Musharraf Period Saw Rapid Economic and Human Development in Pakistan

[RiazHaq]

Haq's Musings: Musharraf Accelerated Financial and Human Capital Growth in Pakistan

Pakistan experienced rapid economic and human capital growth in years 2000 to 2008 on President Pervez Musharraf's watch. Savings, investments and exports hit new records and the rate of increase in human development reached new highs not seen before or since this period.

Savings and Investments:

Domestic savings rate reached 18% of the GDP and foreign direct investment (FDI) hit a record level of $5.4 billion in 2007-8. This combination of domestic and foreign investments nearly tripled the size of the economy from $60 billion in 1999 to $170 billion in 2007, according to IMF. Exports nearly tripled from about $7 billion in 1999-2000 to $22 billion in 2007-2008, adding millions of more jobs.


The PPP government summed up General Musharraf's accomplishments well when it signed a 2008 Memorandum of Understanding with the International Monetary Fund which said:

"Pakistan's economy witnessed a major economic transformation in the last decade. The country's real GDP increased from $60 billion to $170 billion, with per capita income rising from under $500 to over $1000 during 2000-07". It further acknowledged that "the volume of international trade increased from $20 billion to nearly $60 billion. The improved macroeconomic performance enabled Pakistan to re-enter the international capital markets in the mid-2000s. Large capital inflows financed the current account deficit and contributed to an increase in gross official reserves to $14.3 billion at end-June 2007. Buoyant output growth, low inflation, and the government's social policies contributed to a reduction in poverty and improvement in many social indicators". (see MEFP, November 20, 2008, Para 1)

Human Capital Development:

In addition to the economic revival, Musharraf focused on social sector as well. Pakistan's HDI grew an average rate of 2.7% per year under President Musharraf from 2000 to 2007, and then its pace slowed to 0.7% per year in 2008 to 2012 under elected politicians, according to the 2013 Human Development Report titled “The Rise of the South: Human Progress in a Diverse World”.




Overall, Pakistan's human development score rose by 18.9% during Musharraf years and increased just 3.4% under elected leadership since 2008. The news on the human development front got even worse in the last three years, with HDI growth slowing down as low as 0.59% — a paltry average annual increase of under 0.20 per cent. Going further back to the decade of 1990s when the civilian leadership of the country alternated between PML (N) and PPP, the increase in Pakistan's HDI was 9.3% from 1990 to 2000, less than half of the HDI gain of 18.9% on Musharraf's watch from 2000 to 2007.

Acceleration of HDI growth during Musharraf years was not an accident. Not only did Musharraf's policies accelerate economic growth, helped create 13 million new jobs, cut poverty in half and halved the country's total debt burden in the period from 2000 to 2007, his government also ensured significant investment and focus on education and health care. The annual budget for higher education increased from only Rs 500 million in 2000 to Rs 28 billion in 2008, to lay the foundations of the development of a strong knowledge economy, according to former education minister Dr. Ata ur Rehman. Student enrollment in universities increased from 270,000 to 900,000 and the number of universities and degree awarding institutions increased from 57 in 2000 to 137 by 2008. In 2011, a Pakistani government commission on education found that public funding for education has been cut from 2.5% of GDP in 2007 to just 1.5% - less than the annual subsidy given to the various PSUs including Pakistan Steel and PIA, both of which continue to sustain huge losses due to patronage-based hiring.

To see a discussion of the above subject and the current situation, please watch the following video:

Haq's Musings: Musharraf Accelerated Financial and Human Capital Growth in Pakistan

 

[shuntmaster]

How much power generation capacity was added during the 8yrs of Musharraf regime?

 

[RiazHaq]

How much power generation capacity was added during the 8yrs of Musharraf regime?

Overall 2900MW of electricity was added to national generation capacity. The new energy projects initiated included the Ghazi Barotha hydro electricity project (1600MW), the Chashma-II nuclear electricity plant (300MW). The Neelum-Jhelum hydroelectricity project was initiated (1800 MW), the Satpara Power project in Skardu, and the Naltar power project in Gilgit.

