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Executive Summary

Let us give you a brief overview in simple terms as to what the structure of this economy is? In
1947, Pakistan had 30 million people with per capita income of 100$.
Agriculture accounted for almost 50% of economic output with hardly any manufacturing, as all
industries were located in India. Therefore, it was unable to feed 30 million people and was
dependent on PL-480 imports from the USA. From thereon, Pakistan has come a long way.
Today with 170 million people, our per capita income in 2008 was 1000$ which was ten times
more.
Pakistan is the third largest exporter of rice in the world and producing enough food grains to
feed its people. 3 million tons of rice is exported every year by Pakistan which is surplus to our
requirements. Pakistan is also one of the five major textile producing countries in the world. So if
we measure in relation to where we were vis--vis structure of economy, agriculture has come
down from 50% to 20%. Therefore, out of total national income, agricultures contribution is just
20%, but instead of being deficient in food production, we are actually surplus and that is what
productivity means i.e. by using the same land you produce more from the same inputs, that is
how economic growth takes place. Agriculture is not only crops, within agriculture there has
been a significant change. Livestock, dairy, mutton, beef, poultry and similar other products is
50% of agriculture output in Pakistan. Pakistan also produces third largest quantity of milk in the
world. So within agriculture sector, there is a change i.e. major crops are only 36% of agriculture
value added and 14% are minor crops, fisheries, orchards, fruits and vegetables.
Thus, we are moving in a direction where the same land and same resources are being used
more efficiently in order to produce more. As a contrast, agriculture is only 2.5% in the US
having a population of 300 million, out of which they not only feed the entire population, but
also export to the rest of the world. Therefore, it is important to understand that when it is said
that agriculture is producing/contributing more, it is the productivity of agriculture rather than
the share of agriculture in GDP. Manufacturing and industry now account for 25% of the
income; when we recall there was not even a single industry worth its name at the time of
partition. So if we look where we were and where we are, I think the justification for Pakistan in
terms of betterment of economic conditions of Muslims in this part is very strong. But where we
have failed is that we have not lived up to our potential.
In 1969, Pakistan exports of manufactured goods were higher than the combined exports of
Indonesia, Malaysia, Philippines and Thailand. In 1960s Korea emulated Pakistan in its five
years planning process. The tragedy is that even a country such as Vietnam which was
completely devastated by the war has now overtaken Pakistan. Ten years ago, India which was
way behind Pakistan (till 1990s) is now way ahead. As an economist and student of
globalization, the biggest challenge is: how can we organize ourselves to reach that position
where at least we can be running not at the nine second a mile but at least ten second a mile race
which is going on in the global economy. Some of the problems and their reforms are discussed
in this report.





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Introduction
Economy
The wealth and resources of a country or region in terms of the production and consumption of
goods and services. The large set of inter-related economic production and consumption
activities which aid in determining how scarce resources are allocated.
The economic problem
All societies face the economic problem, which is the problem of how to make the best use of
limited, or scarce resources. The economic problem exists because, although the needs and wants
of people are endless, the resources available to satisfy needs and wants are limited.







List of International Economic Problems
Economic bubbles and mass business failure
Child labour and improper child welfare development
Corporate crime and planned economic turmoil
Corporate scandals
Corruption
Uncontrolled debt
Economic disasters
Mass economic inequality
Energy crises
Ethically disputed business practices
Financial crises (restricted to the financial sector)
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Uneven income distribution
Inflation
Market failure (component failure)
Monopoly
Offshoring and outsourcing
Poverty
Economic recessions
Social inequality
Stock market crashes
Unemployment
Credit crunch crisis
Currency crisis
Cycle of poverty
Deflation
Demographic trap
Economic collapse
Economic stagnation
Hyperinflation
Income deficit
Liquidity crisis
Middle class squeeze
Monetary inflation
Crude oil depletion
Overpopulation
Stagflation
State monopoly capitalism
Stock market bubble
Current economic problem
Unemployment
Poverty
Terrorism
Increase in cost of production
Lack of confidence of investors due to political instability
Revolts against government in many countries
Energy crises
Inflation
Economic problem due to political instability with in nation and some relationship
problems with others nations
Technological problems
Poor taxation system
High illiteracy rate
Balance of payment deficit
High intrest rates
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High population growth
Adverse terms of trade
High dependency in public debt
Devaluation of money
Short term investment issues
Micro finance issues
Child labour
Low GDP growth
Unequal distribution of wealth
Poor infrastructure
Underutilization of resources
Poor health facilities
Agricultural problems
R & D issue
Economic Problems of Pakistan
One thing is sure there will not be any increase in the income of ordinary man. The number of
the poor in Pakistan will also increase. If in 2011, population is 175 million this means that some
70 million people will live in absolute poverty. It also means that more than 40 percent of
population of Pakistan will be in absolute poverty. The main problem is that most of these poor
lives in urban cities and towns and they have less opportunities as compared with country side
poor.
Economic Problems
i) Economic Loss Due To War On Terrorism
ii) Energy Crisis
iii) Low FDI and Huge Debt Trap
IV) Poorly Managed Tax System
v) Low Export and High Import
VI) Inflation
viii) Lack of Tourism
Social Problems
I) Poverty
ii) Illiteracy
iii) Overpopulation
iv) Unemployment
v) Child Labor
vi) Corruption
vii) Poor Social Sector Including Health, Safe Drinking Water, Sanitation And Basic
Infrastructure
viii) Women Are Not Empowered
ix) Human Rights Problem
x) Injustice
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xi) Sectarianism, Extremism, And Target Killing
xii) Absence Of Rule Of Law
NOW WE WILL DISCUSS SOME OF THESE POINTS IN DETAIL:
Pakistan is a developing country with limited development in every era due to the problems it
face. The major problems faced today by Pakistan as a country are as follow.

