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Challenges to Pakistan Economy

In: Business and Management

Submitted By imranbana786
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Challenges to Pakistan’s Economy - Proposed Remedies & Solutions.

Professor Dr. Shahida Wizarat

Paper presented at the pre-budget seminar organized by the Southern Regional Committee of (ICAP), at Marriott Hotel, Karachi.

10 April 2008

1. Introduction

All the serious challenges Pakistan’s economy is facing today like very wide budget and trade deficits, galloping inflation, increase in the level of poverty, power outages, water shortages, closure of industries, food insecurity, etc, has diverted our attention from realizing the very serious challenge that we have overcome. Since the 1950s we had a system in this country where the Ministry of Finance and all the economic ministries were headed by World Bank and IMF officials of Pakistan origin. With increase in the indebtedness of the country the situation got from bad to worse. The worst period was the decade of the 1990s when not only the economic ministries, but even prime ministers came from these institutions. During negotiations between the Government of Pakistan (GOP) and the International Financial Institutions (IFI)s it was difficult to distinguish between the GOP and the (IFI)s, for both sides comprised of IFI officials. These were very trying times for those of us who value independence and economic sovereignty of the country. I wrote several articles questioning the wisdom of a system which even after elections denied the representatives of the people to have anything to do with the ministries that dealt with the wealth and finances of the people (Wizarat 1996). So I personally feel vindicated to see representatives of the people occupying ministries of finance and economic affairs.

Starting with this positive note let us now try to give some suggestions to the new government on...

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