KARACHI: Pakistan Business Forum (PBF) says as Pakistan marks the birth anniversary of Quaid-i-Azam Muhammad Ali Jinnah, there is a renewed focus on his vision for the country’s economic future.
While Jinnah’s contributions to Pakistan’s political independence are widely celebrated, his economic ideals remain just as relevant today. Jinnah envisioned a self-reliant, prosperous, and welfare-oriented Pakistan values that resonate deeply amid the country’s ongoing economic challenges.
Saleha Hassan, PBF’s Secretary General said Jinnah’s economic vision was not limited to political sovereignty; it extended to ensuring economic freedom and self-sufficiency.
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In his inaugural address to the State Bank of Pakistan in 1948, he remarked, “The adoption of Western economic theory and practice will not help us in achieving our goal of creating a happy and contented people.” This message, delivered shortly after the creation of Pakistan, underlined his belief that the country needed an indigenous economic model — one that focused on practical, context-specific solutions, rather than relying on foreign theories.
Today, Pakistan’s dependency on foreign debt stands as one of the most pressing challenges. With external debt surpassing $100 billion in 2024, and nearly 40% of the national budget directed towards debt servicing, the nation’s fiscal future remains uncertain. Jinnah’s emphasis on economic autonomy calls for a rethinking of Pakistan’s financial strategy to reduce foreign borrowing and focus on local resource mobilization.
Jinnah’s vision placed great emphasis on industrialisation as the backbone of economic growth. His establishment of the Pakistan Industrial Development Corporation (PIDC) was a testament to his commitment to industrial development.
However, in the decades since, Pakistan’s industrial sector has stagnated, and the country has remained heavily reliant on imports. To meet Jinnah’s aspirations, Pakistan must revive its industrialisation agenda by investing in infrastructure, technology, and human capital to develop a robust, competitive industrial base. Such measures would not only create jobs but also reduce the country’s dependence on foreign imports.
Similarly Economic equity was a cornerstone of Jinnah’s economic philosophy. He believed that without addressing inequality, the country could not achieve lasting prosperity. At a public gathering in Chittagong, he stated, “The great ideals of human progress, of social justice, of equality, and of fraternity constitute the basic causes of the birth of Pakistan.”
In the decades since, Pakistan has struggled to narrow its wealth gap. Rising inequality, ineffective taxation policies, and an underdeveloped social welfare system continue to hamper economic progress. To fulfil Jinnah’s vision of a fair and just society, Pakistan must implement progressive tax policies, better resource distribution, and targeted social welfare initiatives to ensure that all citizens benefit from the country’s economic growth.
PBF official Saleha said Good governance and financial discipline were also central to Jinnah’s economic strategy. He warned against the dangers of corruption and mismanagement, urging the government to adopt prudent fiscal policies and ensure accountability. Unfortunately, poor governance, corruption, and inefficient use of resources have plagued Pakistan’s economic landscape for years, weakening public trust and hindering development.
In global indices, Pakistan ranks poorly in terms of governance, placing 136th out of 167 countries in the Prosperity Index. “To honour Jinnah’s legacy, the government must strengthen anti-corruption measures, improve transparency, and ensure that public resources are used efficiently and effectively”.
This would be a critical step in restoring the faith of citizens and fostering sustainable economic growth.
On the other hand, Jinnah also envisioned Pakistan as a strategic trade hub, capitalising on its geographical position to strengthen ties with its neighbours, the Muslim world, and the West. While Pakistan’s export sector has seen modest growth in recent years, with exports reaching $30.64 billion in FY 2023-24, the country’s share in global merchandise trade remains low at just 0.34%. This untapped potential presents a significant opportunity for economic growth.
To realise Jinnah’s vision, Pakistan must enhance its trade relations by diversifying export markets, negotiating better trade agreements, and leveraging international partnerships. Economic diplomacy and trade facilitation should be a central component of the country’s economic policy to boost exports and integrate Pakistan more effectively into the global economy.
Copyright Business Recorder, 2024
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