1) POVERTY:

According to an analysis conducted by the government of Pakistan. The higher education
commission of Pakistan shows that the poverty has increased roughly from 30% to 40% during
the past decade. Consider that if 40%of a countrys population is earning their life below the
poverty-line in which the people are deprived of basic necessities of life such as clothing, shelter,
food, education and medication, such families and their children will be forced to think of their
survival only.


2) ILLITERACY:

Literacy is defined as persons aged 15 or above who can read and write. According to this
definition, Pakistanis officially reported to have 50% literacy rate. Which means half of its
population is illiterate. With such family backgrounds, inflation, poverty and child labor this rate
is expected to increase in future. Even for those who are termed as Literate are only able to
read and write, which in todays technology oriented world is still considered as illiteracy.
Majority of the people forming the top controlling tier is almost unaware of technologies and
technical mindset. Thus, causing the country to adopt the new technologies at a snails speed.


3) CORRUPTION AND POLITICAL INSTABILITY:

Pakistan is suffering from a fatal problem known as Establishment. Every vital department in
Pakistan is controlled by the so called Establishment. Establishment is a network of key
positions in almost all the departments in the country. This network provides support and safe
backing to their touts to ensure that they remain in control. The roots of this establishment may
very well be deep inside underworld and secret agencies of the dominating nations.
It is interesting to note that due to the international interference and manipulation the very same
people that we label as corrupt just some time ago, blame and rebuke, come back to govern us
after a couple of years again and people welcome them with open arms. A common English
saying goes as fool me once, shame on you, and fool me twice, shame on me.
This is probably also the main reason why the political process in Pakistan is not let to prosper.
Soon after its inception the sincere and loyal politicians were removed from the main stream and
only dummy agents and rubber stamps are put in place, while all the decisions are made outside
the country.


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4) TERRORISM AND RELIGIOUS EXTREMISM:

The whole world looks at Pakistan, as a land of terrorists. Main reason being an exploitation
through the religious leaders and reaction of the military operations both internally as well as
externally. China is getting 13 billion dollars as foreign investment because of its stable and
investor-friendly environment where as even tourists are afraid to visit Pakistan due to the
security concerns.

Even smaller countries like Romania and Philippines are getting a lot of foreign investments.
There needs to be a big shift in the mind set. Pakistani people should move away from the
clutches of the religious fanatics and must realize what is best for them and their country.


5) OVERPOPULATION,
According to official Pakistani sites (actual figures may be well above the officially reported
facts), the country has an estimated 2% growth rate which for a country of official population of
160 Million turns out to be roughly around3.2 Million every year.
This alarming growth rate is causing immense pressure on head of the families who are to
support them.

Pakistan is facing the dragon of overpopulation. The growth rate of Pakistan is very high and is
among the highest in the world. Since 1947, the population has become more than triple.
Pakistan is almost touching 180 million mark. Population expansion has been a real issue of
concern for all governments. With limited resources it is very difficult to cater to the needs of
growing population. There is a great economic disparity among the people. Poor are committing
suicides out of hunger while rich are busy in amassing more and more wealth. These social
problems directly affect the masses. The massively increasing population has almost outstripped
the resources in production, facilities and in job opportunities.

