A huge increase as much as 6% in economy during the first decades of a nation’s existence is perhaps a great achievement for a country gained through such ways as ours. The country had nothing to her name when it rose on the map of the world. During the first four decades, despite a dramatic increase in population, per capita income doubled; inflation reduced from 46% to 18% by the end of 1980s as reported by an eminent economist Dr. Ishrat Husain. Despite the political factors like wars and successive civilian and military governments, a healthy economy was maintained.
The decline in the country’s economy started in 1990s when alternatively PPP and PML (N) got the powers of governance. This is decade is now rightly said to be the “Lost Decade”. This decade is notorious for corruption and mismanagement by the governing bodies; economic growth dropped between 3% and 4%, poverty rose to 33%, inflation was in double digits and amount of foreign debts increased manifolds reaching almost the entire GDP of Pakistan.
After this decade, Musharraf as a dictator brought dramatic changes in the economic uplift of the country. GDP was doubled and economic growth was accelerated. During the seven years’ period, 2000-2007, Pakistan became one of the fastest growing economies of Asia, accelerating at the rate of 7% a year. The government succeeded in reducing poverty by creating jobs, reducing foreign debts to half, raising foreign exchange reserves and most importantly taking the country out of IMF program.
In 2008, PPP got power again. But the economic growth couldn’t keep pace due to unstable socio-political environment. Terrorism and war on terror also played key roles in the decline of economic statistics. Zardari-Gillani government inherited a sound economy and they acknowledged it. But there was a significant deterioration during the period 2008-09
“owing to adverse security developments, large exogenous price shocks (oil and food), global financial turmoil, and policy inaction during the political transition to the new government”
. (Para 3 of the MEFP, November 20, 2008.)
Now we are having PML (N) as our ruling party. The first thing that they gave to the nation is the load of inflation and poverty via the budget for the year 2013-14. No increase in incomes has been announced but taxes have been increased manifolds. The nation was hoping for something good but I regret to say as a common person that my hope has been faded and is actually drawing near to death.
By Aimon Malghani
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