Lest we forget - Dr Atta-ur-Rahman

 

[Cyberian]

Under the dicatatorship of General (retired) Pervez Musharraf, Pakistan received around $20 billion of ecenomic aid and ended up with at least a $100 billion of economic damage to the country.

On top of that Allah and His Rasool Sallahu Alaihi Was-Sallam Knows Best how much money the military pocketed by selling Muslims to the United States as so proudly acknowledged in General (retired) Pervez Musharraf's book, In the Line of Fire.

I would say General (retired) Pervez Musharraf was the most stupid General and Chief of Army Staff in Pakistan's history, even worst than the tyrant Ayub Khan.

May Allah save Pakistan from such Fitna and Fasadi men.

 

[Slayer786]

Under the dicatatorship of General (retired) Pervez Musharraf, Pakistan received around $20 billion of ecenomic aid and ended up with at least a $100 billion of economic damage to the country.

On top of that Allah and His Rasool Sallahu Alaihi Was-Sallam Knows Best how much money the military pocketed by selling Muslims to the United States as so proudly acknowledged in General (retired) Pervez Musharraf's book, In the Line of Fire.

I would say General (retired) Pervez Musharraf was the most stupid General and Chief of Army Staff in Pakistan's history, even worst than the tyrant Ayub Khan.

May Allah save Pakistan from such Fitna and Fasadi men.

Thats your opinion.

 

[Slayer786]

How much power generation capacity was added during the 8yrs of Musharraf regime?

You do know that when there is economic activity, for example if you read the reports that Pakistan exports increased from US$7 billion in 2000 to US$ 22 billion in 2008, it takes a lot of energy. Hence, as our infrastucture was not upto the mark, thats why we were short of energy requirements.
It was President Musharraf who again started the initiative to buld dams and he wanted to start on Kalabagh Dam, but too much opposition from three states other than Punjab. But he did work on other dams before he was removed and then we went downhill.

Musharraf's Mega Dam: A Fight against Time and the Water Level
By Joachim Hoelzgen

April 27, 2007

It now appears inevitable that Pakistan will construct the Basha Diamer Dam, imperilling a cultural legacy that goes back to the end of the Ice Age. Pakistan's President Pervez Musharraf wants to go down in history as the great man who brought modernity to the Islamic Republic. It's a goal he plans to achieve by building dams -- impressive, large-scale construction projects that are highly controversial even in his own country.
The electricity produced by the dams' turbines will enable Pakistan to make a great leap forward. And the water from the reservoirs is also expected to make agriculture -- the very basis of existence for the rapidly growing nation of 160 million -- flourish.
Without artificial irrigation, Musharraf would be the ruler of a desert land. And since the days of British colonial rule, canals have secured the country's food needs by allowing for the cultivation of wheat and rice. They also make possible the cultivation of cotton, Pakistan's most important export product. But many of the country's pipes leak and allow the water to evaporate. This causes water shortages in the major cities during the summer, including the capital, Islamabad.
To solve the problem, Musharraf -- who is also Pakistan's military leader -- has announced plans to construct five massive dams before everything dries up. "We are damned to build dams," he says.
The so-called Basha Diamer Dam west of the village of Chilas represents the cornerstone of Musharraf's dam policy. Preliminary work on the construction of the project has begun in a winding Indus River valley. A monumental, 270-meter (886-foot) retaining wall will soon be erected here. It will have to be 200 meters (656 feet) thick at its base -- which is spectacular in itself -- just to stand in place and to hold back the Indus River. Beyond the wall, the river will form a reservoir that runs 100 kilometers (62 miles) long and winds past the Nanga Parbat and right up to the famed Rakhiot Bridge, the point from which trekkers and climbers embark to scale the mountain.

Higher than Three Gorges

A German engineering firm designed the dam, which will be 85 meters (279 feet) higher than China's Three Gorges Dam. It's the first time such a high dam construction is being built with rolled concrete, says Rolf Wiegand, who heads the dam-building unit of Lahmeyer International in Bad Vilbel near Frankfurt. "The concrete is transported to the construction site via conveyor belts. That's faster, and it's then compressed into rolls on the dam's surface," he explains.

