Pakistan surprises everyone by doing the unexpected, whether on the cricket field or surviving 75 years when pundits gave it a mere two years, if that.

In 1967, Gustav Papanek, economic adviser from Harvard to the Planning Commission of Pakistan in the 1950s, noted in his book Pakistan’s Development that, despite no prior industrial experience, the Memons — a handful of traders, conservative, uneducated and certainly not ‘modern’ — drove Pakistan’s rapid economic growth, with the support of what he calls the elite “educated gentlemen” of the civil service.

Other international observers called it “a rare success story”, an “economic monstrosity”, whose performance was “outstanding”, supported by “positively brilliant” government decisions and a “sophisticated” planning system, not seen in other developing countries.

A 23-year-old Mahbubul Haq, later to become the author of the Human Development Index, was part of the Planning Commission and its first Five-Year Plan. Ten years later, during a lecture at the University of Karachi’s Applied Economics Research Centre, he was the first to identify the monopoly of 22 families in Pakistan’s economic sphere.

Pakistan cannot foster an environment of entrepreneurship without first fostering a stable political and economic climate

He suggested higher taxation. Instead, in the 70s, the big industries, banks and educational institutions were nationalised. Coming fast on the back of the loss of East Pakistan, not only did it dismantle the economic edifices, it broke the spirit of private enterprise, and the enthusiasm to invest in Pakistan.

Long term developmental plans were replaced by short term gains and the flight of capital. Re-privatisation in the 90s was a messy grab for maximum profit with minimum outlay, and had none of the ideals of the first pioneers. Those early Memon entrepreneurs shared their high profits in social uplift programmes, establishing schools and charitable institutions, not perfunctory corporate social responsibility (CSR) funding to satisfy company boards.

There are some inspiring examples of the role of the private sector industry in the social, cultural and economic development of nations. In 19th century England, William Lever of Lever Brothers soap factory built Port Sunlight, a beautiful village for the families of factory employees, designed by leading architects, with modern cottages, parks and technical institutes. Bournville was another such village, developed by the Cadbury family.

In Sindh, the village of Tando Soomro, the Orangi Pilot Project of Karachi and the social uplift programmes of the Aga Khan Foundation in the Northern Areas of Pakistan are examples of how receptive Pakistani communities are to better standards of living.

Much of the development of prosperous nations has been achieved by private sector investment. In addition to the obvious factors of employment, adding to the economy and the supply of products for society, scholarships, hospitals, museums and universities have also been beneficiaries of their support.

Sometimes, great contributions to cultural development are made by industry for dubious reasons — the big tobacco companies, such as Philip Morris, make a point of financing large scale exhibitions and museums to improve their image, especially after the 1964 US Surgeon General’s report concluded that smoking caused lung cancer.

Investment in research and development (R&D) has always spearheaded development. It was once institutions such as the Bayt al-ikmah (House of Wisdom) in Baghdad that, from the 8th-13th century, supported famous scholars, scientists and inventors, including the three orphaned brothers known as Banu Musa, who made 100 engineering inventions and authored more than 20 books on science.

Today, in countries leading in innovation — the US, China, Japan, Germany, South Korea, France and the UK — R&D is supported by the business community. Pakistan ranks 131 out of 141 countries in R&D. Yet, YouTube videos abound with ordinary Pakistanis inventing amazing products. The small workshops of Karachi’s Liaquatabad and Golimar have developed innovative production methods, and art schools create design projects that should have been picked up for mass production by industries. The Sialkot surgical equipment manufacturing waits for investment in new technologies to meet international medical needs.

Most industries are cautious about expansion and investment. Since the fateful 70s, there has been a lack of trust in long term government support, so necessary for developing and marketing innovation. The early decades prove that Pakistanis are capable of ambitious entrepreneurship and deserve a stable political and economic climate and infrastructure that only a new generation of “educated gentlemen” of the civil service can provide.

Durriya Kazi is a Karachi-based artist. She may be reached at durriyakazi1918@gmail.com

Published in Dawn, EOS, November 26th, 2023