Tuesday September 06, 2016
Pakistan Needs New Economic Thinking
Pakistan needs to give a serious review to its economic policies. The economic disaster Pakistan is going through is the net result of 60 years of misplaced economic policies. Since creation of Pakistan, the economic managers and policy makers based economic growth model more on foreign aid, loans and investments and less on exploration and stimulation of internal economic factors.
These economic priorities were aimed at making Pakistan an attractive country for foreign powers; not knowing, foreign powers infuse money in other countryís economy in persuasion of their own economic, geo-political and geo-strategic interests.
Unfortunately, under general Musharraf, consecutive administrations implemented this economic philosophy to its max. Shaukat Aziz, an agent of international imperialist forces, practically demolished or tried to demolish all fundamental components of Pakistani economy.
The destruction of electricity supply sector is prime example of Shaukat Azizís intentional efforts to destroy Pakistani economy. Now, he is saying ďconstant electricity supply is necessary for economic developmentĒ is what we said many times during his premiership. We used this argument to defy his toll claims about economic development.
After destruction of internal basis of Pakistani economy, he turned this economy into a consumer economy which basically means strengthening the economies of other industrial countries. Unfortunately, the sad part of this development of consumer economy is Pakistani economy is facing double jeopardy because most of the items infused in this economy need constant refueling or replacement of components.
In order to get out of current economic perils, Pakistan needs to reorient its economic policies.
The principle Pakistan needs to use for reorientation of its economic policies is: less dependence on foreign loans, grants, subsidies and investments, and galvanization of internal economic components in agricultural and industrial sectors. Apparently loans, grants, subsidies, and investments are different words, but fundamentally they have the same effects on host economies and reap same fruits for donor economies. The problem with Pakistanís policy makers is they pick-up different mantras and then keep repeating them until they are dropped dead. Foreign loans, grants, subsidies, and investment are such mantras which Pakistani policy makers are parroting for the last sixty years. The repetition of these mantras has eliminated their abilities to build any other economic model for the country. Consequently, Pakistani economy has become addicted to loans, grants, subsidies and investments. This addiction is so chronic, Pakistani economy cannot function without constant supply of these financial medications.
In order to build healthy economy, Pakistan has to break this addiction. We have to end dependence on loans, grants, subsidies and investments and build economic model which should revive Pakistanís ailing economy.
We should create an economic environment in which common Pakistanis set-up small agricultural and industrial units, local consortiums should set-up large agricultural and industrial units. Instead of importing consumer goods, manufacture such goods by setting up cottage industries throughout the country. Develop efficient public transportation systems in big and small cities, end USV culture, end dependence on Middle Eastern oil. Build lot of small dams for creation of hydro power to meet the needs of industrial, commercial and civil sectors. Wherever possible, use wind driven turbines to generate electricity. Particularly coastal cities can become self-sustaining by using wind driven turbines.
Create man made lakes throughout the country in the flood areas. Donít let millions of cusecs of water flow to the sea. These water reservoirs should be used to fulfill agricultural needs.
Do not send out delegations to beg for loans, grants, subsidies and foreign investments. Send delegates to look for trade opportunities. Minimize your imports, maximize your exports, and use only indigenous resources to develop all these sectors. Do not look for any type of foreign help. Pakistanis are quite capable people, they can make anything happen.
With all this, encourage simple life style throughout the country at all levels. Adopt simple values, follow plain truths, and standardize various aspects of social, cultural, commercial and economic activities according to those simple values and plain truths.
Pakistani societyís movement in this direction will help Pakistan become a vibrant, self-sustaining and healthy country. Concerted efforts in these directions will avert deleterious trends and put the country on the road to prosperity, peace and tranquility
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