PAKISTAN ECONOMY: WELFARE

AND DEVELOPMENT
The economy of the country play an important role in the welfare and development of the country and
also in the overall stability. The modern world national power are greatly determined by the economic
development of the country. Countries with having great economy easily ruled and influence other
states like USA, China, Europe etc.

The overall economy of Pakistan is not very good and the recent Pandemic also hit it very badly. The
Pakistan’s economy growing very slowly over the past two decades. Annual per capita average only 2%,
which is low from other half of the South Asian states average because of inconsistent macroeconomic
policies and under-reliance on investment and export vital for economic growth. The policies adopted to
COVID-19 led to severe decrease in economic activities during the last quarter of FY20. GDP growth rate
contracted by 1.5% in FY20. Half of the population face either job or income losses and as a result
poverty estimated to increase in FY20 from 4.4 to 5.4%. Moreover, about 40% people face from
moderate to severe food insecurity. This is the overall structure of Pakistan in the current days.

Pakistan would have to focus on economic development because it is important for its national power
and also for the welfare of the country. Therefore, I suggests following steps for economic development
of Pakistan to the government so that it used it for the welfare and development of people and society.

 Political stability—in my view, the foremost factor for Pakistan economy decline is political
instability and for economic development political stability is necessary. As we see in the history
of Pakistan that military constantly interfere in the government and overthrown civilian
government. This creates distress among investors and they did not invest in Pakistan because
there is no security for investors. The another reason for economic decline is corruption by the
government and governmental institutions. According to the 2018 International Economic
Transparency Index Pakistan ranked 153 rd on the world level. So, political stability is must for
economic development. Otherwise, it will be difficult for Pakistan to develop economically.
 Technological advancement—technology play important role in the economy of the country.
But, Pakistan lag behind in technology advancement and even small needle import from other
countries. When in 2007 a large reservoir of resources found Reckodick region of Baluchistan,
but Pakistan had no technology at the time to extract it and used it for the economic
development of the country. But, the contract was given to the Turkish company for extraction
of resources. According to the Dawn newspaper the mobile import jump 90 percent and FY20
Pakistan imported somehow 32.8 million mobiles. And import of car surges 3 time in first half of
FY21. This all data show technology backwardness of Pakistan and how this effected Pakistan
economy by importing goods for their basic needs which cost Pakistan very heavily. Therefore, I
suggest to the recent government to technologically improve country and work for the
digitization of the country for the good economic growth and development.
 Agricultural advancement—agriculture sector of Pakistan play an important role in the
economy as it contribute 18.9 percent to GDP and absorb 40 percent labor force. Majority of the
population directly or indirectly dependent on this sector and it fulfilled the needs of the almost
whole country. But, Pakistan government does not pay any attention to agriculture sector.
 Farmers used old techniques for agriculture which result in the lower production of agriculture
goods per acre. Government should take positive consideration for the agriculture sector so that
it enables country to export Agricultural goods rather than imported it. For this cause,
government should give reasonable debts to the farmers on reasonable conditions.
 Inclusive economic system—the economic system of Pakistan is very exclusive in nature. It
accepts monopoly of few families over the wealth and economy of the country. Government
should made such system which is open for all and there is fair competition in the market
system and control unfair means through regulations, policies and laws. This will help in
economic development and welfare of the country and people.
 Security—the main problem for Pakistan economy is security problem. The net effect of
terrorism on economic growth is negative. One per cent increase in terrorism reduces FDI by
0.104 per cent, domestic investment by 0.039 per cent and economic growth by 0.002 per cent.