Source:Spiegel Online

 

[shuntmaster]

You do know that when there is economic activity, for example if you read the reports that Pakistan exports increased from US$7 billion in 2000 to US$ 22 billion in 2008, it takes a lot of energy. Hence, as our infrastucture was not upto the mark, thats why we were short of energy requirements.
It was President Musharraf who again started the initiative to buld dams and he wanted to start on Kalabagh Dam, but too much opposition from three states other than Punjab. But he did work on other dams before he was removed and then we went downhill.

The thumbrule is, for an economy to grow by a factor of X, the power consumption should grow by at least a factor of 1.5*X.

 

[shuntmaster]

Overall 2900MW of electricity was added to national generation capacity. The new energy projects initiated included the Ghazi Barotha hydro electricity project (1600MW), the Chashma-II nuclear electricity plant (300MW). The Neelum-Jhelum hydroelectricity project was initiated (1800 MW), the Satpara Power project in Skardu, and the Naltar power project in Gilgit.

Lest we forget - Dr Atta-ur-Rahman

Wasn't Ghazi Barotha hydro electricity project started in 1996 during Benazir Bhutto's administration?
It was completed in 2002 during Musharraf regime..

 

[SQ8]

Recycled article already posted by the OP before.

Hence Ill reproduce the answer given to these tall Musharraf claims

Much more academic and educated summation of Musharraf's economic miracles rather than some blog. This was published in 2008 just after the PPP government took over so no excuses of them ruining a beautiful palace work for this report.
Naval Postgraduate School
http://faculty.nps.edu/relooney/Rel-TOSJ-08.pdf

This is a report by the Naval postgraduate school in Montrey.. just in case some people decide to bring up issues with the stature of the school.

Some key points highlighted by the report:

The February 19, 2008 election defeat of Pakistan’s President Pervez Musharraf was not a major surprise. When asked to list the most important issue for voters, most observers of the Pakistan scene would list factors such as:
(a)the deteriorating security situation evidenced by the increase
in terrorist attacks over the past year,
(b) the suppression of civil rights through President Pervez Musharraf's heavy-
handed sacking of the country's top judges,
(c) the unpopular partnership with the United States in the war on terrorism,
(d) the rise and spread of extremism, and (e) the suspicious
assassination of former Prime Minister Benazir Bhutto.
Surprisingly, for most voters a more basic set of issues prevailed:
People were angry over the fact atta [flour] was not available, that food prices were high, and due to this they felt insecure. It's a familiar lament in Pakistan these days. We are worried about terrorism and those other things, but
first we are worried about basic needs. People want a person who can fix this problem

The report is not emotional and biased like most of the members posting here.. it acknowledges a lot of things.

Musharraf's regime embraced globalization making structural reforms, opening the country to investment and trade.The results surprised even his most ardent supporters -- the size of the economy increased by almost 50 percent, with income per-capita up by nearly 25 percent. Cities and towns seem to be booming. The country managed to recover impressively from the devastating earthquake in 2005 [6]. In short, the economic paradox of Musharraf’s fall from grace is that the country’s economic performance was commendable by most standard measures:

•In the last several years the economy has grown at rates
between 7.0% and 7.5%.

•The share of industry in GDP rose from 22.6% in 2000 to
26.7% in 2006.

•The annual percentage growth in industrial value added
as doubled.

•The share of gross fixed capital formation in GDP has
increased by three percentage points.

•The services sector has posted an impressive perform-
ance, with annual growth of the value added in services
nearly doubling over the past seven years.

•There are now 82 mobile phone subscribers per 1,000
people up from two in 2000.

The report also states:

..objective evaluations of the country’s economic performance during the Musharraf years are difficult as a mixed picture emerges.Clearly objectivity over the Musharraf programs has been colored by divergent perceptions – the product of a sharply polarized political environment [9]. Most observers of thencountry’s attempts at economic progress during this period
fall, into two broad schools of interpretation: (1) the take-off school, and (2) the failed take-off school. Another school of thought, the structuralist or demolition school contends that
no real acceleration in growth occurred under Musharraf –simply put, growth under Musharraf was the result of a number of fortuitous events – post 9/11 aid flows, good weather, high remittances from workers in the booming Gulf countries and the like. There is an element of truth to this
interpretation. However, the high rates of growth achieved in Pakistan over the last five years cast considerable doubt on this interpretation – it simply doesn't go far enough in explaining the economy’s recent dynamics.

