Page 28 - CMA Journal (Mar-Apr 2026)

Another important element of Pakistan's response strategy article demonstrates how disruptions resulting from
has been its reliance on outside funding, especially from the international events like pandemics, geopolitical wars and
IMF and bilateral partners. Such funding raises external debt trade tensions quickly spread to the local economy through
and while ignoring underlying structural aws, even if it is increased import prices, in ationary pressure and limitations
required to stabilize reserves. on industrial production.
In recent years, there have been some encouraging Pakistan's overall reaction is still primarily reactive,
developments. The SBP's macroeconomic stabilization concentrating on crisis management rather than long-term
policies have assisted in lowering in ationary pressure, readiness even though recent scal stabilization measures
maintaining exchange rate stability and replenishing foreign have enhanced short-term resilience. The underlying
exchange reserves. There have been little structural changes inefficiencies in supply chain systems are not addressed by
in supply chain management and logistics nevertheless. The policies like import restrictions and reliance on outside
need for a more proactive approach to supply chain risk funding although they offer short-term relief. This
management is highlighted by the lack of a comprehensive emphasizes how crucial it is to make strategic changes in
forward-looking plan. order to increase adaptability and resilience in the face of an
Strategic Way Forward increasingly unpredictable global environment.
Pakistan has to implement a comprehensive and forward-
Pakistan needs to implement a comprehensive and forward-
thinking economic plan that places a high priority on
thinking economic plan in order to increase resilience
improved regional connectivity, modernizing logistics
against geopolitical shocks. Diversi cation of the supply
infrastructure and diversifying its supply chain.
chain is an essential rst step. Pakistan can lessen the effect
Strengthening trade networks and cutting down on
of outside disruption and guarantee supply continuity by
logistical inefficiencies can be greatly aided by utilizing
lowering its reliance on a small number of trading partners.
programs like the China-Pakistan Economic Corridor (CPEC).
Infrastructure investment in logistics is similarly crucial.
The impact of exogenous shocks can also be lessened by
Adopting digital technology, updating ports and enhancing
transportation networks can all greatly increase productivity encouraging selective domestic production and creating
and cut expenses. The World Bank (2025) states that trade strategic reserves of necessities.
competitiveness and economic growth can be signi cantly In conclusion, Pakistan must develop a robust supply chain
impacted by improvements in logistics performance. as a strategic imperative as well as an economic need. The
Initiatives for regional connectivity like the China-Pakistan nation may better handle geopolitical uncertainty and set
Economic Corridor (CPEC) have substantial chances to the groundwork for inclusive and sustained economic
improve trade routes and logistics networks. When such growth by shifting from volatile policymaking to a proactive
initiatives are implemented well, they can improve regional and coordinated approach.
connectivity and lower transportation costs.
Another crucial tactic is to encourage home manufacturing
of necessities. Targeted import substitution can lessen
susceptibility to external shocks and promote industrial
development even when total self-sufficiency might not be
possible.
Lastly, creating a strong foundation for risk-management is
crucial. This entails boosting data-driven decision-making,
maintaining strategic stocks of essential commodities and
strengthening institutional crisis response capabilities.
Economic resilience can be greatly increased by taking a
proactive approach to risk management.
Conclusion
About the Author: Mr. Imtiaz Bashir is a Fellow Member of ICMA and Senior
The global economic landscape has undergone a Instructor at the Government College of Commerce, Multan. With over 20 years of
fundamental transformation due to geopolitical shocks experience in management accounting, corporate nance, and taxation, he has
which have elevated supply chain logistics concerns to the taught at various universities and professional institutes across Pakistan, and
forefront of policy discourse. Pakistan's structural previously worked as Assistant Manager Accounts at Orient Group of Companies. He is
vulnerabilities such as its signi cant reliance on imported currently a faculty member at ICMA's Multan campus while pursuing a PhD. He has
energy and industrial inputs, inadequate logistics authored over nine publications in national refereed journals and conferences on
infrastructure and ongoing imbalances in the external sector management, leadership, corporate nance, and governance.
make these problems especially severe for the country. This

26 ICMA’s Chartered Management Accountant, Mar-Apr 2026