Pakistan as an economy and political entity is in a mess. However, a handful of financially stable corporations do give some hope. But are they really up to it or is this just another political-business nexus?
But by 1972, Khan’s policies (on the political front) had backfired and thus came Zulfikar Ali Bhutto in power. The introduction of populist policies under his regime resulted in a kind of economic reversal. Sector wide nationalisation dragged back the GDP to 1950 levels. And the rest as they say is history. The unification of military along with Islamic bodies resulted in what we today know as Islamic fundamentalism. Bloodbath arising out of terrorism shows no signs of slowing down. In fact, as of 2011, Pakistan’s GDP growth rate has slipped down to 2.2% per annum. Moreover, as the surge in imports further outstrips exports, the economy is poised for yet another tough phase. With public debt amounting to $60 billion, S&P rates this economy B-.
The fact is, a couple of profit making power houses do not have the wherewithal to give a meaningful direction to Pakistan’s economy let alone save it. Economic growth is witnessed by nations which have a well planned political structure along with a mechanism to deliver social security. Pakistan lacks both of them. The issue lies in the fact that no one really knows who’s controlling power in Pakistan. Agrees Dr. Suvrokamal Dutta, a New Delhi based foreign and economic policy expert, as he tells B&E, “If someone thinks that a few corporate institutions with financial stability can safeguard the future of Pakistan’s economy, I would call it day-dreaming. Moreover, these corporations are financially strong because of their political links and derive huge synergies from foreign aids received by the treasury. If these aids were to stop, I guarantee that Pakistan as a political entity would disintegrate within 10 days.”
The only way this situation can change for the better is by pursuing political and economic reforms collaterally. The West will have to play an instrumental role in reinforcing amendments. A good start would be to ramp up investment and generate employment, which in turn would boost consumption. In the absence of these imperative measures, Pakistan would continue to be a failed state for generations to come supported by the US.
The fact is, a couple of profit making power houses do not have the wherewithal to give a meaningful direction to Pakistan’s economy let alone save it. Economic growth is witnessed by nations which have a well planned political structure along with a mechanism to deliver social security. Pakistan lacks both of them. The issue lies in the fact that no one really knows who’s controlling power in Pakistan. Agrees Dr. Suvrokamal Dutta, a New Delhi based foreign and economic policy expert, as he tells B&E, “If someone thinks that a few corporate institutions with financial stability can safeguard the future of Pakistan’s economy, I would call it day-dreaming. Moreover, these corporations are financially strong because of their political links and derive huge synergies from foreign aids received by the treasury. If these aids were to stop, I guarantee that Pakistan as a political entity would disintegrate within 10 days.”
The only way this situation can change for the better is by pursuing political and economic reforms collaterally. The West will have to play an instrumental role in reinforcing amendments. A good start would be to ramp up investment and generate employment, which in turn would boost consumption. In the absence of these imperative measures, Pakistan would continue to be a failed state for generations to come supported by the US.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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IIPM: Indian Institute of Planning and Management
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
