Beyond professional jargon and expert’s opinion, the economy of Pakistan is in doldrums due to the imbalance of consuming more and producing much less. The productivity guilt from the bottom portion of the population and megalomaniac tendencies of the elite perpetuates the unbalance and results in constant decline of economic productivity and security.
With capitalism as the economic system, ‘developing country’ as the current world status and agrarian based output, economic woes are given as dowry to Pakistan from the day of independence. The defining causes of an economy being in doldrums include, but are not limited to, economic recession, external shocks — that is climate induced problems, geopolitical mayhem and pandemics, like Coronavirus — high inflation and declining people’s purchasing power. Government induced maladies also add injuries to economic recession given the historical references of myopically crafted economic policies to favour the economically burgeoning population and damaging financial services for the underprivileged portion.
The public-centred economic policies often create stories. The Singapore Story is one of the examples that explores how Lee Kuan Yew’s vision made a seemingly invisible country on the ending tip of Malaysia one of the wealthiest nations in modern times. The story of Miracle on the Han river also showcased the world, in the economic realm, how economies are bolstered by investing in its indicators, though its northern counterpart — North Korea — epitomises dictatorial regimes along with halting all socioeconomic and political incentives. Not identical to North Korea though, the extractive institutions and elite patronised policies and practices made a president the winner of Z$100,000 nationwide lottery organised by a partly nationalised bank, Zimbank — RG Mugabe. Prior to this lottery, Mugabe incremented salaries of his cabinet by 200 per cent. By mentioning stories and facts implies that there lies two ways, priorities make the difference at the end.
Hark back, Dr Ishrat Hussain writes in governing the ungovernable, Pakistan’s economy was akin to countries nearly touching the threshold of developed status in the 1980s and 1990s, let alone the regional countries of Pakistan. “Pakistan is the one of the easiest populations to govern given the naturally induced capabilities Pakistanis possess as they don’t demand for much.” He adds. Demanding not much he implies the basic facilities the Constitution provides, health, education, power supply etc. And they don’t because they’re not aware of their basic facilities. The lawns of the elite are turning greener at the expense of public ignorance.
One of the reasons Pakistan’s economy’s growth is stagnant is the country’s ordinary class is not empowered or mobilised. Another reason is the elite’s capture of the economy and bourgeois control on the goods and services. The third is the myopically created non-punitive economic regulatory policies that fuels black marketing, racketeering, and man-made treasure troving. The fourth, is the inability to transition from an agrarian economy to an industrial one which is more effective, sound and productive.
The growth of an economy emphasises on the effective and skillful workforce, a milieu of free market and inclusion of all individuals regardless of gender to work for them, and ergo, for the economy too. The wreckage of recessions in the past — the great depression (1929-1939), The Asian Financial Crisis (1997-1998) and Global Financial Crisis (2007-2009) linger upon Pakistan’s economy though deeply struck economies survived the blow of the later two. With the 23rd visit to the IMF for another bailout package, one presumes the incompetency and dysfunctionality of economic policies enacted for the public good and they often turn in favour of otherwise.
With a solely $380B GDP and a growth rate restricted to 4.7 per cent (World Bank, 2022) Pakistan seems broken economically since the population touches 230M and is growing exponentially. Fiscal deficits, dwindling foreign reserves and the non-existent direct foreign investments further push Pakistan into the economic quagmire. The ‘would-be’ panacea for the economic woes for Pakistan has been the hires and fires of finance ministers with Daronomics dominating the position for serving Pakistan the longest period of time. And for not good, rather otherwise. Undoubtedly, the issue of instability played a significant role in forestalling the economy towards transformation and growth. A buzzword though, the growth is the very need of an hour. The supreme executives of the country carry begging bowls all the time while visiting a country, attending a summit, and participating in an organisation’s annual call. That desperateness, if applied, in the country’s own growth would have borne fruit.
To explore a fun fact: if Adam Smith would have been given the economy portfolio of Pakistan, he too would not have been able to deliver desired fruits since the country’s economic policies are ephemeral, ineffective and obsolete in a changing world.
The way forward? As Adam Smith’s example is explored, sans a practical, effective, long-lasting and resilient economic policies and their holistic implementation are not carried away along with financial empowerment is not engineered within the population and a commitment of own growth is committed, Pakistan’s economy would always be in doldrums as it is now. Since change is not a switch and actually takes time to happen, educating population sans discrimination, empowering farmer class with adequate supply of essentialities and fluctuating job-oriented stance to business-oriented mindset will pave the way forward with pace and exponentiality.
The keys to the treasures of productivity, circulation and other economic indicators is public mobilisation, women inclusion and halt of elite and military interventions in the economy. Government intervention often hinders the very critical juncture for economic growth more often than not. Economy in hand with technology is a prospect for rapid growth, use of biotechnology might be another success story in the coming decades, vertical farming and innovative means can help Pakistan reach its desired threshold of growth, development and prosperity. Irrefutably, effective economic policies and a visionary leadership would considerably push the country for national success.
