Pakistan is presently witnessing a major drive to rebuild its economy. Over the last few years the major concern of Pakistan’s government is to rebuild the country’s physical infrastructure. Parallel to this effort, the public and private sectors have embarked on another equally challenging objective, namely the restructuring of their respective organizations and the development of their human resources.

A nation is strong only if it is economically strong. Economic strength is only possible when there is stability. This requires political strength. Political strength, on the other hand, requires economic strength. The two are very closely interlinked. The two must be complementary, one paying for the other. The western economies have achieved this balance and are in a position to call the shots in the international foray. The best examples are the United States of America and Japan.

We must also recognize the importance of “Human Capital” other than natural resources, not just in the sense of educated minds and skilled hands, but also as the important social processes that make us human and make life worthwhile and create a loving, caring and sharing family, which develops beauty, honor, integrity and creativity.

These are attributes of social systems, as well as of individuals. They require support and reinvestment if they’re going to keep on relieve suffering and producing happier human beings. Economies are supposed to serve human ends – not the other way round. We forget at our peril that markets make a good servant, a bad master and a worse religion.

The government and the public would attempt to solve these problems through research, study and understanding of resource management approaches at the national level, they would find that there are alternatives to the present impasse more effective than dumping money through the bureaucratic system or propaganda about the government’s support for community economic development.

Though the economy continues to decline, living cost increases, jobs disappear and natural resources degrade; but in other countries they remain well managed and conserve their natural resource base in these situations. The fact is the only thing that differentiates us from our competition is our people. The equipment, the building – they’re all the same. It’s the people who make the difference. Effective management of HR becomes an issue for everyone.

It appears that the old aphorism, “People are our most important asset,” is actually true. Compelling evidence suggests that organizational success comes more from managing people effectively than from attaining large size, operating in a high-growth industry, or becoming lean and mean through downsizing – which, after all, puts many of our most important assets on the streets for the competition to get employment. But while many leaders believe that putting people first makes strategic sense, all too few of their organizations do it.