Major Issues in Pakistan Economy

Lecture 9: The Role of Politics in Pakistan

Dr. Zeeshan Atiq

zatique@ iba.edu.pk

Institute of Business Administration, Karachi

Politics: Definition

“Politics is the art of preventing people from taking

part in affairs which properly concern them.” – Paul Valery,
French writer and philosopher

“The mistake a lot of politicians make is in forget-

ting they’ve been appointed and thinking they’ve been
anointed.” – Claude . Pepper, US Senator
Politics: Definition*

I Politics is the exercise of power

I Politics is the public allocation of values
I Politics is the resolution of conflict
I Politics is the competition among individuals, groups, or
states pursuing their interests
*Danziger, James N. Understanding the Political World. NY:
Addison-Wesley, 1991
Politics: Definition

The word politics comes from ancient Greece. Its root is the word
polis, which began to be used about 2,800 years ago to denote a
self-governing city (city-state)
Power

I Power is the ability to influence or control the behavior of

people.
I The term “authority” is often used for power perceived as
legitimate by the social structure.
I Power can be seen as evil or unjust, but the exercise of power
is accepted as endemic to humans as social beings.
Structure of Politics in Pakistan

I The Politics in Pakistan takes place within the framework

under which the country is established by the Constitution.
I Classified itself as a nation-state in South Asia, Pakistan is an
Islamic and federal parliamentary republic with Islam being its
state religion.
I Stipulations set by the Constitution to provide a delicate check
and balance of sharing powers between Executive, Parliament,
and Judicature are reserved as the federal government shares
sovereignty with the provincial governments
Structure of Politics in Pakistan

I The Prime Minister of Pakistan solely leads the executive

government which is independent of the state parliament.
I A bicameral parliament that is composed of two chambers the
Senate (upper house and the National Assembly (lower
house).
Structure of Politics in Pakistan

I Senate of Pakistan gives equal representation to all federating

units which is in line with the constitutional role attributed to
the Upper House i.e. promotion of national cohesion and
harmony.
I Each of the four provincial assemblies elect twenty three
members from their respective provinces whereas four
members are elected by the National Assembly from the
Federal Capital and eight Members are elected from the
Federal Administered Tribal Areas (FATA) in such manner as
the president may by order prescribe.
I Senate is a permanent House which symbolizes a process of
continuity in the national affairs. The term of its member is
six years, however, one half of its members retire after every
three years.
Structure of Politics in Pakistan

I The Judicature branch forms with the composition of the

Supreme Court as an apex court, alongside the high courts
and other inferior courts.
I The judiciary’s function is to interpret the Constitution and
federal laws and regulations.
Structure of Politics in Pakistan

I The President of Pakistan is a ceremonial figurehead who

represents the unity of the nation-state.
I Since 1947, the military establishment have played an integral
and influential role in country’s politics.
I Political spectrum has been dominated by the competition
between the Pakistan Peoples Party (left-wing) and the
Pakistan Muslim League-N (right-wing), however there has
been a sharp rise in the Social Democracy led by the Pakistan
Tehreek-e-Insaaf since the 2000s.
Structure of Politics in Pakistan

I Elections are held every five-consecutive years. The new

governments are formed through direct elections followed by
the electoral college.
I The early years of the 2000s saw the rise of coalition
governments until the general elections held in 2013, which
brought back single-party rule in the country, with the
PML(N) being able to claim a simple majority.
Executive

I The president of Pakistan, in keeping with the constitutional

provision that the state religion is Islam, must be a Muslim.
I Elected for a five-year term by an Electoral College consisting
of members of the Senate and National Assembly and
members of the provincial assemblies, the president is eligible
for re-election.
I But no individual may hold the office for more than two
consecutive terms.
I The prime minister is appointed by the members of the
National Assembly through a vote.
Executive

I The prime minister is assisted by the Federal Cabinet, a

council of ministers whose members are appointed by the
president on the advice of the prime minister.
I The Federal Cabinet comprises the ministers, ministers of
state, and advisers.
Legislature

I The bicameral federal legislature consists of the Senate (upper

house) and National Assembly (lower house).
I According to Article 50 of the Constitution, the National
Assembly, the Senate and the President together make up a
body known as the Majlis-i-Shoora (Council of Advisers).
Judiciary

