Power, Privilege, and Policy: Examining Pakistan's Economic Framework through the Elite Lens

Abstract

This study examines the role of political, military, and business elites in shaping Pakistan's economic policies, focusing on how these groups influence major economic sectors such as privatization, economic liberalization, foreign trade, and defense spending. Through the lens of the elite model, the paper explores the historical and ongoing impact of elite-driven decision-making on the country’s economic trajectory from 1960 to 2025. The findings indicate that policies developed under elite influence have primarily benefited a small group of political and economic elites, while exacerbating socioeconomic inequality and marginalizing the broader population. These policies have led to wealth concentration, political exclusion, and a lack of accountability, fostering corruption and inefficient governance. Despite economic growth during certain periods, the benefits have not been widely distributed, with significant segments of society facing stagnation in essential areas such as education, healthcare, and employment. The study suggests that reforms are necessary to decentralize power, promote transparency, and create a more inclusive policymaking environment. Recommendations include strengthening democratic institutions, ensuring greater public participation in decision-making, implementing progressive taxation and land reforms, and bolstering anti-corruption efforts to reduce elite control and improve governance. By addressing these issues, Pakistan can move towards a more equitable and sustainable economic system.