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Paper short abstract:

This paper explores the potential of Indigenous models, such as Soulidarity Economy (Al-Mawakhat)—a community-driven framework rooted in collective responsibility and mutual support through Benevolent Loans (Qard Hasan)—to navigate this poly-crisis.

Paper long abstract:

Pakistan’s socio-economic development is increasingly hindered by a poly-crisis—a complex convergence of political instability, economic stagnation, social inequality, and climate vulnerabilities. Frequent government changes, policy inconsistencies, and systemic governance failures have created an environment of uncertainty that stalls investment, disrupts development initiatives, and perpetuates poverty. Though attempted, international aid and macroeconomic policies have been insufficient to address these interconnected challenges on a local and national level due to the fragile political landscape, religious sensitivities, and a staggering illiteracy rate being the leading causes.

Building on existing socio-religious and cultural practices, especially in Pakistani villages, the Al-Mawakhat movement (Soulidarity Economy) emphasizes local self-reliance, shared resources, and grassroots mobilisation to address pressing economic and social needs. This model seeks to mitigate the compounded effects of political instability, economic deprivation, and environmental challenges by leveraging social capital, fostering community trust, and promoting collaborative solutions.

The research highlights case studies of community-led initiatives that have successfully tackled issues like unemployment through micro-entrepreneurship, education gaps, healthcare shortages, and disaster resilience, demonstrating the potential for Indigenous frameworks to provide sustainable alternatives to centralised governance failures. By embedding resilience and adaptability into local contexts, Soulidarity Economy offers a pathway for addressing the poly-crisis in Pakistan. The study concludes that institutionalising Indigenous models, like Al-Mawakhat and Qard Hasan, can empower communities to foster self-reliance and create localised solutions to complex, overlapping crises in politically volatile environments.