I The judiciary includes the Supreme Court, provincial high

courts, District & sessions Courts, Civil and Magistrate courts
exercising civil and criminal jurisdiction.
I Some federal and provincial courts and tribunals such as
Services court, Income tax & excise court, Banking court and
Boards of Revenue’s Tribunals are as well established in all
provinces.
The Power Struggle in Pakistan
Pakistani Leadership

I 1947-1948 Muhammed Ali Jinnah Governor General

I 1948–1951 Liaquat Ali Khan Prime Minister
I 1951-1958 Six Different Prime Ministers
I 1958-1969 General Ayub Khan President
I 1969-1973 General Yahya Khan Military Leadership
I 1973-1977 Zulfiqar Ali Bhutto Prime Minister
I 1977-1988 General Zia ul-Haq President
I 1988-1990 & 1993-1996 Benazir Bhutto Prime Minister
I 1990-1993 & 1997-1999 Nawaz Sharif Prime Minister
I 1999-2008 General Pervez Musharraf
I 2008-2012 Zardari, President
I 2013 Nawaz Sharif Prime Minister
Muhammed Ali Jinnah Governor General

I Jinnah, head of the Muslim League, was the founding father

of Pakistan and became the first governor general of Pakistan
with Liaquat Ali Khan as the first prime minister.
I Jinnah died a year later on Sept. 11, 1948.
Liaquat Ali Khan 1947-1951

I Remained as prime minister after Jinnahs death.

I Struggled to negotiate a constitution.
I Was assassinated in 1951.
The Period between 1951 and 1958

I Quick succession of 6 prime ministers in 7 years

I Political instability, racial and ethnic conflict, and an economic
downturn resulted in a military coup
General Ayub Khan 1958-1969

I The first martial law

I In 1969 General Yahya Khan took over from General Ayub
Khan
General Yahya Khan 1969-1971

I First general elections held in Dec 1970

I A war lead the creation of East Pakistan as an independent
country.
Zulfiqar Ali Bhutto 1971-1977

I Became president in December 1973.

I Resigned from presidency and became prime minister
I Overthrown and hanged by Zia ul Haque
Gen. Muhammad Zia-ul-Haque 1977-1985

I The third martial law administrator.

I Threw away Zulfiqar Ali Bhutto who appointed him as Chief
of Army Staff, superseding five senior Generals.
I Staged coup.
I Shri’a incorporated into politics and law punishment of crimes.
Benazir Bhutto 1988-1990; 1993-1996

I Got education frrom Ratcliff and Oxford

I First woman to head government of an Islamic state
I Deposed in 1990 by President Ghulam Ishaq Khan who
dissolved parliament to force an election.
I Re-elected in 1993 and dismissed three years later
Nawaz Sharif 1990-1993; 1997-1999

I South Asias first motorway linked Lahore and Islamabad.

I Nuclear tests on May 28, 1998, responded to Indian nuclear
tests
I Unpopular after Kargil War, at the time Pakistan and India
were negotiating peace.
I Overthrown in 1999, exiled to Saudi Arabia
Pervez Musharraf 2001-2008

I Became de facto Head of Government after bloodless coup

d’tat
I Supreme Court ordered elections and referendum
I National Assembly had plurality in favor of
Musharraf-deadlocked
The Role of Politics in Pakistan

Reference: The Role of Politics in Pakistan’s Economy by Ishrat

Hussain
I Despite high economic growth politically the interplay of
religious fundamentalism, sectarianism, ethnic cleavages and
regional economic disparities has made the country volatile
and unstable.
I It is usually believed that economic growth can take place
only in the presence of political stability, but the Pakistani
case contradicts conventional wisdom.
Political Instability and Economic Growth

Reference: The Role of Politics in Pakistan’s Economy by Ishrat

Hussain
I Pakistan has seen twenty-four governments in the past
sixty-eight years, including: fifteen elected or appointed prime
ministers, five interim governments and thirty-three years of
military rule under four different leaders.
I Excluding the military and interim governments, the average
life span of a politically elected government has been less than
two years. If the five-year period of Bhutto is excluded, then
the average span falls to 1.6 years.
Political Instability and Economic Growth

