The sudden collapse of Pakistan’s economy is the
result of phony economic policies pursued from 1999 to 2008. Emphasis of the
economic managers was on working a miracle of quick economic progress. They
resorted to unprecedented credit expansion mainly through the banking system
and reckless government expenditure that created a false sense of prosperity in
the country. The extra purchasing power in the hands of a section of the urban
people led to create demand for all kinds of goods which were not available in
the market. That resulted in higher prices of what little stock that existed.
The shortage of certain essential goods like food items particularly created
panic among the people. Those who could manage hoarded goods like wheat in
particular and created all round shortages.
The government did not foresee the coming energy
crisis. Not a single dam was built while the power generation capacity of he
existing dams was depleting fast. The unforgivable blunder they committed was
to let the Kala Bagh Dam fall prey to the provincial prejudices. They could
have also considered alternative sources of energy. Plenty of exportable energy
in the form of gas and electricity was available in Iran and Central Asian
Republics. Transmission lines could be laid on emergency basis to import energy
from Iran if not the CARs because of uncertain conditions prevailing in
Afghanistan through which the lines had to pass. The country was hit by a worst
kind of energy crisis that not only led to long intervals of load shedding but
also affected the production capacity of the industry. This added to overall
shortages that had already assumed menacing proportions.
The new government that assumed power as a result
of June elections had its own priorities. Instead of taking up the economic
woes of the common man they started indulging in power play a favourite pastime
of the feudal that has become the bane of Pakistan’s polity ever- since its
inception.
What were the causes that led to economic crisis in
Pakistan and are there any remedies available? The causes are bad management of
the economy and neglect of principles of good governance n running the affairs
of the state. First is the ability of the government to foresee the future
needs of the country and make appropriate provisions for them well in time.
Second is elections on sound lines that elect real representatives of the
people and not the kiths and kins of a few dynasties election after election.
Third principle is accountability of people in power through Public Accounts
Committee and the Auditor General of Pakistan. Fourth pillar of good governance
is the effective control of State Bank of Pakistan of the banking system of the
country and refusing the unreasonable demands of the government in power. Fifth
is corruption free tax collecting departments working under Central Board of
Revenue. Sixth and of course of utmost importance is the Ombudsman with its
offices in each district headquarter to provide immediate relief to the wronged
one by any department and put an end to rampant corruption.
These are six pillars upon which grand structure of
good governance rests as one homogenous entity. Independently these principles
are least effective. Together as extension of each other and working in perfect
harmony they make the government highly efficient, capable of looking after the
welfare of masses and putting the country on path of progressive growth.