Inappropriate Use Of Debt Money Is Reason For Economic Crisis In Pakistan – Atif Mian

[pak-marine]

The problem is that such people make good comments when sitting outside but when they are given authority they work for foreign powers and not protect Pakistan interests .He cannot do anything unless proper system of governance is established which will take time and everyone know already what he is saying but problem lies with how to implement it and implementation is very difficult when you have corrupt setup of governance

he was bullied out of the Govt just because he is an Ahmedi muslim

 

[Longhorn]

Extremism is a byproduct of both poverty and national policies. These may not have to be current but being bred over the timespan of 70 years.

The first anti-state extremist act took place in the early 50’s - so its an old cancer.

You missed off illiteracy and a sub standard education system.

 

[Yaseen1]

he was bullied out of the Govt just because he is an Ahmedi muslim

Qadyani call them as Muslim which is equal to breaking constitution as law of Pakistan prohibit them from calling as Muslim and anyone who is breaking law is ineligible for public office that is why he and all qadyanis have no place at such important posts.

 

[aiman_hashmi.25]

Inappropriate Use Of Debt Money Is Reason For Economic Crisis In Pakistan – Atif Mian
By Noshin Bashir Last updated Jul 25, 2019

• Inappropriate use of debt money is the basic problem of Pakistan.
• Pakistan’s economic model is largely based on foreign income sources.
• The problem with Pakistan is that foreign money is not used to generate the production capacity.
• The development of a country depends upon the nation’s own capacity.
• To add debts to the economy is likely to mortgage the future of the next generations.
• The development of a country depends upon the nation’s own capacity.

Pakistani-American economist Atif Rehman Mian in an interview with BBC Urduproposed several reforms and changes to improve the economic conditions of Pakistan alongside highlighting the flaws in the economic model of the country. According to him the inappropriate use of debt money is the basic problem of Pakistan why the country is at the helm of the worst economic crisis.

Why Pakistan needs to go to IMF every four or five years?
According to Atif Mian, the basic reason why Pakistan needs to go to an international monetary body is that the model that we as a country has adopted has some flaws in it and this is why the economic situation of the country gets collapsed after every four to five years.

Pakistan’s economic model is largely based on foreign income sources
The economic model which provides the basis for policy building in Pakistan is based on foreign sources of income. As long as you are dependent on the foreign powers for the growth of the economy you are on the path of unsustainable economic growth.

The problem with aid or borrowed money is that you see the economic activity as long as the money is in the transaction but this accounts for timely and artificial development because as the inflow of money stops it begins the count down on the economy.

In an answer to a question regarding capital, Atif Mian said that if the capital increases the domestic capacity (production capacity) of the country then you can increase the capability to generate income sources to return the debt money and to generate the productivity but the problem with Pakistan is that the foreign money is not used to generate the production capacity.

When a country takes debt over debts then it slows down the economy and causes the balance of payment crisis as well. Also, when the inflow of money isn’t used to enhance the production capacity then it does not increase the country’s export.

There are no two opinions regarding the fact that corruption damages the economy of the country but the basic problem lies with the growth model of Pakistan which is unsustainable fundamentally.

Almost all the developed countries including China, Korea, and East Asian countries have economic productivity growth behind their growth which aims at increasing exports, increasing global competence (i.e., competence in value-added products).

The development of a country depends upon the nation’s own capacity.

It is the right time for Pakistan to adopt the path of increasing productive capacity and this includes education, abidance by the rule of law and capacity building among the people so that they shall be able to compete globally.

Every country has its resources at its disposal and what is needed is the right exploration of resources, for instance, there is a need to improve the education system and need to build up a favorable environment.

About rapid increase in GDP
The increase in the GDP from 10 to 14 percent within the tenure of the incumbent government is difficult but if this happens then it would be for the very first time for the country to adopt such a remarkable change and this kind of positive outcome is not likely to occur if they(government) follow the footsteps of previous governments, he said.

Only a radical change in the system can help the government to meet such a huge and undoable target. For example, radical changes in the financial and taxation system are needed and you need to adopt digitization and formal economy and further need a proper record keeping as well. Many countries of the world have adopted even greater tax to GDP ration and this is possible only through adopting certain international standards.

The actual problem lies within the system if one tries to find out.

