardships. According to Saif, the policies enacted have been insufficient to curb inflation or stimulate export-oriented growth, leaving provinces like KP to grapple with the consequences.
"The government's policies have not yielded any relief for the people," Saif asserted, underscoring a gap between official economic claims and the ground reality faced by citizens. His comments reflect growing political and public frustration over the management of the national economy, with provincial administrations feeling the direct impact of federal fiscal and trade decisions.
Call for Action and Future Implications
The situation presents a critical test for both the federal and KP governments. The 12.5% export decline in just six months threatens long-term economic stability, potentially leading to factory slowdowns, job losses, and reduced investment in the province. Concurrently, the continuous erosion of purchasing power fuels public discontent and reduces overall economic activity, creating a vicious cycle of stagnation.
Barrister Muhammad Ali Saif's statements serve as a formal alert from within the governing coalition's provincial wing. They indicate a pressing demand for a course correction in national economic policy, with a specific focus on controlling inflation and implementing measures to boost provincial exports. The coming months will be crucial to see if these concerns translate into concrete remedial actions to reverse the negative trends and provide the relief that the public urgently needs.
