Waqas ur Rehman
Pakistan has been subjected to various external pressures including hybrid warfare by the enemy states. Apart from other factors, Pakistan is facing a hostage-like situation at the hands of the International Financial Institutions (IFIs) which put the countries on the path of dependence and delusion. The Einstein’s ‘Theory of Insanity’ says ‘One cannot get different results by doing the same thing over and over again’. It signifies to adopt a new development paradigm that meets Pakistan’s future needs and addresses current failures by drawing lessons from the past mistakes. It is good to know that Pakistan enjoys a great status in the Islamic world due to the strength of its military and strategic resources. The demographic dividend of having almost 60 percent of population below 30 years of age enables Pakistan to groom high quality professionals and trained manpower to sustain the growth trajectory being ignited by the China-Pakistan Economic Corridor (CPEC).
It is the best time for Pakistan to use opportunity of the CPEC project to achieve the ‘Pakistani Dream’ of peace, prosperity and development. The country must focus on building a ‘knowledge corridor’ for sustainable long term development besides constructing multi-track motorways and industrial units. It is sad to realize that the scholarships offered by the Chinese and other partner universities go unutilized due to the lack of awareness and institutional lethargy. There is a need for a futuristic vision and a plan of action to benefit from the China’s rise. China is willing to relocate factories of its Small and Medium Enterprises (SMEs) to Pakistan to manufacture products for the Chinese market as well as abroad, thus utilizing Pakistan’s abundant raw materials, cheap labor resources and strategic advantages. It will be a win-win proposition for both the nations.
It is important to connect the Pakistani SMEs and their Chinese counterparts for a comprehensive growth. The Pakistani authorities invariably need to quicken the process of decision making and improve the quality of governance in all the departments, otherwise the opportunities being opened up by the CPEC will not be harnessed just by repeating the mantra of ‘game changer’. Pakistan must focus on attracting the Chinese private sector investors with additional package of incentives. The region of Pakistan has been an exceedingly profitable market for both domestic and foreign investors; however the domestic investors instead of re-investing their surplus capital have stashed them abroad, bought properties or shares, resulting in an unstable economic situation in the country. The Chinese investment in the SMEs by way of joint ventures will bring huge investments in Pakistan envisaged under the CPEC’s short and long term programs.
Pakistan has all the right tools to emerge as a prosperous power. The State-officials have to take certain comprehensive policy initiatives which include removal of non-development expenditure, reservation of job quota for backward areas, judicial reforms in order to make cheap and speedy justice, and restructuring of autonomous bodies such as the Pakistan International Airlines (PIA) and the Pakistan Steel Mills (PSM) in order to end huge subsidies. Similarly more needs to be done with respect to documentation of economy for domestic resource mobilization, expansion of tax base by standardization and simplification of tax rules, and simplification of rules and procedures to attract investment. Moreover, agriculture sector can be modernized through various steps such as development of rural credit market by increasing the banking penetration in far-flung areas, dredging (Bhal Safai) of irrigation canals to increase water availability, construction of water reservoirs and dredging of lakes to enhance water storage. Meanwhile, the State-authorities have to engage the overseas Pakistanis for nation-building, and projecting the country’s soft image. It is equally important to curb the land-grabbing mafia, and reform the police-sector in order to improve the public service delivery.
Likewise, it is necessary to promulgate reforms in industrial policy besides launching Special Economic Zones (SEZs) in order to restore the trust of private sector. The government should focus on establishing science and industrial parks and reforming energy sector for generating renewable and cheaper energy. Similarly, the education system in the country should be standardized by abolishing the class-based tier system. The executive powers should be devolved by empowering local government and municipal bodies. The initiative of ‘Green Pakistan’ must be completed to counter climate change and environment degradation. Pakistan can also make good use of its media and educational institutions for promoting its soft image in the world. Apart from that, the government should take concrete steps to encourage private sector investment in hospitals and pharmaceutical industries.
Pakistan is ready for a paradigm change in the template of development planning. The government is making comprehensive economic reforms and promulgating ‘Open-Door Policy’ as the Chinese government did in 1978. The authorities should promote the tourism industry keeping in view its best scenic spots, historical sites and cultural heritage of hospitality. The Pakistani narrative of peace and development should be projected in the global discourse. It is among the highly blessed and geographically well-placed nations in the world. Its rich natural, mineral and human resource, diverse climate, social capital and cultural values provide a best opportunity to enhance its strength internally and externally.
