Redefining Prosperity: Degrowth Economics in the Pakistani Context.

Purpose: This study explores the feasibility and implications of a degrowth strategy for Pakistan's socio-economic and environmental dynamics. In today's era, where human well-being and environmental conservation are paramount, Pakistan's susceptibility to environmental and social perils necessitates a radical shift in strategy. This paper highlights the role of a degrowth framework as a persistent, systemic, long-term expansion driver; and aimed to assess the impact of degrowth on social, environmental, and economic indicators in the context of Pakistan. Design/Methodology/Approach: To discern the implications of degrowth for Pakistan, this study incorporates variables spanning social, economic, ecological, and environmental dimensions, underpinning the hypothesis of a degrowth scenario. The primary data sources for these variables include the World Bank database (2022) and the International Energy Agency (IEA, 2022). Specific data on marine acidification was sourced from the Ocean Health Index (2022), while data on deforestation and ecological footprints were gathered from Global Forest Watch (2022) and the Global Footprints Network (2022), respectively. This investigation focuses on data spanning from the year 2000 to 2022. The Vector Autoregressive (VAR) model was used to estimate the outcomes for all three scenarios. Findings: the study considered three distinct categories: the Business As Usual (BAU) scenario, Decent Work and Economic Growth (aligned with SDG 8), and Degrowth. The results revealed a significant positive impact of degrowth on Pakistan's social, environmental, and overall well-being. While the degrowth strategy indicates a gradual yet positive economic trajectory in the long term, the other two frameworks might boost growth rates but adversely affect social, ecological, and individual well-being. Given its potential benefits, the degrowth plan emerges as a reliable approach for Pakistan. Implications/Originality/Value: From a policy perspective, The government could integrate emerging degrowth policies into current frameworks, which would not only target achieving degrowth but also help mitigate environmental degradation while maintaining socio-economic stability. A comprehensive approach to sustainable economic development involves implementing differentiated taxation strategies that prioritize labor-intensive, low-energy services, simultaneously ensuring effective taxation for companies at the point of sale. Additionally, embedding environmental standards within international trade agreements is essential to mitigate environmental degradation globally. These measures collectively reflect a commitment to fostering a sustainable and environmentally conscious economic landscape. [ABSTRACT FROM AUTHOR]