6) UNEMPLOYMENT:

Unemployment is also regarded as a major social problem. Major portion of Pakistans
population consists of youth and a large number of young people who have the ability and are
willing to work are unemployed. Currently rate of unemployment as per official resources is
7.4% but according to some private estimates the arte of unemployment is 12%. There are many
reasons of unemployment like influx of machinery that has replaced manpower, lack of new
industries and defective education system. But the impacts of unemployment are more serious
and dangerous. People who dont find work here migrate to other countries with better prospects.
Also, people tired of making both ends meet due to unemployment indulge in nefarious activities
and ratio of crimes increases.

7) INFLATION,
Pakistan has a fast developing economy which is making its middle class grow swiftly. This is
creating more need for energy, food and homes and the prices of these things are gigantic
nowadays.
Also with the internationally growing oil prices are causing every item in the country to doubled
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(and in some cases tripled) every year.
Rate of inflation was never a two-digit figure in Pakistan, but in recent years it has seen an
unprecedented increase. Prices of all consumer products in general and food products in
particular are rocket high. Core inflation soared to 18.85% in first quarter of year 2009 until SBP
took steps to curb inflation through tight monetary policy. Cost of production increased due to
various factors. International increase in oil prices and Pakistans internal unfavourable business
conditions are two important factors responsible for high rates of inflation. Consumer Price
Index (CPI) as well as Wholesale Price Index (WPI) is at all-time high. In contrast, purchasing
power of masses is at an all-time low

8) Electricity load shedding;
Now a days the very big problem face by Pakistan economy is electricity load shedding, Due to
short fall of electricity the industries are in very bad position and almost many of the industries
are shifted in Bangladesh and other countries and on the other hand the people do not ready to
invest in the economy.

9) Water issues;
Water issue with India is also a big problem in the economic development of Pakistan. This issue
is since from the independence and not solve till now. Pakistan want to establish new dams but
india stop the water due to this Pakistan facing load shedding problem


10) Export issues;
On the other hand there has been a decline in the unit value of Pakistani exports. While
Favourable domestic policies and aggressive entrepreneurs can bring about increase
In the quantity and quality of exportable goods, they have no control on the prices
They can fetch. These prices are determined in the international markets. The
Narrow export structure under which two-thirds of our exports are cotton and
Textile based, does not allow new and non-traditional exports to offset the
Deterioration in the unit value of textile exports. While the cynics and pessimists
May keep on moaning about the lack of an exportable surpluses in the country the
Fact is that the exportable surplus has been generated by the farmers and
Businessmen of this country, but depressed world prices have not allowed this to be
Translated into higher export earnings.

11) Disinvestments;
Another factor that has not so far helped us, is the non-resumption of
Foreign Direct Investment inflows at the levels we had envisaged. The Hubco
Dispute has only recently been resolved, removing a long standing irritant to foreign
Investors. Oil and gas and I.T. investments have just begun to be finalized and will
Take some time to materialize. In the meanwhile there have been some
Disinvestments for global strategic non-economic reasons which were beyond the Control of
Pakistans economic managers.



