Taking a closer look at Pakistan
The following is the official performance-take conducted by the Chinese ruling party, released through its official agency’s circulation: “2016 is the first year of the decisive stage in finishing building a moderately prosperous society in all respects and a crucial year in carrying out structural reform. The five major tasks to address: overcapacity, reduce inventory, de-leverage, lower costs and bolster areas of weakness, all saw effective achievements in the first three quarters of this year.” Now compare this with our showing in Pakistan, essentially the same five tasks, but completely opposite direction. As for the first two, I am not even sure whether the government scientifically conducts an annual sector al audit and whether it even fully understands the significance of national inventory management; the third: we have been leveraging instead of de-leveraging; fourth, our costs of production and doing business have been going up instead of coming down, resulting in loss of competiveness and thereby a steep erosion in our global market share (meaning declining exports), and for the fifth, the less said the better. What to talk about bolstering our weak areas, they have instead grown weaker. I cannot recall a single credible story of a PSE (public sector enterprise) turnaround over the last 3 years, our unemployment is up which basically has a negative impact on poverty alleviation, investment (other than CPEC) is virtually non-existent, and there is a manufacturing-competitiveness crisis in the country that runs the risk of eroding the entire national industrial base.
And our answer to this dismal showing: ‘Slogans of Democracy’: It is the best revenge; even worst kind of democracy is better than any other dispensation or system; only democracy guarantees basic rights and sustainable equitable development; etc. Ironically, amidst all this championing of democracy in Pakistan what we see is complete adhocism and despotism within majority of our mainstream political parties – Most have not had a change in their top leaderships since inception and nearly all breed a culture of dynastic ascension cum despotic behavior. Now it would have been fine if these contradictions between public persona and private practice remained confined to respective intra-party politics, but the trouble is that as the naked lust for power amongst the national political leaders spills on to the main national canvass, it runs the risk of negatively affecting people’s livelihood, taking down the country’s economy and starting a civil war by undermining nationalism.
Nationalism in Pakistan, as we know, already stands seriously dented due to a history of follies in national governance and today it can ill afford any further divisiveness. Earlier this week, the very thought of clashes between the Punjab Police and a provincial political mob being led by no less than a sitting Chief Minister was enough to send a shiver through ones spine.
The disappointment and concern does not end here. The ease with which losses are inflicted on the economy under this current democratic culture is even more disturbing: no remorse, no reservation and a complete callousness about decision making with complete disregard to an action’s economic implications – all in the quest for either clinging on to power or to grab it. It was almost unique to see the chief executive leader of a province to leave his office unmanned in order to bring down a national government and then a chief executive of a country to use tactics that hemorrhaged the entire national exports in order to save his own skin. Literally, on October 25th, the country’s export business came to a complete stand still, a jam that lasted almost till Thursday 3rd. (10 days). Why? Because the government wanted to bloc the November 02, 2016, showing by PTI, and to achieve this it forcibly took over export containers and used them to retard intra-country movement instead of earning valuable foreign exchange. Around 4,000 to 5,000 export containers (20 ft.) daily commute the roads of Pakistan, carrying cargo worth about Rs9/10 billion per day, so anyone can well calculate the financial and perception damages this governmental action has inflicted on the national exchequer and more importantly on the export sector of Pakistan. Timing and reliability are of essence in exports and a customer once lost is either lost forever or may take years to gain back. Not to mention that national exports have been declining over the last 2 years and the government has been threatening to announce yet another set of policy measures to resurrect this declining trend – Well, some package these last two weeks!
A friend made a remark last week (in light vein of course) that no one should be given an executive position in the government unless he can prove a track record of earning an honest living for himself through practical work. Now this may seem absurd to some, but a lot of economic success that Bangladesh enjoys today is partly due to this very factor. Economic decisions that hold the key to overall national growth and development simply cannot be taken without the input of the real stakeholders.
For example, no decisions relating to textile exports can be implemented unless wetted by the main exporters’ associations. And in this also, the weight age of input is determined by the export volumes one commands and not because of any connections or political leanings. Bangladesh is a good example not only because we have a shared history and passion for once a common Pakistan, but also because our skill sets are quite similar. Just like the West Pakistanis pre 1971 used to industrialise East Pakistani jute, today the Bangladeshis are industrialising the South Asian cotton. Their innovative economic management ensures due participation of the private sector through an unshackled and vigorous entrepreneurial class, which has led Bangladesh’s economic growth coupled with a responsible NGO sector that provides the social services the government has no time for. To bring Bangladesh to this level there was a 3 years time-out taken from politics in which institutions were strengthened and rules of the game drafted before allowing the politicians back in. Perhaps the present situation here in Pakistan also warrants a similar exercise.