Highlighting the take off school(or Musharraf's supporters):

The Take-Off School noted above contends that the economic expansion initiated under Musharraf did not occur all of a sudden, but instead was the outcome of deliberate and carefully designed program of economic reforms undertaken(and some ongoing) during the first five years of the Musharraf era. The program consisted of four key elements [14]:
1. Restoration of macroeconomic stability and Pakistan’s
relationship with the international financial institutions.
2. Structural reforms to remove distortions
3. Improving economic governance and reviving key insti-
tutions
4. Poverty alleviation through targeted interventions and
social safety nets

... With this strategy in place, the take-off school led by Prime Minister Shaukat Aziz, Ishrat Hussain, Governor of the State Bank of Pakistan and the supporters [15] of thebMusharraf Reforms and the IMF took heart in a long list of initial successes:

•The fiscal deficit, which averaged 7.0 per cent of GDP
for two decades, is expected to declined to 3.8 per cent in
the fiscal year (2002-03).

•Domestic debt, which was growing at an average rate of
24.0 per cent and 16 per cent per annum during the 1980s
and 1990s, respectively declined slightly in 2002-03.

•Domestic debt as percentage of GDP has declined from
52 per cent in 1999-2000 to 39.3 per cent in 2002-03.

•Tax collection has increased by Rs152 billion during the
last four years as opposed to Rs 82.5 billion in the previ-
ous four years, an increase of 84 per cent. From an aver-
age increase of 4.6 per cent per annum during 1996-99,
tax collection has grown at an average rate of almost 14
percent per annum during the next four years.

•Inflation at 3.1 per cent in 2002-03 was below the target
of 4.0 percent. It is much lower than the average of 10
percent in the 1990s.

•Private sector credit is up by 19 per cent during 2002-03.

•Stock market remained buoyant during 2003, reaching
the record level of 3100 (KSE index). It had been one of
the world’s best performers in the early 2000s [16].

•Industrial production is up by 8.0 per cent during July-
February 2002-03.

•Investment is likely to rise to 16 per cent of GDP and
economic growth is projected at 4.5 per cent - higher than
the average of last three years (3.3 per cent during 1999-
2000 to 2001-02).

•Both exports and imports have picked up despite uncer-
tain global environment. Exports are up by 20 per cent
and imports are up by 23 per cent during July-March
2002-03. ............

In short, the Take-off School contends [18] that by 2002-03 macroeconomic stability had been achieved, both investment and growth were rising; interest rates were falling; inflation was low; private sector credit had picked up; both domestic and external debt levels were declining; exports
were picking up, tax collection was rising, current account bbalance was in surplus; and the exchange rate was stable.
.......................
Vision 2030 [21] provides some detail of the longer-term changes envisaged by the Take-off School: [22] Growing economically at a rate of around 7-8 percent per annum, Pakistan expects to join the ranks of middle income countries, with a GDP of around USD 4,000 by 2030. This high growth rate would be sustained through developing its human resources and by developing the necessary physical and technological infrastructure.The growth trajectory will gain momentum by the latent
capacities of a sizeable middle class emerging in the development process. Besides sustaining high growth rates, benefits of growth are planned to be equitably distributed and poverty to be largely eliminated.

The report uses available global metrics and not skewed or self made figures to show why this did not turn out as hoped.

Unfortunately for the take-off school things did not turn out the way proponents envisaged:

•The Planning Commission’s ambitious expectation of a 7.5-8.0 percent GDP growth in 2007-08 did not occur and has been revised to 6.5%. The reasons given have ranged from high international prices and inflation to a widening of the current account deficit and increased external debt.

•Rising prices of food items, combined with shortages of sugar, oil and flour, a looming power and gas crisis also worked to dampen the Musharraf economic expansion.

