By: Hareem Fatima
The deepening economic crisis in Pakistan has led a layman to strive for even two times meals. Skyrocketing inflation rate and the heart-shattering reports from the government-led initiative of providing free wheat to deserving people can depict the suffering of a layman in this country. As former Finance Minister Miftah Ismail and many economic experts have highlighted the threat that the country is stooping towards default, the government is trying to meet the IMF’s conditions to release funds to stabilize Pakistan’s trembling and deteriorating economy. Hence, 1st payment of $1.1 billion from the bailout package of $6 billion seems to be the last hope for the country.
One might assume that the shortage of resources is the major cause of the current economic crisis, but the reality is largely different. However, the major is not scarcity of resources but rather the accumulation of resources by the ruling oligarchy at the expense of the downtrodden. For the world and the poor, Pakistan must be a third-world country, but for the ruling elite, it is no less than a first-world country, where they can do whatever they want.
Following this fact, United Nations Development Program (UNDP) launched a distressful report on Pakistan in 2021, revealing that the economic privileges granted to the elites of Pakistan consume $17.4 billion, which counts for almost 6 percent of the country’s economy. These privileges include capturing more shares than their actual ones, tax breaks, low input prices, higher output prices, and preferential access to capital, land, and services. Moreover, the economic disparity created by these privileges is exponentially increased. A few days back, the Twitter trend of #TimHortons somehow showed the face of Pakistani society when one branch of a Canadian café in DHA Lahore broke the records of the last 65 years worldwide in one day sale. On the contrary to it, the other side of the pictures shows the stampede over one bag of wheat and the deaths caused by it. This disparity crisis is much deeper than this
#TimHortons hashtag. The UNDP report mentions disturbing facts about the elite privileges, highlighting that the richest 1 percent of the country, who collectively own 9 percent of the country’s overall income, are the upper second and third recipients of privileges. Furthermore, the feudal land-owning class owns 22 percent of all arable farmland, constituting 1.1 percent of the population.
Elites’ privileges cannot grow to such an extent until and unless their political backbone keeps them intact. These elites have significant political representation in parliament, and the major parties’ higher leadership owns vast lands and resources. The book Big Capital in an Unequal World: The Micropolitics of Wealth in Pakistan by Rosita Armytag investigates that the Pakistani elite and configuration of power, including political institutions and structures, directly determines the allocation of wealth. These elites and politicians enjoy patron-client relationships to safeguard their interests. Hence, any policies or reforms that can be against their interests are resisted, either land reforms, tax reforms, or reforms in governance.
As for talking about the economy, comparing Pakistan’s economy with our disintegrated part, East Pakistan (present Bangladesh), gives us a more disruptive reality check. The export of Bangladesh is almost double that of Pakistan. The currency, Taka (famous as an insulting slang for something of meager value in Pakistan), has reached almost double the Pakistani rupee price. Moreover, according to the world back report, poverty is expected to reach 37.2 percent in Pakistan; but 24.3 percent in Bangladesh. Bangladesh is ahead of Pakistan in many other development indicators, including women empowerment, export ratio, passport index, literacy ratios, etc. The effective use of the creative and innovative skills of the population contributed majorly to the development of Bangladesh. For example, Bangladesh does not grow cotton; however, there are thousands of garment factories where millions of laborers prepare readymade garments from imported cotton for a couple of hundred million dollars and export the prepared garments worth $ 35 billion. Unfortunately, despite being a rich cotton-producing country, we are not utilizing these resources, as we cannot provide effective policies for agricultural development.
Similar to the development of Bangladesh, a skilled population or youth is considered the major hope for a deteriorating country like Pakistan. Interestingly, Pakistan is privileged to have a youth bulge, as more than 64% of the population is below 30. However, adding more to the misery, a recent survey by the British Council shows that more than 68% of the country’s young people want to leave Pakistan due to economic and political instability. These survey findings are justifiable as there are no opportunities for young people in the country. The brain drain situation in Pakistan is really alarming and is because of the lack of youth-oriented policies.
To overcome this crisis, Pakistan needs to take action and snatch these misplaced privileges from the privileged elites. The country needs to focus on effective policies for agricultural development and utilize its resources to their full potential. A skilled population or youth is the major hope for a deteriorating country like Pakistan, and the government must provide opportunities for them to thrive. Without these steps, Pakistan will continue to suffer, and its citizens will struggle even to afford basic necessities.
The Writer is a Graduate of International Relations from Quaid-i-Azam University, Islamabad. She is a freelance columnist and can be reached at [email protected]
