ISLAMABAD: Low investment and politically motivated projects for infrastructure development schemes are responsible for lower economic growth of the country, experts told Daily Times here on Saturday.
Weak economic conditions, poor planning and mismanagement are biggest challenges for sustaining growth in Pakistan.
Over the years successive governments failed to realise the impact of increased growth on existing infrastructure. Resultantly the economic growth of Pakistan has followed boom and bust path during its history. This unpredictable pattern of growth was still prevailing mainly due to myopic policies of planners in the country, they maintained.
Development of new infrastructure has a more tragic tale. Political incentives have remained prime driver behind most of infrastructure projects. To absorb, support and sustain increase in growth needs massive supporting infrastructuresomething Pakistan failed to have in place despite the famous five years plans.
Development of infrastructure was not sustained in energy, water, irrigation, engineering sectors. Although communication and IT infrastructure experienced steady growth during last five years but these two sectors could not meet the challenge of overall sustained growth as both have massive foreign input both finically and technically.
The country is confronted with water shortage for its cultivated lands. Along with other politically affected regional hazards, lack of modern irrigation infrastructure is a major setback for sustained agricultural growth.
Apart from political instability, terrorism, regional tensions and mismanagement there exists an even bigger fault line within planners about coming up with ideas on how to counter emerging economic challenges as a result of growing population, trade competition among many others.
Investment in infrastructure development has proven to be a successful model for reviving economies in the world. Pakistan could not sustain its growth over the time due to lack of supporting infrastructure. There is a need to understand what impact a poor infrastructure has already made on economy and national growth and its sustainability before devising any strategy on how to harness infrastructure development.
Ignoring energy and water infrastructure have affected foreign direct investment. Not only international but also local investors are also keeping their fingers crossed as situation regarding availability of basic facilities is getting worse. Energy shortfall has reached up to more than 3000MW and industrial cities like Karachi, Lahore and Faisalabad were among most affected
Infrastructure development also improves local conditions for foreign investment into other areas like industry and trade. Millennium Development Goals (MDGs) have been accepted as a framework for measuring development progress in countries in the world. Role of infrastructure is imperative in achieving these goals set by UN, the experts maintained. The infrastructure development would allow the country to get closer to its MDGs set for 2015 in terms of water supplies, sanitation, health and education.
Importance of infrastructure was imperative for a sustained growth in the country. There were challenges in the way but equal opportunities were also there. Pakistan could bring itself out of foreign financial leverages through using its ideal geographic location. Infrastructure was one weak link in this route of prosperity for people. Both government and private sectors would have to join hands in this effort. Government holds the key to formulate policies so that it could provide a level playing field to private sector to invest more in infrastructure development of the country, they concluded.