Politics' Impact on Pakistan's Economy (original) (raw)
Related papers
An Economic Impact of Political Instability: An Evidence from Pakistan
2021
Article history Received: April 04, 2021 Revised: April 22, 2021 Accepted: April 26, 2021 The economy of Pakistan has been badly damaged by the political instability in the country. Despite its enormous economic resources, Pakistan’s economy remained under dark shadows during most of its historical discourse. The economic indicators describe a significant relationship between politics and the economy of Pakistan. The following study, by reviewing previous studies, concludes that there is a negative relationship between political instability and economic growth in Pakistan from 2000 to 2019. Political instability flourished corruption and reduced the economic growth of the country. Moreover, a weak political system and government institutions could not resist the political tension in the country. The study finally concludes that political instability reduces economic growth in the country and economic growth reinforces political stability in the country.
IMPACT OF POLITICAL INSTATBILITY ON PAKISTAN'S ECONOMIC GROWTH
The objective of this paper was to investigate the relationship between economic growth and political instability. For this purpose, we selected three variables such as political instability, inflation rate and public debt to measure their impact on Gross Domestic Product (GDP). We used panel data and analyzed it through SPSS software to draw the results. We applied Multiple Regression, ANOVA and Correlation techniques for analysis of data. Our results show that there is a negative correlation between public debt and economic growth. Similarly, there is also a negative correlation between public debt and political instability. Our study suggests that Pakistan must reduce level of public debt and political instability and inflation in order to achieve high level of economic growth.
role politics in pakistans economy
E conomic and social outcomes in Pakistan over the last sixty years are a mixture of paradoxes. The economic growth rate has averaged 5 percent annually since 1947-a feat achieved by very few countries. Politically, however, the interplay of religious fundamentalism, sectarianism, ethnic cleavages and regional economic disparities has made the country volatile and unstable. Various East Asian countries that were behind Pakistan in the 1960s have surged far ahead in most economic and social indicators. Pakistan has thus been unable to realize its potential.
Political Instability in Developing countries with reference to Pakistan
The political instability is condition for the nation building and nation building is process compulsory for the development of a nation. In most of developing countries the governments are not stable. A new government comes into the power overnight; either through coup data or army takes over. The new government introduces a new system of rules for the operation of business which cause frustration and anger among the people. Political instability now becomes a serious problem especially in developing countries. It is creating enormous difficulties and delaying the development of these countries. Political stability plays an important role in keeping society united and in maintaining legitimacy within the state. It is an essential for the economic development, social integration, and supremacy of law in a state. The stability of political system has direct effects on the procedures of nation and state building. These both require stable political systems for their growth and successful. The development of nation and state without firm and organized system of politics is not possible. So Political instability can be defined at least three ways, first approach is as, the propensity for regime or government change, second is to focus on the incidence of political disorder or violence in a society, such as killings, third approach focuses on economic growth affect by instability. PAKISTAN has spent 34 out of its 68 years, or half its life, in internal political instability as regime instability, political emergencies and constitutional deadlocks. Long-term instability in Pakistan has been significantly higher than in East Asia and post-Partition India. Lack of mature leadership, confrontation between the main organs of the state, poor relations between the center and the provinces, extensive corruption, distrust among the politicians, strong bureaucracy and crisis of governance are the immediate threats to democracy in Pakistan The political instability is directly affected economic growth. How does it affect economic growth and why this is important in developing countries like Pakistan is discussed in brief below? When there is lack of political instability in the county, it directly effects the economic growth. It closes off sources of internal and external investments. The eternal investors does not invest in the countries where there is civil war coups, army take over etc. is either small or zero. The lack of interest by the foreign investors for foreign direct investment, and giving Pakistan access to the productive markets are making economy low and more likely to rely on foreign aid. The improper use of aid on the huge disasters like earth quake in 2005 and on the wake of flood in 2010 has lost the trust of donors to support Pakistan sufficiently even in most difficult times. So that investment remains shy the Growth will remain the dream which leads the high unemployment and poverty. Political instability also limits internal investment. The wealthy classes in under developed countries have enough income to replacement. They can invest their saving in profitable projects. Generally they avoid investing
PAKISTAN'S ECONOMIC RECOVERY IN THE MIDST OF GROWING POLITICAL INSTABILITY: A CLASSICAL CASE
The purpose of this research piece is to examine the chances and problems that Pakistan's economy has encountered in light of the country's rising political unrest. It studies the effects of political unpredictability on economic growth and development and analyses Pakistan's methods and policies for achieving economic recovery in the face of such difficult conditions. The article uses a variety of academic research and case studies to provide light on the wellknown instance of Pakistan's economic recovery in the face of political unrest. Pakistan, a nation that has gone through political unrest in the past, is today juggling the task of economic recovery with escalating political unrest. This study offers a thorough examination of the complex interplay between political unrest and growth in the economy of Pakistan, putting it forward as a traditional case study. This paper examines the complex dynamics and inter-dependencies between political instability and economic recovery by drawing on a theoretical framework that includes the concepts of political economy, institutional theory, and dependency theory. This study provides a comprehensive analysis of the complex dynamics between political unrest and economic recovery in Pakistan. By understanding these interdependencies, policymakers can formulate targeted strategies to navigate challenges and foster long-term economic stability and development.
The Pakistan Development Review, 2011
This paper presents a theoretical model with micro-foundations that captures some important features of Pakistan‘s economy which have emerged in sixty-four years of its history. A comparison of Pakistan‘s economic performance during different regimes shows that macroeconomic fundamentals tend to show an improvement during the autocratic regimes as compared with those prevailing during democratic regimes. In particular, periods of autocratic regimes are typically characterised by low inflation, robust growth and low level of bureaucratic corruption due to better governance. In contrast, the economic performance during the democratic regimes has been observed to worsen with weak governance and high levels of corruption, high inflation due partly to reliance on seigniorage to finance public spending, and lacklustre growth. Using annual data from 1950 to 2011, computational modelling is carried out by applying Markov-Regime switching technique with maximum-likelihood procedures. The est...
The role politics Pakistan's economy
E conomic and social outcomes in Pakistan over the last sixty years are a mixture of paradoxes. The economic growth rate has averaged 5 percent annually since 1947-a feat achieved by very few countries. Politically, however, the interplay of religious fundamentalism, sectarianism, ethnic cleavages and regional economic disparities has made the country volatile and unstable. Various East Asian countries that were behind Pakistan in the 1960s have surged far ahead in most economic and social indicators. Pakistan has thus been unable to realize its potential.
Reconstructing the Performance of Pakistan’s Political Economy: Another Paradigm
THE LAHORE JOURNAL OF ECONOMICS, 2011
This paper looks at the major factors limiting economic growth in Pakistan. The paper then analyzes the structural problems faced by Pakistan today and goes on to discuss the challenges facing monetary policy makers in Pakistan as well as the problem of budget and trade deficits. The paper concludes with a discussion on the key institutional changes needed in Pakistan.