Pakistan, since its independence in 1947, had to face tumultuous years for the first four decades. Despite the many challenges, both internal and external, the country was able to register a 6 percent average annual growth rate during the first forty years of its existence. The country was ahead of India and Bangladesh in all economic and social indicators. Since 1990, the country has fallen behind its neighbouring countries and has had a decline in the growth rate.

This book attempts to examine the reasons behind this slowdown, the volatile and inequitable growth of the last twenty-five years, and through a process of theoretical and empirical evidence argues that the most powerful explanatory hypothesis lies in the decay of institutions of governance. It also suggests a selective and incremental approach of restructuring some key public institutions that pertain to accountability, transparency, security, economic growth, and equity.

Dr Ishrat Husain was Advisor to the Prime Minister of Pakistan on Institutional Reforms and Austerity (August 2018 to September 2021). A former governor of the State Bank of Pakistan, he is Professor Emeritus and Chairman, Centre for Excellence in Islamic Finance at the Institute of Business Administration (IBA), Karachi where he had earlier served as Dean and Director (2008-16). He had a distinguished career at the World Bank for two decades (1979-99) and was a member of the Mahathir Commission that developed Vision 2020 for the Islamic Development Bank (IDB). He also served on the Middle East Advisory Group of the IMF; Regional Advisory Group of UNDP, the President Advisory Council of IDB; Economic Advisory Council, Ministry of Finance; and the Advisory Council to the Minister for Planning, Development, and Reforms. A graduate of the Executive Development Program-jointly sponsored by Harvard, Stanford, and INSEAD-Husain was also Chairman, World Economic Forum Global Advisory Council on Pakistan (2014). Dr Husain has been conferred the Hilal-e-Imtiaz award (2003) and the highest civilian award, the Nishan-e-Pakistan (2016). His other publications include Pakistan: The Economy of an Elitist State (OUP, 1999; 2019) and Economic Management in Pakistan, 1999-2002 (OUP, 2003).