Author: Ishrat Husain, IBA, Karachi

Pakistan’s economy remained sluggish in 2011 due to domestic political instability, energy shortages, deteriorating Pakistan-US relations, global climate change and internal security concerns.

For the fourth year in a row, GDP growth in 2011-12 will fall below its long-term growth rate. Read more…

Author: Ishrat Husain, Institute of Business Administration, Karachi

The expansion of the G7 to the G20, thereby incorporating Asia, is a welcome step.

 Economic power relations have changed considerably in the past decade or so and it was thus only natural that the global governance architecture should begin to reflect this new reality. Read more…

Author: Ishrat Husain, Institute of Business Administration, Karachi

The formation of the G20 grouping of finance ministers and central bank governors and their heads of state is indeed a significant improvement compared to the previous G8 arrangements. The dynamic changes in global economic output and international trade are adequately reflected in this expanded group. The inclusion of 10 emerging economies such as South Africa, Mexico, Argentina, Brazil, China, South Korea, India, Indonesia, South Arabia and Turkey in the consultative process has broadened the scope of the dialogue. but it still excludes 170 nations from direct participation in this forum.  Norway, one of the major donors to development programs, has protested that it has no voice within the group.

The questions of the legitimacy, representative character, governance structure, voice and accountability of the G20 remain and pose certain dilemmas for countries such as Pakistan which do not have a seat on the table. Read more…

Author: Ishrat Husain, Institute of Business Administration, Karachi

Pakistan’s critical political and security problems intensified in 2009 as militants captured some of the settled districts of the North West Frontier Province, also known as Swat. The Army launched a successful campaign to oust the militants from their strongholds, restoring peace and normalcy in those areas. The exodus of more than 2 million families from their homes and then their subsequent return created enormous logistical problems but this was managed reasonably well. This success prompted the Army to launch a similar assault on South Waziristan – a no man’s land on the border between Afghanistan and Pakistan which serves as the headquarters of Al-Qaeda and Taliban. Public opinion had turned against the militants after Swat, which helped the Army to neutralise some of the population in the target area.

The early success of the Army in displacing the militants from their training camps, supply routes and command and control structures was retaliated against by fierce suicide bomb attacks on the Army headquarters in Rawalpindi, Police and Intelligence agency offices in Lahore and other sensitive points in Peshawar. Read more…

Special Author: Ishrat Husain, Institute of Business Administration, Karachi

Pakistan faced a number of serious challenges in the year 2008 — more than any other country in the region. The transition from military rule to a democratically elected political regime was difficult. The terms of trade sent shocks to the economy through severe fluctuations in oil and commodity prices, the quality of economic governance was sub-optimal and Pakistan’s ‘frontline’ status in the war against terror proved to be exceptionally disruptive. The assassination of Pakistan’s leading politician, the highly respected Benazir Bhutto, created a huge vacuum in the political landscape. Although the general elections were held peacefully and were (by and large) fair and transparent the loss of the top leadership of the winning party led to a long unsettling period marked by prolonged uncertainty.

On the regional front, aggression from Taliban and Al Qaeda, which has so far been limited to the ungovernable and hostile terrain of the border areas between Pakistan and Afghanistan, spilled over to some of the settled districts of the North West Frontier province, including Peshawar, causing immense loss of life and property, and widespread fear amongst the general populace.  On the eastern borders, however, the new government, reiterated the policy of strengthening friendly relations with India, and initially made some positive overtures.

Read more…