THERE is no denying the fact that Pakistan faces numerous challenges, including political instability, institutional decay, a flagging economy, border insecurity, high inflation, terrorist incidents, religious extremism, blasphemy allegations and, more importantly, brain drain and climatic catastrophes. These factors have brought the country close to a state of crisis and anarchy.
However, the fundamental problems that were embedded in the country’s government and state structure from earlier stages are the ‘Garrison State syndrome’ and ‘Aid syndrome,’ which have undermined the credibility of institutions, accountability and the potential for economic and governance growth. As Ayesha Jalal pointed out that the new state of Pakistan was crippled by its colonial inheritance, a result of its relatively sparse share of colonial administrative resources and structure in comparison with India, where continuity and a ready-made postcolonial state eased the transition to independent statehood.
Since its inception, Pakistan has grappled with a significant democratic deficit, marked by the overpowering influence of the military and civil servants, derailing the evolution of a robust democratic process and federalism envisioned by its founder, Quaid-e-Azam. This departure from the principles of unity, faith and discipline has resulted in a deeply divided and undisciplined nation, where ethnic and linguistic tensions threaten its multicultural fabric. Political parties have perpetuated clientelism, dynastic politics and the dominance of powerful elites, hindering the development of a democratic culture.
The economic crisis and high inflation in Pakistan has severely impacted the living standards of ordinary citizens, with limited access to essential services like clean water, healthcare, education and transportation. Furthermore, the means of communication have also been severely affected by the current economic crisis. In reality, our economic growth is artificial, driven by excessive money supply growth, poor taxes collection, external and fiscal deficits manipulated by rulers who resist reforms. This leads to high inflation, low foreign reserves and a need for IMF loans that require currency depreciation, high-interest rates and reductions in twin deficits, ultimately resulting in a significant decline in economic growth. Despite repeated IMF assistance, the government has failed to address excessive spending on the military, bureaucracy and judiciary, crucial for achieving economic stability and sustainable growth.
It Is rightly said by Ishrat Husain in his book “The Economy of an Elitist State” that the drivers of the capture of the state and market rigging in Pakistan are a small elite constituting about 1-2 percent of the population who pursue self-aggrandizement, neglecting the majority of the population, particularly the poor and the less privileged segments of society. This small minority is thus able to accumulate wealth amidst widespread poverty and squalor. In the absence of an umpire, markets are rigged by the elite for their own advantage, resulting in inefficient market outcomes and resource allocation. The state, which should ensure the equitable distribution of the gains of economic growth, is also controlled by this elite for their own benefit.
In their book “Why Nations Fail,” Daron Acemoglu and Robinson assert that a nation’s fate is determined by its institutions. Success is achieved when political and economic institutions are inclusive and pluralistic, providing incentives for everyone to invest in the future. Conversely, nations fail when institutions are extractive, favouring a small elite that extracts income from the rest of society. Pakistan is often classified as having extractive institutions, characterized by poorly organized systems, lack of accountability and transparency and a breakdown of trust in major institutions. This situation has become a recurring nightmare in Pakistan.
Moreover, incidents of terrorism, religious extremism and blasphemy allegations have significantly tarnished the country’s international image. In a recent heart-wrenching incident on August 16, 2023, in Jaranwala, Faisalabad, a violent mob launched a horrendous attack on churches and homes of the Christian community under the pretext of blasphemy allegations. Additionally, the recent incident in Ichchra Bazaar, Lahore further highlights this unfortunate reality. These incidents serve as stark reminders of the challenges Pakistan faces.
To sum up, it is indispensable to achieve political stability, promote transparency, uphold the rule of law, and establish predictability in economic policies. These actions will instil confidence among investors, enabling them to conduct profitable and secure business operations. Efficiency within institutions, equitable resource distribution and increased capital investment in a stable environment contribute to higher economic growth rates. Furthermore, the state must effectively address the aforementioned problems and provide quality education to the 22.8 million out-of-school children. Additionally, it is the primary responsibility of state institutions and their corresponding stakeholders to formulate sophisticated policies and strategies to confront the daunting challenges of religious extremism, terrorism, and disharmony. Indeed, promoting a culture of tolerance and instilling humanistic values, such as empathy and compassion, fosters inclusivity, diversity, plurality and an environment conducive to dialogue and healthy debates in Pakistan.
—The writer is a researcher and columnist based in Mardan.
Email: [email protected]
views expressed are writer’s own.