•Industrial growth has dipped to an average of 6 percent in the last several years with the critical textile sector showing signs of weakness.

•The agricultural sector still employing a large share of the workforce has not expanded as hoped resulting in increased food insecurity for large segments of the population.

In sharp contrast to the take-off school, the failed-takeoff school, while acknowledging the macroeconomic accomplishments of the Musharraf years, feels that the Musharraf strategy as actually applied did not adequately implement its economic strategy outlined above [23]. Instead
its programs resulted in the creation of more distortions in the economy and society [24]. Combined with the country’s latent governance and institutional deficiencies the result was the creation of serious imbalances throughout the economy. In turn, these imbalances are the source of much of the violence and discontent currently destabilizing the economy in particular and Pakistani society in general.

Continued....

Talking about the viewpoint of the failed take-off school..i.e. those who believe Musharrafs policies did not have the effect they intended nor did they actually improve things.

The leading proponent of this school is Shahid Javed Burki, a former Minister of Finance and World Bank Vice President who feels that despite early positive signs [25] the Government missed a golden opportunity in the 2005-06 budget to put the country on a new growth path.........

The failed-take off school views the main advantage of the Musharraf economic policies as implemented to be its pro-business orientation of allowing the private sector considerable room in which to operate. While this policy unleashed considerable entrepreneurial activity, it should have
been accompanied by on-going improvements in governance, economic freedom and financial reform – all necessary requirements to complete the takeoff and continue on a path of sustained growth and development

While some reforms in both areas did take place, there are major areas where governance and economic freedom actually deteriorated during this period. For example, the World Bank considers improved governance in five key areas as critical for increases in efficiency and higher investment rates needed to achieve sustained growth (1) voice and accountability, (2) political stability, (3) government effectiveness, (4) regulatory quality, (5) rule of law and (6) control of corruption. Unfortunately, Pakistan’s progress during the Musharraf years was spotty and inconsistent, especially in comparison with India’s relatively steady progress during the same period.

So according to this school of thought and on the World bank index, Musharraf's tenure did not improve much on the KPI(Key performance indicators) for progress. Adding further to this schools contention are the following indicators:

Trade liberalization progressed under Musharraf, but import bans and restrictions, import taxes, inconsistent standards administration, non-transparent government procurement, export subsidies weak enforcement of intellectual property rights and corruption add considerably to the cost of trade. The net effect appears to have undermined the government’s efforts at becoming more integrated into the world economy. Between 2003 and 2007 Pakistan declined from the 50th most globalized country to 63rd.This deterioration in relative globalization was across all dimensions of globalization, economic, personal, technological and political. To the country’s credit, the declines in some areas were not as great as those experienced by its South-Asia neighbors, India, Sri Lanka and Bangladesh. Unfortunately, in the other areas of economic freedom, Pakistan suffered significant reversals during the Musharraf years. Major declines occurred in investment freedom, financial freedom property rights and freedom from corruption during this period. The lack of significant financial reform during the Musharraf years is confirmed by the country’s rankings in the Milken Institute’s Capital Access Index . This index indicates measures the extent to which countries are creating the conditions necessary for firms to raise capital. Specifically countries are ranked in terms of how well they support economic activity by providing businesses with access to capital, both domestic and foreign [29].For the index as a whole, Pakistan ranked in 65th in 2003– that is firms in 65 countries had better access to capital than those in Pakistan. By 2007 the country had fallen to 72nd place. Even more troubling the Milken assessment of the country’s macroeconomic environment, the focus of the Musharraf programs had achieved only marginal improvements in recent years, improving its ranking from 112th place in 2005 to 104th by 2007. In equity market development the country fell from 15th place in 2005 to 40th by 2007. A similar situation occurred in bond market development where the country declined from 52nd place in 2005 to 63rd in 2007. No doubt the failure to reform and develop the financial system has contributed to the country’s relatively low savings rate and its inability to channel investment into the most productive sectors of the economy – two critical areas needed to sustain rates of growth in the 6-8% range.

