ong-term policies create a stable environment for businesses and investors, enabling them to make informed decisions. Stability is particularly important for large investments, which require time to materialise.
Pakistan has struggled to have consistent economic and industrial policies, primarily due to political instability. There have been periods of relative consistency, for instance during the Ayub Khan era (1958-1969) when economic policies were relatively stable, with a focus on industrialisation and infrastructure development.
The Green Revolution also transformed agricultural productivity during this period. A five-year economic roadmap provided by the regime was implemented in letter and spirit. The dictator had a firm grip on the state apparatus that assured implementation of his plans. A later five-year plan, however, faced hiccups as Ayub Khan’s grip on power loosened.
Another period of policy consistency was witnessed during the Musharraf era (1999-2008). His policies were fairly consistent, focusing on deregulation, privatisation, and liberalisation of the economy. Pakistan experienced strong economic growth in the mid-2000s, though this it could not be sustained afterwards. The Musharraf regime sought greater transparency in economic affairs but was unable to implement a five year sector-specific policy.
The first auto policy of the regime resulted in rapid growth in the auto sector but then the government started tinkering with the policy and the import of used cars was allowed. The investors that had entered the Pakistani market based on the policy then faced difficulty in competing with the used cars prices and eventually failed to comply with the localisation of manufacture targets. They were then granted several waivers in this regard.
In the same way, a textile Vision 2020 was announced but the expected investments did not materialise. The roadmap provided by Vision 2020 had anticipated huge investments in value added textiles. However, most of the investments during the era were made in........