‘CAPITALISM is an economic system in which the means of production and distribution are privately and corporately owned and development is proportionate to accumulation and reinvestments of profits gained in a free market.’

Individuals and companies are allowed to compete for their own gain and free market forces determine the prices of goods and services. The role of state is to regulate, and protect private property.

As Pakistan has not developed its own indigenous school of thought, it has adopted capitalism from the western world without considering its basic fault lines and its adverse impact on society. As a result, feudalism dominates rural areas, whereas capitalism has captured urban centres of the country.

The rich are getting richer and poor getting poorer over time owing to very limited or no access of a vast majority of people to basic necessities of life, like food, clothing, housing/shelter. This hurts the economy, society and the nation. The system breeds inequitable distribution of income and wealth.

The average salary of directors, CEOs and senior executives is around Rs1,000,000 to 25,00,000 or more per month. For instance, the last managing director of Pakistan International Airlines was drawing a salary of $50,000 or equivalent to about Rs4,600,000/. On the other side, workers’ salaries’ ranges between Rs7,000 and Rs9,000 as set by the government. In small and medium enterprises, labourers get Rs5000 to Rs7,000 per month or even a lower amount. With these wages, the poor are struggling hard to survive.

As unemployment rate is high, which goes in favour of employers, companies employ workers on low salaries with no definite rules for increment in salaries, gratuity fund and overtime pay for workers. Generally, no precautionary measures have been taken to safeguard the life and health of workers.

The privatisation policies are not an unqualified success. Corporates are free to set the prices as and when required, resulting in severe financial burden on the consumers. With the privatisation of Karachi Electric Supply Corporation and Pakistan Telecommunication, prices of these utilities are continuously rising as well.

While the governmental spending on education is at a low 2.5 per cent of GDP, the rich have invested in education business and set up various private institutions including schools, colleges and universities as income from education is tax- free. However, despite gaining profitable returns, they pay paltry wages to their staff.

They use of various tactics to get money from parents apart from charging expensive tuition fees, admission fees, half/yearly fees and for sports events. It remains a dream for the poor and low income group to get education from private institutions. Their school average fee is around Rs3,000 to Rs15,000 per month whereas Rs1 million is required for medical and engineering universities. Likewise, the fee for an MBA, IT and MS degree ranges for Rs250,000 to Rs850,000

Unfortunately, rapid investment in education business has not noticeably improved the quality of education. Today, Pakistan cannot boast of a single university in the list of world’s top 500 universities.

It is a common practice to stockpile essential consumer items to create artificial food shortage in the market. That includes wheat, sugar, vegetable, fruit and other foodstuff etc. Thus the prices go up constantly. The objective is to maximise profit margins regardless of its impact on the masses. One can also witness profiteering in other sectors like textiles, medicines, machinery/equipments, estate and property, other commodities etc., with all economic agents playing their role in their own sphere.

In essence, capitalism is not working for the vast majority. This system is protecting the interest of only one per cent while the rest 99 per cent is suffering from severe economic hardships. There is a need to transform the economic system and build a welfare state. The state needs to pull the country out of the deep economic crisis and initiate measures for the welfare of the society.