while the country has been able to attract more foreign investment most of these funds did not go into the export sector but instead went into activities satisfying domestic demand. This will produce problems for the future since it will likely increase pressure on the external accounts. This stems directly from the lack of reforms in the trade area limiting the extent to which has been integrated into the world economy

Clearly, Not everything was gold during the Musharraf era and the curtain of consumerism hushed up actual decline in economic development. But that is not the only story.. the critical aspect of Pakistan was the energy issue:

The regime also failed to put in place a strategy that takes care of the supply bottlenecks that would inevitably result from a sharp increase in GDP. In particular the government failed to plan to meet the supply-demand gap in the energy sector for both electricity and gas. By 2006-7 the situation had developed into a full blown crisis. Electricity shortages caused many firms to maintain shorter hours with distinct losses in output. There was mounting concern that the power shortage would affect the productive capacity and export performance of the country.

In all fairness to the Musharraf administration the energy crisis did not emerge all of a sudden and it is the result of neglecting the supply side for the past few decades. Beginning in the early 1980s, the gap between the consumption and generation of electricity steadily expanded, but no augmenting measures were initiated [31]. Nor until very recently were the energy problems facing the country examined in any sort comprehensive way [32].

On the other hand the Musharraf administration has done little to help broad In an exhaustive study of the country’s infrastructure situation, the World Bank was forced to conclude: [33]
Pakistan suffers from a dearth of infrastructure in the water, irrigation, power, and transport sectors; infrastructure which is essential for sustained growth and competitiveness both in the local and international markets. The gaps between demand and supply in these sectors are alarming. Unless plans are put in place urgently, these critical shortages could lead to increased social discontent and disharmony amongst the federation and the provinces.

So essentially, this school argues that the supposed progress actually waxed over Musharraf's failure to sort the true problems the country was facing. Like a alcohol induced euphoria, the main diseases were ignored in favour of this short lived party.

The Problems hushed aside during the Musharraf era were not just confined to Macroeconomic failures and power problems as the failed take-off school contends. The issue of the tax base did not seem to receive any attention at all:

The tax base remains narrow and rather inflexible.The Musharraf government failed to realize that major fiscal reforms were needed to prevent growth from widening income inequalities and failing to pull large segments of the population out of poverty [34].

•Only around 2% of the population pays direct income taxes with the bulk of the tax burden falling on the poor,the salaried class and the business sector. Around 70% of tax revenue is generated by indirect taxes that are generally considered regressive.

•There is a mismatch between sectoral contributions to growth and tax revenue. Agriculture contributes 22.5% of GDP, but only 1.2% of tax revenue as compared with manufacturing, which contributes 18.% of GDP, but 62% of revenue from taxes.

•Tax evasion is widespread. The exemption of agricultural incomes from direct income taxes is believed to be an important source of tax evasion, for example, enabling industrialists to hide income by buying agricultural property.

•Agricultural incomes have subject to tax exemptions since 1886. The prime beneficiaries of agricultural tax exemption are large landowners. Approximately 40% of the labor force is employed in the agricultural sector, but over half of the rural population is landless. In addition to paying more than their fair share of taxes, there is a reason why the poor did not benefit as much from the Musharraf economic expansion. This was due to the fact that growth came from the sectors which did not provide much employment to lower income groups.

Further to this, the report highlights a critical factor which the failed take-off school contends is responsible for a major drain on the economy.

Another area where the Musharraf administration failed to make any progress at reform was the country’s sprawling military industrial complex or Milbus. Over the years, Pakistan’s military has expanded its holding of industries, properties and foundations. These organizations guarantee the
armed forces both organizational autonomy and a regular flow of resources from the public and private sectors – often to the enrichment of senior officers, both on-duty and retired. The military has come to control 11.58 million acres of state land or 12% of the total. Much of this is rented at very low fees to its personnel. The estimated total wealth of this sector varies but may be as high as $100 billion and no doubt expanded even further during the Musharraf era. From an economic perspective these activities are nothing like the leading industries in Rostow’s take-off stage. Instead, Milbus places a tremendous drag on any economic expansion:
The presence of the military in the private sector or in profit-making activities results in en-
couraging crony capitalism in the country. This creates a situation where the dominant classes collude with the military to benefit from the state and its resources at the risk of ignoring all those who are not part of the ‘elite consensus

Is the red not exactly what is happening in Pakistan??

