Alternative Models of Economic Management and Their Effectiveness in Context of Pakistan

Abstract

The different eras of socialism and capitalism have gone through in Pakistan’s history, unlike other countries such as China or Russia there is not a fixed economic model followed in Pakistan. The PPP government has Islamic socialist reforms whereas Zia ul Haq and Musharraf regimes were more liberal. The socialistic reforms have not benefited lower class evidently in Pakistan curbed the private sector. This is suggested through literature review that capitalism leads to developmentalism as it produces employment (unlike socialism which set rules for employment) and it boosts production leading to more improved standard of living. Government can intervene in giving a direction to private sector in capitalism. Wages, GDP are seen more increasing in capitalism in case of Pakistan. Balance of Payment is deficient in all market models.