In a recent NYT article, renowned Pakistani origin economist Atif Mian, highlighted what ails national economy and enormity of threats it poses to state sovereignty and future of over 200 million. He states that our economy has crashed almost 13 times in the last 60 years, surviving on IMF bailout etc, with no plans by successive governments, including the present, to address the root causes. Pakistan today is poorest in regions with GDP only 3.3%, insufficient to keep pace with population growth. The Federal Government is bankrupt because last year total interest on debt and pension etc to retired civil or uniformed employees exceed net revenues.
Beneficiaries of the status quo are the biggest obstacle to change, who prevail with immense clout, thereby posing a threat to survival as an independent sovereign state. The moneyed elite favour unfair business practices, tax evasion and their preferential access to power, followed by religious extremism and their patronage by powerful successive uniformed and civil governments, creating an environment for violence and intolerance.
Pakistan has become a nation of consumers with under 15% of its output invested in productivity generated projects. The idle activity of investment in real estate where value of land increases because of urban population demands, making it beyond access for much needed infrastructure. It has also become a parking lot for black economy and a much more attractive profit venture for individual investors than investing in industrial growth which generates employment and boosts tax revenues. He suggests land tax as sole remedy to boost investment.
Choice of water intensive crops like sugarcane on nearly 2.5 million acres makes no economic sense in a country facing acute water shortage and suggests rationalising agriculture towards more efficient choices. Subsidies in his opinion should be confined only to performance-based industries which boost exports.
Malik T Ali
Lahore
