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Technocrates

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What Is Technocrat?
Technocrat is a technical expert, especially one in a managerial or administrative position. They are skilled in a particular field and are able to run business, institution or firm in a better way.
A technocrat has come to mean either a member of a powerful technical elite or someone who advocates the supremacy of technical experts. Technocratic Regime started in Pakistan from the year 2002 after the General Elections held under the governance of President Parvaiz Musharraf.
If we see from the start, we can describe history of Technocratic regime from the year 1999.
Military Takeover :
In October 1999, the incoming military government was faced with four main challenges: heavy external and domestic indebtedness; high fiscal deficit and low revenue generation capacity; rising poverty and unemployment; and a weak balance of payments with stagnant exports.
9/11 effectively changed the ideological world as we know it. The very definitions of political right-left wings morphed to mean whether one supported terror or the war on it. The ideological spectrum moulded to fit in the international security narrative and in 2002, Musharraf finally held elections. Parallels between the 2002 elections and elections in Zia’s era in 1985 can be traced to see how dictators have in the past ‘democratized’ military rule to suit global security dynamics. The narrative in the North-West, led by Maulana Fazalur Rehman, was predominantly anti-US, while the PML-Q’s rise to power in Punjab marked a departure from Rehman’s rhetoric. Despised polar narratives and views, all parties sailed a smooth ship under the aegis of Musharraf, who it appeared had the final say in everything.
Security and IR
The election of 2002 was crucial for Pakistan as it aimed to legitimize military rule in a time when 9/11 had just happened and the United States had sent troops to Afghanistan to fight the Taliban. Pakistan was left with one option, to side with the US against the Taliban. Millions of dollars of aid were entering the country.
The recent international events had pushed Pakistan into promoting ‘Enlightened Moderation’, against the Jihadist ideology of the previous two decades. The war in Afghanistan had crucial aftermath. This was an era of strong US-Pak ties, as once again Pakistan had braved as the only reliable ally, an ally the US needed to keep, and willing to save the world from global terrorism.
Economic Snapshot:
Musharraf government had to tackle four main problems i.e. high amounts of debts, huge fiscal deficits partly due to weak revenue generation, increasing poverty and unemployment and a weak balance of payments with stagnating export levels. The country had to tackle a grave external liquidity issue as reserves could only suffice for 3 weeks of imports and could not possibly service its short-term debt obligations. Workers’ remittances fell by $500 million and foreign investment flows decreased by $600 million, official transfers turned negative and Pakistan had no access to private capital markets. In the domestic sector, the falling tax-to-GDP ratio and inflexible expenditure structure restricted the government’s ability to increase public investment levels.
The economic growth rate averaged at 7% percent (2001-2002). The unemployment rate also decreased from 8.4% to 6.5% and nearly 11.8 million new jobs were created in the 1999-2008 period. The debt-to-GDP ratio was down from 100% to 55% and foreign reserves could cover import bills of up to 6 months. The fiscal deficit was around 4% of GDP and the investment rate increased to 23% of GDP. Foreign capital inflows were estimated $14 billion and the exchange rate remained fairly stable throughout the period.
With regards to Pakistan’s privatization program, revisions were made in 1999 and it became more rigorous under Prime Minister Shaukat Aziz in 2004. The program came to an end in 2007 when most of the industries were put under the management of private ownership. The elections due to which the PML (Q) became the ruling party did not have much of an effect on the economic front as technocrats were brought in to handle economic problems and the party’s ideology or priorities had a negligible role to play.

The country faced a serious external liquidity problem as its reserves were barely sufficient to buy three weeks of imports and could not possibly service its short-term debt obligations. Workers’ remittances decreased by $500 million, foreign investment flows dwindled by $600 million, official transfers turned negative and Pakistan had no access to private capital markets. In the domestic sector, the declining tax-to-GDP ratio and inflexible expenditure structure, whereby 80 percent of revenues were pre-empted to debt servicing and defence, constrained the government’s ability to increase the level of public investment.
