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Seminar at IR | Seminar at IES | Seminar at Sociology | Pakistan Journal for Gender Sciences
Seminar at Dept. of International Relations
“The coming government is definitely going to face certain economic challenges; its ability to survive them will determine its strength”. These views were presented by Dr. Shahid Hassan Siddiqui, an eminent economist, at a seminar on “Economic challenges for the next government” under a program on Peace Studies and Conflict Resolution at the Department of International Relations, University of Karachi, on Thursday March 06, 2008.
The present day economic scenario in Pakistan is formidably bleak. Human Development Index (HDI) is low and there are falling living standards as far as the majority is concerned. Therefore, the lurking fear is that Pakistan may again have to allow Intervention of IMF and World Bank. The economic policies that have so far been adopted have largely benefited the elite sections of the society. Pakistan has so far received 10 billion dollars as US aid since 9/11. There is an increasing inclination towards the sale of national assets; it is an invitation to the foreign investors much like East India Company. Since our economy is overwhelmingly getting influenced by casino culture (Speculative culture), consequently there is less emphasis on industrialization. Dr. Shahid added that Pakistan has unfortunately lost the breathing space that was provided to it in the aftermath of 9/11. It is no less than a national tragedy. The growth rate is not sustainable and there is high inflation. Pakistan now finds itself with highest ever external debt; the per capita debt is the highest in the history of Pakistan. Our decision-makers’ decisions have always favored the feudal, the rich and the west.
In the last few years 4000 billion rupees have been transferred from the poor to the rich in Pakistan. There has been a cataclysmic growth of 120 percent in the banking sector which is never an engine of growth. PIA- just to cite an example- is losing 4 crore per hour. The problems are: corruption, mismanagement, tax evasion and exploitation.
The first thing needed for development is stable government. Besides this there should be greater power sharing among parties and the provinces particularly in Sindh. GST should be reduced from 15 % to 5 %. Consumer finance schemes are basically target killing of the middle class. War against terrorism has had an immeasurably adverse impact on Pakistan’s economic climate. Besides this the policy of austerity should be practiced and promoted by all. The size of cabinet should be reduced and the expenditure on foreign tours should not exceed beyond means. Education- the lifeline of a nation- must receive 5 % share in the national budget. Moreover in order to raise the standard of the government schools, Government servants- including officers and ministers- should send their children for education at these schools. The standard will unmistakably rise in government schools in no distant future.
Prof. Dr. Moonis Ahmar, chairman and program director, said in his concluding remarks that problem is not of resources but of ownership. The poorly run country is not at all poor. Evolutionary means of social change are superior to revolutionary uproar and chaos. The efforts of the sincerely motivated do bring results. Therefore, hopefulness and optimism should go hand in hand. The program was followed by a lively question and answer session.
