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Debate / Ideas for solutions to Pakistan's economic problems

Shah Khalid

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Feb 5, 2017
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Revival of sick units:

For this we create a SPV named Industrial Rehabilitation Corporation:This will float sukuk bonds which will be subscribed by Islamic banks and Takaful companies because they don't have many choices compared to conventional banks as to where to park their funds:

The funds raised will be used to purchase and recapitalize sick units e.g Dewan Suleman Fibres,Dewan Cement Dandot Cement Textile Units in Faisalabad and Nooriabad etc. After successfully running them,they will be handed over to private sector via Privatization commission

Alternatively PIDC could be assigned this task.

Along the same lines the Sarmay e Pakistan company set up by Asad Umar Can be used to revive SOEs esp. PIA and Steel Mills
 
Aug 19, 2017
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Dear friends, from quite some time I wanted to initiate a debate on economic development of Pakistan but due to personal and professional commitments never got time to actually write something. Leveraging on eid holidays I am initiating the topic where I would like you guys to share your ideas.

Those interested in politics are already well aware of key economic problems of Pakistan. Thanks to consistent budget deficits Pakistan has a mounting public debt as a result most of the budget get utilized in debt servicing rather than for any development project.

On the other hand consistent and huge trade deficit keeps on pushing for currency devaluation and need for borrowing from abroad; putting Pakistan under influence of its creditors.

The twin deficit coupled with low economic growth resulted in vicious circle where Pakistan’s per capita GDP growth is getting lower and lower in comparison to other comparative economies.

However, most of these are only the symptoms of poor economic management rather than problem itself. Our problems are structural in nature and requires a lot of economic restructuring before any benefits can be seen. Short term decision making of the ruling elites for the personal benefits has made our business uncompetitive. Our resources and money is being used for hoarding and speculating mostly in non-productive sectors. Most safe and profitable investment is to buy a property and wait for prices to increase which is a total wastage of resources. Similarly in commodity sector most of the profit earned by the middle man (arti) rather than the producer or risk taker.

Although government and establishment has realized that without a strong economy survival of Pakistan as a nuclear nation is impossible and is focusing her efforts for increasing export and import substitution but till to date the improvement in external trade account is still small in comparison to required target.

Despite putting a lot of efforts bringing economic experts from around the world and having support from establishment; the results are still far from encouraging, so what the real reason behind such a slow progress?

In my opinion Pakistan structural issues are not even touched till to date. The remedies suggested by the government is again addressing the symptoms without touching the core structural issues of the economy.

In my opinion to address the structural issues of Pakistan government need to work on following areas:

  • Development of human resources capable of dealing with modern day challenges in every field of life. Right from an engineer to a farmer, every individual person in the work force should be developed, trained and retrained to become competitive to one of the best among the world. Need to establish institutes, online courses, access to resources and internet to the work force teaching them the efficient ways of production.

  • Establishment of research and think tank institutes free from political influence comprising of one of the best brain in their respective fields. Those research centers and think tanks should be responsible for policy making and monitoring development progress in their relevant field.

  • Pakistan economy lacks the basic backbone industries without which industrialization is nothing but a wet dream. In order to industrialize Pakistan we need to invest heavily in steel industry, petrochemical industry, electronic industry, artificial intelligence industry, and electrical goods industry, heavy machinery manufacturing industry and bio sciences. Till to date the only investment being done is in energy sector and housing sector only.

  • All these industry will provide basic raw material to other manufacturing companies. However, these industries need some serious heavy investments which an individual investor is not capable to arrange. And hence we move to fourth area where we need to work on.

  • The fourth area where government needs to work is establishment of special purpose financing vehicles that can collect finance from individuals and then invest those finances into venture capital industry to establish new organizations to the likes of Pakistan steel mills, PICIC commercial bank, PECO and other such flagship organization. However, the key is here is to arrange finances only while keeping the operations to professionals only and exiting the organization after 2 years of profitable operations.
These are some of the ideas that I can think of right now. I am sure, some you might have even greater ideas or can add a lot to my opinion. Looking forward for further suggestion from respected members.

