Lahore, 11 January 2023(GNP): The survival of the Pakistani economy is possible if the government and political powers are serious about resolving this issue. It can not be resolved in a day or a month, but it will take 10 years long rigid policy and political stability in the country. Pakistan has indulged in an economic crisis due to a lack of planning and policy-makers’ predictions. They are unable to analyze future schemes and development projects in the country. The age of Pakistan is 75 years old, and the economy is still feeble and weak because of priority issues. Pakistan is the 5th largest population in the world, which is the strongest asset of the country, and most of the population is youth in Pakistan. Unfortunately, policymakers are unable to utilize the assets of Pakistan and the young talent is wasting and attracted to criminal activities or drug addiction.
Moreover, Pakistan is facing a critical economic situation where they have multiple problems like circular debt and loan payments. Some analysts claim that Pakistan will go into default because of worsening economic conditions nowadays. The finance department is always trying to take help from foreign countries to stabilize the economy for short-term periods in Pakistan, and this is not a valid solution for 231 million people.
Additionally, Pakistan is the atomic power country in the world and rich in natural resources like oil, gas, gold and commendable youth power. The agriculture sector is the backbone of the country and people depend on agriculture, where they can earn bread and butter easily and contribute to the Gross Domestic Product(GDP). The agricultural sector contributes nearly 22 percent of the GDP of Pakistan, but they do not focus on it properly. The land of Pakistan is fertile and people use only 8 percent of it for farming, which is 6 percent for food items, cash crops and 2 percent for minor crops in Pakistan. The rest of the land is free and isn’t used for cultivation, in spite of the agricultural land countries in the world.
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In addition to that, agriculture is the main contributor to the GDP of Pakistan and doesn’t have enough facilities to enhance the revenue. However, Pakistan does not have uniform policies regarding seeds, pesticides and fertilizer. The energy problem is also an incredible factor that hinders the progress of the agriculture sector. Energy efficiency can increase the revenue of agriculture and industries in Pakistan, and it can mitigate with the help of dam construction and renewable energy resources which are God gifted.
Likewise, the industry has failed to achieve its objectives and desired results and the government does not fulfill the requirements of the industry in Pakistan. According to the reports, textile, vehicle production units and other industries shut down their plants, and they can not afford the expense of factory and raw materials costs in Pakistan. The imports have been closed due to the shortage of dollars payments and not to open the letter of credit for importing materials. The costs of production are high and clients are not motivated to buy Pakistani products. Also, the inflation rate is 24 percent, and it would be out of control in Pakistan. Therefore, industries are going to bankrupt and close and people are unemployed.
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When people purchase in dollars and spend in rupees, they will go to inflation and default automatically. The government has decided to get a wage of Rs 25,000 thousand for unskilled workers in Pakistan. They are earning and saving in rupees and everything has been imported in dollars, which devalues the rupee and saving money is going to end and open the window for default of the people in Pakistan.
It is improbable that the 230 million people’s population depends on importing food items, medicine, devices and raw materials from foreign countries. They have to build their own systems to cope with acute conditions, otherwise, it can have harmful effects overall in Pakistan. People have to install their products, businesses and plants to overcome the inflation crisis. They opt to adopt the policy of export and build a brand like Indonesia. Indonesia has a palm oil export facility and is exporting around the world to stabilize its economy. Pakistan is rich in natural resources and does not have export policies. Policy-makers have to build an agriculture sector for international brands and promote it to the world and produce export quality to earn revenue for economic stability.
The structural issues should be resolved and pave the way for innovation and technological advancement to empower the industry and the agricultural sector. It is important to note that energy problems hinder the way of progress and development of projects. The construction of dams, power plants, hydel-power and renewable energy should develop on an immediate basis to limit the energy mess. Renewable energy policies should be implemented for domestic and agricultural sector usage. Most of the energy production units depend on foreign oil, which is 60 percent and it sucks the blood of the country, and puts down an extra burden on the economy of Pakistan. When oil and gas are imported from foreign countries, it will increase the costs and inflation rate.
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On the other hand, the entrepreneur culture should be evolved to strengthen the economics of the country. They have to provide small business entrepreneurship for students, graduates, skilled workers and small industries. Technical schools must be opened and provide assistance to unskilled workers in Pakistan. The textile and sports manufacturing industries should introduce new innovations and technological advancements to compete in the world. The automotive industry reduces labor power, while other industries produce employment opportunities. However, they have to make plans to prioritize and allocate them equally well.
Last but not least, political parties have to play prominent roles in capacity building, institutional reforms and bureaucratic roles. Governments should formulate uniform policies to manage the tourism sector and promote green areas. World-class services should be provided for the tourists and proper management for the sake of the increase in revenue generation. Indonesia is the sixth-largest economy in the world and has islands that are used for tourism purposes and earn record revenue.
In a nutshell, Pakistan should resolve the energy problem and institutional reforms to strengthen the weak economy and the use of youth population assets. People have to show national spirit and not go to America and foreign countries, but they have to provide assistance and support in their country. The policy should analyze and predict future schemes and trends to meet world standards. The business community should have the courage to take risks, like the Sialkot industry, and they have built its own airport and solved its business issues. Also, the textile industry in Faisalabad has to follow the model of the Sialkot business community. The government should go for investment opportunities, trading, exporting, and global cooperation to stabilize its economy for long-term sustainable growth. The government should discourage the culture of loans from foreign-friendly countries and attract investment in the country and formulate a neutral and independent foreign policy to build a better Pakistan in the world.