Pakistan needs a capacity buildup
For a country like Pakistan, said Atif Mian, which already suffers issues at multiple fronts, it is necessary to build up the internal capacity for delivery of services and to develop the administrative capacity in itself. No country can run without taxes because revenue generation enables further investment and social spending.

Capacity building in the institutions is provident and brings about competent leadership to run the country. The roots to improve the growth systems lies in the improvement of the taxation and for this, the state needs to develop the administrative capacity and digitization of payment systems.

How to address the balance of payment crisis?
Pakistan is not the only country to suffer the balance of payment crisis as this happens in many other countries as well. The very first thing that is required when you undertake the very issue is the restructuring of the economy and bring the situation under control.

And the crisis situation for Pakistan was clearly evident even in the last year of Nawaz Sharif Government and responsibility also lies on their part because they should have realized the solution of the economic issues but they opted to delay it instead might be due to the coming elections as no party wants to compromise on its popularity graph near the times of election.

There is a dire need to pinpoint the exact reasons behind such drastic conditions of the economy and to bring such reforms that lead to the longterm and everlasting sustainable growth probably not dependent on the debts.
To add debts to the economy is likely to mortgage the future of the next generations.

Systematic reforms and situation for Pakistan
Two things are crucial for the systematic reforms: one is the kind of leadership that is working to run the system either the people who are running the system have that competence or not and if the caliber of team is not world-class than the positive outcome is very unlikely and the second thing is the need of the right environment, the environment that revives the confidence of people and other countries.

Unless the elements that promote the violence and extremism within the country are curbed, one can’t improve the country’s situation and without improving the law and order situation no economy can work proficiently. Internal harmony and tolerance are needed for Pakistan to go to the next level. The extremism outflows the investment so the selection of competent people and the suitable environment is mandatory to bring the country on the rails.

About the Housing policy by the incumbent government
The housing policy can’t increase the growth of the country like that of Pakistan because Pakistan is in crisis as it lacks revenue and exports. Housing perhaps is the only sector which is non-exportable and is exactly against what is required to increase the exports of the country.

50 million houses are one of the biggest development for Pakistan and it will involve huge labor and massive investment but all the labor and invested capital will add nothing to the export sector rather it will do another damage to the economy by increasing imports as various things are to be imported from foreign sources. Mian Atif also added the example of Brazil which started a similar housing policy in their country and suffered huge losses.

What solution do you suggest to improve the economic situation of Pakistan without causing less harm to the people of the country? Let us know in the comment section below۔

nyc article...

 

[pak-marine]

Qadyani call them as Muslim which is equal to breaking constitution as law of Pakistan prohibit them from calling as Muslim and anyone who is breaking law is ineligible for public office that is why he and all qadyanis have no place at such important posts.

Yeah and for that reason we have rocket scientists like Fawad Chowdhury heading ministry of science and technology , he should be heading sparco etc

 

[Deltadart]

I don't want to go on a tangent, but this guy (Atif Mian) should have been one of the main economic advisors to the PM on such matters, but alas his faith mattered more to many than his ability to help uplift the Pakistani economy. What a loss to the nation.

 

[tkmd]

Will PTI supporters criticize their party for this? Think about this situation. The nation is in a massive economic crisis. IK has said for 20 years he will give us competent leaders. He also says he is not afraid of anyone. He said very recently he will give his life rather than give in to the opposition parties. And yet, somehow, hes afraid of jaahil barelvi halwa khors. Does anyone think that the huge following he has would have allowed these scumbags to paralyze the country if they challenged his government?

 

[maximuswarrior]

Each and every concern is valid. So are the recommendations.

Will PTI supporters criticize their party for this? Think about this situation. The nation is in a massive economic crisis. IK has said for 20 years he will give us competent leaders. He also says he is not afraid of anyone. He said very recently he will give his life rather than give in to the opposition parties. And yet, somehow, hes afraid of jaahil barelvi halwa khors. Does anyone think that the huge following he has would have allowed these scumbags to paralyze the country if they challenged his government?

You cannot hold PTI responsible. It is a sensitive matter. Firstly, the people are not ready to accept. They would have no difficulty accepting a Hindu, Christian or any other faith. The problem with Qadiani faith is different. The Qadianis claim to be part of Muslim faith yet they break a very important pillar of Islam.

Our leaders have waited too long. The Qadiani faith should have been registered as a seperate faith long ago. Whether the Qadianis would have objected to this should have been their problem. Now the discussion remains stuck at whether they are Muslims or not. That is troublesome. At least we would have moved on today and the Qadiani community would be participating at a communal level.