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12) Political instability
Unfortunately, over the last 65 years our successive governments have failed to consistently
fulfill these objectives, resulting in our country missing the economic prosperity which many
other countries have been able to achieve. Whereas, much can be said about the failure of the
state to provide security, transparency and an equitable environment for the private enterprise to
flourish; the economic and social sector performance of Pakistan has also been severely
impacted by the following:
a) Inability of the successive governments to balance their budgets by increasing tax to GDP
ratio, reducing non-development expenses and losses of the Public sector enterprises.
b) Negligible expenditures on education and health sectors to develop our most important asset
i.e. human resource.
c) Creating a competitive environment of high economic growth by focusing on the productive
sectors of our economy such as agriculture and manufacturing, and
d) Focusing on infrastructure and energy sectors to facilitate the economic growth.
Whereas, we have seen efforts in the past to address these weaknesses they have been at best
weak and far between.
The present economic scenario is again infected by the same weaknesses i.e. large fiscal deficits,
low expenditure on education and health, chronic electricity and energy shortages, lack of focus
on the productive sectors resulting in high inflation, high unemployment and low economic
growth. We all want a Pakistan which is economically prosperous, institutionally resilient and
strategically oriented. In essence, we want to make Pakistan an economic welfare state. In our
view, a key pre-requisite for an Economic Welfare State is to ensure that a country experiences
equitable and sustainable growth for a prolonged period of time. Look at the examples of India
and China where uninterrupted economic growth has changed the whole value proposition of
these countries.
13) Unfavorable Balance of payment
When the value of exports incease than the value of imports,then bop is said to be unfavorable or
deficit.
REASON FOR BOP DEFICIT
1) Non value added exports
2) Huge expenditure on imports
3) Unfavourable terms of trade
4) Devaluation
5) Consumption oriented society
6) Domestic problems
7) Import of oil and machinery
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14 ) Adverse terms of trade
The quantities of domestic goods that a country must give up to obtain a unit o imported
goods
Reasons of adverse TOT
1) Production of primary products
2) High demand for finished goods
3) Rise in prices of imports
4) Rise in defense needs
5) Reduction in foreign aids
6) Rise in forigh debt
15) Poor infrastructure
Many obstacles in economic growth center upon deficiencies of public goods and
services , or, in other words, an inadequate infrastaructure.
1) Sanitation
2) Basic medical program
3) Education
4) Irrigation
5) Soil conservation projects
6) Construction of highways
7) Transportation- communication facilities
Are all essentially nonmarketable goods and sevices yielding widespread spillover
benefits.
16) Economy Crisis:
In 1947, Pakistan had 30 million people with per capita income of 100$. Agriculture accounted
for almost 50% of economic output with hardly any manufacturing, as all industries were located
in India. Therefore, it was unable to feed 30 million people and was dependent on PL-480
imports from the USA. From thereon, Pakistan has come a long way.
Today with 170 million people, our per capita income in 2008 was 1000$ which was ten times
more. Out of every hundred rupees of our national income, we consume 85 rupees and save
only 15 rupees, which means that the amount of money which is available to invest for
economic growth and advancement is too little. Because to grow by 6%, you need at least 24-
25% investment rate. In 1990, Pakistans share was 0.2% of the world trade. After 20 years it
has come down to 0.12% in a very buoyant world economy.

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17) INTERNATIONAL INTERFERENCE
India is typically termed as a conventional enemy to Pakistan. As mentioned before the people of
Pakistan need to be trained to think positively about their surroundings. We should learn a lesson
from US and Canadas cross border collaboration to improve their affairs and provide backing,
why cant Pakistan and India enter into such strengthening relationship?
Pakistan can never move forward with its proxy war politics with India and its involvement in
the so-called US War on terrorism. It has to strike peace with India and other neighboring
countries soon so that it can use its resources for its own peoples welfare and focus on its
collective objectives.
Pakistan has more potential to be a developed country earlier than India. It has the resources and
talent.yet it seems to sink lower by the day. India with a billion plus population has a million
problems to handle. Yet the focus of India has been right and it shows in its 8% economic
growth. Its time Pakistan learns this lesson and corrects its focus.
18) Stock Exchanges
Stock exchange also depicts a true picture of economic meltdown. Instable political system,
dictatorship in its worse form and non-effective democracy badly affect the rates of stocks listed
on the three stock exchanges of Pakistan. During this year, many times Karachi Stock Exchange
has plunged to its lowest point in the history of Pakistan. Local as well as foreign investors are
hesitant of investing large sums of money in stock exchange in fear of incurring unexpected loss.
Stock exchanges showed very poor performance throughout 2008. Situation was so precarious
that government had to freeze the market during last quarter of 2008. Also, recovery state of
stocks is alarming. Earlier when stock market used to plunge, it would recover in few days or
weeks. Now share prices take a nose-dive and take considerable time to generate profits.
19) Tourism

Northern areas of Pakistan have been a place of great tourist attraction. The beautiful hills, the
lush green valleys, shimmering lakes and flowing waterfalls brought many a tourist form all over
the world to Pakistan. This contributed to foreign exchange. Tourism Industry was one of the
booming industries of Pakistan. Besides attracting foreign exchange, it also provided
employment to local people. Also, tourist industry was a source of friendly relations with other
countries. Nevertheless, war on terrorism has served as a serious blow to the tourism industry of
Pakistan. Local as well as foreign media has projected Pakistan as a dangerous and unsafe
country. Its poor law and order situation has alarmed the tourist and thus Northern areas no more
receive many tourists.

Due to war on terror, local people of war-ridden areas are migrating to other areas of Pakistan.
Country has seen the largest migration since independence in 1947. These people have left their
homes, businesses, possessions and property back home. This large influx of people and their
rehabilitation is an economic burden for Pakistan. Unemployment is already prevalent and now
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the question of providing employment to these migrants has also become a serious concern. This
portion of population is contributing nothing worthwhile to the national income yet they have to
be benefited from it. This unproductive lot of people is a growing economic problem of Pakistan.

