Comparitive Management

ECONOMIC SYSTEM OF

PAKISTAN

In Pakistan, we have neither of the two extreme systems but our economic system is a via media compromise of both the systems of capitalistic and socialistic patterns. It can safely be said that it is a mixed economy.

Concept of Mixed Economy

Mixed Economy is an economic system, which combines in itself the elements of socialism as well as of capitalism. It is an economic system, which is planned and directed partly by the state and by private enterprise. Under the “Mixed Capitalist System” or “Mixed Enterprise System”, both State and private institutions exercise economic control.

Panacea of the Defects of Capitalism and Socialism

A privately owned capitalist system cannot guarantee full employment and elimination of poverty. It may lead to unequal distribution of wealth and air and water pollution. It produces trade cycles. i.e. sometimes depression and at other times an inflationary situation. On the other hand, a government owned business system might stifle innovation and invention. It may not be quickly responsive to public desired for products and services and may even limit the freedom of the people. It is so realized that economic development cannot be achieved at the desired rate of growth without any active government help and guidance. That is why most of the capitalistic and socialistic economics of world have become mixed economics in order to minimize the evils of unadulterated capitalism and socialism to accelerate economic growth.

FEATURES OF

ECONOMIC SYSTEM

OF PAKISTAN

Co-Existence of the Public and Private Sectors

In the economy both public sector and the private sector function together. In one part are those industries, the responsibility for...