A renowned Princeton economist, Atif Mian, has drawn attention to the detrimental impact of the power-plot nexus on Pakistan’s economy. Mian emphasizes the need for the government to prioritize reproducible factors over non-reproducible ones to improve the economic situation in the country.
Mian highlights the low productivity and high consumption tendencies in Pakistan’s economy, attributing them to the power-plot nexus. He suggests increasing property tax as a possible solution to generate more revenue from land and property.
While some argue that raising property tax may disproportionately affect the elite, Mian emphasizes the importance of addressing core structural issues in the economy. He warns that Pakistan’s economy is at risk of a potential crisis if not managed through significant economic and political reforms.
Mian also criticizes the country’s power sector, labeling it as a “zombie sector” that is draining resources from the economy. He advocates for practical strategies to generate revenue from land value, citing China as a successful example.
In conclusion, Mian stresses the need for Pakistan to reform its economic policies, reduce dependency on the power-plot nexus, and focus on sustainable revenue generation for long-term growth.
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