From 1958 to 1969, the Golden Sixties, country's GDP growth jumped to an average annual rate of 6 percent from 3 percent in the 1950s, the manufacturing sector expanded by 9 percent annually. Pakistan's manufactured exports were higher than the exports of Thailand, Malaysia and Indonesia combined.
Today, Thailand's exports are $193 billion while Malaysia and Indonesia are exporting goods worth $150 billion and Pakistan is jubilant by exporting merchandise of $25 billion only. Our exports should have been or could be over dollar two hundred billion if we were producing cheap electricity through hydel sources to run our industry, rail and transport.
Recently, the government arranged an event for an all-party briefing on the state of economy and the challenges it faces. It is shocking that only seven parliamentarians out of a total of 55 who had accepted the invitation attended the meeting. No Senator or Member of the National Assembly from the opposition or coalition partners attended the event, where the finance ministry pulled together about 25 senior officials of the finance and economic affairs divisions.
This makes the point that how serious they are for not resolving the issues of the economy because they are getting everything under the sky almost free of cost. Have a look at the resources, the country owns: fifth and third largest untapped, untouched reserves of gold and copper and coal respectively. According to a rough estimate, the value of coal reserves in Pakistan is around $30 trillion that is 187 times more than the GDP of Pakistan. Yes, the worth of our coal reserves is higher than the combined oil reserves of Saudi Arabia and Iran. Only 2% of Pakistani coal reserves could generate 20,000 MW electricity for almost 50 years. We are seventh largest milk producer, one of the best canal systems in the world, huge agricultural lands, more than half of the population is below 30, best brains in the world, large winding areas, bright sun almost nine months of the year, huge human resources.
Despite this never ending wealth, Pakistani people and industry are facing the worst power crisis and the country itself has $58 billion external debts. Although, debt is never a bad thing if it is utilised properly. Development of any country is possible with loans only if we don't have enough income.
Worst part of Pakistan's loans in that it has been used on the war on terror which was not our war. Look at the shameful attitude of our friends like USA and Europe for whom we destroyed ourselves. Our hundreds and thousands of people including army men have been killed. This war has not only eaten away our own resources but has also taken away our own resources over above the destruction we faced which is going to take many life times to take this country out of this menace. Now Pakistan should tell Europe and America that this 58 billion dollar loan is payable by them.
In addition to gold, copper and coal, the country has vast reserves of precious stones, gypsum, salt and marble but instead of taking full advantage of these God-gifted resources, most of the share being exported in raw form. Now have a look at the economic issues being faced by the country: no gas, no proper electricity and what is available is very costly, uncertainty in the prices of raw materials, worst law and order situation, unprecedented corruption, cronyism, ad hocism in policies and many others.
Look at the state of economy during all the four years of present regime. State-owned enterprises (SOEs) are eating up estimated hundreds billion of rupees annually. Particularly Pakistan Railways, PIA and Pakistan Steel Mills have turned into white elephant and put a heavy burden on the structure of national economy. Particularly, Pakistan Railways
Yes, to me Pakistan Railways is a sorry tale of mismanagement as if it was not the case, the situation would have not been so bad. If a person like Lalu Parasad Yadve can turn Indian Railways into a profit-making institution then what's wrong with us. Pakistan Railways is one of the largest institutions of the country as it is the most important source of passengers and industrial goods movement across the country. It is estimated that annually 65 million or daily around 178,000 passengers travel while petroleum products, oil, wheat, coal, fertilisers, cement, sugar and thousands other items distributed through Pakistan Railways and despite all this, Pakistan Railways is facing the worst loss and in last three years it has eaten up Rs 52 billion and the worst thing that even after eating up this much of amount, it is not running. The only connection between all the provinces is being disintegrated by design by the forces who want to punish this country.
The problems of Pakistan Railways are growing with every passing day due to lack of planning. Indian Railways is the 4th largest railway network after United States, Russia and China. A few years back, Indian Railways was on the verge of bankruptcy but today, it is the second largest profit-making institution of India. In 2004, renowned Indian politician Lalu Parasad Yadev, took the charge of Railways Minister as a challenge as the situation was so pathetic that nobody was ready to accept the designation of the Railways Minister.
Lalu Prasad Yadev is not very well educated but the excellence, he has shown while bringing the Indian Railways out of economic mire has no match in the South Asia. It was stunned to learn that our Railways Minister had suggested that Pakistan Railways should be closed to overcome the deficit being occurred by this department. "If many other countries of the world could survive without a railway system then why not we," the Railways Minister said.
It is suggested that some seats in the Senate, National and provincial assemblies should be allocated for the representatives of the business community who nominated by the all trade bodies unanimously. All federal ministers should be well aware with the issues of his concerned field and have the ability to solve these troubles in a short time. The system should be ended that a transporter is appointed minister for railways or any other important ministry.
A committee comprising representative of all political parties, business community and civil society should be formed immediately to create a mechanism to get benefit from the mineral resources of trillions of dollars. Business community leaders should be given representation in all bodies like Ogra, Nepra, Pepco and should also be consulted while formulating policies regarding trade and industry as it has been observed that policies are being evolved and implemented without keeping in view harsh ground-realities.
(The writer is former Senior Vice President of the Lahore Chamber of Commerce and Industry and former Chairman of Pakistan Poultry Association)