ISAS Working Papers

In this concluding part of the three Working Papers on the grim Pakistani situation as of midAugust 2012, “the positives” on the economic front are examined. These include the decision to decentralise a significant part of economic decision-making from the centre to the provinces. This was done by amending the Constitution. The recent thaw in the economic relationship with India is also viewed as a highly positive development. If this results in a relatively free flow of trade between the two countries, that alone could add as much as 2.4 percentage points to the rate of growth in Pakistan’s GDP. The large Pakistani diaspora in three continents and the remittances they send back to the homeland is another positive. In 2011-12 the capital flow from this particular source was equivalent to seven per cent of the national income. The fourth positive discussed in the paper is the extent to which women are acquiring education and skills. This has enabled many of them to play important roles in some of the modern sectors of the economy. Women have also begun to perform important entrepreneurial roles, particularly in the sectors of education, communication, and microfinance. The paper also discusses some of the strategies the country could adopt to put an end to the uncertainties that affect the performance of the economy.