General Economic Updates

[hydrabadi_arab]

Speaking at the launch, Chief Minister Maryam Nawaz Sharif said: “Punjab is ready to move towards a new model of economic growth—one driven by industry, innovation, value addition and exports. Our objective is to create an environment where businesses can invest with confidence, industries can expand and our people can access better employment and livelihood opportunities.”

So far post 2009 18th amendment disaster, all provinces have done is increase their loyal govt employees and even ghost employees. The result? Provinces current expenditure have ballooned. With little left for development. With no resources going towards GDP growth sectors.

Maryam Nawaz is exception.

 

[Meengla]

So far post 2009 18th amendment disaster, all provinces have done is increase their loyal govt employees and even ghost employees. The result? Provinces current expenditure have ballooned. With little left for development. With no resources going towards GDP growth sectors.
Maryam Nawaz is exception.

Theories sound good until the implementation time. The 18th Amendment was a nice idea about the 'devolution of power'. Results were not good: Provinces flushed with money, leaving too much for the Center to take care of and of course the provinces were ran inefficiently except for Punjab. I think recently the Federal govt even had to ask the Provinces to help with the Federal expenses.
This what happens when political decisions affect critical policies. Sri Lanka, an island nation, went bankrupt not long ago despite the highest human resources, and with no civil war, no terrorism, no foreign enemy but a stupid leadership. Imagine if Pakistan had such stupid leadership given Pakistan's geopolitics.

 

[hydrabadi_arab]

Theories sound good until the implementation time. The 18th Amendment was a nice idea about the 'devolution of power'. Results were not good: Provinces flushed with money, leaving too much for the Center to take care of and of course the provinces were ran inefficiently except for Punjab. I think recently the Federal govt even had to ask the Provinces to help with the Federal expenses.
This what happens when political decisions affect critical policies. Sri Lanka, an island nation, went bankrupt not long ago despite the highest human resources, and with no civil war, no terrorism, no foreign enemy but a stupid leadership. Imagine if Pakistan had such stupid leadership given Pakistan's geopolitics.

The funny thing is these people talk about distribution of "resources" as if NFC is anything but that. Its tax collected from economic activity. What happens when GDP growth average 3% since 2010?

Why any system but hybrid will be the rule going forward?

Federal govt collect 90% of taxes, give it away 60% to provinces. Federal govt have to make politically unpopular decision like collecting levy on petrol, etc The other option is Sri Lanka like bankruptcy like Imran Khan tried in early 2022.

The provinces are not worried about GDP growth or debt, they chill with money collected by federal govt, mustly from Punjab/Karachi. In this setup there will always be hybrid regime who isn't worried about getting votes.