Lahore, December 19, 2024 – PILDAT convened a Thought Session on Thursday titled “Can Economic Progress and Democracy Coexist?” The session featured in-depth deliberations by a distinguished panel on Pakistan’s path forward for economic progress within a robust democratic framework.
Mr. Ahmed Bilal Mehboob, President PILDAT, opened the session, highlighting the lack of attention given to economic issues in our political discourse, which is often dominated by abstract politics. He expressed hope that this session would be the start of centring Pakistan’s public policy discussions around the economy and pledged that PILDAT would continue to hold such discussions. He then introduced the distinguished lineup of panellists: Mr. Shahid Khaqan Abbasi, former Prime Minister of Pakistan; Mr. Fawad Hasan Fawad, former Caretaker Federal Minister for Privatization; Mr. Khurram Dastgir Khan, former Federal Minister for Commerce and Energy; and Ms. Faryal Sadiq, Chief Marketing Officer, Interloop Limited. Each panellist brought a unique perspective, offering incisive analysis into the challenges and opportunities facing Pakistan’s polity and economy.
Mr. Shahid Khaqan Abbasi argued that Pakistan cannot grow economically unless it becomes a fully functioning democracy. He said the countries who have prospered while being autocracies are not similar to Pakistan in any aspect as those are societies with long histories of homogeneity and social discipline. “Our autocrats want to be democrats, and our democrats want to be autocrats,” he said, reflecting on the nation’s political conundrum. He further explained that the reason Pakistan’s autocratic regimes are remembered in the popular narrative as economically successful is because they all operated in an aid-driven environment, which was the real reason behind growth. He stressed that geopolitics no longer allows for such aid-led growth. “Economy, not security, will drive this country and its politics now,” he remarked.
Ms. Faryal Sadiq argued that the issue is not democracy but the lack of consistency in policies and political instability, which hinder economic activity. While she highlighted the resilience and success of the private sector, she said its potential to drive further growth was dependent on consistent policies and sound governance. She highlighted the disruptions caused by sit-ins and protests, noting, “When containers meant for protests are no longer available for shipments, it’s the economy that suffers.” She underscored the importance of stability and consensus-driven policies for businesses to prosper.
Mr. Khurram Dastgir Khan reflected on Pakistan’s ongoing economic challenges and asserted that his party’s government had solved many economic hurdles when it left power in 2013, including terrorism and energy shortages. He pointed to this as proof of the success of democratic governments in delivering economic progress. He also emphasized the importance of transparency. Referencing a popular saying, he remarked, “Three things you should never see being made: sausages, legislation, and government decisions. But the lack of transparency in these processes breeds mistrust and inefficiency.” He argued that the success of democratic governments hinges on transparency, accountability, and active stakeholder engagement.
Mr. Fawad Hasan Fawad stressed that human development has not been achieved by dictatorships, even if they have achieved economic growth. “GDP growth under authoritarian regimes may appear higher, but it lacks the depth and inclusivity needed for long-term resilience,” he argued. He called for a transformation in the state’s functioning to prioritize efficiency, transparency, and accountability. While emphasizing that privatization and deregulation is necessary for sectors of business, he argued that this approach cannot be taken in areas that are essential functions of the state: health, education and skills development. Addressing PIA’s privatization and the broader issue of state-owned enterprises, Mr. Fawad said that privatization in Pakistan has often been mishandled due to a lack of transparency and accountability. “Public sector enterprises like PIA and Pakistan Railways suffer because they operate in an environment of mismanagement and limited oversight,” he said.
The panellists agreed that Pakistan’s path to economic progress exists within a robust democratic framework complemented by sound governance, institutional reforms, and a clear, long-term vision. They stressed the importance of changing attitudes within democratic governments to foster a culture of accountability and effectiveness, ensuring that democratic and economic progress can thrive together.
The event concluded with an engaging group discussion, where a diverse range of participants, including academics, policymakers, business leaders, and representatives from civil society, had the opportunity to engage directly with the panellists.