Major Problems

To
Pakistani Economy

The major problems that Pakistani Economy is facing nowadays are as follows

Inflation:
Rapidly inclining rate of inflation has stunned the Pakistani Economy.the inflation
increased upto 9% in 2005 and 7.9% in 2006.These were one of major rises in inflation
rate throughout Pakistani history.Inflation has directly affected purchasing power of
ordinary ,middle and lower class citizens.Such changes at grass root level has severely
affected national evonomics,causing massive rise in poverty and the ultimate result is
sudden massive rate in suicides.

Trade Deficit:
This is another major problem of Pakistani economy.for the financial year 2006-
07,exports were valued at $ 17.011 billion and imports were valued at $ 30.54 billion.The
trade deficit in merchandise,services and current account was valued at $ 13.528,$ 4.125
and $ 7.016 respectively for financial year 2006-07.This rate rose up even further in
2008.

Electricity Shortage:
The country is facing severe and worst energy and power breakage throughout its
history.Just in 2008,electricity shortage by average remained upto 2500 Mega
Watt,reaching at its peak when it rose upto 4500 Mega Watt in earlier week of
December,2008.Its consequences resulted in cease of thousands if industrial units,severe
loss to business.Almost similar is the case to natural gas.
War on Terror:
It is one of major reasons for country’s present economic level.The former government’s
policy to indulge and participate actively in war of terror has gifted us loss of billions of
dollars.Also it initiated massive,severe violence,terrorism,suicide bombs attacks
throughout the country.Suicide attack at Marriot Hotel,Islamabad is noteworthy to
mention.Such activities have severely suffocated the economic activities.

Huge Military Expenditure:

Military expenditures comprises largest proportion of national budget.These ultra
expanses have raised many times after launch of military operation in Balochistan,NWFP
and tribal belts of northern areas.Recently huge funds are allocated to JF-17 Thunder
Project.Its disputed to have so huge military expenditures at such down economic
activities.

Solutions to Problems
Solution to Inflation:
Currently ,it is difficult to bring down the inflation rate.However inflation rate must be
controlled properly.Maximum efforts should be to take prises right upto lever where they
were few years back.International oil prices have decreased dramatically,they can assist
to bring down inflation rate.However,best efforts must be to retain prices that were few
years back.

Solution to trade deficit:

The difference between exports and imports must be balanced.The exports must be
more.Proper manangment,sincere attention by government must be payed.Gwadar Port
should be utilized upto its optimum output.Government should encourage large and small
industrial units.
Solution to Electricity shortage:
The only solution to this problem is to establish more power units in country.More focus
should be on building cheaper sources of power generation like water,wind,tidal.Kala
Bagh dam is must for betterment of scenario.Also more awareness in people about power
saving should be enlighted and given.

Solution to War on Terror:

Contrary to government’s claims,it is an ultimate fact that war on terror is not for sake of
country but just for sake of American interest.The people have rejected this fake
drama.So keeping in mind the wants of Pakistani people and the long run interest of
country ,government should end country’s role in war of terror.and let to handle to the
actual forces themselves.

Solution to Military Expenditures:

By keeping the military leadership in trust,unnecessary expances should be cut down,For
example PAF makes maximum jet plane flights thoughout the world which is not much
necessary.Each flight cost millions of rupees.so military expances should be taken down
to adequate level.

Policies for Problems

For Inflation:
Government should impose strict rules and regulations to control price rising.It has also
been observed that sometimes it done deliberately in order to generate more profit for
example as it happened in case of sugar price rising a couple of years back.Monetary
policy should be made adequate and according to the current situation.Also government
should reduce sales tax on items of everyday use,specially taxes on petroleum products
should be minimized and subsidy should be paid by government.This will have direct
impact of prices of other items.
For trade deficit:
Government should impose more taxes,custom duties on import items ( with exception of
petroleum products and few other necessities like medicines) and specially on luxurious
item.This will discourage people to use imported items,thus compelling to use national
made products.
Government should encourage industrial units ,specially small and domestic level
units,hand made crafts .Also government should find new international markets,guide
exporters and manufacturers about full access to these markets.Using electronic and print
media,people should be motivated and encouraged to use national products rather than
imported items.

For Electricity shortage:

One of major reasons of power shortage is not lack of resources to generate power but
non payments to power companies.So first government should clear all delayed payments
so that all closed power units in different parts of country should be resumed.
More dams should be built.government must reconsider its decision regarding Kala Bagh
dam,More Nuclear power plants should be installed.. Using electronic and print
media,people should be motivated and encouraged to save power.

For War on Terror:

Government should take clear step in this regard that is to fully finish Pakistan’s role in
this superfacial,fake and fabricated war.Also government should strictly deal with foreign
attacks on northern Pakistani territories.There must be bilateral talks,negotiations with
extremists,militant forces in order to bring peace in region.Also government should adopt
strict policies regarding technical,logistical and strategical alliance and assistance to
foreign forces that are actively promoting this war.

For Huge military Expanses:

Keeping in mind,the current economic circumstances of country,government should
adopt policy for bit decline in military budget.A good step in this regard in already taken
that is to postpone the construction of new GHQ near margalla hills,Islamabad.
Military leadership,experts and analysists should also cooperate in pointing out
unnecessary or not much necessary expances..,