Who Owns Pakistan - Yimg

Chapter One – Pakistan’s Economic Saga
Pakistan's Economic Saga and 22 Families
Pakistan's economic saga, marked today by huge distortions and concentration
of wealth and power in few hands can be studied in three phases beginning with
post-independence period up to the seperation of East Pakistan and Z A Bhutto's
nationalization (1947-71), the senior Bhutto era (1971-77), and post Bhutto era
comprising of Zia ul Haq's status quo and two Nawaz Sharif governments,
preceded and followed by two interregnnums of Benazir Bhutto.
In the first phase, the emphasis of government policies was on increasing the
size of the cake, rather than trying to distribute it equitably among the different
segments of the Pakistan. "Accumulate, accumulate, thy is Prophet, thy is
Moses" was given currency and Pakistan was portrayed as a country on way to
become an Asian Tiger. Bank credits and industrial licenses were monopolised
by a privileged commercial class and industries set up by government were
divested in favour of big industrialists.
The over-emphasis on GNP during Field Marshal Ayub Khan's Decade of
Development (1958-68) divided the society into privileged and under privileged
and it was the iniquitous economic and regional development of this era which
led to the explosive situation of the 1970's culminating in the severance of
Pakistan and induction into power os a socialist government of Z A Bhutto.
The second phase, (1971-77) under Pakistan People's Party was the era of
dismantling monopolies, nationalization, hitting at the power base of industrial
barons and clipping their wings while 11 years rule of Zia ul Haq that followed
was a period of status quo for the economy. It came to an end in Aug 1988 with
the C-130 crash that killied Zia.
During her first term, Benazir Bhutto took a small step towards privatization by
setting up a National Disinvestments Authority which identified 14 units for
privatization. Otherwise 1988-90 under Benazir was an inconsequential period
for Pakistan's economy because in this period she could not come to grips with
real economic problem and her interest in economy was only marginal.
Nawaz Sharif's three years (1990-93) saw a tactical retreat to the 1970's by
massive concentration of wealth and reincarnation on monopolies, by opening up
state sectors to the private sector and privatization of state owned enterprises to
big industrial groups. Nationalization was replaced by such a grotesque
privatization that world reknown economist Dr. Mahboob ul Haq saw Pakistan
ending up in Latin American quagmire.
8