20) P00r tax system in Pakistan

Moreover, tax system in Pakistan is also inefficient and unsatisfactory. Ratio of direct taxes is
more than indirect taxes. Tax evasion is common. The rich are reluctant to pay tax, while the
poor are paying tax even on the purchase of a match box.

21) Health Issues:
Pakistan is facing a health crisis with rising rates of heart disease, diabetes, obesity, and other
non-communicable diseases (NCDs), which disproportionately affect poor families, with
possible side effects of disability and premature death, and worsening poverty as people pay for
medical treatment out of their own pockets.
the World Health Organization (WHO) reported 4 million cases of diarrhea, pneumonia, malaria,
and skin conditions that had largely resulted from the flood conditions. Cholera outbreaks have
also been reported from flood-affected areas. From Oct. 15 to 22, WHO reported about 258,000
consultations for pneumonia, diarrhea, and suspected malaria. Furthermore, dreaded diseases
such as dengue and Crimean Congo hemorrhagic fevers have been reported from the field, along
with measles encephalitis and neonatal tetanus
Yousuf Raza Gilani was speaking during high-level talks aimed at preventing a mass health
crisis. The UN says more than 17 million people have been affected by the floods, with about 1.2
million homes destroyed.
22) Government Spends More than it Earns as Revenues.

Fiscal deficit is the difference between the revenues which are collected in a year and the total
expenditure incurred by the Government. Pakistans government takes away 20% of national
income as its own. 80% is left in the private sector and 20% in the hands of the government is
spent on defence, debt servicing, development on education, health, general administration etc.
The revenue generated is only 15% of the GDP at best, and in the worst days it is 12 to 13%. Out
of the every rupee of income received by a Pakistani, on average, tax paid is only 9 paisas
and 91 paisas remain with the individual. In 2007-2008, Pakistans fiscal deficit was more than
7% which means its income or revenues were only 13% of GDP whereas, expenditures were
20%. Therefore, fiscal deficits have to be financed from somewhere, so how do you finance
them; you either go again begging the external donors, or to the State bank of Pakistan. The
financing provided by the State bank of Pakistan is dangerous because it creates high inflation in
the economy, which is injurious to the middle class, those earning fixed wages and
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salaries, and the poor. Therefore, there is an uproar in the country if the inflation rate goes up. In
1999, our Debt to GDP ratio was 100%, which means that the entire national income was
pledged as debt. Every single penny was pledged to the creditors. This ratio was reduced
gradually over next six to seven years and brought down to 50%, an average for all the
economies. However, the way the things are going for the last two years, it has moved from 50%
in last two years to 58%, and with all the borrowings it may go to 60%, while the Fiscal
Responsibility Law 2005 says, that the government should not exceed the debt GDP ratio more
Than 60% and is required to reduce it by 2.5%; and that is not happening. The reason the fiscal
deficit is widening is low revenue collection. How can you expect that only nine paisas out of
every rupee of income generated by Pakistani population suffices to meet the requirements of
defense, infrastructure, development, debt servicing etc. This is just not possible. In India, tax
GDP ratio is 15% and still they have fiscal deficit. So Pakistan is way below the norm for
Developing countries. Many people say that defense takes away a lot of government expenditure.
Whereas, the fact is that defense expenditure is only 20% of government expenditure. It is only
4% of GDP, and is not such a large expenditure as compared to debt servicing which is 7-8% of
GDP and almost 40% of government expenditure. Therefore, government has to contain its fiscal
Deficit by raising revenues. Agriculture incomes are exempt, professionals, retailers,
wholesalers, transport owners and many other service providers evade taxes by paying a small
fraction of what is due. Continuing large fiscal deficits year after year may plunge the country
into debt trap again.

23) Cost of Doing Business is high. Pakistan is ranked among the bottom half
Of the rankings of the countries where cost of doing business is quite high. It is
not high for any particular reason but because of our bureaucracy totally sitting
on their seats without taking actions or decisions in time. Unless there is some
pressure or incentive for them, the normal businesses particularly the small and
medium businesses have serious problems at the hands of bureaucracy. Even if
we have investors who are welcomed by the federal government, when it comes
down to provincial and local governments there are given a run around the land
is not available, the water is not available, the gas is not available, electricity is
not available, road is not available. Lack of coordination among various
government agencies, innumerable laws and regulations that are antiquated and
outdated have proved to be serious impediments. Labour laws, inspections by
multiple agencies, the delays in the court system, infringement of intellectual
property rights and evasion of taxes by competing firms in the informal sectorhave rendered
some of the well established firms unprofitable, or the feasibility of starting near ventures
questionable.

