“Money does not suddenly leave a country-it leaves when trust disappears.”
This sentence captures the core reality of Pakistan’s ongoing economic challenges. Recent discussions, including statements by Mohsin Naqvi, have once again highlighted the issue of capital being moved abroad. While the recovery of overseas assets is important, it is merely a symptom of the problem-not the root cause.
The truth is that capital flight from Pakistan is not a new phenomenon. It has been ongoing for decades, driven largely by uncertainty, inconsistent policies, and a lack of trust in institutions. Investors and businesspeople seek stability, predictability, and security. When these elements are absent, capital naturally flows to places where it feels safer.
If the goal is to bring capital back, are we addressing all dimensions of the problem?
However, this issue is not limited to capital moving abroad. Within the country, capital is also shifting from one region to another-particularly from Sindh to other provinces. This internal movement is often overlooked, yet it is just as significant. It reflects political instability, governance challenges, and a lack of confidence in law and order in certain areas. When investors feel insecure locally, they first relocate within the country and eventually move their capital abroad.
This raises an important question:
If the goal is to bring capital back, are we addressing all dimensions of the problem?
Another critical aspect is accountability. Recent narratives have specifically pointed fingers at individuals or groups from Karachi, accusing them of moving capital abroad. While accountability is necessary, it must be fair and impartial. Targeting a single city or region oversimplifies a complex national issue.
If capital has left Pakistan, it has not come from just one city-it has come from across the country. Therefore, any effective accountability process must operate at the national level. Selective accountability not only undermines its credibility but also weakens the very objective it seeks to achieve.
If accountability is truly the goal, it must be consistent, transparent, and unbiased-applied equally to everyone, regardless of whether they belong to the past or present, and irrespective of their status or influence. Without such fairness, efforts to bring capital back lose their legitimacy in the eyes of the public and investors.
At the same time, accountability alone is not the solution. Even if capital is identified and pressure is applied, it will not return unless the underlying issues are resolved. Investors need assurance that their capital will be protected, their assets will be secure, and their returns will be reliable.
That is the real solution.
To stop capital flight and encourage its return, Pakistan must rebuild trust-through consistent policies, strong institutions, better governance, and a reliable law-and-order system. Investors must feel that their capital is not only welcome but also safe. Without these assurances, any effort to bring capital back will be temporary.
Ultimately, the conversation should not be limited to “who sent the money abroad,” but rather focus on the more fundamental question: “why did the money leave?”
An honest answer to that question is the only path forward.
Because in the end, money does not leave without reason-it leaves when trust is lost.
And it only returns when trust is restored.
The writer is former Vice Chairman (Association of Builders and Developers)