Development Paradox in Pakistan

Abbass, Ahsan and Ahmed, Vaqar (2008): Development Paradox in Pakistan.

Abstract

Pakistan has been experiencing robust economic growth for the past few years. The macroeconomic position as exhibited by the real sector growth, fiscal indicators and external balance has reasonably improved. However the big question remains; will Pakistan be able to sustain these growth levels? Preserving the momentum becomes difficult when growth is consumption-based. Prosperity if measured by the increased sale of consumer durables gives a partial impression of the underlying economic changes. Promoting luxuries at the opportunity cost of necessities does not promote a pro-savings attitude at the national level and has deeper sociological consequences as well. Pakistan being a small open economy has limited or no control over the consumer or producer price levels. The vulnerability of the economy is again being tested in the face of global energy price increases and food shortages. We try to revisit the stop-go cycle of economic growth in Pakistan, the missing link between sources of growth and meso-micro level development and the knee-jerk reaction type(s) that we adopt as an answer to every economic crises.

• Item Type: MPRA Paper
• Language: English
• Keywords: Pakistan, Poverty, Development, Inequality, Trade, Production, Taxation, Consumption, Investment
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development

References

FBS (2007), Historical National Income Accounts 1961-2007. Islamabad MoF (2002), Poverty Reduction Strategy Paper, Ministry of Finance, Islamabad. MoF (2007), Statistical Supplement, Economic Survey Ministry of Finance, Islamabad. Planning Commission (2001), Ten Year Perspective Development Plan 2001-11. Islamabad. Planning Commission (2005), Medium Term Development Framework 2005-10. Islamabad.

Stiglitz, J. (2000), Nobel Memorial Prize Speech, 2000.

Todaro, Michael P, Economic Development, Seventh Edition 2000, Pearson Education.