24) Child Labour:-
Child labour is the most annoying thing that the children which deserve to be educated and
provided with all their needs are forced to do work especially physics work which is very painful
site. Child labour is the most serious social economical problem. The circulation of money is
restrained to rich people only causing the poor to become more poor. Whether in bigger cities or
in small villages, we find innocent children employed in various forms of labour. They are
working as welders,, plumbers, electricians and in industries like carpet-weaving, glass and
football making. Insufficient salary is paid to these children and no facilities for education are
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provided. In past, some countries refused to import those goods from Pakistan in whose making
children were employed. But despite all these factors, due to growing inflation (rise) and
poverty, parents are bound to send their children to work to light their stoves.


25) Lack of technology
Pakistan is facing economic challenges due to lack of command over technology. This is because
of non availability of latest technology in our economy. Thats why we are lagging behind in
exports because we are producing raw materials due to lack of tehnology.other factor is that if
technology is available that is mostly outdated on which depreciation cost is quite large. Another
factor is that people in pakistan are mostly illetrate,so they dont know the right use of
technology thats why we are lagging behind the other developed countries.

26) High intrest rate
Another economic challenge faced by pakistan is high intrest rate.this is because our government
is instable and we are facing war against terrorism so there is a situation of high inflation in our
economy because of high dependency on foreign debt. Due to that high intrest rate charged by
banks investment is low which in return affect unemployment. So in this way our economy is so
weak.

27) Exchange rate issue
When the countries do trade with other countries then he pay the amount in the currency of
country from which he purchase the goods, so it change its currency to other country currency
this process called exchange rate.













14






Solutions of current issues:

1) Solution for poverty:
Policies regarding poverty reduction Marshalled by different government could not calculate the
desire results.Crudely speaking,this is the gravest problem being faced by pakistani nation,if not
handled with diligent care and implicit faith,will swell and devour the entire mechanism of the
state.For a welfare state to get stronger,policies as regards development of poor strata should be
the top of the checklist.i behold a time when we shall be steadily hauling our downtrodden
economy towards heights,provided that we chalk out such policies that not only project the
welfare of effected spots but also transpose their outlook .I propose following measures for
extermination of this menace;
Promote industriallization
replacement of the orthodox agricultural implements with new scientific equipments in
order to increase the yield.
establishment of justice and equality
equal distribution of resources
merit should be the upshot strategy in all walks of life
elimination of discriminatory policies
controlling of inflation and other economic indicators and regulators.
developing investment friendly environment
Giving more feasibilities and concessions to the foreign investors
dumping extremism and feudalism
establishing more and more technical institute in order to get people well skilled.
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prevalence of education
provision of job opportunities
division of agricultural lands among tenants.
maintaining law and order situation in order to protect economic activities
smuggling and other illegal economic activities should be dealt with iron hand.
industrial zones should be established in the areas according to the local economic
preferences.

2) Solution for illiteracy:
The first step is to Increase in the budget of education is must. The medium of instructions
should be one. Gender discrimination to be discouraged and the concept of education for all
should be propagated.
Teacher training programs are also a requirement. Technical education is also must. Sir Syed
Ahmad Khan emphasized upon education to fight the masters and powerful of that time. The
students who understood the importance of education were the flag bearers of Pakistan. Today
the only hope to build Pakistan, fight all the evils and overcome problems depends on our
sincerity to prepare our younger generation to be physically and cognitively strong.
This cannot be accomplished without meaningful and an objective academic background. Such
rock solid foundations of today are the only investment for a secure future.

