Pakistan is facing Economic challenges. It shows that our country is in the list of under developed countries. In this article we will discuss about the Economic Condition of Pakistan. In the last budget, the government gained 4. 3 per cent economic growth but with gas and load shedding problems they didn’t achieve the targets. So due to lake of experience and knowledge they came in the figure of 2. 2 per cent growth which shows almost no growth in the current year.
The major problem in Pakistan is increase in population which is directly effecting our economic growth. Of course, due to higher rate of population, we should increase our investments but due to less financial reserves this investment is not possible. The present rate of GAP is around 14 percent which is lower than the developing countries. If we want to increase our investments for getting higher growth we should increase our savings for GAP to at least 20 percent, especially when foreign investments are not involved.
Cause of decreasing growth Another challenge is inflation. Inflation means increase in the prices of commodity. It badly affects the salary based groups. This also shows our higher rate of taxes cause tax is part of the inflation. When inflation rate high in our country then it generates the public debts, which is about 70 percent of the Gross Domestic Product. This problem is increasing day by day. So how we can overcome this problem?
The answer is we have been producing less and consuming more. And if investor wants to invest so they should invest on human developments. The major problem is immediate change in the situation of regional and international market. Utilities such as gas, electricity, water is another cause of a problems because MIFF forced to the ender develop countries to enhance their rates which is effecting the common man or salary based groups. They don’t save much in fact they Just fulfill their basic needs.
There are Just few challenges but if our government applies effective polices so under develop countries become develops countries. Decades of internal political disputes and low levels of foreign investment have led to slow growth and underdevelopment in Pakistan. Agriculture accounts for more than one-fifth of output and two-fifths of employment. Textiles account for most of Pakistanis export earnings, and Pakistanis failure to expand a viable export base for there manufactures has left the country vulnerable to shifts in world demand.
Official unemployment was 6. 6% in 2013, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Over the past few years, low growth and high inflation, led by a spurt in food prices, have increased the amount of poverty. As a result of political and economic instability, the Pakistani rupee has depreciated more than 40% since 2007. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 in espouse to a balance of payments crisis.
Although the economy has stabilized since the crisis, it has failed to recover. Foreign investment has not returned, due to Pakistan Is Facing Economic Challenges By Battista global economy. Remittances from overseas workers, averaging about $1 billion a month since March 2011, remain a bright spot for Pakistan. However, after a small current account surplus in fiscal year 2011 Oily 2010/June 2011), Pakistanis current account turned to deficit in the following two years, spurred by higher prices for imported oil and lower prices for exported cotton.
Pakistan remains stuck in a low- income, low-growth trap, with growth averaging about 3. 5% per year from 2008 to 2013. Pakistan must address long standing issues related to government revenues and energy production in order to spur the amount of economic growth that will be necessary to employ its growing and rapidly urbanize population, more than half of which is under 22. Other long term challenges include expanding investment in education and healthcare, adapting to the effects of climate change and natural disasters, and reducing dependence on foreign donors.
