The land of pure or more simply Pakistan is currently a developing country and 119th on the list of global Human Development Index. Ironically, the inventor of HDI was a Pakistani economist, Dr. Mahbub ul Haq. He developed it at the time when Pakistan was an emerging power. This presentation is a short history of how it all started, how great it all went and how it seems to end.

1. Combating Economic Crisis
in Pakistan
By: IHTISHAM SAEED
Mechanical Engineering Department
PIEAS

2. Presentation will include…..
Dr. Mahbub ul Haq’s vision and 5-year plans
Our economic accomplishments in 60s
How Pakistan lost the track to prosperity?
Solutions in today’s world

3. Dr. Mahbub ul Haq (1934-98)
A veteran Pakistani who developed
• Human Development Index,
• Human Development Report of United Nations
• Made significant contributions to the subject of
Micro-economics
• UN’s Economic Security Council
And..

4. Guided South Korea in the 60’s to what it is
today..
1950s Today
OPAN GANGAM STYLE!!
VS.

5. His HDI reflects ….
• National well-being:
life expectancy
education and welfare
Wealth
So for example, Canada beats America!

6. “South Asia is sinking into a quagmire of
human deprivation and despair”_Dr. Haq
 Wars
Instability
Overpopulation
Illiteracy
Injustice
Crony capitalism

7. 5 year plans proposed in Pakistan
Eight of them from 1955-1998.
The most successful being the second one (1960-65)
and then sixth one (1983-88), both proposed by Dr. Haq.
Also imitated by South Korea to get on the modern lines.
The World Financial Center in Seoul was modeled after Karachi.

8. 2nd 5 year plan (1960-65)
Targets:
Matters of highest priority for developing nations..
1. Industrialization
2. Scientific/ Technical Education
3. Social Reforms
4. Employment opportunities (labor oriented model)
5. Private sector empowerment
6. Foreign investment

9. Achievements:
Other than a few spheres, Better results than expectations.
• Higher GNP
• Greater industrial development (161% increase in production)
• Income per capita increased (from 9%(est.) to 15%(actual))
• Average economic growth rate greater than the world’s
• Agricultural growth doubled
• Industrialized and technologically advanced country

10. How?
• Practical policy/ solutions of Mahbub ul Haq
..with focus on human development
• Strong administration of Ayub Khan
• Necessity for prosperity
• Foreign Aid

11. Korea’s (1962-66) plan in the light of ours..
• Strong basis for Industrialization
• 7.8% economic growth, exceeding expectations
• While GNP per capita grew from 83 to 125 US dollars
Korea responded with economic support..
Technical and financial support in M2 phase of Motor Way construction

12. Today South Korea is 33rd on the list
of highest HDI while Pakistan is
117th.

13. Beginning of the overall crisis…
• Wars with India
• Political instability and assassinations
• Separation of East Pakistan

14. • Sharp fall in the production of food grains
due to monsoon floods
• Growing population
• Tendency to remain semi industrialized
and agricultural state

15. Economic derailment
• Privileges to 22 families-
controlling 66% industrial assets and 87% banking
Control over Private sector
Dawood Group,
Saigols of Saigol Group,
Adamjees of Adamjee Group
House of Habib
Khyber
Nishat Group, Gul Ahmed Group
Milwala and Dada.

16. • Rising military costs, the futility of nuclear race
• Crony capitalism
• Foreign influence in economic policies
• Agricultural disparities
• Inability of Pakistan to lead bigger reforms-
forming one economic unit of SAARC like European Union
bring investment from Gulf for Agriculture

17. How can we combat economic crisis?
Modern Economic systems-
• Malaysia’s new Economic model-
an efficient blend of principles from Micro, as well as, Macro-economics
• Complete Tax Recovery
• Sustainable infrastructure
• Global collaborations

18. Social Reforms-
- Green Economy
- Promoting the specialties of our culture
- Establishing Public Incubation Centers
Entrepreneurship-
o A strong source to teach principles of leadership to the public_ Stephen Spinelli
o Creation of an “Open competition”
o A tool to spread culture of greater human values in the public_ Chiniotees’ priciples
Usually more prevalent in developing countries,
with income inequality
lack of education
unemployment

19. • Greatest threat to Entrepreneurship and private businesses is:
• RENT SEEKING-
Allotting tenders, allowances and economic
packages to either relatives/friends or rich investors.
• Rent seeking is death of Merit on a large scale.
• Happened in Pakistan throughout the history.

20. Necessity-driven entrepreneurship (Akhuwat)
Opportunity-driven entrepreneurship (Facebook)
Characteristics-
• Discovery
• Evaluation
• Exploitation of business opportunities
Expected results:
• Better GDP and GNP growth
• Income per capita increase
• Decrease in unemployment

21. Our successful startups..