Pakistan: From Asian Model to Economic Struggles

Muhammad Talha Zubair

Islamabad: Although it may sound like mockery today, there was a time when Pakistan was an example for states like China and India.

According to the book Pakistan: The Struggle Within, in the 1960s Pakistan was exemplary in economic growth and development for many Asian countries.

Little did we know that this same country would later require more than twenty bailout packages from the International Monetary Fund (IMF), become heavily indebted to China, and suffer from problems such as resource mismanagement, socio-economic and socio-political struggles. From corruption and illicit networking to earthquakes and floods, almost every disastrous event affects the economy and, in the worst cases, cripples it completely.

History shows that a state lacking economic stability and infrastructural development can still demonstrate resilience and a will to progress. In the book Governing the Ungovernable, Ishrat Hussain appreciates the resilience of the people of Pakistan in surviving economic strains and international developments, such as the Afghan war, which resulted in a massive influx of refugees into the country.

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Economic analysts claim that during the late 1960s and early 1970s, Pakistani leadership should have opted for broader industrial-based development. During that time, the “Asian miracle” was underway, and the region’s overall economy was booming. Such a strategy could have provided the country with a smoother journey ahead.

Despite authoritarian regimes and political voids, Pakistan’s strategic location and geography proved beneficial, especially as an ally of the United States against the Soviets or in aiding the Global War on Terror (GWOT).

Later, the people of Pakistan developed conspiratorial thinking as part of their ‘national psyche,’ according to Ishrat Hussain. This was mainly due to a lack of transparency and political parties deliberately preventing local governments from developing, fearing a loss of influence and power on multiple platforms. People now believe that only those with glorified patronage are eligible for financial stability in Pakistan.

Yet, they also often conspire that most wealthy individuals engage in corrupt practices to maintain their wealth and status, which fosters a sense of inferiority and discourages healthy competition, as it is seen as exhausting and ultimately futile. This mindset compels people to undervalue human capital and prioritize quick money as the only means to prosper individually and at the state level.

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Therefore, several reforms can be suggested to alleviate economic strains and address the lack of human capital in Pakistani society:

Awareness and education at the grassroots level about skill development and money management.

According to the Global Gender Parity Report 2024, Pakistan ranks 145th. Despite women constituting almost half of the population, they are not allowed to contribute fully to the economy. The country cannot grow until all its citizens participate in growth and development.

Policy continuity and regulation are essential. Reinvesting in the same ideas under different names wastes resources. Sound policies from previous governments should be allowed enough time to bear fruit.

Special attention should be paid to the agriculture and industrial sectors of the country, incorporating modern technology, as they are considered the two pillars of Pakistan’s economy.

Although conspiracies persist, the ‘gift culture’ in both public and private sector offices has polluted the system. Therefore, transparency must be enhanced and strict measures introduced against such corrupt practices.

The article is the writer’s opinion, it may or may not adhere to the organization’s editorial policy.

Muhammad Talha Zubair A Strategist & poet for whom stories beyond the sight are more vivid and audible