March 16, 2014

The State of Pakistan Economy

Essay : [The State Of Pakistan Economy]

English Essay on "The State Of Pakistan Economy"

The State Of Pakistan Economy

After 47 years of independence, Pakistan is yet to stabilize its economy. We have achieved what any nation in the surface of this earth would hate to acquire, an unemployment rate of 6.38 percent, an inflation rate of 11.35 percent, a literacy rate of 35 to 36 percent only" a budget deficit of 45.5 billion rupees and worst of all a population growth rate of 2.9 percent with all these anomalies one wonders why don't we create a fourth world since we are in adjustable, even, in the third world countries. But then an economist can point out that economic development is as difficult a process as climbing a high and steep mountain.
In the sector of transportation, though industries like Pakistan International Airlines (P.I.A) have not been privatized but Government has issued license to few people who were interested in a private airline. Even though red tapes exists in departments like Railway, which has always proved itself to be a burden on the Economy with all the utility it provides to the general public, but there are positive signs that the time is not far. When it will become imperative for the government to privatize it.
Pakistan has very rapidly industrialized, though it is yet to enter the domain of industrialized nation. Pakistan has successfully established May industries for example steel, automobile and textile etc, Though the automobile industry is at a very early stage but there are visible signs that in future they will prove very fruitful and Pakistan would be saving a lot of Foreign exchange due to the sale of locally manufactured
Even after all these years we are still an agro-based country. Raw cotton, cotton yarn, and rice are still our principal cash crops, More than half of the foreign exchange is earned through the export of cotton and rice.( Though Pakistan has one of the most longest and modern system of canal irrigation system in the country, yet still for the many of the last years, agriculture especially cotton and rice have been a victim of floods and pests, due to which we are losing valuable foreign exchange and subsequently visible decline in the revenue receipts.
Pakistan has been very unfortunate in this respect. Throughout our history, political turmoil has always been a marked characteristic of our economy. Frequent seize of power by the military (a typical characteristic of a third world countries) prolonged rule of the military dictators and their stern but limited economic initiatives have always discouraged the local and foreign investors to invest their capital in Pakistan. Finally in 1988 when democracy arrived with all its vigor’s and spirit, it found out that people were quite unprepared and politically immature for such an immediate release from the iron claws of dictatorship. Now instead of suppressed politics an intense political rivalry has taken place, frequent dissolution of assemblies has created a lot of anarchy in the Economic development. Annual budget is more bent towards defeating their political rivals which results in further inequality among the people. Common man is still suffering at the hands of landed aristocracy, the ruler class, signifying the famous aristocratic doctrine that "some are born to rule and some obey."
Secondly, Government is encouraging foreign investment in the country, the recent visit of the President of Pakistan to United States. France has shown positive signs put the investor is still hesitant to invest due to the power tussle in Islamabad. What we really require on the problem of foreign investment in a continuity in politics between oppositions and the Government which presently seems a distant thing.
The government is determined to cut the budget defect from 6.9 percent of GDP and intends to increase the economic growth rate to 6 percent per annum.
Though naturally the sound positive aspect is to boost the economy of Pakistan but the development process is not self accelerated, it depends on population of the country. It also depends on the literacy of the country. We are down trodden in both of these aspects.
It is also advisable that relations with India should also be normalized. Our maximum revenue is being spent on the defense of the country, just because of the Indian threat; recently we have increased our budget expenditure due to the deployment and manufacturing of "Parthia" missile by India. Not only that it would increase the missile warfare but in addition it would have bad impact on the economy of the country.

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