Development Challenges of Pakistan
By Jamil Nasir
Palgrave Macmillan
ISBN: 978-9819730636
618pp.

Every few years, a Pakistani academic writes a book on the economics of Pakistan, only to find that there is no audience for such endeavours. But rare people like Jamil Nasir continue their mission to inform in the hope that there would be a demand for economic research and thought in Pakistan. Nasir’s Development Challenges of Pakistan is a profound exploration of the socio-economic and political constraints that have hindered Pakistan’s journey toward sustainable economic growth and development.

The book is not merely an academic analysis but a call to action for policymakers, economists and leaders to rethink strategies for ensuring equitable development. Nasir’s work is a compelling examination of the intricate interplay between growth, equity and governance, offering a multidimensional perspective on the hurdles Pakistan faces.

Development Challenges of Pakistan begins with a critical question that should perplex and haunt us but which, sadly, does not concern our policy and opinion-makers: why has Pakistan failed to achieve long-term, sustainable economic growth despite periods of high growth in the past?

Nasir dismantles common misconceptions about economic growth, emphasising that it is not a purely mechanical process driven by fiscal policies and macro-economic indicators. Instead, he views growth as deeply embedded in societal structures, shaped by culture, institutions, governance and the equitable distribution of resources. The book challenges the traditional focus on aggregate numbers, arguing for a deeper examination of the structural issues underlying Pakistan’s economic challenges.

A recent book is a compelling examination of the interplay between growth, equity and governance and an essential read for anyone interested in the complex dynamics of development in Pakistan

Nasir revisits Pakistan’s economic trajectory since Independence, comparing it with East Asian countries such as South Korea and Taiwan. While Pakistan and these nations shared similar growth ambitions in the 1960s, their paths diverged significantly. Nasir attributes Pakistan’s failure to sustain growth to inequitable resource distribution, neglect of human resource development and a colonial governance structure that has persisted since Independence. The book highlights missed opportunities such as ineffective land reforms and inadequate investment in education and healthcare, which have exacerbated regional and class disparities.

Central to Nasir’s thesis is the idea that growth must be inclusive and equitable to be sustainable. He argues that Pakistan’s economic policies have historically favoured elites, resulting in skewed wealth distribution and socio-political instability.

Nasir critiques the trickle-down approach, advocating for policies that prioritise human development and ensure the participation of marginalised groups in the economic process. He underscores the importance of investing in education, healthcare and social services to create a more equitable society and to foster long-term growth.

One of the book’s most striking insights is its emphasis on human resource development as a critical determinant of economic growth. Nasir dedicates an entire chapter to education, distinguishing between mere schooling and quality learning. He critiques Pakistan’s education system for its low quality and poor accessibility, particularly for marginalised communities.

Similarly, he highlights the shortcomings of the public healthcare system, presenting data on malnutrition, maternal mortality and inadequate healthcare infrastructure. His analysis makes a compelling case for prioritising human development as a prerequisite for economic progress.

Nasir also identifies weak governance and institutional inefficiencies as significant barriers to development. He critiques the public sector’s performance, emphasising the need for efficient service delivery and better resource management. The book also examines the judicial system’s inefficiencies and their negative impact on investment and economic growth. Nasir’s analysis extends to the role of social capital, fiscal capacity and corruption in shaping Pakistan’s economic trajectory, highlighting the urgent need for reforms in these areas.

A unique aspect of Nasir’s work is his exploration of non-economic factors influencing growth. He delves into the cultural, social and political dimensions of development, arguing that economic policies must account for these variables to be effective. The book draws on interdisciplinary insights, incorporating perspectives from political economy, sociology and history to provide a holistic understanding of Pakistan’s development challenges.

Nasir enriches his arguments with detailed case studies and empirical evidence. For instance, he examines the misallocation of talent in the public sector, the pitfalls of donor-imposed reforms, and the potential of regional trade. These case studies not only illustrate the practical implications of his analysis but also offer actionable insights for addressing Pakistan’s development challenges.

While Development Challenges of Pakistan offers a comprehensive analysis of Pakistan’s economic issues, some readers may find its academic tone and extensive use of data daunting. The book ends up being discursive, requiring the reader to dig deep and take some time understanding the key messages. Even then, our impatient Pakistanis who want quick and easy solutions may find the book hard to digest. But for the careful reader, serious students and thoughtful policymakers, it is a valuable addition. It is certainly worth adding to courses on the economy of Pakistan.

Perhaps the book has a welfare/socialist tone that seeks a romantic vision of a caring state. In the Trump/Musk era, I find this a little uncomfortable. His concept of the role of government — kind and caring, providing health, education and social protection — seems at odds with his own “acceptance” and my vision of a predatory state. Will the predatory state change? If so, how?

Similarly, as we argued in a recent Pakistan Society of Development Economists (PSDE) conference in Peshawar, the provision of education and health, especially of a low quality, improves the state of life only through the risk of illegal migration, as opportunities at home are closed by the sludge of colonial bureaucracy.

Jamil is correct in noting that development is far more than economics alone and perhaps lies in the complex interaction of environment (geography and external relations) and our systems of collaboration (governance and social relationships). This is something that I tried to develop in my book Looking Back a few years ago. However, both of us cannot answer the extreme lack of interest in economic policy and development among the people of Pakistan. After all, a people get what they want!

Jamil also lays great emphasis on elite capture, a subject quite in vogue these days. My argument has been that all societies are always based on elite capture. What matters is the nature of the elite. A ‘meritocratic elite’, arising from competitive conditions, will seek to perpetuate innovation and competition, while a ‘gatekeeper elite’ that arose through rents or patronage will seek to close doors to perpetuate its own position.

If ever Jamil seeks to prepare a new edition or write a companion volume, I would urge that he review some of the reform initiatives that have been prepared and argued by many of us and assess those in light of his framework. For example, there are contrasting views of institutional reform, its speed, its depth. Many like me want a drastic change to the colonial state, while incrementalists want to tinker at the margins.

The extreme centralisation of our Rules of Business and the Principal Accounting Officer prevent all bottom-up initiatives. Also, the failure of the Planning Commission and the Public Sector Development Programme (PSDP) fuels a large part of our rent-seeking and seeks to cling to the Haq/Hag model and continue to beg for projects.

While Jamil has talked of the consultant’s role in the country, he might wish to talk about their weight in economic decision-making without any skin in the game. I have argued that the distance between the consultants and the civil service has virtually disappeared, as they start their careers with donor-provided scholarships, graduate to project managers in senior positions, and retire to donor-led projects. The lack of this distance leads to excessive debt and foreign-inspired agendas not necessarily to our sole advantage.

Jamil Nasir’s Development Challenges of Pakistan is an essential read for anyone interested in understanding the complex dynamics of economic growth and development in Pakistan. It is a meticulously researched and thought-provoking book that challenges conventional wisdom and offers a roadmap for achieving sustainable and inclusive development.

The reviewer is Director at Socioeconomic Insights and Analytics, and a former deputy chairman of the Planning Commission. X: @nadeemhaque and @SIAlytics. YouTube: @SIAlytics

Published in Dawn, Books & Authors, March 30th, 2025