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The private sector is defined as that part of the economy that has no concern with the public sector and moves independently of the government support or control. The corporate sector and the individual enterprises make up this sector. In capitalist regimes, the private sector is supposed to play a large part in the development of the economy.
In recent times, I have been questioned on the availability of the private sector to take Pakistan forward. The private-public sector analysis is barren in this country as the most mean of the government employee is capable of doing what ever he or she wants to do for considerations in kind. The availability of government servants to bend rules and to delay matters has serious consequences for the economy.
Why do I say that the government does not allow the private sector to operate in a consistent manner is because the ramifications in the economy especially in a limited economy are such that perforce the government directs its policies for one or the other reasons. These are reasons created by fear and by lack of understanding of the consequences of the non-creation of policy. The ability to see the intended consequences is one aspect of policy; the other is the unintended consequences of policy. When policies are made with the intention of 'supporting' an elite segment of the economy it is no longer possible to monitor the policies for public welfare. The profit orientation in the private sector is understandably linked to profitability but the fact that the entrepreneurial skills are very limited is because most of the industrial sector has been created by the unholy connection between the bureaucracy and the elites or the political system and the elites. The result is that such 'monopoly working' is and will sooner or later have a catastrophic effect on the working of the economy.
The political system does not seem to understand the consequences of this and works itself to the level of greed. The industrial sector that is now charged with this responsibility is not based on competitive structure but is based on siphoning off maximum resources and removing them from the economic structure in the corporate sector is widely known. When the public sector was better organised (in the early sixties) the industrial enterprises developed were very viable and these were supposed to bring equity in the system and were developed where the private sector would never come in. Thus Nowshera in KPK, Quetta and Hub in Balochistan, and a number of such sites in and around the country were the new areas for industrial units. Far flung sites were included for industrial development and to create economic tension so that the economy would grow because of the demand structure that was to have been set up. Former East Pakistan had its own industrial set-up and they took on the industrialisation on a 'parity' basis. What the West Pakistanis had in terms of industrialisation the East Pakistanis must have it too. It was misplaced equity considerations as the raw material requirements were never taken into considerations. If there were ten textile factories in West the East must also have ten. The net result was that these factories were then made dependent on the raw material that had to be imported and that meant that the industry would never be competitive.
The evidence is writ large in newspaper advertisements seeking support for everything any anything under the sun. The textile sector is not in the private sector if one goes by the help that they seek from the government. Of late, the poultry sector created in the 80s is also now under quasi-public ownership. The politicians have got in to the act which was designed for the poor and the widows as the entry cost was a few rupees. Now the one-day chick is being sold by the monopolists at an exorbitant cost. Ever since the greedy sharks have got in to the act they have allowed the private sector to do as they please. Poultry is the monopoly of five people and the sixth one in the act is a politician and a powerful and a rich one. When the Bird Flue came [which was never correct] the same lot made disproportionate profits from imported medicine. Any attempt at curing the greed is impossible.
Is the textile sector in the private sector? No it is not. It may be on paper but every time they mess it up they seek resources from the government and one can see Aptma advertisements and appeals on the front page of every newspaper. I can go on and on. The matter has been clearly set out in one of my books, 'Risk and uncertainty in industry in Pakistan' (Croom Helm publishers). I found that there was none. This was industry across the board.
So how does a 'basaikhi'-ridden economy walk freely and independently? It won't. In a truly capitalist system the right to private property and the right to private industry are recognised. Are contracts recognised in Pakistan and does the industrialist receive the due receivables from the market traders? The amount of clever practices that go on is no one's business.
It will take a lot of maturity to do the needful and develop the minds of the average Pakistani not to be lever. He will cease to be clever when the elites of the country behave themselves. The way the can of worms is opening up in every sector of the economy the more the poor will perform in the same way. We are in many ways the creators of our own culture and tragically the victims of that culture.
Every time, the private sector gets in to intervention with the public sector there is bound to be some monetary consideration before the matter goes forward. Nowadays the development of urban areas is the main concern of the PM ot the CMs and what have you. Rawalpindi-Multan-Karachi is going to have a number of overheads. In Chicago as a result of the infrastructure there is no place for the foot wheelers (pedestrians) to move in such areas. Infrastructure never developed a nation. It is the mind that develops and that mind is not likely to be at that level of thought process. The engineers will push the management of the country along these lines. Heaven help us if the KB and the Bhasha dam are created. Water efficiency in water is hardly 11% and the amount of water that is wasted is no one's business. Wapda has already taken a heavy toll of Mirani dam. It is a sad day for Pakistan's supposedly technocrats.
The day of the technocrat has been found wanting. I will tell you why in the next article for time and space fail me today. The technocrats have sent us to the graves. No water or electricity project of Wapda has been completed on time or within the cost. It is a sad day that such an organisation has such leadership at the technocrat level. GIK must be rolling in his grave. So is there a private sector in Pakistan? Is there an autonomous sector in Pakistan? Is there sector in Pakistan where nepotism and greed is not working? Is there ...is there... is there and there are many theres?

Copyright Business Recorder, 2012

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