Page 65 - CMA Journal (Nov-Dec 2025)

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Even where redistribution occurred on paper, real further strengthening the knowledge-led economy. The
authority remained concentrated among large model creates both mid-level technicians and high-end
landholders, who continued to control irrigation systems, scientific and engineering talent, an approach that
rural credit, agricultural inputs, and the informal justice Pakistan can adopt to strengthen its own transition toward
mechanisms that shape local dispute resolution. As a a knowledge-based economy. Such an approach is
result, the rural masses remain excluded from the anticipated to provide much-needed space to export
economic cycle. skilled workforce and professionals to developed
economies. Such development in the long term shall help
The effective transformation of Pakistan’s rural economy
requires an integrated agrarian reform, which should the country in capacity building as well.
include, but not be limited to, transparent water distribution, Governance for Ease
accessible rural credit, strengthened local justice systems,
digitalized land records, equitable and efficient irrigation In the World Bank “Doing Business Report” published in
systems, and accountable local governance supported by 2020, Pakistan was ranked 108th out of 190 economies,
climate-resilient infrastructure. In addition, efficient suggesting that a lot of efforts are required to overcome
market-access mechanisms would play a critical role in structural bottlenecks to improve ease of doing business.
restoring farmers’ trust in the national economy and The reforms include automation and digitization of the
improving the performance of agrarian markets. economy and modernization of transport and
communication infrastructure. In essence, the country
These institutional reforms are essential for enabling small needs a comprehensive transformation of governance to
farmers to adopt improved technologies and participate restore public trust. In rural regions, empowering local
more effectively in value chains linked to agro-industry. communities to govern themselves is essential for
This approach is consistent with indigenous customs and ensuring responsiveness, accountability, and sustainable
knowledge systems that regard land and water as shared progress. Singapore and East Asian economies provide
resources to be managed through collective stewardship lessons in framing policies and building institutions based
rather than individual exploitation. Integrating such on public trust.
wisdom into contemporary policy design can help
Pakistan build a rural economy that is productive, Conclusion
equitable, and climate resilient. Without structural reforms,
however, rural inequality will continue to impede national Pakistan is blessed with abundant natural resources to
economic goals and weaken the country’s ability to strengthen and diversify its economy. Our industrialists,
respond effectively to climate change. entrepreneurs, and farmers possess the knowledge,
technology, and skills of the modern age. However, the
Knowledge based economy state has failed to rationally integrate material resources,
labor, capital, management capacity, technological
Pakistan is a country of youth, with 60% to 64% of the capability, entrepreneurship, and natural resources to
population under the age of 30, which provides the build a nation. At its core, the state has failed to integrate
fundamental ingredient necessary to drive a the public masses into the economy as valued productive
knowledge-based economy. However, the transformation agents, leaving growth disconnected from broad-based
into a knowledge-led economy requires reforming the social participation.
whole education system, starting from primary education.
A knowledge-based economy is one in which intellectual The paradigm shift from a conventional economy to a
capital—education, skills, innovation, and technological knowledge-based economy not only requires a deep
capability—constitutes the principal driver of economic understanding of economic resources but also the local
growth and competitiveness. customs and ecological wisdom practiced by local
communities along with their sensitivities. Public trust in
The core impetus for the knowledge-based economy is governance is the initial litmus test to judge the true
already in place. In 2024, Pakistan received approximately health, strength, or performance of an economy. A
USD 34.6 billion in remittances. Pakistan now ranks among sovereign economy of the nation unifies strategic defense,
the world’s leading suppliers of freelance digital labor economic creativity, and ecological stewardship to pursue
through platforms such as Fiverr and Upwork. Crucially, a development path based on capability rather than
these earnings required no forests to be cleared, no vulnerability, and builds the confidence of people who
aquifers to be poisoned, and no workers to be buried know how to protect both their land and their destiny.
underground, underscoring that Pakistan’s greatest wealth
lies in the skills, creativity, and productivity of its people. It About the Author: Prof. Dr. Abdul Waheed Bhutto is a senior
is knowledge that shapes the effective integration of academic leader, researcher, and policy advisor with over 25 years of
material resources, labor, capital, management capacity, experience in higher education, institutional governance, and
technological capability, entrepreneurship, and natural sustainable development. He currently serves as Advisor to the Vice
resources into an ecologically sustainable economy. Chancellor at Dawood University of Engineering and Technology
(DUET), Karachi. Holding a PhD in Chemical Engineering, his
The global development experience also demonstrates research focuses on climate change, renewable energy, biomass
the importance of integrating technical and vocational conversion, and sustainable development. Dr. Bhutto is a member of
education and training (TVET) with university-level the FPCCI Central Standing Committee on the Bioeconomy.
education to build a diversified, skilled workforce for

ICMA’s Chartered Management Accountant, Nov-Dec 2025