The most recent development in Pakistan's economic policy debate is the adoption of 'creative destruction' as a potential solution to the country's economic woes, as discussed in Dawn's article 'Hierarchy of failure' published on February 14, 2026. This concept, inspired by the 2025 Nobel Prize in Economic Sciences awarded to Philippe Aghion and Peter Howitt, suggests that innovation and disruption are necessary for economic dynamism. However, the article criticizes this approach as a 'complete misdiagnosis' for Pakistan, highlighting that the country's formal sector firms face numerous external constraints such as the 'most expensive electricity in the region,' a 'highest tax burden' of up to 50%, and a $68 billion parallel economy. The article argues that these factors make the cost of doing business 34% more expensive than in regional peers, leading to a silent economic decline as firms exit the market.