Strangulations in the economy of Pakistan
Dr Tanvir Hussain Bhatti
Monday,July 02,2007
Since the inception of Pakistan the throng of wrinkly toffs on a good wicket framed policies and enacted rules that suited them and their elite community’s vested interests. The flushed and loaded people, tenaciously intoxicated in power, always turned a blind eye to the national concerns and the public welfare. The national economy has sunk into a state of torpor due to the ad-hoc policies of the fact twisting myopic top cats. Ayub’s industrialization and Basic Democracy were cast aside with his ousting, Z.A.Bhutto’s nationalization and land reforms were throttled with his hanging, Zia’s Islamisation crashed in the air, development strategies hatched by Benzir Bhutto and Nawaz Sharif were thrown out of Pakistan’s borders with their exile. The outcome of the ‘Enlightened Moderation’, ‘Devolution Plan’ and the progress plans pioneered by the current regime would not be very dissimilar from that of their precursors. Throughout the 60 years political history of Pakistan, the subsequent government considered its responsibility to brush aside the policies kicked off by its forerunner. The consequence of this frog in the well navigation of the cooties is that there has been no continuity of development plans, which is still gravely tattering our economy. Pakistan has made average steps forward by fits and starts at a snail’s pace since its birth. Foreign aid and assistance funneled by the donor agencies and developed countries acted as short-term laxatives to relieve economic constipation of Pakistan. Even the transitory swiftness of growth rate achieved by foreign assistance, a chunk of which has been provided by America when in hot water, could not give any advantage to man in the street because there is no ‘Trickle Down Effect’. With economic growth at 7.0pc in the current fiscal year, Pakistan’s economy has grown at an average rate of almost 7.0pc per annum during the last five years. This rapid pace of expansion on sustained basis has enabled Pakistan to position itself as one of the fastest growing economies of the Asian region. But, due to concentration of fruits of ephemeral economic growth within few hands the monetary planners have failed to translate this boon to trim down poverty. By 1999s it was acknowledged that growth alone does not diminish poverty and a more direct approach is indispensable. Time and again fiscal crisis ensuing from monstrous economic system of loot and plunder has deteriorated national economy. Therefore, a few growth periods were alternated by long stagnations. Perceptual budget deficit and trade shortfall resulting from wishy-washy failed monetary policies forced Pakistan several times to crawl before IMF to put the lug on. The country is currently entangled in the heavy debt trap of $38.86 billion that has hampered national economy. Splashing of national treasure on political gang-shag and luxurious activities of the men in the driving seat has further upset the applecart. Corruption is acting as a blight to ruin our monetary system. Even black money garnered through black economy and bribery is transferred to the foreign banks and not invested in the country. The reprobate apple-knockers have been transgressing all the bounds of decency by looting whooping national wealth with both hands. This reckless dishonesty has been depriving of the transfusion of cash to the indigenous industry, which has made it vulnerable to flourish. Rampant sleaze has permeated all spheres of national institutions. Economic benefits never trickled down in the politico-economic history of Pakistan but palm greasing has pervaded from top to bottom. Unprecedented surging social and political turmoil due to current judicial imbroglio, unending tide of volatile law and order situation, unchecked smuggling, uncontrolled hoarding, market manipulation by the big guns and shutter down strikes triggered by the business community have further enfeebled the already tightly squeezed economy. Energy is necessary to fuel the power hungry industry. Pakistan is passing through pitiable phase of severe energy crisis because no major dam has been constructed for more than 30 years to tap the country’s hydroelectric potential. During this summer episode, the situation has so worsen that the gap between supply and demand has touched 3,000 megawatts. Lack of national consensus and deficiency of mutual trust among the constituent units are major stumbling blocks in exploiting water resources to meet the immense challenges of water stress and energy shortage. Throbbing pains of mounting inflation are deeply felt by all and sundry. Inflation according to Economic Survey 2006-7 is as high as 7.9 percent, well in excess of the 6.5 per cent target. What is particularly nerve-racking is the considerable growth in food inflation. While everyone in the commercial food chain, i.e., growers, livestock owners, wholesalers and retailers can tailor their priorities to inflationary pressures; no such alternative or method is available to the pitiable and the stipulated income groups. Political stability is imperative for economic stability. Pakistan has failed in its quest to emerge as