|H. 20 Muharram 1445||No: 1445 / 03|
|M. Monday, 07 August 2023|
Under the Current Capitalist Economy, Only the Elite Will Benefit from Development Projects. Only Under the Shade of the Khilafah, Will Projects Bring Prosperity to People’s Lives
On 1 August, 2023, Pakistan Minerals Summit 2023 was jointly hosted by the Ministry of Petroleum and Barrack Gold Corporation. In his address, the Minister of State for Energy, Petroleum Division, Dr. Musadik Malik invited foreign investors to invest in various sectors of Pakistan, especially minerals and mining. He said that the aim of the summit is to increase foreign direct investment in the country and move beyond “dust to development.”
In the sixties of the last century, Pakistan made some progress in some sectors of industry and agriculture. It was called the ‘Decade of Progress.’ However, it soon came to light that a large portion of the fruits of this development were confined to only twenty-two elite families. Then in the eighties and nineties of the last century, free market economy, trade liberalization, privatization of public institutions and the construction of motorways, were declared the basis of development. However, the benefit of these policies and projects were also limited to a small segment of the population and foreigner investors. The country and people remained poor.
Similarly, in the first decade of the current century, the telecom boom, and then the China-Pakistan Economic Corridor (CPEC), in the second decade, were declared as the guarantor of the country’s development. However, once again, most of its profits were reaped by multinationals and Chinese companies. The people and the state remained impoverished, and further drowned in debt.
Now people are being offered a new lollipop. It is stated that since Pakistan is rich in mineral wealth, minerals worth trillions of dollars are present in Pakistan, if we work hard in this sector, the fate of Pakistan and its people will change. The question is what is new in this? Pakistan signed an agreement with a Chinese company about twenty years ago to extract copper and gold from the mines of Saindak in Baluchistan, which has been extended until 2037. Pakistan and its people have gained nothing from this project. Instead, the area from which these minerals are coming out is still suffering from the worst form poverty and misery.
If the experience of the last sixty years is kept in mind, it will not be wrong to say that once again a small local elite and foreign investors will exploit this mineral wealth. It is clear from the hosting of the summit by a major multinational company, as well as the participants of this summit. Therefore, first of all, the question should be answered that despite the presence of all the elements of development, why are Pakistan and its people desperate for prosperity?
The main reason for this situation is the capitalist economic system implemented in Pakistan. It is always implemented, whether there is democracy, military dictatorship or a hybrid system. The capitalist economic system hands over almost all the resources in the society to the private sector. The real benefit of these resources goes to the dominant factions of the private sector. These joint stock companies collect billions of dollars through the capitalist financing model. Banks, stock markets, capital markets and institutional investors gain control over these resources. This is even though the benefits of a country’s wealth should reach all the people. The capitalist system ensures concentration of wealth in a few hands.
Capitalism concentrates wealth in the hands of a small elite in “developed” countries as well. In the first quarter of 2023, 69 percent of the total wealth in the United States was owned by the top 10 percent of earners. In comparison, the lowest 50 percent of earners only owned only 2.4 percent of the total wealth. Pakistan’s abundant resources will benefit the people only in the Islamic system under the shade of the Khilafah (Caliphate) on the Method of Prophethood. The economic system of Islam considers minerals to be public property. Therefore, the state is required to supervise all the stages of mining, refining and selling these minerals itself. It must spend direct in-kind provision of goods and services on the people, because the Khilafah state is a guardian state, looking after the affairs of the people. In this way, the people and the state become prosperous, due to the implementation of this one commandment of the economic system of Islam.
Allah (swt) said:
[وَلَوۡ اَنَّ اَهۡلَ الۡقُرٰٓى اٰمَنُوۡا وَاتَّقَوۡا لَـفَتَحۡنَا عَلَيۡهِمۡ بَرَكٰتٍ مِّنَ السَّمَآءِ وَالۡاَرۡضِ]
“Had the people of those towns believed and been God-fearing, We would certainly have opened up to them blessings from the heavens and the earth.” [Al-A’raf 7:96].
It is mandatory for the people of power to provide Nussrah to Hizb ut Tahrir for the re-establishment of a Khilafah (Caliphate) on the Method of the Prophethood, without wasting any more time, energy and money, on the failed capitalist prescriptions.
Media Office of Hizb ut Tahrir
in Wilayah Pakistan
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