I find it strange that some Pakistanis think that prosperity is achieved by building grand structures and projects all on their own. Metrobuses, x, y and z project. This will not suffice. When you take on a project, say the metrobus, you sit down, and ask the economic benefits and viability with budget, very first thing you consider, what will the metrobus bring apart from the novel idea of something new and exciting? Is it going to increase economic activity, efficiency? Will the local economy benefit? What is the opportunity cost, of both the money, time and other resources used in building, using and maintaining such a project. This is something I found, our politicians, no matter who they are can't seem to grasp, as if forcing down market prices to provide 'relief' to rather ridiculous demands will bring about actual, sustainable prosperity.
Every project we undertake must be done with a few things in mind, prosperity, profit, returns, viability and need. We can build billions of dollars worth of bullet trains between one village and the other. Does that fix our problems? Far from it, it's actually a massive waste of money and a waste of debt that the future consumer will have to pay off.
There are some terrible inefficiencies in projects, I know people always cite corruption, which is almost absolute destruction of funds, but inefficiency is harder spot and much, much harder to fix. I've always said, Pak politicians, even if their hearts were in the right place, they still would fail, they aren't competent in these matters. We have an accountant in charge of the exchequer, what kind of backward nation does that?
But on Gwadar, it's really what you make it, the Chinese wont fix underlying problems that might keep Gwadar from reaching it's full potential, throwing money at it, without real understanding won't fix anything either. This is something investors understand, so it's really no surprise that investors fled Pakistan as if it were a sinking ship.
Some very serious thought needs to be given to efficiency, sustainability, and optimum management of a such a simple economy. And yes, Pakistan's economic troubles aren't nearly as complicated as they seem, some very small steps, some very painful steps need to be taken to ensure prosperity in the long run. But nothing is happening, and the opposition gives me no hope either, clogging the capital for weeks on end, investors flee, markets react poorly, economic activity severely blocked, and then go on demanding some artificial and unsustainable form of relief for the poorest, that too to be paid off in debt.
It's a hopeless situation with such simple solutions.
