Introduction
Those countries which are on the list of upcoming countries of BRIC (Brazil, Russia, India and China) share comparatively more strength to attract world’s largest economies of 21st century including Pakistan. The economy of Pakistan is partially industry and partially agriculture, with focus on developments along the Indus River. The expansion in financial system, in the city centers of Punjab and Karachi took place with small amount of urbanized region in other areas of the country. GDP of Pakistan in the year 2011 was approximately 202 billion USD. The amount expected per capita GDP is about 1,197 USD. The balance dues ratio of GDP is about 55.5 percent. According to a report presented by RAD-AID in the year 2010 Pakistan financial system was rated among the 27th biggest in the world through buying power which was approximately 15% of the domestic GDP .
Pakistan’s economic developments from the time of its foundation has shown great variations. The economy of Pakistan has been deliberated during the government of civil leaders elected through elections but outstanding during the rule of armed forces even though the establishment of military rule was never retained for prolonged durations. During the early years of 21st century till the center of first decade, is an era of quick uplifting; increase in economic development resulted in decreasing scarcity stage through 10 percent and also raised the GDP through only 3%. The financial system of Pakistan got restricted one more time since 2007. The rate of price increase led to inflation by 25 percent in the year 2008 as a result Pakistan had to suffer hard line of financial strategies sponsored by the International Monetary Fund (IMF) to keep away from maximum financial disasters. Later on in the next years Asian Development Bank stated that Pakistan’s financial disasters were reducing. In 2010 to 2011 the rate of inflation was about 14.1 percent. Pakistan’s name lies among one of those countries which are very rich in naturally available resources and its labor class is the 10th biggest in the world. In the year 2009 approximately 600,000 people from Pakistan went in foreign countries. Textile employees transfer payment of around 8 billion USD yearly. According to the World Trade Organization (WTO), Pakistan’s export to other countries has been in disastrous situation; in the year 2007 it added just 0.128 percent to its exports. The business shortfall in the financial years from 2010 to 2011 was about 11.217 billion USD .
The composition of financial system of Pakistan has varied from a fundamentally farming to a service foundation. Agriculture of Pakistan now supports for only 21.2 percent of its GDP. Pakistan produced approximately 21,591,400 metric tons of wheat in the year 2005 stated by United food farming association and this amount is more than the amount produce by Africa and also approximately equal to South America. The years during 2002-07 were significant regarding the foreign savings in Pakistan’s depository and power zones. The largest industries of Pakistan are Textile industries which give about 60 percent of foreign exchange; other industries include food, paper, and steel industries. There is a huge potential for sightseeing and tourism in Pakistan, but it is severely damaged by the country’s insecurity. Approximately 20 percent of Pakistan’s population is living below the minimum living standards set by United Nations .
Levels of Living, Productivity and Human Capital in Pakistan
In Pakistan scarcity is in direct relation with family circle and also to the average figure of kids under the range of 15 year, which result in large reliance percentages of the deprived population. It is also noticed that the fertility ratio of women’s belonging to high status is lower than women’s belonging to families having financial problem
Conversely, the connection between intensity of living and fertility is not in direct relation.
Paradoxically Pakistan suffers a lot in human capital because of the ignorance in the field of health and specially learning institutes. From learning institutes Pakistan utilizes only 1.7 percent of its GDP. The percentage of GDP used for education is only about 0.22 percent for total learning expenditure. Therefore up gradation in the standard of education is the basic requirement of the time, so that Pakistani hard worker may meet the world high standards.
In Pakistan there are few variations in different districts on the basis of their culture and political stability. These differences are not the big deal, but differences in the field of education system, financial issues are creating huge problems for the residents. These huge differences grow sagacity of financial deprivation and segregation and this possibly carry many social problems in the culture that are very hazardous for the society. To use every person’s participation in the development of the country it is very necessary to realize the worth for the betterment and progress of the country. All this is only possible when health and learning facilities are up to date more important to the rural districts. In Pakistan most of the population live their lives in rural districts where the basic necessities of life are not in approach. Only two percent of GDP is used for educational purpose in Pakistan which is very much less than the world percentages. So there is a serious need to take actions for the up gradation of education and health sector.
Levels of Poverty and Population Growth in Pakistan
The estimates for poverty level in Pakistan were 24% in year 2007. The flood came in the year 2010 had differentiated richer and the poor. To measure poverty ratio in Pakistan it is very difficult. The ratio of poverty reduction which was estimated in 1970 to 1980 was totally upturned in the year 1990.The above saying indicated to the poverty shell. In the year 2001 IMF prepared beneficial techniques to state a guiding principle for the reduction of poverty rate in the country.
