Pakistans Economy Reasons and Consequences of Slow-Motion Growth

7
DOI: 10.20542/0131-2227-2024-68-3-69-78
EDN: ZPOIUJ
V. Belokrenitsky, enitsky@yandex.ru
Institute of Oriental Studies, Russian Academy of Sciences, 12, Rozhdestvenka Str., Moscow, 107031, Russian Federation.

Received 28.11.2023. Revised 21.12.2023. Accepted 25.12.2023.

Abstract. Immediate causes of Pakistan’s economy lagging behind the economies of neighboring countries, such as Bangladesh, India, and China, in the first quarter of the current century lie in a mixture of internal and external circumstances. Primarily, it is the state’s involvement in the “war on terror” that unfolded after the events of September 11, 2001, as well as exogenous natural shocks and financial policy with a built-in dependence on external sources of credit. The deep underlying factors of slower growth include the fundamental immutability of the social structure, the dominance of conservative capitalism, the seizure of the state by elites, which seek short-term enrichment, the transformation of Pakistan into a kind of “rentier state”. Nevertheless, the country has certain potential for development. Firstly, a huge young population, which allows for the use of the so-called demographic dividend. Secondly, the state’s favorable geographical location that may help Pakistan to become a bridge between Central and East Asia, on the one hand, and the Near and Middle East, on the other. This advantage has already been partially realized through the implementation of the China Pakistan Economic Corridor (CPEC) investment project. Thirdly, Pakistan’s natural resources are not sufficiently explored and deposits of not only oil, natural gas, and coal, but also metal ores and rare earth minerals can be discovered. In the middle term, Pakistan may embark on the path of accelerating economic growth and become – among other achievements – one of Russia’s important partners in Asia.

Keywords: Pakistan, economic lagging behind, Bangladesh, India, China, perspectives


REFERENCES

1. Kamenev S.N. History of Economic Processes in Pakistan (20th – beginning of 21st Century). Moscow, IV RAN, 2019. 392 p.

2. Haque N., Ullah R. R. Towards a Stable Economy and Politics. The Pakistan Development Review, 2023, vol. 62, no. 1, pp. 105-114. Available at: https://thepdr.pk/index.php/pdr/article/view/3175/3784 (accessed 23.08.2023).

3. Ayrapetov A.M. Tables of calculation of average annual rates of growth, incremental growth, and decreases. Moscow, Statistika, 1967. 160 .

4. Belokrenitsky V.Ya. Bangladesh is ahead of Pakistan. A temporary paradox or a stable tendency? Asia and Africa Today, 2019, no. 4, pp. 9-16. Available at: https://doi.org/10.31857/S032150750004377-6  

5. Shah A. The Army and Democracy. Military Politics in Pakistan. Camb. (Mass.), Harvard University Press, 2014, Amazon Kindle Edition. 378 p.

6. Zhmuida I.V. Internal and External Factors of Pakistan’s Economic Development. Moscow, Nauka, 1988. 192 .

7. Abbasi S. 22 loans in 61 years: Pakistan’s unwavering habit of going to the IMF. The Express Tribune, 29.04.2019. Available at: https://tribune.com.pk/article/81864/22-loans-in‑61-years-pakistans-unwavering-habit-of-going-to-the-imf (accessed 29.04.2019).

8. Aazim M. The hopeless downward spiral. Dawn, 28.08.2023. Available at: https://www.dawn.com/news/1772662 (accessed 28.08.2023).

9. Morozova M.Yu. Contemporary Pakistani Village. Specific Features of Socio-Economic Evolution. Moscow, Nauka, 1986. 172 .

10. Belokrenitsky V.Ya. Capitalism in Pakistan. History of Socio-Economic Development (middle of the 19th – 80s of the 20th Century). Moscow, Nauka, 1988. 311 p.

