Economic Problems of Pakistan

Economic Problems of Pakistan

ECONOMIC PROBLEMS OF PAKISTAN Outline 1. Economy of Pakistan is in serious crises. 2. Political instability is the major cause along with many others. 3. In Pakistan, the system of taxes does not work well. 4. Corruption and bribery of the government officials hinder smooth functioning. 5. Pakistan is rich in natural resources but poor in managing and utilizing these. 6. Foreign exchange has always been a major problem of Pakistan. 7. The population growth rate adds to the economic difficulties of the country. 8. Poor literacy rate and lack of skilled workers are also the major economic problems of Pakistan. 9.

Misuse of funds adds to the burden. 10. Progress cannot be made in the absence of a strong political system. The economy of Pakistan is undergoing serious and far reaching changes. The economic sanctions because of nuclear explosions, decrease in exports and political instability are the major factors responsible for sluggish Pakistan economy. The overall situation is not rosy. International economic scenario is also under recession. So it is very difficult for a non elected government to control the situation. It is not possible for any government to start or even continue projects of development without capital. Taxes of Govt. re always major portion of national income, but in Pakistan the system of recovery is not functioning fruitfully. Business community prefers to bribe a few thousand than to pay the official tax year by year. We can say that corruption is one of the major problems that are eating up over economy. The absence of check and balance is resulting in destruction. The major national resources are soil, water, forests, minerals, energies, climate and man-power etc. Pakistan is rich in all these natural resources. The hand is fertile, water is plentiful, and climate is suitable for agricultural production and for forest growth.

Among various minerals, fuel, natural gas, lead and iron are found abundance. In spite of all these natural resources. Pakistan has been facing economic problems. As a matter of fact the obstacle in economic development is not the inadequacy of natural resources but lack of proper utilization. The foreign exchange has always been an absolute necessity for the economic development of any nation. Pakistan has very few resources for earning foreign exchange. Cotton, carpets, manual labour are main sources of foreign exchange.

But the fluctuation of rates in the international markets and cutthroat competition in world market make it impossible for a country like Pakistan to meet the target. The population growth rate in Pakistan is 1. 3% which is a burden on meager resources of the country. Seventy six percent of our population is dependent upon others for their daily needs. They lead a very poor life. Thus rapid growth in population is a big danger for economic depression of the society. Another economic problem is the low level of literacy that makes it very difficult for the people to use modern technology.

Technical manpower is also needed to accelerate the pace of progress. Since the birth of Pakistan, foreign assistance in the shape of grant loan, aid, barter agreements, are playing significant role in the economy of country. But the misappropriate use of foreign aids has made the economic development in Pakistan an uphill task. A large amount of aid is used to pay the interest on the previous loans. To make progress, Pakistan needs to overcome all these hurdles. But it is not possible unless a strong political system exists in the country and people of the country start realizing their individual duty. (Words 470)

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