Structural policy reforms combined with an improvement in economic governance laid the foundations for accelerated growth from 2002 to 2007. The economic growth rate averaged 7 percent, up from 3.1 percent in 2001 to 2002. Poverty was reduced by between 5 and 10 percentage points, depending upon the methodology used. The unemployment rate also fell from 8.4 percent to 6.5 percent and approximately 11.8 million new jobs were created between 1999 and 2008. Gross and net enrolment ratios at the primary school level recorded upward movement. The re-profiling of the stock of debt brought down the debt-to-GDP ratio from 100 percent to 55 percent. Foreign exchange reserves increased to cover six months’ imports from a few weeks’ imports. The fiscal deficit remained below or slightly above 4 percent of GDP. The investment rate grew to 23 percent of GDP and an estimated $14 billion of foreign private capital inflows financed many sectors of the economy. The exchange rate remained fairly stable throughout the period.
Since then, the elected government has not pursued the unfinished agenda of reforms with the same vigour and commitment. Governance issues that characterized the 1990s have begun to rear their ugly heads once more. The situation worsened after March 2007, when the government became embroiled in a judicial crisis. The preoccupation with the impending elections resulted in serious lapses in economic management as key adjustment decisions to escalating international oil and commodity prices were postponed
Role Of Technocrats:
The role of technocrats is primarily to make structural changes and implement reforms that politicians can’t or won’t. Typically, a crisis of immense magnitude triggers a realization among many business, institutional and even political leaders that non-politicians are needed to bring immediately needed changes to governance and resolve issues that threaten the integrity and sustainability of the nation. Technocrats don’t focus on ideological strategies but rather on practical, effective ways to deal with a variety of monetary, fiscal, economic and infrastructure issues. Technocrats are individuals with specialized training, who approach societal problems from the vantage point of appropriate knowledge and experience. They seek solutions to problems in science and technology broadly conceived. Technocrats are primarily driven by their cognitive "problem-solution mindsets", and only in part by particular occupational group interests. The activities of technocrat’s and the increasing success of their ideas are thought to be a crucial factor behind the modern spread of technology and the largely ideological concept of the "Information Society". Technocrats may be distinguished from "technocrats" and "bureaucrats" whose problem-solution mindsets differ from those of the technocrats. There is a tendency to think of technocrats as individuals who, because they are concerned with public policy, work out of the government bureaucracy. Technocrat can, and usually do, work in a great variety of sectors of a society – government, private business, education, communications, industry, infrastructure etc.

Technocrats Comparison: Working Population: GDP Growth: Comparison Of Prices: Achievements and Works Of Technocrats:
1. Nine world class engineering universities were developed and 18 public universities further developed.
2. Pakistan was ranked third in world banking profitability.
3. The IT industry was valued at around $2 billion, including $1 billion in exports and employed around 90,000 professionals.
4. The CNG sector attracted over $70 billion in investment in the past five years and created 45,000 jobs.
5. The telecommunications sector attracted around $10 billion in investments and created over 1.3 million jobs.
6. Industrial parks were set up throughout the country for the first time.
7. Mega projects such as the Saindak, Rekodiq, marble production, coal production, mining and quarrying were pursued.
8. Foreign reserves increased from $700 million to $17 billion.
9. The Karachi stock market went from 700 points to 15,000 points.
10. The literacy rate improved by 11 per cent.
11. Poverty decreased by 10 per cent.
12. Four dams were built: Mirani, Subakzai, Gomalzam, Khurram, and Tangi,
13. Seven motorways were completed or were under construction,
14. Gwadar, an advanced sea port, was developed,
15. 650 kilometres of coastal highways were constructed.