 

[Norwegian]

I don't want to go on a tangent, but this guy (Atif Mian) should have been one of the main economic advisors to the PM on such matters, but alas his faith mattered more to many than his ability to help uplift the Pakistani economy. What a loss to the nation.

Should? He is the only world class macroecnomist from Pakistani origin.

Will PTI supporters criticize their party for this? Think about this situation. The nation is in a massive economic crisis. IK has said for 20 years he will give us competent leaders. He also says he is not afraid of anyone. He said very recently he will give his life rather than give in to the opposition parties. And yet, somehow, hes afraid of jaahil barelvi halwa khors. Does anyone think that the huge following he has would have allowed these scumbags to paralyze the country if they challenged his government?

Yes it is IKs failure to kick out Atif Mian and replace him with IMF advisors.

Each and every concern is valid. So are the recommendations.



You cannot hold PTI responsible. It is a sensitive matter. Firstly, the people are not ready to accept. They would have no difficulty accepting a Hindu, Christian or any other faith. The problem with Qadianis is a little different.

Our leaders have waited too long. The Qadiani faith should have been registered as a seperate faith. Whether the Qadianis would have objected to this should have been their problem. Now the discussion remains stuck at whether they are Muslims or not. That is troublesome.

Then people should accept massive inflation, unemployment, economic uncertainty too. Because the only person who was qualified enough to fix Pakistan's economy was kicked out.

 

[maximuswarrior]

Should? He is the only world class macroecnomist from Pakistani origin.


Yes it is IKs failure to kick out Atif Mian and replace him with IMF advisors.


Then people should accept massive inflation, unemployment, economic uncertainty too. Because the only person who was qualified enough to fix Pakistan's economy was kicked out.

He is not the only man who could fix Pak economy. That is a bit farfetched. There are plenty of smart people around who can contribute and repair the economy. He is certainly one of the smart people.

I have already explained my position on this matter. The Qadiani issue should have been addressed a long time ago. This man could have contributed today if our visionary leaders of the past would have taken steps to at least bracket the Qadiani faith. PTI is making the most of the situation under current circumstances.

 

[Nasr]

Pakistanis have generally not enough IQ.

We have more than enough IQ to take on the world.

 

[Norwegian]

He is not the only man who could fix Pak economy. That is a bit farfetched. There are plenty of smart people around who can contribute and repair the economy. He is certainly one of the smart people.

I have already explained my position on this matter. The Qadiani issue should have been addressed a long time ago. This man could have contributed today if our visionary leaders of the past would have taken steps to at least bracket the Qadiani faith. PTI is making the most of the situation under current circumstances.

But PTI govt is not following this expert's policies. Like this ambitious housing project which will lead to massive problems later on.

 

[maximuswarrior]

But PTI govt is not following this expert's policies. Like this ambitious housing project which will lead to massive problems later on.

Atif Mian is not a magician. Not everything that he suggests is the Gospel. He is a smart person with a lot of experience and expertise, but he can be wrong too.

In my opinion the housing project is need of the hour. In any respectable society the peoples needs are the number one concern of the elected government. Housing along with food security are the most elementary needs of any human being. Ambitious or not, the project is justified. Even if it leads to some sort of gap later on. This can always be bridged or compensated through various means.

Look at the priorities of previous governments in Pakistan. Look at how much trouble this has led the economy. The housing project is still peanuts in comparison and would at least benefit to common man.

 

[tkmd]

He is not the only man who could fix Pak economy. That is a bit farfetched. There are plenty of smart people around who can contribute and repair the economy. He is certainly one of the smart people.

I have already explained my position on this matter. The Qadiani issue should have been addressed a long time ago. This man could have contributed today if our visionary leaders of the past would have taken steps to at least bracket the Qadiani faith. PTI is making the most of the situation under current circumstances.

Oh so now PTI can't change anything bc of past leaders. LOL amazing that even tabdeeli cant occur bc of Nawaz Sharif. He should have told us that before he asked us to vote for him.

 

[maximuswarrior]

Oh so now PTI can't change anything bc of past leaders. LOL amazing that even tabdeeli cant occur bc of Nawaz Sharif. He should have told us that before he asked us to vote for him.

Change is already here. Open your eyes and look how Nawazoo and Zardari are begging for home made food behind bars.