The World Bank has summarized the population growth percentages as, in Pakistan from the year 1990 to 2008 to be increased about 58 percent whereas in India 34 percent growth take place while in Bangladesh it is only 38 percent. Pakistan’s population was 187,382,721 whereas growth rate was 1.573% in 2011 estimates. Despite Pakistan’s 65 years of independence and its natural resourcefulness, it has still not been able to meet any of the set targets which include getting rid of polio, eliminating poverty, increasing literacy, reducing population growth rate and food & shelter for every citizen etc. All these failures are due to various factors in which the major one is corruption at all levels .
Social Stratification and Rural Urban Migration in Pakistan
Enormous hardship because of financial, social and political difference is yet widespread in Pakistan. In spite of the fact that armed forces argue that poverty is reduced to 23.9% there are huge pockets of scarcity discrete in whole country. Poor are not getting proper three time meal on the other hand the wealthy ones are celebrating the gorgeous moments of life in full lavishness. Therefore scarcity because of unequal sharing and allocation of property has now become unending and a burning cancer in the country organization. Liberty of civilized and well-mannered livelihood is unfortunately decreasing in the country where the founder Quaid give equal freedom to all the citizen of the country whether it is in education, opportunities or financial matter. The country organization are breaking down due to preferential treatment and discrimination.
Same as other progressing countries Pakistan also has the fast moving speed of migration from rural areas to urban areas. This migration from rural to urban side need two stages basically. In the initial first stage usually untrained workers expend some time with unofficial urban zone through which they reaches the second stage. In the second stage they experience more formal zone. From 1951 to 1981, the town residents quadrupled. In early 1994, regarding 32 percent of all Pakistani citizens lived in town districts, and 13 percent Pakistani citizens of total living in three mega cities of more than one million population Lahore, Faisalabad, and Karachi .
The town migrants are nearly consistently men. While they have stimulated to the cities, in perform they keeps their attachment with their town, and their privileges there are recognized lengthy after their exit. From beginning, the movement is commonly seen as a provisional practical, a mode to acquire property or induce a debt. Usually, the refugee post part of his salary to his family he left at the back and profits to the town to do job at crest farming periods. Yet wedded immigrants frequently remain their families in town while they earliest migrate. The choice to get family toward the city be so a goal in the movement practice.
Levels of Industrialization and Exports
Pakistan's business division accounts for about 24 percent of GDP. Cotton fabric making and clothing developed are Pakistan's major industries, accounting regarding 66 percent of the goods exports and approximately 40 percent of the working labor strength. [1] Cotton and cotton-based goods description for 61 percent of export income of Pakistan. The spending of cotton improved by 5.7 percent more than the last five years whereas the financial development speed be 7 percent. By 2010 the rotating capability improved to 15 million spindles and textile sector exports beat 15.5$ billion.[citation needed] Other main industries comprise on cement, fertilizer, edible oil, sugar, steel, tobacco, chemicals, machinery and food dispensation .
Pakistan’s Geographical Impacts on its Economy
A country's geographical properties indicate the level of opportunities and threats the country is facing. For example, Pakistan’s hilly land builds entrance so hard, but at times it is as well the immensity of Pakistan that gives to its reserve. While a huge earthquake attack Pakistan in the year of 2005, the survivors set up themselves exclusive of any protection, and with coldness alarming very soon about the place. Various groups contested to supply protection for the victims, therefore the issues were quickly resolved in the distant mountainous areas. However, in a lot of cases, there was not suitable infrastructure, and landslides. The groups used tractors for transportation goods, and frequently workers had to walk on-foot to the towns.
The largest province of Pakistan i.e. Balochistan has mostly barren land which reduces its cultivation capacity of the country. Furthermore the country is located in an active war region while getting threatened from two sides i.e. India and Afghanistan. The unstable socio-economic and political conditions of the region has greatly affected the country’s economy.
Status of financial and other markets in Pakistan
Whereas worldwide economic markets have just been confused, the development for economic markets in developed states expanded at the similar moment that markets in several rising states mainly in Pakistan stay unfinished. The immature resources markets in Pakistan are stated in survey of global assets by the private division, which has stated it to have negative extreme external borrowing, dollarization of global milestones, and further events that raise their publicity to probable assets shortfalls. There is only way to moderate the expenses of publicity are for the government to building up of global assets which are currently negligible. This global asset building will increase the reputation of the country in global market which will in turn lift up the domestic market of the country.
