ISLAMABAD:There is broader consensus that almost every sector of the economy of Pakistan is captured by the elite, who have even greater control over domestic power politics and economic policies.
This current rent-seeking economic governance model has become un-sustainable which serve the vested interest of few of the society. Therefore, there is a dire need of re-defining the governance model for sustainable economic growth through a comprehensive dialogue among all stakeholders including elite, civil society, political parties, academia and institutions.
Experts expressed these thoughts during a Special lecture titled “Economy and national security: Political economy choices for reform” organised by the Sustainable Development Policy Institute (SDPI) here at Islamabad.
Prof Adeel Malik, Globe Fellow in the Economies of Muslim Societies & Associate Professor, Oxford Department of International Development, University of Oxford United Kingdom believes that in Pakistan popular discourse on the economy lacks debate on political economy which is fundamentally connected with politics and geo politics of the country.
He said Pakistan’s economy is facing fiscal Ponzi scheme challenge which is posing serious threats to the poor, future generation and productive sector of the economy.
Data of the past three decades shows that Pakistan’s economic growth remained volatile and mainly consumption-led which lacks investments and exports, where banking, services and real estate were the major engines of growth.
“This present economic order is unsustainable which, if continues, may consequently have negative implications in the form of growing inequality and violence”, Prof. Adeel said, adding the need for redefining the current model of governance in order to achieve sustain growth. For that crafting a holistic development strategy that takes a cross-sectoral approach is direly needed, he said.
Commenting on elite capture of the economy and politics, Prof. Adeel said that elite capture remains a pervasive problem in every civil or military regime mainly due to capitalist structure of the economy.
He said for potential pathways for reforming the economy is the need greater dialogue and debate among all stakeholders, where elite can be engaged positively and convinced for shifting their focus to areas of economy which serve the society at large.
The major challenges for this political economy choices for reforms include re-allocating the power that promote the interests of industry and creating a sustainable political coalition that favour an open access to economy, he added.
Prof. Adeel also stressed that the finance portfolio should be with elected politicians to achieve greater confidence of stakeholders and urged the need for envisioning a new industrial policy which also part of foreign policy strategy.
Joint Executive Director, SDPI, Dr. Vaqar Ahmed said that a broad-based debate is desired on how various elites in Pakistan can work together towards a shared vision for economic growth. He said that it is equally important to study if Pakistani elites understand that their formal or informal actions may lead to widening of various forms of inequalities in the society.
This is critical if the state is serious about policies that redistribute wealth including tax, real estate, and credit reforms, he added. This aspect is also linked to the laxness of institutions to complete the devolution process and give administrative and financial powers to the local governments in a true sense, he remarked.
“All this is critical if Pakistan is to achieve Sustainable Development Goals (SDGs),” said Dr. Vaqar adding most SDGs cannot be achieved by public sector institutions on their own without a decent working relationship between state, markets and citizens.
That is why a structured public private dialogue is necessary with private sector and civil society organisations so that grass root aspirations find their way in government policies, he added.
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