Dis enfranchise everybody


Then give voting rights to these groups:

1) Those who give the most taxes

2) Those soldiers who are regularly posted in counter terrorism hot spots and frontlines

3) Those who are engaged in sewer services and cleaning services but donot get necessary satus

4) women who choose to go barren or limit themselves to only one child in their fertile years

5) Those administrators who deliver good infrastructure delivery in record time while keeping quality intact

Voting rights to be reviewed every five years
 

The Accountant

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Dis enfranchise everybody


Then give voting rights to these groups:

1) Those who give the most taxes

2) Those soldiers who are regularly posted in counter terrorism hot spots and frontlines

3) Those who are engaged in sewer services and cleaning services but donot get necessary satus

4) women who choose to go barren or limit themselves to only one child in their fertile years

5) Those administrators who deliver good infrastructure delivery in record time while keeping quality intact

Voting rights to be reviewed every five years
So u r suggesting convert our country into a jail
 
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Syed1.

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Dec 7, 2016
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TIL... New Zealand earns freaking $15b a year from diary exports!!!


We are "supposed to be" 5th largest milk producer in the world. Imagine how much better our economic situation would have been if we were exporting $7-10b of diary products!
 

The Accountant

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Where on earth did i say that my friend???did you even bother to read my post????
Brother your post mistakenly got quoted. I wass replying to the other post. Editing that
Democracy hampers growth in 100 million+ countries in the developing phase....too many stakeholders jockeying for personal gain using the system.....it is okay to scarifice some freedom for the sake of growth
Agreed but handing over the democracy to few can be even scarier.

There should be some other solution.

Like israel. Talmud is the constitution. So while they have democracy but cant change laws already defined in talmud. Similarly constitution is changeable. Anyone getting 75% votes can declare murder being legal.

Thats the major flaw in democracy
Democracy hampers growth in 100 million+ countries in the developing phase....too many stakeholders jockeying for personal gain using the system.....it is okay to scarifice some freedom for the sake of growth
Agreed but handing over the democracy to few can be even scarier.

There should be some other solution.

Like israel. Talmud is the constitution. So while they have democracy but cant change laws already defined in talmud. Similarly constitution is changeable. Anyone getting 75% votes can declare murder being legal.

Thats the major flaw in democracy
 

Goenitz

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Apr 28, 2014
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TIL... New Zealand earns freaking $15b a year from diary exports!!!
I think they have 20 million cattle and 40 million people. Their cows gives 25 litre of milk.
We need to increase the yield., by improving feed and breed, and good care/upbringing. Currently, our cattle gives 8-12 litre, and even lower.

I forgot now but our production and consumption has a 50% difference. The rest of the demand is met be artificial milk :( . So, we need to improve production for ourselves and for exports. We can produce soya milk for Gulf, if we produce soya.
Then dairy products like various cheese, butter, whey, etc.

listen plz... it boils my blood, whenever I listen.
50% difference.
@Blacklight @The Accountant
 
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313ghazi

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Mar 14, 2017
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And yet there are threads on PDF extolling the virtues of a large population as a valuable resource for both production and consumption, not realizing the efforts needed to develop such a resource.
Well unless the pair of you are planning on killing the 100 million extra people we have I suggest we make lemonade with those lemons.

We need intensive, industrial, innovative farming, higher yields, less resources. Its the only way we're going to be able to feed our population.

Could probably do with free condoms too.
 

Blacklight

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Could probably do with free condoms too.
GoP has been doing that for decades. Its called SATHI. The quality is so poor that it has a tendency to break, yet the Govt......
our buff milk is expensive and not feasible for cheese!
Adams, in Sahiwal, is already doing a pretty good job.
@_NOBODY_
Is goat milk widely available in pak.. I heard it is good for lactose intolerant people...
No, pretty difficult to get. It is good for premium cheese as well,
 

Blacklight

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In Lahore people mostly buy cow milk. Some may buy buffalo milk but mostly cow milk is consumed. In terms of health benefits, camel milk is the best. One of my biggest regrets is that I never tried camel milk despite living in Saudi Arabia for 15 years.
Breeding camel for milk and meat, that can be exported is another great idea.
Revival of sick units:

For this we create a SPV named Industrial Rehabilitation Corporation:This will float sukuk bonds which will be subscribed by Islamic banks and Takaful companies because they don't have many choices compared to conventional banks as to where to park their funds:

The funds raised will be used to purchase and recapitalize sick units e.g Dewan Suleman Fibres,Dewan Cement Dandot Cement Textile Units in Faisalabad and Nooriabad etc. After successfully running them,they will be handed over to private sector via Privatization commission

Alternatively PIDC could be assigned this task.

Along the same lines the Sarmay e Pakistan company set up by Asad Umar Can be used to revive SOEs esp. PIA and Steel Mills
Is the public sector capable of such an initiative?
 

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