Policies Adopted by Government
The various policies adopted by the government in order to improve the economic situation of the country are as following:-
- Benazir Income Support Program to support :
- Direct income to unemployed people
- Scholarships for students
- Internship offers for fresh graduates
- Diploma offers with stipend to willing students
- Freedom of media to stop corruption
- Aid from international bodies to support the economy
Conclusion
65 years after freedom, Pakistan leftovers vastly a third-world state. Now the young generation of the state occasionally convey the certainty that they should improve off the under British majestic law for their immature condition, it is visibly displays that Pakistanis are not able to administer their own affairs. This is an alarming situation of thinking endorsed from International bodies. This intellectual description intends to invalidate this fantasy and refurbish an evaluation of nationwide pleasure in the history. In the path of this description, pre-separation Pakistan would referred to the India and chronological instances from the terrain structure the present states of India and Pakistan would utilized in vision of the divided majestic past.
Through analyzing the situation of Pakistan, various steps are to be taken by Pakistan’s government as well as its citizens for developing the country in a better way. Some of these are mentioned as below:-
1. Carry in people sustained, un-corrupt candidates in the assembly with political constancy. This is the most critical step which is the foundation of improvement in the country.
2. Industrial expansion through public-private sectors collaboration.
3. Bringing in foreign investors through building up the country’s reputation.
4. Increasing the exports through improving the quality of goods and supply chain.
5. Self-reliance in order to decrease the imports to save foreign reserves.
6. Improving the education and health sectors for citizens
7. Finding new markets for exports
8. Put end to corruption once for all which is extremely difficult in Pakistan’s case but very essential for real improvements.
All the above mentioned steps can be complete if Pakistanis support the honest peoples and leaders in the assembly, so the thing Pakistanis require excellent sincere leaders which sadly they are unable to elect and search out after the demise of Mohammad Ali Jinnah. The big amount of commissions which go in the accounts of the ruling people gives damage of double loss including the commission going in the pockets of their leaders and then 2nd the foreign trader pay the commission to the ruler to agree on the goods which will not be standardized according to the requirements of Pakistani people. Secondly, conditioning the privileged is dishonest, means that all the structure is based on dishonesty and also means that the corrupt employees who usually take bribery etc. become habitual and try same each time they have the option. Furthermore they cannot control the corruption as their ruler as well as most of the institutions have corrupt people. It is believed that it is especially vital for Pakistan to acquire a sincere leader, if Pakistanis desire to finish this fraud and alleviate the political atmosphere of the state. If Pakistanis achieve that the overseas financiers and substitute will become automatically.
Farming is their power; therefore, government should get steps to construct extra agro based manufacturing for economic growth. Government requires setting up TAX FREE ZONES in rural parts of Pakistan which are close to farming zone. These regions have to be focused on agriculture based economy which will bring Pakistan real beneficial rewards. The recommendations in this regard are mentioned below:-
- Tax assistance for online / web-based trade which will be helpful for us to discover worldwide market.
- Pakistanis are complete of endowment and trade ideas, therefore, government requirements to discover these thoughts and attempt to accomplish accepted seminars where prospective financiers should assemble inspired trade students who will be present their thoughts for trade. This will helpful for Pakistan to launch new business. These workshops or seminars have to be accomplished all over the country on standard interval.
- At present Pakistan is ranked 105th for acceptance to set up new industry. Government should create one window processes for shaping industry by SECP level.
In the end it is concluded that Pakistan can recover its sunken economy through electing good leaders and bringing changes in the core infrastructure. The natural resourcefulness of Pakistan gives an edge to the country to get on a fast track progress in short span of time however, it is only the matter of realization by the citizens of the country to take initiatives for improving the situation.
References
BISP, 2007. BISP Cash Grants. Available at: http://www.bisp.gov.pk/BISP_Search.aspx
Caesar, B. C. & David, O., 2008. Pakistan's Cotton and Textile Economy: Intersectoral Linkages and Effects on Rural and Urban Poverty. Washington, D.C.: International Food Policy Research Institute.
International Monetary Fund, 2011. Pakistan: Poverty Reduction Strategy Paper. Washington, D.C: International Monetary Fund.
Khawaja, A. S., 2011. Economy of Pakistan. Karachi: Institute of Business Management.
Merlinda, D. I., 2010. Agriculture, Trade, and the Wto in South Asia: Interests and Options for South Asia. New York City (NY): World Bank Publications.
Milan, S., 2008. Textile Industry In India And Pakistan. New Delhi: APH Publishing.
Muhammad, A., 2011. Exports and Economic Growth in Pakistan: Historical and Empirical Analysis. Saarbrücken: VDM Publishing.
