Editorial
In order to fix Pakistan’s economy, fix Pakistan’s cities
Pakistan’s economic thinking is obsolete. It stuck in the era of Mahbub-ul-Haq. In the sixties, that thinking was fit with circumstances: Pakistan needed hard infrastructure, such as roads, bridges, transport, etc. Now, in 2026, we have built great motorways, flyovers, and sui-gas stations in every part of the country.
Pakistan’s current situation is that it has great hardware but weak software of the economy. We have the low productivity rates in the region. According to a World Bank Report, Pakistan@100, a Pakistani product, is 10 times less productive as compared to the regional average. As WB notes, the bureaucratic inertia is the responsible cause for the continuous decline in the ease of doing business indicators in the country
Everywhere, cities are the engines of growth and development. Historically, all the great cities, from Athens to Rome to London to Modern NewYork, have creative spaces, which allow thinkers, entrepreneurs, and leaders to join each other and share their thoughts. Most importantly, all these cities have efficient city governments and a healthy system of renewable generation. They are hardly dependent on the central government: Mumbai, London, NewYork are great because they have a self-sustaining mode of revenue, and their administrators have the liberty to tap resources and spend on useful activities.
Pakistani cities are not cities; in the words of Nadeem-ul-Haque, they are just urban sprawl. Weak city governments. Totally dependent on money from the federal government. A unitary bureaucracy manages cities that are unaccountable to the people. The result is in front of you: compare karachi and Mumbai. Both were one, historically. Mumbai is a business hub, a nerve center of entertainment. While Karachi has the worst living standards in the world.
Republic Policy in its research believes that Pakistan’s economy’s real fix lies in improving the city life. And no city reform will be successful without reforming the civil service of Pakistan.