16. A historic 100% increase in tax collection (amounting to Rs1 trillion) was observed.
17. Large scale manufacturing was at a 30-year high, and construction at a 17-year high.
18. Copper and gold deposits were found in Chagai, worth about $600 million annually if sold.
19. A new oil refinery with the UAE that could process 300,000 oil barrels a day was established.
20. The industrial sector registered 26 per cent growth.
21. The economy was the third fastest growing economy after China and India .
22. The Institute of Space Technology was established.
23. Sardar Bahadur Khan Women University Quetta was established.
24. The University of Science and Technology, Bannu, was established.
25. The University of Hazara was founded.
26. The Malakand University in Chakdara was established.
27. The University of Gujarat was established
28. The Virtual University of Pakistan was established
29. Sarhad University of IT in Peshawar was established
30. The National Law University in Islamabad was established
31. The Media University in Islamabad was established
32. University of Education in Lahore was established
33. Lasbela University of Marine Sciences, Baluchistan, was established
34. Baluchistan University of IT & Management, Quetta (2002)
35. The Pakistan economy was worth $ 160 billion in 2007
36. GDP Purchasing Power Parity (PPP) was $ 475.5 billion in 2007
37. The GDP per Capita in 2007 was $ 1000
38. Revenue collection in 2007/08 was Rs1.002 billion
39. Exports in 2007were worth $18.5 billion
40. Textile exports in 2007 were worth $11.2 billion
41. Foreign direct investment in 2007 was $8.5 billion
42. Debt servicing in 2007 was 26 per cent of the GDP
43. The poverty level in 2007 was 24 per cent
44. The literacy rate in 2007 was 53 per cent
45. Pakistan development programs in 2007 were valued at Rs520 billion
46. The Karachi stock exchange in 2007 was $70 billion at 15,000 points
47. Exports in 2007: $18.5 billion
Apart from this economic snapshot and history, if we see the data of Economic conditions than it can be divided as below:
Pakistan Economy:
• Salvaged a near bankrupt economy and transformed it into the four fastest growing economies in the Asian region along with China, India and Vietnam.
• Pakistan’s economy grew at an average rate of 7.0 percent per annum.
• The performance of large-scale manufacturing was unparalleled in the country’s history. It grew at an average rate of 11 percent per annum.
• Services sector grew at an average rate of 6.0 percent per annum.
• Because of strong economic policies, Goldman Sachs a global investment bank, included Pakistan in the category of new emerging market (Next – 11) destined to play a major role in the world economic setting.
• Goldman Sachs extended their coverage from BRICs (Brazil, Russia, India and China) to eleven emerging economic powers including Pakistan, Korea, Mexico, Vietnam, Turkey etc.
• Pakistan’s per capita income doubled (from $ 526 in 1999-2000 to $1085 in 2007-08). In other words, the average income of Pakistani people more than doubled.
• The size of the economy more than doubled (from $74 billion in 1999-2000 to $170 billion in 2007-08) as well.
Investment
• Succeeded in turning around the economy with the help of Pakistan’s private sector. Constant engagement built the confidence of the private sector on economic management.
• Investment as a result rose from 17.4 percent to 22.9 percent of GDP – an increase of 5.5percent of GDP in seven/eight years is unparalleled in recent times in Pakistan.
• Foreign Investment surged from $0.5 billion to $8.5 billion – a 17 fold increase in 8 years which reflected the growing confidence of foreign investors in Pakistan.
Unemployment & Poverty
• The government succeeded in creating 13.5 million new jobs and accordingly reduced the unemployment rate from 8.3 percent to 5.2 percent.
• Strong economic growth succeeded not only in creating new jobs but reducing poverty. That is, poverty reduced to one-half. The number of people living below the poverty declined from 34.5 percent in 2000-01 to 17.2 percent in 2007/08.
• Income inequality also started narrowing after 2005-06.
Inflation
• Inflation averaged 5.5 percent during 2000-2007.
Deficit and Debt
• Tax collection by the Federal Board of Revenue (FBR) tripled – increasing from Rs 308 billion to Rs.1025 billion.
• Overall budget deficit as percentage of GDP reduced to almost one half. Budget deficit averaged over 7.0 percent of GDP during the 1980s and 1990s but was reduced to an average of 4.0 percent of GDP, thus reflecting financial discipline.
• The country’s debt burden reduced to one – half. National (Public) debt was over 100 percent of GDP by end of the 1990s but reduced to 55 percent by 2007.
• In the words of the IMF “The large and sustained decline in the external debt to –GDP –ratio was one of Pakistan’s most remarkable macroeconomic achievements of recent years”.
