Revisiting Jinnah’s economic vision: A blueprint for Pakistan’s sustainable future

As we commemorate Quaid-i-Azam Muhammad Ali Jinnah’s birth anniversary, it is crucial to revisit his economic vision for Pakistan. His aspirations for the nation were not confined to political independence but also encompassed building a strong, self-reliant, and welfare state. Amid Pakistan’s persistent economic challenges, Jinnah’s vision offers invaluable insights for shaping a sustainable future. Understanding his economic outlook, especially for the youth, is key to empowering them to transform the country’s economic future.

Quaid-i-Azam believed that economic freedom and independence were fundamental to nation-building. In his inaugural address to the State Bank of Pakistan in 1948, he emphasised, “The adoption of Western economic theory and practice will not help us in achieving our goal of creating a happy and contented people.” This statement highlights the need for innovative and context-specific economic solutions.

Today, Pakistan’s dependence on foreign debt poses a serious challenge to its sovereignty. As of 2024, Pakistan’s external debt stands at over $100 billion, with annual debt servicing consuming a substantial portion of the national budget. In the fiscal year 2023-24, debt servicing accounted for approximately 40% of the country’s total expenditures, reflecting the growing burden of foreign loans.

Jinnah’s economic vision was influenced by his understanding of commerce and trade. Coming from a business family, he knew the importance of economic equity and opportunities for all citizens. During his studies in England, he observed the benefits of trade, investment, and industrialisation in Western economies, which shaped his belief in fostering a robust and inclusive economy. In the Quaid-i-Azam Papers, written by Zawar Hussain Zaidi, it is stated that for Jinnah, “commerce and trade are the very lifeblood of a nation.” Jinnah emphasised the significance of investing in the future.

To reduce dependency on foreign debt, Pakistan must focus on developing local industries, improving resource management, and fostering innovation. Aligning policies with Jinnah’s vision of economic autonomy can help the country reduce its reliance on external financial assistance and create a more self-sustaining economic system.

1. Industrialisation: The backbone of economic prosperity

Jinnah understood the crucial role of industrialisation in a nation’s economic success. Despite Pakistan’s limited resources at the time of independence, he championed industrial development through initiatives like the Pakistan Industrial Development Corporation (PIDC), which played a pivotal role in early industrial growth. However, over the years, industrial progress has stagnated. Pakistan’s reliance on imports and underdeveloped manufacturing sector underscores the need to revitalise Jinnah’s vision of a self-reliant industrial base, crucial for job creation, export and sustainable economic development.

2. Economic justice and equitable wealth distribution

Jinnah’s economic vision was rooted in justice and fairness, with economic equity as a cornerstone for development. He believed that persistent inequality stifles productivity for a significant segment of the population, undermining overall growth.

Quaid-i-Azam emphasised equality as fundamental to Pakistan’s economic plan. At a public meeting in Chittagong, he highlighted, “The great ideals of human progress, of social justice, of equality, and of fraternity constitute the basic causes of the birth of Pakistan.”

After Pakistan’s independence, Jinnah expressed his dissatisfaction with the Western economic system, which he believed failed to provide an equitable framework globally. He advocated for a system that avoided widening the gap between the rich and the poor. Unfortunately, Pakistan has struggled to fulfill this vision. Rising inequality, ineffective redistribution mechanisms, and a widening wealth gap continue to hinder progress. Implementing Jinnah’s ideals through progressive taxation and targeted social welfare programs can help address these disparities.

3. Financial discipline and good governance

Financial discipline was central to Jinnah’s policies. He warned against corruption, inefficiency, and resource mismanagement-issues that remain relevant today. However, these principles have often been ignored, leading to fiscal mismanagement, wasteful expenditures, and eroded public trust.

Pakistan ranks 136th out of 167 countries in the Prosperity Index, based on indicators such as personal freedom, investment environment, and governance. Despite moving up 12 places since 2011, governance weaknesses, particularly in accountability and institutional capacity, continue to pull rankings down.

To honour Jinnah’s legacy, Pakistan must enforce strict anti-corruption measures, improve governance transparency, and adopt prudent fiscal policies. These steps are crucial to restoring public confidence and achieving sustainable economic growth.

4. Role of trade and international relations in spurring economic growth

Quaid-i-Azam envisioned Pakistan as a trade hub, leveraging its geo-political location to strengthen ties with neighbours, the Muslim world, and the West. Despite this vision, poor trade policies and geopolitical challenges have hindered progress.

In FY 2023-2024, Pakistan’s merchandise exports grew by 10.54%, reaching $30.64 billion, contributing 23% to the GDP. However, Pakistan’s share in global merchandise trade remains at just 0.34%, reflecting untapped potential. Initiatives like the Special Investment Facilitation Council (SIFC), improved trade agreements, and export market diversification are critical to increasing this share.

Reviving Jinnah’s emphasis on trade and economic diplomacy can help Pakistan integrate more effectively into the global economy, enhancing economic stability and growth.

5. Welfare state aspirations

Jinnah aspired to create a welfare state where every citizen had access to basic necessities, including education, healthcare, and housing. He envisioned a system that balanced free-market principles with social responsibility, emphasising the state’s role in uplifting the underprivileged.

According to the Human Development Report 2023-2024, Pakistan’s Human Development Index (HDI) value stands at 0.540, placing it in the “low” development category and ranking 164th out of 193 countries. Key factors contributing to this low ranking include a life expectancy of just 66.1 years, a gross national income (GNI) per capita of $4,600 (PPP), and significant challenges in education and healthcare. In comparison, India ranks 132nd, and Bangladesh ranks 129th.

Pakistan’s failure to meet Jinnah’s welfare aspirations reflects inadequate investment in public services and resultant rising poverty levels. Bridging this gap requires significant investment in human development, particularly in education and healthcare, as well as targeted social welfare programs.

6. Economic integration of provinces

Jinnah was fully aware of the economic disparities among Pakistan’s provinces and the need for integration to promote national unity. He advocated for equitable resource sharing and inclusive development to address regional grievances. His vision aimed at fostering inter-provincial harmony as a means of strengthening national solidarity. Today, tensions over fiscal allocation and resource management remain significant challenges. Projects like the China-Pakistan Economic Corridor (CPEC) have highlighted disparities in regional development and the need for more inclusive policies. Addressing vertical and horizontal imbalances in federal-provincial financial distribution is crucial for realising Jinnah’s vision. Policies that promote equitable economic opportunities and resource sharing across provinces can ensure sustainable and harmonious growth.

Lessons for modern Pakistan

Jinnah’s economic vision offers critical lessons for addressing Pakistan’s current challenges:

* Reduction in debt dependency: Prioritise self-reliance by reducing foreign loans and focusing on domestic resource mobilization.

* Employment opportunities: Promote industrialisation and vocational training to create jobs.

* Curbing corruption: Strengthen accountability mechanisms and transparent governance to restore trust in public institutions.

* Be a facilitator: Institutions like the Special Investment Facilitation Council (SIFC) can help implement investment-led growth and inclusive reforms.

Quaid-i-Azam Muhammad Ali Jinnah’s economic vision remains a beacon of hope for Pakistan. His ideals of self-reliance, economic justice, and disciplined governance offer a roadmap for addressing the nation’s pressing challenges. As we honour his legacy, it is crucial for policymakers and citizens alike to align with his vision, ensuring a prosperous future for Pakistan. By fostering productivity, reducing dependency on foreign debt, and promoting inclusive growth, Pakistan can build a more equitable and sustainable economy.

-The author is a political economist and the recipient of the prestigious Martin Luther King Award.