3) Soluation for unemployment:
Faster economic growth is viewed as a means of generating more jobs.
cuts in real wages -Cuts in real wages are a reaction to the view that through their demands for
higher wages, some groups of workers have priced themselves out of a job ==
Methods of accumulation and dissemination of information on available jobs and workers could
be improved -Swedish model, in which job centers have a nationwide, integrated database of
jobs, employers, and available employees. This type of database could reduce the time spent by
an average worker on the unemployment roll and thus reduce the unemployment rate ==
unemployment agencies could tighten their job search and job acceptance requirements
here could be improvements to the education and training provided to young people, with a
greater focus on vocational skills ==
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countries need to ensure that their welfare systems do not provide disincentives to work
policies affect the labor market by reducing the supply of labor - For example, work sharing,
early retirement, and reduced migration

4) Solution to control adverse BOP:
the following measure should be taken to control the advers BOP
Labour Intensive Industries
Reduction in Export Duties
Quality Products
Export Marketing
REDUCTION IN IMPORTS
Decrease in Consumption
Population Control
5) Solutions for Educational System:
Estimating the value of education, the Government should take solid steps on this
issue. Implementation instead of projecting policies, should be focused on. Allocation of
funds should be made easy from provinces to districts and then to educational institutes.
Workshops must be arranged for teachers. Foreign states are using LSS system. This
should be inducted in Pakistani schools to improve the hidden qualities of children.
Technical education must be given to all the classes. The education board of Punjab have
projected a plan to give tech- education to the children of industrial workers. Promotion
of the primary education is the need of time. Teachers, professors and educationists
should be consulted while devising any plan, syllabus or policy. The state seems to give
up her responsibility and totally relying on private sector. The need of time is to bring
education in its original form to masses. Burdening a students with so much books will
not work as he will not understand what the world is going to do next moment. Education
is the only cure of the destability in the state and can bring revolution through evolution,
by eradicating the social evils. This is how to remove illiteracy in Pakistan.
6) Solutions For Agricultural Problems In Pakistan:
Feudalism should be abolished and lands should be allotted to poor farmers. This will enhance
the productivity and per acre yield of all the crops in Pakistan. Taxes should be levied on
Agricultural income but not without devising limit of land holding. Other wise it would directly
effect poor farmers.
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Federal Seed Certification and Federal Seed Registration is approved but it should taken
responsible steps in approving seeds as it has already approved 36 new kinds of seeds. Specially,
those seeds should be banned which can create pest problem in near future. These seeds are of
cotton mainly. International seed makers are providing those seeds which are not successful in
our country as these seeds are not tested on our soil.
A new Agricultural policy must be framed in which following steps should be focussed on.
Small farmer must be focused. The major problems of small farmers should be solved first.
Consumer friendly policy must be projected.
Productivity enhancement programme must be constituted to adjust and support prices.
Different Agricultural zones should be introduced. As Multan in famous for its Mangoes and
citrus fruits so it must be made Mango, citrus zone by which Perishable products should be
exported. This would enhance agro based industry and increase foreign reserves. Pakistan
Agricultural storage & Services Corporation needs to take steps in this regard.
7) Solutions for inequality problems
The gap between the rich and the poor must be decreased by ensuring equal distribution of
wealth.
Dispensation of free and quick justice be ensured by strengthening judiciary.
There is a sheer need to curb corruption at all levels. The institutions of NAB and FIA
should be made more powerful to curb corruption
The curriculum of schools need be reviewed so that children can receive scientific and
secular education in their mother tongue. In addition, there is need to develop critical and
creative thinking.
Health care education and free health care needs be provided to all citizens.
Provision of equal rights to all citizens especially women and minorities be ensured.
Poverty alleviation programmers be initiated to reduce poverty and child labour.
Population growth is controlled by spreading awareness about the advantages of small
families among the masses through media.
Energy crisis must be resolved on priority basis to revitalize the dying economy.
New dams should be built and new methods of producing electricity should be utilized.
Youth be equipped with technical education and new industries be set up to
8) Solution of poor infrastructure
Government is the only sole institution in a position to provide the good infrastructure in
required quantities. Because good infrastructure proves to be the back bone of an economy.
9)Building up of Human Capital. There is no substitute to building up human
capital. Private sector, public sector, NGOs, local communities, philanthropists
etc, all here to put their hands on deck and participate in making sure that every
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child goes to school. Every high school graduate has some technical and
vocational skill or goes for higher education. Unless we build up human capital,
we are just going to be left behind because the world economy is going to be a
knowledge based economy. It is not an economy where you memorize material
or reproduce that in the exam and forget about it - that is no longer the case. One
has to acquire the knowledge and use it in order to apply to problem solving. This
is a new paradigm where human capital is as important as machinery and
equipment. Pakistan lags behind other countries in the institutions, infrastructure and incentives
for human capital formation. We have no choice but to accelerate the pace to catch up with
others.
10)Use of Technology. The technology is spreading like a wild fire. How many
people five years ago could have thought that even in a small towns and villages
of Pakistan, one would access to mobile telephones. 95 million Pakistanis have
mobile phones today. You can use this technology in order to provide them
banking services, information on climate/weather, agriculture extension, health,
education etc. It is a powerful tool which can leapfrog a lot of time which we have
wasted. Using technology particularly the information/communication technology
for the betterment of social and economic problems of Pakistan is something
which needs to be done but it cannot be done the way we have
compartmentalized this into different ministries. A more holistic and comprehensive approach
that deploys technology for poverty reduction has to be put in place.

