Phoenix Pakistan? Putting claim and realities in the right equation

Abstract

The current statements of Pakistani authorities make it seem like the country is finally experiencing a shift towards a comprehensive improvement after decades of endemic violence, political turmoil, as well as declining social and economic conditions. Several indicators are put forward to backup this proclaimed ‘turnaround’: Firstly, there are trends pointing towards an apparently overall positive economic development. The Pakistani Stock Exchange (PSX) provided a performance of 46 per cents in return last year. It is expected that the GDP will grow by 4.7 per cent in 2017. Furthermore, the inflation rate is on a ‘moderate level’ of 3.66 percent in January this year (the average rate during the last 6 decades was 7.85 percent); the consumer spending will be boosted by a burgeoning middle class and there is a ‘staggering fall’ of Pakistani living in poverty. Most importantly, the country is witnessing the launch and implementation of numerous Chinesesupported energy and infrastructure projects within the framework of the China-Pakistan Economic Corridor (CPEC), a multi-billion dollar development initiative. Said Economic Corridor is getting heralded as a ‘game changer’ away from Pakistan’s past unfortunate economic and social trajectories. Secondly, due to the fact that two-thirds of the CPEC-related projects are energy related, Pakistani officials are announcing that the country solved its energy crisis. Until now, the shortages in energy supply resulted in longlasting power cuts which severely hampered the country’s economic development.