Globally renowned Pakistani economist Atif Mian, who has consistently shown academic interest in Pakistan’s economy, recently put forward the idea that Pakistan must sustain an average annual growth rate of five percent for the next fifty years. Only then, he argues, can Pakistan hope to reach a level comparable with developed economies. His observation has a strong empirical foundation. Pakistan’s current per-capita income stands near US$1,500, while the global average is approximately US$15,000. To bridge such a staggering income gap, there is no doubt that a long period of consistent economic growth is essential. Yet, our own history reveals a harsh reality: Pakistan has not even sustained three consecutive years of five percent growth over the past five decades. In such a scenario, expecting to maintain it for half a century seems almost impossible under current structural economic patterns.

However, a deeper look at the economy suggests that GDP growth alone is not the only determinant of national income. Pakistan today holds one of the most undervalued currencies in the world. Our purchasing power parity conversion factor is close to six, meaning that one US dollar spent in Pakistan buys roughly six times more goods and services than it does in the United States. No other major economy shows such a........

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