11)Young Labour Force. Pakistan is one of the few countries which has a young
labour force which can be harnessed for its own and global economy. Japan,
Europe, USA and after 2050 China are going to have aging population where the
ratio of old to young people is going to increase. India and Pakistan are two
countries where the ratio of younger people to the older ones is going to
increase. If we tool these young men and women properly, we increase the
female labour force participation, give them skills and knowledge, they can
become the labour force for the rest of the world. This will give a big boost to
Pakistans own economy. In 2001, worker remittances were less than a billion
dollars; today we have almost 7-8 billion dollars. Now this can be multiplied by
three or four times if we have educated labour force i.e. skilled labour force going
for overseas employment. This is also a way to create employment opportunities
because if you have large number of younger people coming to labour force and
you dont have job opportunities for them you can have social upheaval. Therefore, it is
imperative to create employment opportunities for them and one of the avenues is to train them
in the kind of the skills which are needed not only by the national economy but also by the
international economy.
Opinion
Thanks a lot to ALLAH ALMIGHTY Our country is full of natural beauty.
There must not be inflation in our country due to falling prices we are facing a lot of problems.
Listen if we trade something some goods to RUSSIA if we directly send goods to them within 50
days but if we deal first with IRAN than within 7 days we can send goods to them. So we are in
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need of good relation to other countries in this way we can get benefit from trade with other
country.
As a matter of foreign loan we are in need of 10 billion and it is also a fact that we are not
developed country.
So it is need of time that we must believe in self _dependence and if we depend upon others we
can never get what we desire and need.
If we put a glance on our history we come to know that our Govt. and person who come in
authorities take loan and never pay back.
Then it create burden on us and under this burden. We have to pay what our Govt. took and that
is main point that we are under the influence of others. International origination are not listing us
because we have to pay and alas! Ah alas our coming generation also.
As we come to another aspect Smuggling, black marketing, hoarding, adulteration have caused a
serious setback to our economy.
Literacy rate is very low in our country people are generally illiterate they dont know about
modern trade and means. Unemployment is acute in our country and it is our misfortune that
some percentage of our country is literate but unemployed.
Poverty is the mother of evils and social evils
In order to overcome these problems and make our economy strong and strong political system
should be established in our country.
Democrat setup must be in our country there should be investment in our country and local &
foreign investors must be attracted by our terms and conditions which we offered and it is need
of time to expand small local network of industries and we are proud that our handmade goods
are liked by the four corner of the world.
It is also necessary to check funds and aid which we take from foreign countries.
We want to suggest that accountability process should be active, transparent and quick for the
sake of economic development. If we take into account about the needs of basic infrastructure
and by taking all these necessary steps we can develop our Park-economically, politically &
socially.
We are proud of our Pakistan
Problems are everywhere, if we see and observed America which is a developed country in the
concept of people it is also facing problem of unemployment.
Following are the policy which govt. has to implement
The most important govt. impose a low amount of tax on every people in the country ,in
result govt. revenue increase like govt. impose tax of 20 Rs. On all people. Our country
population is 18 crore if we calculate the amount of tax of a single day its a good
increase in govt. revenue
Develop the habit of forced saving through increasing the interest rate
Revise the monetary policy
Increase the budget for education
Increase the excise duty on luxuries goods
Reduce the excise duty on capital goods
Locate a place for industry which is tax free zone
Govt. invest in the area where private sector is fail to perform
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Sign tax free trade agreement with other countries to enhance trade
Increase the prices of goods with in the country to remove the smuggling in the country
Motivate the foreign investor to invest in country
Improve the small industry like blue painting which has a high demand in western
countries
Exchange rate effect when the countries do trade with eachother they require to change
their currency in other countrys currency. The exchange rate change quite rapidly and
mostly the currency of developing countries is devaluated so the developing contries bear
a loss.
But we have spirit, hard work, faith in ALLAH AND NABI PAK (PBUH) and In Sha ALLAH.
Very soon we will change our Pak fate. With the help of ALLAH ALMIGHTY.
Proud of being Pakistanis