KARACHI:
Pakistan is suffering from an economic crisis that has jeopardised the country’s status as an independent sovereign state and made it a slave to international financial institutions to meet its development expenditure. On the contrary, Bangladesh, which was considered a burden on West Pakistan in the late 50s and 60s, has managed to become the only country in the subcontinent with a balanced budget. We can either live in denial or learn some lessons from the collective failures of those who have been at the helm in this country.
From the 60s onwards, Pakistan’s economic policies and planning were outsourced to Pakistan-origin dual nationals working for international financial institutions. Instead of focusing on achieving self-sufficiency — by acquiring transfer of technology and investment in the development of technological knowledge as was done by India, which preferred assistance from America in setting up IIT (Indian Institute of Technology) — we chose to import finished products, both for civil and defence purposes. From a country self-sufficient in agricultural produce, today we import basic food items, which we once exported.
Although, Ghandara Motors was started in 1963, we only have assembly plants for vehicles, electronic equipment and other luxury items. While countries like Singapore imposed heavy taxes on real estate earnings to encourage investment in industry and other employment generating sectors, Pakistani investors and the state preferred to invest in land development schemes, converting green agriculture belts into concrete jungles, for commercial profiteering. Our imports exceed our exports, resulting in an ever-widening trade deficit, which has led to galloping inflation and transfer of money to foreign safe-havens. Whilst Bangladesh has issues with corruption and political bickering, it has refused to experiment with technocrats, discouraged religious extremism. It has instead made optimum utilisation of skilled semi-literate labour to become the second largest exporter of value-added garments.
Malik Tariq Ali
Lahore
Published in The Express Tribune, December 23rd, 2021.
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