Elite capture of policymaking is one of Pakistan's most significant barriers to its economic growth and development. The influence exerted by powerful elite groups has created a political and economic landscape where the interests of a select few are prioritized over those of the broader population. These elites—comprising politicians, military officials, feudal landlords, and business magnates—use their control over policymaking to safeguard their interests, resulting in distorted governance that perpetuates inequality.
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Elite capture refers to the phenomenon in which a small group of powerful individuals or entities dominate and influence decision-making processes, typically in their favor. In Pakistan, this influence manifests in various ways, from the military’s control over certain sectors to the political leverage of feudal landlords. These groups use patronage networks to ensure their continued dominance, shaping policies that undermine the broader public interest and democratic participation.
One of the primary consequences of elite capture is the concentration of power in the hands of a few influential groups. This concentration not only limits political pluralism but also obstructs economic development. Pakistan’s political history shows repeated dominance by military leaders and feudal elites, reinforced by clientelism and the exchange of political access for loyalty.
According to the United Nations Development Programme’s (UNDP) Pakistan National Human Development Report, the “three Ps of inequality” are Power, People, and Policy. The economic elite hold privileges equivalent to nearly 8% of the country's GDP, indicating that policy decisions are shaped to maintain this disparity rather than reduce it.
Furthermore, elite-driven policymaking often leaves marginalized groups—such as small and medium-sized enterprises (SMEs)—facing economic challenges that hinder their growth and development. Despite the establishment of 36 Common Facility Centres, lack of sustained financial backing has stalled SME growth, as policy attention remains focused on major conglomerates and elite-backed ventures.
Moreover, the preferential treatment of big businesses by policymakers creates an unlevel playing field, further exacerbating inequality. Tax exemptions and subsidies are disproportionately directed toward large elite-connected firms, sidelining small enterprises and suppressing market competitiveness.
A further manifestation of elite capture is seen in the country’s tax system. Pakistan’s regressive tax structure relies heavily on indirect taxes, placing the burden on the lower and middle classes. The wealthy elite often benefit from exemptions or evade taxes entirely, undermining the fairness and sustainability of public finances.
According to Pakistan’s Economic Survey, the tax-to-GDP ratio fell to 9.6% in 2019-2020, down from 10.1% the previous year. This reflects growing inequality in revenue contribution, as indirect taxes—like sales tax—dominate collections while direct taxation of elite wealth remains minimal.
Moreover, elite capture perpetuates corruption within Pakistan’s public sector. Pakistan ranked 140th out of 180 countries in Transparency International’s Corruption Perception Index, underscoring the influence of elite actors in rent-seeking and embezzlement.
This corruption acts as a barrier to equitable resource distribution. Public services remain underfunded while elites continue to profit from systemic inefficiencies, widening the gap between rich and poor and reducing development outcomes.
Moreover, elite capture has contributed to weak governance in Pakistan. A system of patronage and clientelism, sustained by elite influence, has prevented the development of transparent governance structures. Policy decisions are often made behind closed doors, outside public scrutiny, allowing inefficiencies and elite privileges to persist unchecked.
Weak governance also reduces accountability and transparency. Without public oversight, corruption thrives and performance remains unmonitored, undermining institutional legitimacy and the delivery of public goods.
Furthermore, the military’s influence on policy has skewed resource allocation. Defense spending often overshadows development budgets, limiting investment in human capital sectors like education and healthcare, which are essential for inclusive growth.
In light of these challenges, Pakistan must undertake comprehensive reforms. Institutional strengthening, tax reform, and decentralization are critical to dismantling elite control, and building a more accountable and people-centered governance system.
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Countries like Brazil, which disrupted elite networks through judicial activism and electoral reforms, offer lessons. Judicial anti-corruption initiatives and electoral transparency can help Pakistan break elite patronage systems, promoting meritocracy and inclusive growth.
In conclusion, elite capture remains one of Pakistan’s greatest barriers to inclusive development. Unless governance is restructured to serve public interest rather than elite priorities, economic progress will remain elusive for the majority. Breaking elite dominance is essential for Pakistan’s future prosperity.
