A summarization of the book of Ishrat Hussain- Institutional Reforms for Democratic Governance.

1. ْ‫ح‬ٰ‫ٱلر‬ ِ ‫ه‬ٰ‫ٱَّلل‬ ِ‫م‬ْ‫س‬ِ‫ب‬ِ‫يم‬ ِ‫ح‬ٰ‫ٱلر‬ ِ‫ن‬ ‫ه‬‫م‬

2. Governing the Ungovernable
ISHRAT HUSAIN

3. Arslan Javed.
Roll # 17
M. Huzaifa.
Roll # 16
M. Huzaifa.
Roll # 16
M. Fahad Subhani.
Roll # 49
Muhammad Yasir .
Roll # 38
Hamza Mazari.
Roll # 41
M.Ahsan Ubaidi.
Roll # 36

4. Production
Unlimited
wants
and
needs
Limited
Scarce
resources
The economic problem is to match limited
resources to unlimited wants and needs
1947-1990

5. 1947-1990
 At the time of
independence Pakistan had
very weak economic base
 Muslim league suffered
after death of Quaid-e-
Azam
 1965 and 1971 wars

6. 1947-1990
 External shock of a
major escalation of
oil prices
 Starting with zero
industry and zero
production

7. 1947-1990
 Weak system of
legislative
 A Country with 30
million people in 1947
couldn’t feed itself and
had to import all its
food requirements from
abroad.

8. 1947-1990
 Pakistan recorded
the highest rate of
growth in South Asia
during 1st 20 years
after independence.
 Manufacturing
industries increased
rapidly. 0
1
2
3
4
5
6
7
1947-1970
Growth Rate
India China Pakistan

9. 1947-1990
 According to the
World Bank, Pakistan
exported more
manufactured goods
than Indonesia,
Malaysia,
Philippines, Thailand
and Turkey
combined in 1965.

10. 1947-1990
1. Water and Power
Development
Authority(WAPDA) created
large storage dams, link
canals and barrages etc.
2. The Planning Commission
in the 1960s had the
competence to initiate and
monitor the
implementation of various
reforms

11. 1947-1990
3. Pakistan Industrial
Development
Corporation (PIDC)
for industrial
development
4. Pakistan
International
Airlines (PIA) for
national carrying
service

12. 1947-1990
5. Agriculture
Development
Corporation (ADC) for
agricultural
development.
6. Pakistan Industrial
Credit and Investment
Corporation (PICIC) for
asset management

13. 1947-1990
7. Industrial
Development Bank
of Pakistan (IDBP)
for industrial
financing.
8. Agriculture
Development Bank
of Pakistan (ADBP)
for agriculture
financing.

14. Arslan Javed.
Roll # 17
M.Fahad Subhani.
Roll # 49
M.Fahad Subhani.
Roll # 49
Muhammad Yasir.
Roll # 38
Hamza Mazari.
Roll # 41
M.Ahsan Ubaidi.
Roll # 36
M.Huzaifa.
Roll # 16

15. 1990-2015
Boom to Bust
GDP Decline ( 6.5% to 4.5%)
Reason behind this volatile and inequitable
growth of the last twenty five years.

16. 1990-2015
The most popular hypotheses which are
discourse for explaining the decline.
 Radical Extremists & Nurturing and Training
Jihad’s
a) Suffered Cost (126.79$ Billion)
b) Cost OF Mortal Lives (till 2019)

17. 1990-2015
 Inexperiennced and Young PM’s
a) Drift in Deprivation
b) Debt of Pakistan (GDP, Revenue Receipt)
c) Corruption (Money Londering, Bribery, influence pedling,
Nepotism)
Trends in Povert (1990-2015)

18. 1990-2015
• Ushering of Coup
a) Became the Fourth Fastest Growing Economy (
b) Halving the Poverty

19. Arslan Javed.
Roll # 17
Muhammad Yasir.
Roll # 38
M.Ahsan Ubaidi.
Roll # 36
M.Huzaifa.
Roll # 16
M.Fahad Subhani.
Roll # 49
Hamza Mazari.
Roll # 41
Muhammad Yasir.
Roll # 38

20. Recent Achievement
 Rise in agricultural production.
 Increase in number of manufacturing
industries.
 Increase in electricity generation
 Improvement in irrigation system

21. Recent Achievement
Discovery of Natural gas.
Private consumption Standards have kept
pace with rise in economy.
Growth and structural transformation.
Increase in Saving Investment rates
CPEC

22. Arslan Javed.
Roll # 17
Hamza Mazari.
Roll # 41
Muhammad Yasir.
Roll # 38
M.Ahsan Ubaidi.
Roll # 36
M.Huzaifa.
Roll # 16
M.Fahad Subhani.
Roll # 49
Hamza Mazari.
Roll # 41

23. Recent Experience of Pakistan’s Economy
 Post 9/11
 CPEC
 2009 Terrorist Attacks
Asian Economy crisis
China America Trade War

24. Recent Experience of Pakistan’s Economy
• Merging of Stock Exchanges
• Corona Virus Pandemic (COVID-19)

25. Arslan Javed.
Roll # 17
M.Ahsan Ubaidi.
Roll # 36
M.Huzaifa.
Roll # 16
M.Fahad Subhani.
Roll # 49
Hamza Mazari.
Roll # 41
Arslan Javed.
Roll # 17
Yasir Khan.
Roll # 38

26. Future Direction
These views are shared by majority of political parties, military,
businesses, bureaucracy and other stakeholders in Pakistan. That
investors in Pakistan should feel confident about future direction
of economy.

27. Future Direction
Outward strategy
Role of state
Privatizing process

28. Future Direction
Private sector and economy
Banking process and borrowing
Consumer purchased Choice

29. Future Direction
Currency exchange

30. M.Ahsan Ubaidi.
Roll # 36
M.Huzaifa.
Roll # 16
M.Fahad Subhani.
Roll # 49
Hamza Mazari.
Roll # 41
Muhammad Yasir.
Roll # 38
M.Ahsan Ubaidi.
Roll # 36
Arslan Javed.
Roll # 17

31. Islamic Model
What is Islamic economics?
 Characteristics of Islamic Economy System
 Concept of halal and haram
 Zakat
 No interest
 Ownership style Freedom of work
 Reasonable profits
 Economics liberty
 Concept of bait-ul-mal

32. Islamic Model
Financial economics systems
Public sector (income, spending)
 Public sector Incomes :- Zakat, Jizya, Ushr, khums,
fai, Kiraaj and extra taxes.
 Public Sector Spending :- Make mosque, Zakat
income spend, Provide basic necessity of life,
Pension, Provide Security Education, Stop
corruption

33. Islamic Model
 Inappropriate income
 Interest
 Speculation
 Gambling
 Hoarding
 Private sector (income,
spending)
 Investment
 Banking System
 Partnership
 Agriculture
 Real Estate

34. Islamic Model
 Spending of private sector
 Waqf
 Charity
 Gift
 Hiba
 Inheritance