Pakistan Policy Brief
Pakistan in Crisis: Policy Choices for Human and Social Development ? ... s government has embraced liberalized market reforms to bring Pakistan into a global economy and repair the current crisis situation. Privatization and deregulation have been primary goals of the regime as it attempts to rectify huge trade and fiscal imbalances, concentrating on promotion of foreign investment into Pakistan? ... However, the globalization rhetoric of the government glosses over the most serious issue facing Pakistan? ... Officials, business men, and military leaders assert their commitment to Pakistan? ... Without a government that provides regulatory systems, security, and social provision, Pakistan does not have the capability to successfully modernize, and yet the impetus of the GOP to implement internal bureaucratic reforms is absent. ... The government has mismanaged fiscal policy for years, borrowing heavily from abroad to make up for the lack of national revenue to finance budgetary expenditures. ... Pakistan? ... However, the millions of dollars in relief aid that has been given to Pakistan has done very little to reduce poverty because the prevalence of corruption means that money has mostly lined the pockets of government officials. ... Many of Pakistan? ... More importantly, the nuclear proliferation of India and Pakistan makes the threat of nuclear war an immediate concern in the event of ethnic war. Investor confidence is critical to the development process because Pakistan cannot provide the capital and technological developments that foreign firms bring into new industries. ... The Trade-Offs of Modernization Pakistan faces almost every possible impediment to successful modernization in today? ... Pakistan must balance restructuring social, economic, and political institutions to support liberalization and modernization with development aid programs and international involvement that do not continue to increase debt obligations or instability. The debt relief packages that Pakistan receives do not solve any of the fundamental impediments to modernization, making finding a new long-term strategy of development imperative. ... It has not been able to maintain law and order, its policies lack transparency, and its credibility on policy consistency lies in tatters. ... Development spending is therefore essential to Pakistan? ... Agriculture, Pakistan? ... The second challenge Pakistan faces is declining output and productivity rates across the board. ... Rapid implementation of market-oriented reforms and lack of budgetary resources for social protection will destroy Pakistan? ... Confidence in the government, a crucial factor in capital and investment, could be increased through more manageable fiscal organization and better credibility in following through on policy changes. ... Relations with India dominate foreign policy considerations and are a main source of political and social instability. Over fifty years of violence has continued to threaten the region, and the nuclearization of both Pakistan and India in recent years has significantly increased tensions. ... Human Development Increased investment in social development is vital to Pakistan? ... Human development indicators rank Pakistan at the bottom of developing countries based on very low literacy rates and inequitable income distribution, which has contributed to 36% of population living below the poverty line. ... The adoption and implementation of sound economic policy is pointless without high-quality human capital. ... Interdependence creates new opportunities for Pakistan, but serious structural adjustment is a prerequisite for modernization. ... 5 127 Pakistan 45. ... 502 127 Pakistan 0. ... Map of Pakistan