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OpEdNews Op Eds    H4'ed 7/8/09

Infrastructure Development: Remedy for Pakistan's economic demise

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Farzana Shah
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Although following a correct direction, HEC still is facing many problems of management and finances. Last year budget of HEC was cut sufficiently due to economic strains in Pakistan and it affected many programs being run by HEC for rapid development of pool of professionals.

Only education can produce human capital and new technologies to further contribute in development of every kind of infrastructure from basic facilities like electricity, energy, communication, healthcare to national level projects like dams, canal systems, emergency response centers etc.

  • Human Resource Management

Infrastructure is one of those areas which are affected by shoddily management in Pakistan and one of core reasons is human resource management. Meager human resource planning and failure to build capacity for skilled human resource pool has remained core reason for lack of sustained growth in Pakistan since its creation.

There is a greater need now to invest more in institutions and faculties responsible for building and enhancing capacity of human resource. These includes universities, role oriented institutes, training facilities etc. both under public and private sector so that a sturdy growth rate can be sustained not only in infrastructure but also other areas of the state.

  • Planning Perusal

As mentioned earlier planning is weakest phase of any project in Pakistan. According to World Economic Forum Survey (2006-07), Pakistan is ranked 67th in 125 countries which were evaluated in survey.[4] This clearly depicts the need for not only building new infrastructure but also to maintain existing ones as well.

Islamabad over the years failed to properly prioritise its infrastructure projects. If Pakistan had built its road links prior to investment in Gwardar port it would have earned some return on investment on road infrastructure by the time the port got completed.

This poor planning is hurting Pakistan twice; First over the year Pakistan was not able to allocate proper funding to infrastructure which is required for sustained development on the other hand due to lack of capacity the allocated fund could not be spent in one fiscal year. In 2008, only $2.3 billions were allocated as against the required $24 billions and even that amount wasn't utilised completely.

Planning division needs some effective reforms to plug all above mentioned loopholes.Â

  • Encourage private sector

Infrastructure projects are expensive undertaking on public side alone. In Pakistan, governments failed to fully exploit the talent and potential of private sector in infrastructure development. A public-private partnership (PPP) paradigm can enhance the pace of project execution. Private investment in infrastructure projects has declined in Pakistan over the years. Independent Power Plants ( IPPs), established in 1990s, was last major infrastructure project completed in Pakistan following BOT (Build-Operate-Transfer) paradigm.

No concrete BOT regularity body and legal framework is in place for specific infrastructure due to which array of projects were not being commenced like Light Rail Transit System in Lahore and Rawalpindi (Punjab), Naran Saiful Malook CableCar Project (NWFP), Electromagnetic Train Project in Karachi (Sindh) etc [5]. All these projects were envisioned to be completed following BOT but absence of any policy framework for BOT kept private sector aside.  Â

There are other models as well which can work in Pakistan in infrastructure development like BOO (Build-operate-Own) and BLT (Build-Lease-Transfer) etc. These frameworks along with BOT have some inherent complexities involved in their implementation like its lengthy obligations and multi-party involvement in projects [6]. Apart from legal and regulatory frameworks an economic framework must be proposed as well by the government in collaboration with private sectors so that an overall conducive environment can be established to attract private sector in infrastructure development. Â

Conclusion

Importance of infrastructure is imperative for a sustained growth in Pakistan. There are challenges in the way but equal opportunities are also there. Pakistan can bring itself out of foreign financial leverages through using its ideal geographic location. Infrastructure is one weak link in this route of prosperity for nation of 170 million. Both government and private sectors will have to join hands in this effort. Government holds the key to formulate policies so that it can provide a conducive environment to private sector to invest more in infrastructure development of the country.Â

Pakistan will have to seek larger role in regional trade and cross border infrastructure (CBI) which can provide an excellent way forward. Apart from financial benefits regional infrastructure can help Pakistan to solve many political and regional problems peacefully through increased interdependency on countries through its land. If infrastructure development schemes of President Roosevelt can bring an end to "the great depression" of 1930 there is no way same cannot be reciprocated in Pakistan in dire economic situations the country is going through since last two decades. Â

References:Â

[1] PSDP document, 2009-10, P.1, Ministry of Finance, Government of PakistanÂ

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Farzana Shah is a female journalist based in Peshawar, the capital of North West Frontier Province of Pakistan. Had been in English journalism for the last 6 years. Contributes articles on geo-political, security, defence related issues to national (more...)
 
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