Major Causes of Unemployment: i. 1.

Employment in the private sector absolutely stopped because they shifted their capital to other countries because of nationalization of industrial units badlyaffected the investment industrial sector. 2.The higher growth rate of population is the major cause of unemployment inPakistan. The resources of the country are limited because population hasexceeded the optimum level. 3.Karachi is the biggest industrial base of Pakistan, but investors are reluctant toinvest there because of unrest and violence. 4.Our educational system is also responsible for increasing unemployment rateamong the educated youth. The attitude of our youth towards the choice of acareer is unrealistic and unproductive. Rapid mechanization and computer technology also causing unemployment. 5.Lack of infrastructure and facilities in the field of energy, telecommunication andtransportation also prevent the industrialist from setting up new industries. 6.Lack of enough industries to employ ever increasing number of graduate inPakistan 7.The government is not involving in capital expenditures which create more jobs. 8.Main issue of unemployment in our country is that when ever a new technologycomes as software or hardware then all the people starts studying about that. Thenat the end, you will see ten thousand students of a particular field about 5 to 10 job vacancies. 9.Things are not handled in appropriate manner, as the vacancies are less but jobseekers are more than that. 10.Opportunities are not enough and system of reference is so much indulged in our society that if a company needs employees then workers










iii. Due to all these factors agriculture sector is notexpanding and there is general and disguised unemployment. Reasons for growing unemployment inPakistan Unemployment is one of the biggest problems of Pakistan. That’s why people are becomingunemployed. The biggest reason of unemployment in Pakistan is concerned with the backwardnessof agriculture sector. That person is unemployedwho has ability to do work and is willing to do work but is unable to get job opportunity. resulting in the prevailing unemploymentratio.of that company will provide some resume to them of their relatives and friends so in this way many people don't get the opportunity to apply for those jobs.9% to GDP and 44% people get jobs from this sector directly or indirectly.Unemployment in this sector is from two sides. Agriculture is the biggest sector of our economy that contributes 20. This sector should employ a large number of labor.In the current situation more than 30 lakh people are unemployed in Pakistan andunemployment ratio is more than 12%. . ii. Industrial sector is the second largest sector of our economy and contributes 19% tonational income. quality seeds. Second is the backwardness of this sector. pesticides.There is less availability of fertilisers.First is due to the adoption of latest machinery and capital intensive technology. demand for labour has been decreased. i. Because of less demand of such kinds of goods both the domestic and international producers are losing their interest in production. Due to electricity breakdownalready established industry is deteriorating. absence of land reformsand lack of agriculture education. High cost and low quality are responsible for less demand for our agri and industrialitems. Due tothis. But due to backwardness it is employing a small number of people.

This crisis originated from the banking sector of USA. In Pakistan majority of the businessmen are less educated. So they become bankrupt. especially the industrial sector. iv. then from where public would find jobs. ix. It is said that for the reasonable growth of economy saving rate should be at least 25% in any country. In Pakistan there is lack of every kind of planning. Due to less income from the taxes.UK and some European countries and is now a global phenomena. Millions of people in Pakistan are poor. In Pakistan education system is defective. In Pakistan. There is no educational planning.many industries have been closed. viii. There islack of technical and vocational institutions. gas and oil etc. Public attitude towards education is wrong. but in Pakistan it is only 13to 14% which is very low. Low investment level is due to less savings. Thissystem is producing the stuff. Tax evasion is common. tax system is not satisfactory. according to the need of different sectors of the economy. x. There is a huge difference between the demand and supply for labor. On the other side if government takes step to increase indirect taxes. Ratio of direct taxes is more than indirecttaxes. v. which is useless in technical fields of the country. . They do not know how torun their businesses properly. ultimately there isunemployment. If there is no investment. Current international financial crisis is one of the biggest reason of unemployment inPakistan and in the whole world. engineers. Nobody can set up his own business without technical education.iv. it would alsoaffect investment and ultimately employment level. government cannotstart developmental projects. vii. technical experts scientists etc.they want to get their degrees in general and arts subjects. This factor generatesunemployment on a massive level. vi. Due to poverty people are overburdened withexpenditures and their savings are very low. Loadshedding of electricity is disturbing economy.Due to less availability and high rates of basic inputs like electricity. There is absence of such kind of planning to produce doctors.

8% which is the highest in the region. Current external debt of Pakistan is morethan 50 billion dollar. Our resources are limited. xiv. Pakistani rulers got loans from IMF. Since 1947. Fiscal and monetary policies are also responsible for unemployment. Due to 9/11 incident. to stimulate production and investment.xi. So due to less resources for developmental projects there isunemployment. Political instability. bomb blasts.terrorism. inconsistent economic policies etc are the factors which are disturbingdomestic and foreign investment. xiii. xii. Pakistan investors are taking away their money toDubai and other countries of the world. Different sectors of economy are unable to provide jobs to thegrowing population. So in the current scenarioPakistan has limited job opportunities in other countries of the world. Economic Revival package should announce by the government for the revival of industries sector. Suggestions: i. Craze for work only in government sector. Pakistan’s population growth rate is 1. bad law and order situation. . Through the monetary policy if the government increases the rate of interest. army’s interference. Gulf war and the baseless allegations of terrorism the image of Pakistan has been affected very badly at international level. So there is unemployment. Government has to allocate a big amount for the repayment of loans with interest. Every annual budgetshows deficit. In view of fiscal policy. instead of private sector and seasonalfirms. industries are also responsible for unemployment. Such loans were not utilised honestly. World Bank and many other sources. it discourages the investors from getting loans. Pakistan has less funds to invest in job providing projects. xv.

. Government should try to boost exports through broadening the tax base andlowering tariffs. Government should announce multiple packages for the development of agriculture sector.ii. iii.