KARACHI - Deputy Chairman of Planning Commission, Dr Nadeemul Haq has underlined the need to change the development paradigm from rural-based to urban-based development because a recent survey through Geographic Information System. It is revealed that urbanization in Pakistan has increased to 65 per cent.  He was speaking at a discussion on “Jobs and Growth” organised by Pakistan Institute of Labour Education and Research (PILER) at Lady Nusrat Haroon Auditorium, Institute of Business Administration (IBA) here on Friday afternoon. Dr Nadeemul Haq spoke about Framework for Economic Growth of Pakistan, developed by the Planning Commission. He underlined the need for more urban development and creation of an urban culture in Pakistan, in which the youth should be encouraged to become entrepreneurs. “Unfortunately, our cities are not cities,” he said adding that in urban areas there is no community culture and youth is not entrepreneurs. There is lack of playgrounds, libraries and public places in cities and youth lacks skill trainings and entrepreneurship skills, he added. He said poverty solution lies in cities so more and more people should come from rural to urban areas. According to the Deputy Chairman of Planning Commission the service sector is more important for economic growth. India’s growth is due to service sector not industrial sector. Use of the latest technology and creatively should be used for development, he said adding that due to technology, the world has now become a global village. Dr Haq stressed the need to develop construction sector. “Let’s deregulate the construction industry,” he added. Presently, he said both agriculture and industries are getting subsidies, but for economic growth there should be no subsidy. He emphasised the need for encouraging entrepreneurship in urban areas for job creation. A restaurant is presently providing more jobs than any industry, he remarked.The Deputy Chairman of Planning Commission was of the view that development of public infrastructure cannot create growth. He said reforms and change are required and for that people should come forward and play their role. “Change means globalisation and accepting the global standards,” he remarked. Speaking on the occasion, Dr Kaiser Bengali said the free market economy is a neo-liberalism agenda and it would not help improve economy. He appreciated the Planning Commission’s New Growth Strategy in connection with productivity growth and urban growth. However, he regretted that there is dominance of the free market economy policies in the strategy in which it emphasizes that there should be no role of the state. He regretted that no priority is given to the infrastructure development in the Growth Strategy. He said the market responds to purchasing power not to the need. In Pakistan the wishes of the riches are fulfilled whereas basic needs of poor are not fulfilled. For the last quarter of a century, the market has failed to provide housing, education or public transport for poor. He gave statistics and said today of every 100 rupees of increase in the national income 34 paisas go to the 10 percent richest and 3 paisas goes to the 10 percent poorest. This is resulting in increase in inequalities in the society. That assumption that the private sector is strong and vibrant and waiting to occupy the space vacated by the state is wrong. Pakistan’s private sector is weak, can only survive under protective environment. He gave example of failure of Pakistani businessmen in Dubai.Space vacated by the state has been taken over by the Madressah and result is terrorism. “Terrorism is a gift of neoliberalism,” he added.  Dr Bengali said our infrastructure is crumbling with the passage of time. For example, he said in 2005 Rann Pathani railway bridge collapsed and for 20 days railway remained suspended. He suggested to invest 10 percent of GDP on infrastructure for the next 10 years. He said the old paradigm public versus private sector has to give way to a new paradigm of partnership. Combine the strengths of public and private sectors like the success story of Hyderabad-Mirpurkhas highway. And combine the strengths of public sector and civil society in service delivery, he added.He suggested to create a national transportation company combining Pakistan Railways and NLC, under a management contract with a private firm. Run container trains, move long-distance cargo by train, and transfer individual containers on to trucks for remaining short-distance destinations. By this, he said diesel imports are likely to reduce by one-third, saving foreign exchange. He emphasised to develop Thar coal as the main source of power generation. He suggested massive investment in productive infrastructure, rapid industrialisation, revitalisation and expansion of railways and Thar coal development for reduction in furnace oil imports. Majid Aziz, former President of Karachi Chamber of Commerce and Industry (KCCI) said the government policies are discouraging for industries. Due to high influence of politics all policies are failed, he added. “We are not paying our attention on jobs and growth.” He said it is not correct that no industrialization has happened in Pakistan. Corruption is the main problem for the industry in Pakistan. Only 12 factories have gone to Bangladesh. He demanded to provide protection to industrialists from unscrupulous elements and corruption.Karamat Ali of PILER in his welcome address gave an overview of the economic problems of the working people.