ABSTRACT
In his memoir, Truth Always Prevails, Sadruddin Hashwani, one of Pakistan's most prominent businessmen, recalls the early post-independence period in Pakistan as one of 'ardent aspirations, golden dreams and a firm resolve by the new nation's founding fathers to build a prosperous and thriving nation'. Industrially, Pakistan was a barren landscape at the time of its birth in 1947. Worldwide Governance Indicators produced by the World Bank in 2013 ranked Pakistan in the eighteenth percentile in the 'control of corruption', which makes it worse than 82 percent of the countries in the world. The terms 'extractive' and 'inclusive' for political and economic institutions have been coined by the authors of Why Nations Fail, Daron Acemoglu and James A. Robinson (2012). Sakib Sherani, a leading economist and a former economic advisor to the Ministry of Finance in Pakistan, says elite capture happened very early on in Pakistan's history.