a developed country on the economic map of the world due to uninterrupted political precariousness. Frequent change of the government due to narrow-minded politicians, firmly rooted corruption-tainted bureaucracy, and time and again army intervention and abrogation of the constitution, have wrecked the establishment of democracy that can act as springboard to provide viable hope for social strength, political steadiness and economic vibrancy. Joseph stiglitz rightly said, “The real miracle of East Asia may be political more than economic.” Second largest economy of the world Japan, and Germany rose like phoenix from their ashes after they were ransacked in the World War II. Now they have become economic giants due their resolute national spirit and political strength. China with $915 billion has largest foreign exchange reserves in the world. A country of opium eaters has now become an economic clout due to indomitable will and dauntless courage of Mao Zee Dong. The walls of the White House are trembling from the fear of this economic powerhouse. It is forecasted by the distinguished think tanks that China can challenge its political and economic rival Uncle Sam in next 50 years. Therefore, America has adopted the” Policy of Containment” to impede China. The developed countries made progress by leaps and bounds because their public have pride of performance. Majority of the people in Pakistan consider work a burden instead of responsibility, especially in the government sector. They escape from liabilities while extracting maximum benefits by using their authority. Even unemployed educated youth avoid joining a job or initiating a business, which is considered menial in our feudal society. Sarcastically, when these people got golden opportunities to emigrate to developed countries they work there happily on a store, hotel, and some earn Dollars and Euros by giving bathe to pet dogs of the rich people which they cannot even dream of in Pakistan. Copious beans of patriotic sentiments are vital to invigorate the civil sector to ensure their meaningful participation in all walks of life. Human are the true assets of any nation. Therefore, there is pressing need of human resource development to give a bounce to national economy. Public can contribute substantially in state’s prosperity to make rapid steps forward. Ironically, patriotism has been deliberately crushed in Pakistan by the vested interests. Contrary to the developed nations, in our country personal interests are given priority over national interests, caste is given preference over patriotic fraternity, regional language is considered superior than national language, sect is propagated more vigorously than Islam, regional leaders gave an edge to provincialism over federation, ethnicity is considered higher than nationalism. Is it possible for such a fractured population to compete in the comity of nations? Can such a divided community come to a single point through consensus to resolve complex national issues, which is crucial to make progress? Internally we are divided and externally we are weedy. There must be fair distribution of resources and uplifting the socio-economic status of the off-scorings of humanity to ensure their full contribution in national productiveness. A host of remedial measures like fair collection and distribution of Zakat, true empowerment of women to guarantee their significant involvement in various institutions, replacement of interest based economy with Islamic monetary system, provision of technical education and micro credit facilities to the unemployed, redistribution of land among landless farmers through land reforms, mobilization of domestic resources, easy availability of loans to the peasants, formulation of effective programs with poverty cutback at their heart, and socio-economic reforms at national level to diminish insolvency can reduce the widening gulf between the prosperous and the poor by making the national economy more vibrant. A sound and long-term economic policy is the crying necessity of time. It is mandatory to develop indigenous goods self-sufficiency, which is vital to ensure pulsating economic independence. Foreign aid should be utilized for beefing up native industrial base instead of time and again getting into the ribs of the donors. Economic self-reliance can liberate our financial system from the tentacles of donor agencies that always have their own axe to grind. Agriculture sector is the main source of livelihood for 66pc of the country’s population. It accounts for 20.9pc of the GDP and employs 43.4pc of the total work force. It is the backbone of our economy. This segment faces numerous bottlenecks that must be removed. Law and order situation must be improved to ensure considerable foreign investment and to magnetize tourists. Alternative energy resources must be tapped to fuel the power starving industry. The black sheep involved in hoarding, tax evasion and grafting should be dealt with iron hands by establishing impartial and powerful accountability institutions. Media should play a constructive role to indoctrinate patriotism and pride of performance in the public.
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