Daily Times Editorials 1st January 2026

Pakistan enters 2026 with a paradox that would have been unthinkable a decade ago. The country is not isolated, not marginal, not invisible. Yet it is still uncertain, and uncertainty is its most expensive liability.

Demography captures both the promise and the peril. With a population of over 240 million, Pakistan is now the world’s fifth-largest country. More than a quarter of its citizens are under 30. In theory, this youth bulge should be an engine of growth.

But the labour market paints a more sobering picture with an eight per cent unemployment rate. A rapid influx of new workers compounds a persistent skill gap, making meaningful employment growth slow and uneven. Absent dramatic improvements in education, healthcare and family planning, the demographic dividend teeters on the verge of becoming a back-breaking burden.

The economy offers little margin for error. Growth of roughly three per cent is barely enough to keep pace with population expansion. Public debt levels continue to loom large, with general government debt estimated to stay around 70 per cent of GDP. Inflation, having eased sharply in 2025, is forecast to remain volatile.

Foreign investment remains thin, exports lack depth, and productivity gains are scarce. Stability has been purchased through austerity, not reform. Without broadening the tax base, fixing energy pricing and restoring confidence in regulation, Pakistan will continue to lurch from programme to programme, managing crises rather than escaping them.

Politics compounds these problems. A tenuous coalition government struggles to forge a consensus, leaving major reforms stalled. Public debates are frequently consumed by parliamentary brinkmanship and mass protests rather than substantive economic or governance strategies. This dissonance diverts attention from the urgent need for fiscal and institutional reforms, all the while eroding public confidence in democratic processes.

And yet, foreign policy tells a different story. Islamabad has expanded its diplomatic reach, balancing ties with China, re-engaging the United States and deepening strategic cooperation with Saudi Arabia. It has positioned itself as an active voice in the Muslim world and a relevant interlocutor in regional diplomacy. That Pakistan has learned to speak the language of connectivity, security and geo-economics cannot be stressed enough. Sadly, the renewed emphasis on external partnerships has not yet translated into a flood of investment or sustained FDI–a reminder that international acclaim alone cannot substitute for economic fundamentals.

There are signs of social reform. Civil society and legislative efforts continue to press on issues such as gender equality and minority rights. Yet, Pakistan’s entrenched social inequalities remain formidable. Gender disparity in economic participation remains stark, with women’s formal labour force representation among the lowest globally. Debates around contentious issues such as child protection, LGBTQ rights and religious liberties hint at a transition. Still, without stronger enforcement mechanisms, reforms risk being confined to paper rather than practice. Here’s to 2026. May Pakistan’s leaders, elites and people alike finally summon the courage of conviction that our trials demand, lest another year of promise slip into the ledger of missed opportunity. *

Ms Zia was never a unifying figure in the comforting sense of the term. She was relentless and often uncompromising. Still, as the country’s first woman prime minister and the leader who presided over the 1991 transition back to parliamentary democracy, she anchored mass politics in civilian rule at a fragile moment. That achievement was incomplete and frequently undermined, but it mattered. It normalised electoral participation after years of authoritarian interruption and restored the idea that governments could, at least in principle, be voted out.

Her later career was defined by a grinding rivalry that hardened Bangladesh’s politics into a zero-sum contest. Corruption cases, imprisonment and exile stripped her of office. Her supporters saw dignity in the way she absorbed pressure without theatrics as critics argued she tolerated illiberal alliances and personalised politics. Both claims contain truth. What is undeniable is that Khaleda Zia, even weakened, restrained escalation. With her in the arena, confrontation had ceilings. Without her, those ceilings are less certain.

That uncertainty now frames the run-up to elections expected in early 2026. Public appetite for participation remains strong, yet it is shadowed by distrust born of disputed polls and institutional decay. Within the BNP, succession is unavoidable. Dynastic continuity may deliver organisational coherence. However, a successor who cannot expand beyond a loyal base risks narrowing the party’s appeal and further fragmenting an already brittle landscape.

For Islamabad, Khaleda’s passing is both personal and strategic. National Assembly Speaker Ayaz Sadiq attended the funeral. Prime Minister Shehbaz Sharif called her “a committed friend of Pakistan” whose “service…leaves a lasting legacy.” This praise is more than flattery. Khaleda’s BNP held a softer line on war-era issues and welcomed trade ties. Now, with Sheikh Hasina ousted last year and a Yunus-led caretaker in charge, Islamabad sees an opportunity to rebuild ties. Still, any move will be watched warily: Bangladeshi society remains sensitive about 1971. It can only be hoped that Islamabad presses forward on trade, connectivity and cultural ties without overplaying its hand. With nearly 70% of Bangladeshis trusting the caretaker regime, there’s indeed room for a low-key reset.

Bangladesh’s political landscape is shifting fast. Khaleda Zia may be gone, but the game she helped define is far from over. Her supporters vow that the legacy lives on, while others worry that old grudges could return stronger without her to temper them. *