The report concludes by presenting the two opposing views and drawing its conclusions.

Given the difficulty, the country has had over the years in sustaining high rates of growth, the Musharraf programs and reforms will no doubt be ultimately judged on the quality of the institutions put in place. Are these institutions capable of fairly resolving many of the conflicts that have repeatedly derailed the economy? Will they permit continuity in economic policy? Will they strengthen democracy, enabling all segments of society better access to public services and opportunities? Will they enable the country to finally have a successful economic transition to high sustained growth?

The pro-administration, take-off school contends that through its macroeconomic stabilization policies and progress in economic and governance reforms the country is now positioned to sustain high rates of economic growth –the previous boom bust pattern of growth made a thing of the past – the recent slow-down of the economy simply reflects the political uncertainty prior to the election. Now that that has been resolved the country will quickly resume the rapid pace of growth of the last several Musharraf years.

The failed take-off explanation while acknowledging the many economic successes of the Musharraf years contended that the administration did not make enough progress in governance and supporting growth enhancing institutions for growth to be sustainable. Even worse, the Musharraf government’s polices and actions not only failed to address mounting constraints, but in many cases only served to aggravate them.

From the vantage point of early 2008 it may be premature to provide a final judgement of the Musharraf economic policies. However a large body of evidence points toward their failure. Certainly, dissatisfaction with the performance of the economy was one of the main reasons for his fall from power and while some of his reforms have yet to be completed they are unlikely to create the conditions for high sustained grates of growth.

Essentially, Musharraf's era was nothing more than a failure to exploit a window of opportunity. In credit, Shaukat Aziz's efforts till 2003 had helped fix some issues..but after that it seemed that mismanagement and lack of actual interest in improving the country took over. The illusion that was the consumerism fuelled economic advance was bound to fall... and this country was to head to worse states due to it.

 

[Slayer786]

The thumbrule is, for an economy to grow by a factor of X, the power consumption should grow by at least a factor of 1.5*X.

Right and did you read the report I had included with my earlier reply that President Musharraf was determined to create energy in Pakistan. But he was removed from Office in 2008 and it all went down hill from there.

 

[Panther 57]

How much power generation capacity was added during the 8yrs of Musharraf regime?

During Musharaf's tenuare Pakistan need 10-12000 MW and it had an installed capacity of 20,000MW. Power plant reshma which was inaugurated by PPP was initiated in his times. Even today Pakistan has more installed capacity of power generation then its requirement. It needs 16-18000MW and you can calculate how much is the installed capacity. It is PPP and then PMLN which has increased circular debt to irrecoverable levels.

 

[shuntmaster]

During Musharaf's tenuare Pakistan need 10-12000 MW and it had an installed capacity of 20,000MW. Power plant reshma which was inaugurated by PPP was initiated in his times. Even today Pakistan has more installed capacity of power generation then its requirement. It needs 16-18000MW and you can calculate how much is the installed capacity. It is PPP and then PMLN which has increased circular debt to irrecoverable levels.

10-12kMW is like power demand of a average sized state in India... There seems to be something wrong with the numbers you quoted.. If pakistan had surplused installed capcity, how can you explain the massive load shedding happening?

 

[Panther 57]

10-12kMW is like power demand of a average sized state in India... There seems to be something wrong with the numbers you quoted.. If pakistan had surplused installed capcity, how can you explain the massive load shedding happening?

Please visit the official website and you will find the figures.

 

[Slayer786]

It is pointless to argue with someone who has made up his mind. This thread is about Economic And Human Development in Pakistan in President Musharraf's era. But people here are bringing political arguments.

 

[Khan_patriot]

It is pointless to argue with someone who has made up his mind. This thread is about Economic And Human Development in Pakistan in President Musharraf's era. But people here are bringing political arguments.

people hate Mr Mush just for the hell of it, I guess it is the cool thing to do now a days....