• Debt servicing used to consume 64 percent total revenue in 1998-99. By maintaining financial discipline and reducing budget deficit, technocracy succeeded in bringing it down to 25 percent only. In other words, the resources saved from debt servicing were diverted towards development program.
External Sector
• Both exports and imports grew at higher double –digit-levels.
• Foreign exchange reserves increased from $500 million to over $16 billion – a sixteen fold increase in reserves.
• Exchange rate remained stable as a result of the build up of foreign exchange reserves.
• Remittances continued to grow from less than $1.0 billion to over $6.0 billion.
• Pakistan’s international credit rating continued to improve from selective default to B+.
• Pakistan was taken out of the IMF program in December 2004.
• Technocrats re-entered the international bond and equity markets by floating Eurobonds and Global Depository Receipts (GDR). We also succeeded in floating a 30 year Eurobond which showed the confidence of the global investors in Pakistan.
• Technocrats pursued a successful privatization program for state-owned enterprises (SOEs).
Stock Market
• Karachi Stock Exchange emerged as one of the best stock exchange, in emerging economies. The Karachi Stock Exchange Index surged more than 11 times – rising from 1,189 in October, 1999 to 13,998 in November 2007. This represented the growing confidence of the private sector (both domestic and foreign) on economic management.
SOCIAL SECTOR
Education
• Overall Literacy Rate increased from 45% to 55% during 2000-01 to 2006-07.
• Male literacy rate increased from 58% to 67%.
• Female literacy rate increased from 32% to 42%.
• Gross enrolment at primary level (5-9 years) increased from 72% to 91% – an increase of 19 percentage points.
Higher Education
• The state of higher education in Pakistan was in a pathetic condition. Pakistan had 48 universities; the number of PhDs and engineers per million population was only 112 –about one – third of the minimum standards prescribed by UNESCO. Pakistan had only 2600 science PhDs and the country was producing barely 50-60 per annum.
• A multi – pronged strategy, including the establishment of Higher Education Commission (HEC) was launched.
• Provided substantial resources to higher education. The development budget for higher education increased from Rs. 500 million to Rs. 14 billion in 2006-07.
• Number of universities increased to 130 in 2006-07 from 48 in 1998-99.
• Number of students enrolled in universities increased from 276 thousands to 948 thousands – more than threefold increase in enrolment in universities.
• Number of PhDs produced by Pakistani universities increased sharply to 624 from as low as 50 – 60 per annum.
• There were 3800 students sent abroad for higher education (PhD) in foreign universities, of which, 303 have completed their degrees.
• 3508 students enrolled in PhD Programs in Pakistani universities, of which 336 have completed their programs.
Health
• Various Health indicators also improved. For example, children aged 12-23 months immunized increased from 53% in 2000-01 to 76% in 2006-07.
• Life expectancy increased from 63 years in 2000 to 66.5 years by 2008.
• Infant mortality rate declined from 83.3 per 1000 infants in 2000 to 65 by 2008.
• Social Sector and Poverty – Related Expenditures Increased from Rs. 167 billion (3.8% of GDP) to Rs. 500 billion (5.7 % of GDP).

Conclusion
Overall if we see the Technocratic Era in Pakistan than all economic indicators overall rose and progressed but it faced some serious law and orders situations in its end Year 2007 like war on terrorism, Lal Mosque operation and Baluchistan issue. They somehow managed to get through it but it left its scars on face on Pakistan. But apart from law and order situation, Pakistan's economy boosted towards peak. But this was called bubble economy in which latter all it also fell down with same ratio. However if we look into the prospect of economy of Pakistan, economy of Pakistan boosted to the zenith of the success. Some of the issue like Lal mosque operation and Baluchistan issue left stains on the successful story of the techno-critical regime.
It was in this regime when the educational sector was impeccably organized and several new institutions came into being. If we put a critical eye on the economy in terms of inflation, we would definitely vision that low inflation has been the hallmark of this government.
Infrastructure was up lifted, not just in terms of roads but server dams were also built. Literacy spread like a positive virus in all around the country and not in some specific provinces.
Concluding all the above information of the report, it would be wise to say that in this regime people of Pakistan were satisfied enough to report that they were at least getting nominal amount of their basic necessities.

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