Reference: The Role of Politics in Pakistan’s Economy by Ishrat

Hussain
I In Pakistan, transitions from one political regime to another
have been quite difficult, causing uncertainty and short-term
reductions in the speed of economic growth.
I The transfer of power from the military to civilian regimes in
1971, 1988 and 2008 were marked with macroeconomic
instability, a slow down in economic activities, rising
unemployment and inflation and the adoption of a
wait-and-see attitude by investors.
Authoritarian vs. Democratic Regimes

Reference: The Role of Politics in Pakistan’s Economy by Ishrat

Hussain
I In Pakistan, the debate over whether authoritarian or
democratic regimes have delivered better results in terms of
economic performance has been quite fierce since General
Khan took power in 1958.
I The spurts in economic growth during the 1960s, 1980s and
2000s, when the country was governed by military dictators,
have led many to conclude that authoritarian regimes are
better suited to bring about economic development.
I Parallels are drawn with China, Indonesia, Korea and
Singapore.
Authoritarian vs. Democratic Regimes

Reference: The Role of Politics in Pakistan’s Economy by Ishrat

Hussain
I Detractors of the authoritarian regimes, however, have
skillfully torn apart the economic performance record of the
Ayub, Zia and Musharraf periods.
I Since the legitimacy and perpetuation of these regimes were
justified on the basis of good economic outcomes, those
opposed to these regimes have assailed the very economic
record that has been espoused as their achievement.
I Such detractors lay out three arguments.
I First, they argue that the United States had always been more
favorably disposed toward Pakistan’s military dictators, as
they are relatively more obsequious and subservient to the
American interests.
Authoritarian vs. Democratic Regimes

Reference: The Role of Politics in Pakistan’s Economy by Ishrat

Hussain
I Thus, it is the acceleration of inflows of foreign assistance to
Pakistan that led to the observed higher growth rates rather
than sound economic policies, better governance and the
efficient utilization of resources.
I Although empirical evidence to substantiate this argument
hardly exists, it has become popular folklore: Ayub was
rewarded for his close economic and military ties with the
United States in confronting the Soviet Union; Zia ul-Haq
received a boost as $5 billion was channeled through Pakistan
for Afghanistans mujahideen; and Musharrafs decision to
openly support the United States in the war on terror brought
in approximately $10 billion of military assistance.
Authoritarian vs. Democratic Regimes

Reference: The Role of Politics in Pakistan’s Economy by Ishrat

Hussain
I Second, the solid record of high growth rates under military
regimes is believed to result invariably in adverse distributional
consequences.
I The Ayub period is blamed for the widening regional
disparities that led to the secession of East Pakistan.
I Zia ul-Haq’s policies were criticized for their failure to deal
with structural weaknesses or reverse the damage done by the
policies of nationalization.
Authoritarian vs. Democratic Regimes
Reference: The Role of Politics in Pakistan’s Economy by Ishrat
Hussain
I According to Parvez Hasan, “Zia’s economic policies
represented a rather sharp contrast between reasonably
satisfactory short-term economic management and an almost
total neglect of long-term policy issues. The long period of
political stability and sustained growth under Zia ul-Haq
offered major opportunities for dealing with the underlying
structural issues but these were not exploited.”
I Musharraf’s economic strategy, which made Pakistan one of
the fastest growing Asian economies, was also dismissed on
the same grounds: that consumer-led, credit-induced,
service-focused growth neglected agriculture and the
manufacturing sectors, making the rich richer and the poor
poorer.
Authoritarian vs. Democratic Regimes

Reference: The Role of Politics in Pakistan’s Economy by Ishrat

Hussain
I While the World Bank and Asian Development Bank publicly
acknowledged a significant decline in the incidence of poverty
and International Labor Organization (ILO) experts validated
the fall in the unemployment rate, the authenticity of the
poverty and unemployment data has been challenged.
I It became the norm to practice selective acceptance of
government-produced data showing negative trends and
outright rejection of the data from the same source showing
positive trends.
Ethnic Politics in Pakistans

Reference: Ethnic Politics in Pakistan by Nasreen Akhtar

I Religion has polarized more than unified societies.
I Even within a single religious denomination one may find
numerous strands.
I Doctrinal differences, political contestation for power, material
gains and territorial space can make the particular religion and
the question of authenticity one of great dispute.
I Complex historical and social factors have shaped the
interaction between religion-ethnicity and politics in Pakistan,
a state which came into being with the support of ethnic
groups.
Ethnic Politics in Pakistans

