CONTEMPORARY PROBLEMS OF PAKISTAN

BRIEF INTRODUCTION
AT independence in 1947, Pakistan was a poor country

But it was richer than China, India and many other currently emerging economies
Today, Pakistans per capita is $1000 while Chinas is $5000 and South Koreas $15,000 One per cent of Pakistans population controls over half its wealth; the other 99pc struggles to survive on less than $500 annually

Brief introduction
Some reasons due to which the contemporary decadence persists are as follows:
i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. Population Growth Inflation Unemployment Ignorance Inequality Wars Extremism Insecurity Emigration and Immigration Disinvestment Globalisation Bad governance

inflation
The state spends more than it earns. It prints money to make up the deficits, steadily devaluing the earnings and savings of the people Rupee parity against the dollar has declined by around 5pc on average each year

Until 1970, the rupee was 4:1 against the dollar. Today it is 100:1
If the dollars own deflation is taken into account, a Pakistani must earn over 50 times as many rupees as he did in 1947 to maintain the same living standard

Population growth
At Pakistans birth, the then West Pakistan had around 50 million people. Today, we number 200 million The population continues to grow at around 2.5pc

The explosion can be moderated through incentives and disincentives

unemployment
In 1947, 80pc of people lived off the land in rural areas Today, with the pressures of population, urbanisation and the failure of industrialisation, effective unemployment and under-employment afflicts almost half of Pakistans working age population This can only be redressed by rapid industrialisation, investment and skill creation

ignorance
Almost 25pc of our people are presently unemployable in anything except physical labour due to the progressive collapse of Pakistans education system Literacy is defined as being able to read and write ones name. By any objective standard, Pakistans real literacy rate is around 50pc Massive and well directed investment is needed to promote universal and quality education

inequality
Pakistanis were born in a state of feudal inequality in the rural regions. Feudalism has since spread to business, industry and bureaucracy The gap between rich and poor has grown exponentially Pakistans elite the 1pc lives high off the hog, while the vast majority slides steadily down towards the poverty precipice

wars
Locked since inception in mutual hostility with its larger eastern neighbour, Pakistans financial and intellectual capital has been heavily deployed to the defence of its borders Three wars with India; a never-ending arms race, and involvement in Americas wars in Afghanistan, has drained Pakistans limited resources and attention away from economic and social development Pakistan needs to find strategic and diplomatic ways to lower the burden of deterring India. Its nuclear weapons capability should help achieve this

Extremism
Since 1977, Pakistan has become a virtual captive to the forces of religious and associated extremism Their street power and misguided use by some Pakistani leaders and agencies to promote external and internal objectives has transformed Pakistans environment of tolerance into one of fanaticism and violence They cannot be allowed to hold the countrys progress hostage

insecurity
The combination of organised crime, religious bigotry, violent extremism and political opportunism has resulted in the current state of insecurity in many cities and regions The global perception of Pakistans security environment is even worse than the reality No significant foreign or domestic investment or development can take place until the security challenge is addressed Confusion, vacillation and fear are the governments worst enemies

Emigration and immigration

The composition of Pakistans population has changed significantly since independence Many among the educated and skilled have left. These include members of religious minorities and those who were transformed into minorities Pakistan has been inundated by millions of tribal Afghans Pakistan today is intellectually, culturally and financially a more backward place than 60 years ago

Disinvestment
Without national or personal savings, investment in infrastructure, education, industry, small and medium enterprises has not been forthcoming from the public or private sector Pakistan has had to depend on external assistance and loans to fund development, which remains inadequate to meet the needs of its population

Globalisation
Pakistan was persuaded by the Washington Consensus that trade and financial liberalisation was good for all It unilaterally dismantled its protections. But it cannot produce most goods competitively This, combined with the culture of consumerism, has led to Pakistan becoming an import destination rather than an export base

The persistent trade deficits are partially offset by the remittances from poorer Pakistani emigrants
Most of our governments have been obliged to carry the begging bowl to our rich friends, at times even to meet our vital defence needs

Bad governance
Most of the 11 previous shortcomings originate from bad governance

With some outstanding exceptions, Pakistan has a record of bad or no policies and even worse of execution
This is largely due to the decline and eventual collapse of Pakistans bureaucracy and the accompanying erosion of rules and due process Personalised decision-making is now the norm Senior bureaucrats act more as personal rather civil servants From an occasional virus, corruption has become an endemic disease

Possible solution
Without professional and competent people to formulate and execute sound policies in various areas, Pakistan will be unable to overcome its imposing array of challenges It requires a comprehensive policy designed to transform Pakistan into a modern, peaceful and prosperous country Patriotic Pakistanis should demand such a policy and contribute to its formulation and implementation. They cannot give in to the dark side

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