A prominent business leader has emphasized that despite decades of economic policy experiments, the public’s income has been continuously declining, causing citizens to be crushed under the burden of inflation while true prosperity remains a distant dream.
Former President of the Islamabad Chamber of Commerce, Shahid Rasheed Butt, said that although officials often present GDP growth as a success, the real measure of development is the income and standard of living of the common people. He pointed out that with a per capita income of approximately $1500, the country’s economic progress is severely limited by a rapidly growing population and weak productivity.
The business leader clarified that economic growth and economic improvement are two distinct concepts, stressing that Gross Domestic Product (GDP) only shows the size of the economy and fails to reflect the reality of income distribution. He added that rising prices of food, transport, and energy have significantly increased public hardships, while a large portion of the population lives below the poverty line.
Mr. Butt also highlighted the lack of health, education, and other basic facilities, especially in rural and underdeveloped areas.
Citing international examples, he said that countries like Vietnam, Bangladesh, India, and Turkey achieved substantial income growth by focusing on export-oriented industrialization, technology, and enhancing productivity. Similarly, he observed that Qatar and Saudi Arabia achieved progress by diversifying their economies alongside the effective use of their natural resources.
Identifying domestic hurdles, Mr. Butt said that high energy costs, complex regulations, weak infrastructure, and a lack of policy continuity are major obstacles for business in Pakistan. He also identified the shortage of a skilled workforce as another significant issue hindering economic development.
He urged the government to focus its efforts on promoting exports, industrialization, and investing in technology and human resource development.
In his concluding remarks, Mr. Butt emphasized that without effective governance, transparency, and accountability, the benefits of economic policies cannot reach the public. He warned that until economic growth translates into real income and public welfare, Pakistan will remain far from its goal of per capita prosperity.