11. Amir-Khan T. The Post-Colonial State in the Era of Capitalist Globalization. New York, Routledge, 2012. 262 p.

12. Ahmed M.A. Pakistan: State Economy, Extraction, and Elite Capture – A Theoretical Configuration. The Pakistan Development Review, 2017, vol. 56, no. 2, pp. 127-162. Available at: https://www.researchgate.net/publication/327446095_Pakistan_State_Autonomy_Extraction_and_Elite_Capture-A_Theoretical_Configuration (accessed 23.08.2023).

13. Alam K. Miftah terms Pakistan ‘a 1pc republic’. Dawn, 04.10.2022. Available at: https://www.dawn.com/news/1713351 (accessed 04.10.2022).

14. Amin A. Pakistan makes inadequate investments in human capital: WB. Dawn, 02.04.2023. Available at: https://www.dawn.com/news/1745428 (accessed 02.04.2023).

15. Javed U. Informality and State Policy. Dawn, 25.01.2021. Available at: https://www.dawn.com/news/1603518 (accessed 25.01.2021).

16. Rana S. Pakistanis’ overseas wealth falls. The Express Tribune, 24.10.2023. Available at: https://tribune.com.pk/story/2442637/pakistanis-overseas-wealth-falls (accessed 24.10.2023).

17. Ahmed F. Capitalising on human capital. The Express Tribune, 02.10.2023. Available at: https://tribune.com.pk/story/2438726/capitalising-on-human-capital  (accessed 02.10.2023).


SOURCES

1. Pakistan Economic Survey 2022–23. Economic Adviser’s Wing, Finance Division, Government of Pakistan. Islamabad, 2023. Available at: https://www.finance.gov.pk/survey_2023.html (accessed 08.09.2023)

2. Pakistan Beyond the Frame of Stereotypes. Moscow, Centre for the Analysis of Strategies and Technologies, 2019. 206 p.

3. Entering the 21st Century. World Development Report 1999/2000. The World Bank. 2000. 302 p. Available at: https://documents.worldbank.org/en/publication/documents-reports/documentdetail/262151468124779817/world-development-report-1999-2000-entering-the-21st-century (accessed 20.10.2023).

4. Asian Development Bank Country Series. Fact-Sheets. Bangladesh, China, India, Pakistan. Available at: https://www.adb.org/publications/series/fact-sheets (accessed 26.08.2023).

5. The World Bank Development Indicators. Available at: https://databank.worldbank.org/source/world-development-indicators (accessed 15.10.2023).

6. Human and budgetary costs to date of the U.S. war in Afghanistan, 2001–2022. Available at: https://watson.brown.edu/costsofwar/figures/2021/human-and-budgetary-costs-date-us-war-afghanistan-2001-2022 (accessed 12.10.2023).

7. Pakistan, IMF reach staff-level pact on crucial $3 billion bailout. The Express Tribune, 30.06.2023. Available at: https://tribune.com.pk/story/2424156/pakistan-imf-reach-staff-level-pact-on-crucial-3-billion-bailout (accessed 30.06.2023).

8. IMF chief urges Pakistan to tax the rich, protect the poor on sidelines of UNGA. Dawn, 21.09.2023. Available at: https://www.dawn.com/news/1777063 (accessed 21.09.2023).


For citation:
Belokrenitsky V. Pakistans Economy Reasons and Consequences of Slow-Motion Growth. World Eonomy and International Relations, 2024, vol. 68, no. 3, pp. 69-78. https://doi.org/10.20542/0131-2227-2024-68-3-69-78 EDN: ZPOIUJ



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies

 

Current Issue
2024, vol. 68, No. 5
Topical Themes of the Issue:
  • Are There Any Ways to Break Through the Korean Nuclear Impasse?
  • Contemporary U.S. Taiwan Policy: Balancing on the Edge
  • The Gulf Monarchies’ Vision of the Global Order Transformations and the Russian Place in It
  • At Post-Soviet Space
Submit an Article
INVITATION FOR PUBLICATION
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.