You wouldn't know from the headlines what Gallup global poll on wellbeing found through its recent survey: More Pakistanis say they are thriving than do Indians or Chinese.
The results of the 2010 global wellbeing survey of 124 nations conducted by Gallup reveal that Pakistan ranks 40th with 32% of Pakistanis saying they are thriving. By contrast, India ranks 71st with 21% of the Indians thriving and China ranks 92nd with only 12% of the Chinese considering themselves thriving, the highest level of wellbeing.
The only tangible explanation for Pakistanis ranking ahead of their neighbors in the wellbeing Gallup survey can be found in the strength of Pakistan's rural economy. It is being spurred by the higher food and commodity prices resulting in the transfer of additional new tax-free farm income of about Rs. 300 billion in the current fiscal year alone to Pakistan's ruling party's power base of landowners in small towns and villages in Southern Punjab and Rural Sindh, from those working in the the economically stagnant urban industrial and service sectors who pay bulk of the taxes. The downside of it is a bigger hole in Pakistan's pubic finances which is being funded with increased foreign aid and loans.
Moazzam Husain, the Director General of the Punjab Board of Investment and Trade, describes the current rural resurgence as follows in a recent blog post titled "The Other Pakistan":
"GLORIOUS countryside lies between Rahim Yar Khan and Bahawalpur. Travelling across six districts in Punjab, before a blazing summer sets in, I experienced endless fields of wheat waiting to turn golden, of freshly harvested mustard, acres of ripe sugarcane and sprawling mango orchards.
Far from the drudge and gloom of metropolitan Pakistan, economic privation, traffic snarls, extreme religion and the cricket World Cup agony, this is another Pakistan. Over a quarter of a century after the green revolution ended the rural economy is back in boom, this time on the back of rising prices. The feel-good factor is all around.
Burgeoning commodity prices are churning unprecedented amounts of cash through the farm sector. I pass tractor-pulled trolleys laden with sugarcane waiting outside sugar mills. The crushing season is in full swing. Meanwhile, the flour mills are still grinding away at last years surplus crop. This is an agro economy at serious work.
Alongside the cash economy, the place is also brimming with ideas, and with an entrepreneurial spirit. A young man I meet at Rahim Yar Khans chamber of commerce has an IT degree and owns an ice cream distribution business spawning an elaborate cold chain across three districts. He tells me that sales are surging because rural society is transitioning to modern desserts which are now more affordable than traditional sweets like mithai and khoya.
Meanwhile, hes toying with the bigger vision of an electronic marketplace for agricultural produce. Live connectivity to grain mandis and markets for fresh produce and milk will empower farmers to obtain prices online and through their cellphones. He wants to materialise this and wants tips. I give him my two cents worth: study similar models, write a concept paper, galvanise partners around it, put in seed money and get the venture to mezzanine level."
In 2008, the government pushed the procurement price of wheat up from Rs. 625 per 40 kg to Rs. 950 per 40 kg. This action immediately triggered inflationary pressures that have continued to persist as food accounts for just over 40% of Pakistan's consumer price index. According to State Bank of Pakistan (SBP) analysis, cumulative price of wheat surged by 120 per cent since 2008, far higher than the 40 per cent between 2003 and 2007. it is also many times greater than the international market price increase of 22 per cent for wheat in the same period. Similarly, sugar prices have surged 184 per cent higher since 2008, compared with 46 per cent increase during 2003-07.
The steps such as the transfer of additional Rs. 300 billion to Pakistan's agriculture sector during the current fiscal year 2010-2011 by higher prices of agriculture produce and direct flood compensation to 1.6 million affected families at the rate of one hundred thousands rupees each are boosting economic confidence in the countryside. This infusion of money is also generating rural demand for consumer items including consumer durables such as fans, TVs, motorcycles, cars, refrigerators, etc.
