‘Falling per capita income in Sindh requires urgent response’

The 11th Karachi Literature Festival organised a session titled ‘Sindh’s Economy – The Untapped Potential’ at the Beach Luxury Hotel on Saturday.

The panellists included Dr Ishrat Husain, lead author of the book ‘The Economy of Modern Sindh: Opportunities Lost and Lessons for the Future’, Tahira Raza, former president of the First Women Bank Limited, and Shamsuddin Shaikh, head of National Resources Limited. Nadeem Hussain, the co-author of the book ‘The Economy of Modern Sindh’, moderated the session.

The panel discussion began with the basic and pertinent question about the untapped areas in Sindh hindering its socio-economic potential since the past six decades.

Responding to this, Dr Ishrat referred to his recent publication, The Economy of Modern Sindh: Opportunities Lost and Lessons for the Future. The book has a detailed sector-wise analysis of Sindh’s economy, which Dr Husain remarked presents missed opportunities but there is also great potential.

Historically, Sindh had a higher per-capita income as compared to other provinces, but this situation is adversely altering. The urban and rural economies of Sindh do not keep pace with the national economy, which itself has been experiencing downward since 1990. Today, Sindh has fallen behind Punjab in terms of per-capita income, which requires urgent response.

There is a need for revisiting and altering the old practices of administration and exploring sectors that are both growth- enhancing and economic equalizers, he added. Sindh’s coastal belt is still untapped, which could make Pakistan the largest exporter of marine products. These products have great demand in Japan, East Asian countries and the European Union. However, infrastructure and standards of quality make essential requisites.

There is a need for increasing the incomes of those who are poor. For instance, livestock is one such sector, but unfortunately it is unorganised. As urban taste increases, demand for meat and poultry increases, and this presents a valuable opportunity to engage Sindh’s rural economy.

Similarly, there is a pressing issue of informal economy in urban areas. There is a need to ensure that the youth, who make more than 60 per cent of Pakistan’s population, becomes employable for the productive and formal sectors.

The most pressing issues, Dr Husain added, are the female enrolment ratio, female labour force participation and female literacy. Investing in female education not only boosts aggregate income but also leads to various social benefits encompassing education, environment, nutrition and family stability. Responding to the question about the cultural barriers for the women in Sindh, Tahira Raza remarked that women in Sindh are the victims of cultural mindset. The women have internalised that they cannot overcome their barriers, which has also caged their potential and outlook.

The parochial mindset reiterates the expectations of a good woman who looks after the house. However, there is not a parallel narrative for a good man who should genuinely support his wife and daughters and ensure their progress, she added. In the event of this untapped potential, the economic burden falls heavily on the current workforce. However, this burden can be shared if females are added to the workforce.

She further added that although females are dominating higher education, their participation in labour force is not at par. The general mindset needs to change, which lauds women who make a difference but is not prepared to support the women in their homes.

Shamsuddin recounted his experiences from his thirty years of engagement in rural projects, both in Sindh and Punjab.

Speaking of the Thar Coal Project, he mentioned that the mining work offers extremely difficult working conditions. The common perception would deem this sector unsuitable for women employment. However, having identified trucking as the most difficult job in mining, it was decided to train the Thari women in it. Today, 54 Thari women, clad in their traditional clothes, are driving trucks in Thar.

He remarked that the most important learning out of the Thar Project is the importance and effectiveness of public-private partnership.

Dr Husain, while agreeing with Shamsuddin, added that the magnitude of the socio-economic challenges make it impossible for any sector be it public, private, NGOs or even international donors to solve our issues solely. There is a need of a collaborative approach engaging multiple players in the process of delivery. The erstwhile blame game and confrontational attitude needs to change for a more progressive approach.

Highlight the challenges, he added that the capacity of the civil service has declined over time since meritocracy has been gravely compromised. To undo this, meritocracy needs re-introduction with performance-based promotion. Similarly, there is also a need of valuing agriculturalists, economists, specialists and technical experts who are at present treated as second-class citizens. This, in the age of knowledge economy, is highly unfortunate.

Thaira added that there have been many women-focused initiatives; however, the ground impact depends upon effective implementation, which needs serious attention. The State Bank of Pakistan has introduced programmes to support small medium enterprises through small loans. However, these initiatives need to be constantly padded with efforts to improve education, both formal and informal.

Underscoring her positive outlook, she added that several achievements have been made on various fronts. For instance, more women parliamentarians have joined in post compulsion of 33 per cent representation of women in the parliament. However, there is still need for adopting affirmative actions to facilitate women for their socio-economic participation.

Responding to questions from the audience, Dr Ishrat Hussain emphasised the significance of private sector’s participation. There are only six per cent jobs created by the government, which are in turn divided between rural and urban areas. The rest of the jobs are ought to be generated by the private sector.

Narrating his experience of setting a milk processing factory in Sukkur, Shamsuddin said that females are a valuable resource still underutilised in Sindh. He remarked that in the milk processing factory, the laboratories were being run by females of Sukkur.

Dr Ishrat Husain further contributed that Sindh is fortunate to have great potential for solar and wind energy projects. The government is also shifting its focus to renewable resources, while increasing their share in broader energy mix.