Business | Opinion
Reconciling politics with economic aspirations
Pakistan's elections were surrounded by a great deal of political uncertainty but issues tied to the economy had been the big missing factor.
- By Farhan Bokhari, Special to Gulf News
- Published: 00:53 February 20, 2008
Pakistan's elections were surrounded by a great deal of political uncertainty but issues tied to the economy had been the big missing factor. That is a key bottom line for many sceptical Pakistanis who have braved one controversial government after another for years now.
President Pervez Musharraf, Pakistan's head of state, and former prime minister Shaukat Aziz, head of the government that stepped down in November, have both repeatedly claimed success for the economy. But in a country where the mainstream population struggles to make its two ends meet, economic success for the average individual has been a missing element in an otherwise widely publicised success story.
Even by the former government's own admission, just over a quarter of Pakistan's population of 165 million lives below the poverty line - a figure that makes the number of impoverished Pakistanis more than the entire populations of many countries around the world. Independent economists, however, claim that the number of Pakistanis who are impoverished may be one-third of the population, which in itself is an alarming claim.
A new government faces the challenge of dealing with a multitude of economic problems that have emerged just in the past year. The main challenge will be the fallout from an exceptional rise in global oil prices since the beginning of last year.
The government under president Musharraf had refused to pass on the global oil prices to the people of Pakistan. The consequence has been that the Pakistani government is now left with a growing budget deficit.
Shortly after coming to office, Pakistan's next government will be forced to consider raising the oil prices. There is also a chance that the new government may end up reducing at least part of its planned expenditure on developmental initiatives. The effect of these two measures is impossible to gauge ahead of time.
Concerns
Many economists are already concerned that such cost cutting combined with a deficit growing exercise, may end up adding to the slowdown effect surrounding the economy.
For the people of Pakistan though, the economic future under a popularly elected government will be decided on two counts.
On the one hand, the extent to which the new government can create economic opportunities will be vital for the future. This essentially means that the government's economic choices must ultimately produce revenue to flow in to the pockets of ordinary citizens.
On the other hand, the new government will also have to work towards lifting the quality of its expenditure on the economy. Pakistan tragically is a country where there are many examples of money allocated for the economy and development, without the end results being achieved. For example, money allocated to health services and education for low income groups, often fails to trickle down in lifting the quality of government hospitals and government schools.
There are many examples of countries where success in improving the lives of the people has been achieved at a smaller financial cost than the amount spent in Pakistan.
As Pakistan reconciles itself with the post-election situation, the country will also have to accept the continuing importance for political parties in responding to popular concerns about the economy. Ordinary people may be inspired by political agendas. And yet, the extent to which public opinion can and will remain favourable to a politician or political belief, depends ultimately on the way the economy runs.
- The writer is a journalist based in Pakistan.
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