Haq's Musings: Poll Finds Pakistanis Happier Than Neighbors
Haq's Musings: Pakistan's Rural Economy Showing Strength
The results of the 2010 global wellbeing survey of 124 nations conducted by Gallup reveal that Pakistan ranks 40th with 32% of Pakistanis saying they are thriving. By contrast, India ranks 71st with 21% of the Indians thriving and China ranks 92nd with only 12% of the Chinese considering themselves thriving, the highest level of wellbeing.
The only tangible explanation for Pakistanis ranking ahead of their neighbors in the wellbeing Gallup survey can be found in the strength of Pakistan's rural economy. It is being spurred by the higher food and commodity prices resulting in the transfer of additional new tax-free farm income of about Rs. 300 billion in the current fiscal year alone to Pakistan's ruling party's power base of landowners in small towns and villages in Southern Punjab and Rural Sindh, from those working in the the economically stagnant urban industrial and service sectors who pay bulk of the taxes. The downside of it is a bigger hole in Pakistan's pubic finances which is being funded with increased foreign aid and loans.
Moazzam Husain, the Director General of the Punjab Board of Investment and Trade, describes the current rural resurgence as follows in a recent blog post titled "The Other Pakistan":
"GLORIOUS countryside lies between Rahim Yar Khan and Bahawalpur. Travelling across six districts in Punjab, before a blazing summer sets in, I experienced endless fields of wheat waiting to turn golden, of freshly harvested mustard, acres of ripe sugarcane and sprawling mango orchards.
Far from the drudge and gloom of metropolitan Pakistan, economic privation, traffic snarls, extreme religion and the cricket World Cup agony, this is another Pakistan. Over a quarter of a century after the green revolution ended the rural economy is back in boom, this time on the back of rising prices. The feel-good factor is all around.
Burgeoning commodity prices are churning unprecedented amounts of cash through the farm sector. I pass tractor-pulled trolleys laden with sugarcane waiting outside sugar mills. The crushing season is in full swing. Meanwhile, the flour mills are still grinding away at last years surplus crop. This is an agro economy at serious work.
Alongside the cash economy, the place is also brimming with ideas, and with an entrepreneurial spirit. A young man I meet at Rahim Yar Khans chamber of commerce has an IT degree and owns an ice cream distribution business spawning an elaborate cold chain across three districts. He tells me that sales are surging because rural society is transitioning to modern desserts which are now more affordable than traditional sweets like mithai and khoya.
Meanwhile, hes toying with the bigger vision of an electronic marketplace for agricultural produce. Live connectivity to grain mandis and markets for fresh produce and milk will empower farmers to obtain prices online and through their cellphones. He wants to materialise this and wants tips. I give him my two cents worth: study similar models, write a concept paper, galvanise partners around it, put in seed money and get the venture to mezzanine level."
In 2008, the government pushed the procurement price of wheat up from Rs. 625 per 40 kg to Rs. 950 per 40 kg. This action immediately triggered inflationary pressures that have continued to persist as food accounts for just over 40% of Pakistan's consumer price index. According to State Bank of Pakistan (SBP) analysis, cumulative price of wheat surged by 120 per cent since 2008, far higher than the 40 per cent between 2003 and 2007. it is also many times greater than the international market price increase of 22 per cent for wheat in the same period. Similarly, sugar prices have surged 184 per cent higher since 2008, compared with 46 per cent increase during 2003-07.
The steps such as the transfer of additional Rs. 300 billion to Pakistan's agriculture sector during the current fiscal year 2010-2011 by higher prices of agriculture produce and direct flood compensation to 1.6 million affected families at the rate of one hundred thousands rupees each are boosting economic confidence in the countryside. This infusion of money is also generating rural demand for consumer items including consumer durables such as fans, TVs, motorcycles, cars, refrigerators, etc.
Haq's Musings: Poll Finds Pakistanis Happier Than Neighbors
Haq's Musings: Pakistan's Rural Economy Showing Strength
