A note on Pakistan economy and what are the changes required to improve the

economy and employment in Pakistan.

Economy of Pakistan:

The Economy of Pakistan is the 27th largest in the world in terms of purchasing power parity
(PPP), and 47th largest in terms of nominal GDP. Pakistan has a semi-industrialized economy,
which mainly encompasses textiles, chemicals, food processing, agriculture and other industries.
Growth poles of Pakistans economy are situated along the Indus River; diversified economies of
Karachi and Punjabs urban centers coexist with lesser developed areas in other parts of the
country. The economy has suffered in the past from decades of internal political disputes, a fast
growing population, mixed levels of foreign investment, and a costly, ongoing confrontation
with neighboring India.

Pakistan is an agrarian country, 70% of its economy is based on agriculture, but only agriculture
is not enough for stable economy. Industrialization and mineral resources also play a vital role in
building countrys economy, so they also need our special attention and they are in immense
need of improvement.

Solution of Economic problems:

There are few economic problems faced in Pakistan, which can be resolved through many ways.

The agriculture sectors production can be improved by introducing mechanization and making it
common for farmers. Most of the farmers in Pakistan are poor and unable to adopt modern
techniques. So they should be provided with (easy to return) loans. The farmer should be
educated that they must only use the seeds of good quality, they must use appropriate fertilizers
in right quantities. The farmer should be made aware that they should practice collective farming
instead of farming on small fragments of land, by doing this they would be able to set up tube
wells and buy tractors (of their own) collectively.

The government should calculate the requirements of the people and then export the rest of rice,
cotton, sugar etc. so that it does not have to import the same things at double costs later. Pakistan
exports great quantities of cotton, leather etc in their raw form. Instead of this we should
establish industries and export these things after processing and converting them to some useful
goods, it will increase the foreign exchange two to three times the previous one.

Industries should be established near to the resources to save the fuel used for transporting the
raw material. Pakistan imports great quantities of petrol and other fuels this import can be
reduced by discouraging the use of personal vehicles and encouraging the use of public transport.
Pakistan uses alot of fuel for the generation of electricity, this fuel and money can be saved if we
construct more dams and generate electricity through hydral power stations, this electricity
would be very cheap so it will also help alot to the agricultural and industrial sector.

Improvement in unemployment:

The creation of job opportunities signifies the strength and steadiness of overall economic
performance. Providing employment opportunities is important not only for increasing national
production levels, but also to raise family incomes and consumption, ensure the self-esteem of
individuals, reducing income disparities and thus overall improving the social well being.
Pakistan is the sixth most populous country of the world with an estimated population of 191.71
million in year 2014-15. Total labor force in Pakistan is estimate at 63.03 million in the year
2014-15 out of which 59.1 are employed and 3.93 million were unemployed; implying 6.2 per
cent unemployment rate.

Tax credits will almost certainly be part of any program to improve unemployment because
businesses need a concrete reason to hire during a difficult economic period. Employers would
add workers a certain wage below than the minimum wage, and employees would get
reimbursed by the federal government. This would not only keep low-wage workers in their jobs,
but also it would help businesses add more people for less. Construction workers without money
can't afford to move to areas where there is still some work. This has created large pools of
unemployed workers in some areas. The government must motivate the skilled labor and create
ways to encourage them to play their role in the development of the country.

http://sekho.com.pk/educational-articles/economic-problems-of-pakistan-and-their-solutions/

http://www.educationsz.com/economy-of-pakistan/

http://www.theatlantic.com/business/archive/2010/09/10-ways-to-cut-unemployment-in-half/62506/

http://brightfuture.pk/how-the-government-can-increase-employment-opportunities-in-pakistan/

http://www.pc.gov.pk/wp-content/uploads/2015/06/Ch6-Labour-employment.pdf