Capitalist Democratic System Discourages Local Production and Manufacturing in Pakistan
Before the announcement of the Budget 2017-18, the Finance Minister of the Bajwa-Nawaz regime informed the nation of a 2% growth in the services sector, at the cost of industrial and agriculture sectors, within the Gross Domestic Product (GDP). Thus, the share of the services’ sector increased to 59.6%, against decreases to a 19.5% share for agriculture and a 20.9% share for industry. Pakistan is a country which has been blessed by Allah (swt) with vast agricultural lands, rivers, canals, mineral and human resources. The Islamic economic system and a sincere leadership could have made Pakistan a leading economy of the world, with strong agriculture and industry. However, the capitalist system and corrupt leadership has never allowed Pakistan to become a strong economy. Instead they have weakened it day and night to protect the interests of colonialist powers. It is alarming that the share of agriculture and industry is reducing, whilst the share of service sector is increasing. Consider that in 1960, the share of agriculture and industry was 43.6% and 25.2% respectively, which has now been reduced to 19.5% and 20.9% respectively. It simply means that Pakistan is becoming an economy dependent on foreign products, unable to produce locally to a level of sufficiency.
Any country whose agricultural and industrial sector is weak, will always be dependent on others, no matter how much the economy has grown in terms of GDP. The relative decline in the agriculture and industrial sector and increase in service sector reveals that businessmen are not investing in production and manufacturing. Pakistan’s business community is expressing its displeasure of government policies. Businessmen lament that government policies discourage local investment in the manufacturing industry. So instead of investing in industry and agriculture, which are crippled through heavy taxation and energy shortage, local investors are turning to retail and services provision. As just one example, the steel sector will be taxed on electricity consumption at Rs.10.5 per unit, instead of Rs. 9 per unit. The steel industry is the backbone of the industrial sector, yet, the government first crippled Pakistan Steel Mills and is now forcing closure of the small steel mills by raising their energy costs for production. Therefore, boasting about the GDP has no value when government policies are weakening agriculture and industrial production at the expense of the service sector.
The need of the time is the Islamic economic system as implemented by the Khilafah on the Method of Prophethood, for which the sincere leadership, Hizb ut Tahrir, is working for throughout the Muslim World. Islam’s economic system encourages the citizens, farmers and industrialists to take full advantage of available resources. That is why in its Introduction to the Constitution, Hizb ut Tahrir has adopted in Articles 159 and 160, “The State supervises agricultural affairs and its produce in accordance with the needs of the agricultural policy which is to achieve the potential of the land to its greatest level of production” and “The State supervises the whole affairs of industry. It directly undertakes those industries which are connected to whatever is part of the public property.”
Whether presented by civilian or military rulers, the last seventy capitalist budgets have consistently destroyed Pakistan’s economy, concentrating the wealth in the hands of the rulers, their entourage and their colonialist masters. And each new capitalist budget will continue to do so, no matter how much the GDP, per capita income and foreign exchange reserves rise. Each capitalist budget is made under the instructions of colonialist powers, whose sole purpose is to weaken the economy of Pakistan and safeguard the interests of colonialist countries so their own economies flourish. A clear example of colonialist control is the annual meeting with the colonialist institution, the IMF, weeks before the Pakistan’s budget. Moreover, the capitalist system is a Kufr system, which has no link to the Quran and Sunnah and whose implementation angers Allah (swt). Only the economic system of Islam will make Pakistan’s economy strong. And this economic system is implemented by Islam’s ruling system, the Khilafah. Therefore, the Muslims must end all hope in Capitalist Democracy and work with Hizb ut Tahrir for the establishment of the Khilafah (Caliphate) on the Method of Prophethood, whose every law is derived from the Quran and Sunnah.
وَمَنْ أَعْرَضَ عَن ذِكْرِى فَإِنَّ لَهُ مَعِيشَةً ضَنكاً
“But whosoever turns away from My Reminder (i.e. Quran) verily, for him is a life of hardship.”
Media Office of Hizb ut Tahrir in Wilayah Pakistan
Saturday 1st Ramadan 1438 AH