The Lahore-based Spearhead think-tank has rightly observed in its recent analysis report that the performance of Pakistan’s Economy in 2010 did not exceed expectations because of the backlash from the war against terror in Afghanistan, presence of extremist fringe groups in Pakistan, ever-increasing domestic inflation, increasing world prices, rampant allegations of corruption within the state machinery, and with the country still on its way to recovery from one of the worst floods in history.
Pundits continue to look at the political economy and issues of governance to ascertain how the economy will perform in the year 2011. The report addresses the structural problems, the statistical evidence, and the critical economic thinking and theorisation behind the economic functions undertaken by Pakistan in 2010 and economic outcomes witnessed thereof.
It also elucidates the roles and responsibilities of both the public sector (the state and its enterprises) and the private sector (private institutions, organizations, companies, economic agents, and individuals) to understand why the Pakistani economy has been relegated to frontier economy status, and why it is left behind as such.
There are a number of pressing issues food security, inflation, unemployment, energy which still need to be addressed, and things might get a little out of hand if the present government does not improve its performance vis–vis socioeconomic indicators and achieve credibility.
The experiences of Tunisia and Egypt cannot be overlooked, as even Libya, Yemen and Bahrain are witnessing the contagion of revolution. As says the Spearhead report, The extraordinary events in Egypt could dramatically redefine global politics. The unanswerable first question is whether any such tectonic change, if it occurs, will be for good or for ill? A more nagging concern is given the excitement, outrage and expectations generated by these very different events, are the effects being exaggerated? Last, is time a friend or foe in affecting any resolution?
MARYA MUFTI
Lahore
