There is nothing to celebrate here. I wish there was but there is non. The fact is the rentier mafia economy in Pakistan remains in place. As long as that remains in place expect no major changes and I don't think PTI have the strong enough mandate to take on the rentier mafia as the government itself has soime mafiosi inside it's ranks. Maybe PMIK might even post 2023 election with a stronger mandate to take the war to the rentier mafia. For now just tune and trim the system.
The template for success is Sialkot triangle. If rest of country can replicate this region then Pakistan's economy will begin to progress. Success will only come if Pakistan gains markets in prosperous countries like -
100% agree. We need to be making things, innovating and then exporting those products/services. For a country of our size, our productivity is terrible.
Nope. Focus should be on exports. Import subsitution cultivates local monopolies and rentier seeking mafia which leads to the local consumer being locked into buying local product of sub-standard quality at high prices. Auto sector is a good example. Then the rentier mafia flush with billions gouged out of localn consumers is used to buy political influence to protect their interests. Ultimately this breeds local parasites who are not competitive to survive in the real world and use import restrictions [so no competition], government subsidy [tax breaks etc] and robbing the local consumer.
Instead focus on exports. This encourages competitive culture as fighting and wining in the global market place means only the best thrive. This increases exports and brings stability to the country as it encourages responsible behaviour knowing global markets need to be kept sweat. This also offers a loong term way to rise out of poverty.
Bangladesh is a good example to copy.
There is a balance to be had. I don't see why we can't be doing both at the same time. We just need to be careful what we limit imports of. If it's raw materials and machinery it's going to negatively impact us. If we're limiting the imports of consumer goods, then that's not too bad, assuming it doesn't cause inflation of essentials.
Cheese is a great example of something we can be focusing on for import substitition. Similarly Garlic. The thing is if cheese becomes more expensive, pizzas and pasta becomes costlier, It's a "luxury food". if garlic becomes more expensive, your handi becomes more expensive. The common man feels the pinch.
Also we shouldn't go OTT with import substitution, it could have the negative impact of low quality local replacements. Making the market easier for our local businesses doesn't mean they'll produce better goods.
