The Three P's of Pakistan's Economy: Progress, Problems & Perspectives
Three P’s in Pakistan’s Economy: Progress, Problems & Perspectives
*Saarang Soomro
*[1]Dr. Subhan Gaad
Abstract
This paper aims to investigate the impact of macroeconomic variables on economic growth in Pakistan. In doing so, study utilizes the data from Pakistan Economic Survey, IMF and the World Bank reports. Pakistan’s economy has suffered a lot from 1950s to date. Various factors including our macroeconomic policies, mismanagement, negligence and corruption have thrown in their share in exponentially increasing problems for economic growth. The existing weak institutions in Pakistan have also contributed to the adverse conditions for growth. This study focuses on an often unnoticed key factor in Pakistan’s long-term development: the need to cultivate the formation of an independent and fair government apparatus, supported by a strong civil society, an efficient private sector, and institutions that offer oversight of government actions. This type of governance arrangement can be shaped by the backing of targeted external aids. This article endeavors to disclose the absent ingredients essential for continual socio-economic development in Pakistan.
Introduction
The economy of Pakistan faced an unparalleled set of challenges during 2008-09. Pakistan has endured many shocks in last few years. Domestic security challenges have intensified which in result have enacted an extremely high cost on the economy, both in terms of direct costs of the fight against extremism, as well as in terms of a knock-on effect on investment inflows and market confidence. This study examines the vulnerability of Pakistan’s economic growth by looking at the sector’s governance structure and a score of indicators.
Finally Pakistan is by some accounts on the path of growth. But majority of Pakistan is still plagued by terrorism, deteriorated by mismanagement and smeared by corruption. A look at the society contrasting the official data gives pause for thought. Despite
*Saarang Soomro
*[1]Dr. Subhan Gaad
Abstract
This paper aims to investigate the impact of macroeconomic variables on economic growth in Pakistan. In doing so, study utilizes the data from Pakistan Economic Survey, IMF and the World Bank reports. Pakistan’s economy has suffered a lot from 1950s to date. Various factors including our macroeconomic policies, mismanagement, negligence and corruption have thrown in their share in exponentially increasing problems for economic growth. The existing weak institutions in Pakistan have also contributed to the adverse conditions for growth. This study focuses on an often unnoticed key factor in Pakistan’s long-term development: the need to cultivate the formation of an independent and fair government apparatus, supported by a strong civil society, an efficient private sector, and institutions that offer oversight of government actions. This type of governance arrangement can be shaped by the backing of targeted external aids. This article endeavors to disclose the absent ingredients essential for continual socio-economic development in Pakistan.
Introduction
The economy of Pakistan faced an unparalleled set of challenges during 2008-09. Pakistan has endured many shocks in last few years. Domestic security challenges have intensified which in result have enacted an extremely high cost on the economy, both in terms of direct costs of the fight against extremism, as well as in terms of a knock-on effect on investment inflows and market confidence. This study examines the vulnerability of Pakistan’s economic growth by looking at the sector’s governance structure and a score of indicators.
Finally Pakistan is by some accounts on the path of growth. But majority of Pakistan is still plagued by terrorism, deteriorated by mismanagement and smeared by corruption. A look at the society contrasting the official data gives pause for thought. Despite
References: 1. Barro, Robert J., 1991, “Economic Growth in a Cross section of Countries,” Quarterly Journal of Economics, Vol. 106, No. 2, pp. 407-33. 4. Yehoue, Etienne B., 2007, “Ethnic Diversity, Democracy, and Corruption,” IMF Working Paper 07/218 (Washington: International Monetary Fund). 5. Easterly, William, 2001, The Elusive Quest for Growth: Economists’ Adventures and Misadventures in the Tropics, (Massachusetts: MIT Press). 6. Rodrik, Dani, 2003, “Growth Strategies,” NBER Working Paper 10050 (Cambridge, Massachusetts: National Bureau of Economic Research). 7. Senhadji, Abdelhak, 2000, “Sources of Economic Growth: An Extensive Growth Accounting Exercise,” IM Staff Papers, Vol. 47, No. 1, pp. 129-57 (Washington: International Monetary Fund). 8. Zahid Hasnain, “The Politics of Service Delivery in Pakistan: Political Parties and the Incentives for Patronage, 1988-1999”, The Pakistan Development Review, Vol 47, No. 2, 2008. 12. Sajjad Akhtar, Maqsood Sadiq, “Occupational Status and Earnings Inequality: Evidence from PIHS 2001-02 and PSLM 2004-05”, The Pakistan Development Review, Vol 47, 2008. 13. Afia Malik. “Crude Oil Price, Monetary Policy and Output: The Case of Pakistan.” The Pakistan Development Review, Vol 47, No. 4, 2008. 14. Muhammad Arshad Khan and Usman Ahmad, “Energy Demand in Pakistan: A Disaggregate Analysis.” The Pakistan Development Review, Vol 47, 2008. 15. Muhammad Shahbaz, Khalil Ahmad, and A. R. Chaudhary. “Economic Growth and Its Determinants in Pakistan.” The Pakistan Development Review, Vol 47, 2008. 16. Laura Giurca Vasilescu. “Agricultural Development in the European Union: Drivers, Challenges and Perspectives.” The Pakistan Development Review, Vol 47, 2008. 17. Naheed Zia Khan. Instinctive Behaviour, Producer Surplus, and Corporate Social Responsibility,” The Pakistan Development Review, Vol 47, 2008. 18. Attiya Y. Javid and Robina Iqbal . “Ownership Concentration, Corporate Governance and Firm Performance: Evidence from Pakistan.” The Pakistan Development Review, Vol 47, 2008. 19. Kochanek, S.A, 1983, Interest Groups and Development: Business and Politics in Pakistan, New Delhi: Oxford University Press. 20. Low, D.A (ed.), 1991, The Political Inheritance of Pakistan, London: Macmillan. 21. Hassan, Parveiz. 1998, Pakistan’s Economy at the Crossroads: Past Policies and Present Imperatives, Karachi: Oxford University Press. 22. Kibria, Ghulam. 1999, Shattered Dream: Understanding Pakistan’s Development, Karachi: Oxford University Press.