Reference: Ethnic Politics in Pakistan by Nasreen Akhtar

I The question of what type of state Pakistan should be –
liberal democratic or Islamic – evokes distinct responses from
each social sector and political interest.
I Accommodation and promotion of ethnic groups in both
military and civilian rule for political interests has been an
open secret. General Zia-ul-Haq and General Pervez
Musharraf both had used the ethnic minority party the
Mohajir Qomi Movement(MQM ) to retain power and to
suppress their rivals.
I During the military regime the promotion of ethnic politics
remained inevitable because military rulers needed the support
of such minority political parties to balance and offset the
mainstream parliamentary parties.
Ethnicity theories

Reference: Ethnic Politics in Pakistan by Nasreen Akhtar

I As for the origins and continuation of ethnicity, two opposing
schools of thought have appeared within comparative
ethnicity: Primordialists consider ethnicity to be based on
culture and they reckon it as something ingrained in human
nature.
I On the contrary, the instrumentalists propound that ethnicity
is socially constructed and it is the elites of a group who
construct ethnic identities
Ethnicity theories

Reference: Ethnic Politics in Pakistan by Nasreen Akhtar

I In Sindh and Balochistan, waves of migration have altered the
demographic balance; firstly with the inflow of refugees from
other parts of India in 1947, and then from Afghanistan in
1979, when the Soviet Union invaded the country.
I Since then, only ANP (Awami National Party) has demanded
Pakhtunistan complaining about Punjabi domination.
I Unequal distribution of economic resources has led to
migrationary movements and finally separatist movements in
the case of Bangladesh and now Balochistan.
I Punjabi and Pashtun migration in Sindh have led to Sindhi
and Mohajir movements.
I They use language and history to authenticate separateness
as Hindu and Muslim parties did in pre-Partition India.
Ethnicity theories

Reference: Ethnic Politics in Pakistan by Nasreen Akhtar

I In West Pakistan, ethnic groups raised their voices against
prejudice and discrimination by the Punjabi dominating class,
and Baloch clashed with the centre in the late 1950s on the
issue of land allotments to Punjabi settlers along with the
border with Sindh.
I But the Issue was resolved. Since 1999, land has become a
political issue, at Gawadar, non-Baloch have been allotted
lands increasing local resentment.
Will East Pakistan crisis repeat in Balochistan?

Reference: Ethnic Politics in Pakistan by Nasreen Akhtar

I Inequity and inequitable distribution of resources by the
central government had isolated the Bengali from the state,
especially after 1954, when the overall economic situation
deteriorated. Out of the total development fund, East
Pakistan’s share was only 22.1% and non Bengali
businessmen, financed by capital from West Pakistan had set
up most manufacturing enterprises.
I Limited Bengali representation in the central government had
increased the sense of deprivation, suppression and
exploitation.
I The fragile economic situation in East Pakistan made the
Bengali people anti-West Pakistan and also enhanced their
ethnic identity.
Will East Pakistan crisis repeat in Balochistan?

Reference: Ethnic Politics in Pakistan by Nasreen Akhtar

I Ethnic sentiment between East Pakistan and West Pakistan
increased after elections 1954, when all the opposition parties
were united and they emerged as a binding force the United
Front .They defeated the Muslim league, and their victory had
lent greater impetus to Bengali ethno-nationalism.
I In East Pakistan, Bengalis were quite bitter about West
Pakistanis domination and they very naively branded every
West Pakistani as Punjabi. The usual expression was, Sala
Punjabi Hey
Will East Pakistan crisis repeat in Balochistan?
Reference: Ethnic Politics in Pakistan by Nasreen Akhtar
I The Baluch tribes have distinct territorial domains governed
by tribal Sardars.
I Ethnically and politically, Baluchistan is much more
fragmented than has been generally realized.
I A policy of offering cosmetic insubstantial authority to the
Baluch people while denying real power has evoked
considerable unhappiness. Baluch nationalists agitated their
concerns under both the military and democratic regimes.
I The causes of the direct confrontation with the central
governments have been the same, whichever the regime.
I Balochi separatist do nort allow other factions to live in
Balochistan. Punjabi and Hazara people are being targeted.
Non-Baloch are considered alien. Ethning cleansing in
Balochistan may have colossal impacts on Pakistani
democratic society.