Pakistan Economic Chaos - Way Forward

1. Reduce the consumption of energy.

The petrol prices are constantly rising which triggers the price of electricity. The increase in
population has increased the demand for electricity however the supply hasn’t increased as
such.
To limit the gap between demand and supply, the government should limit the office hours.
Instead of 9-5 they could be 9-3. Also, the government should emphasize on investing in
inverter air conditioners as it saves electricity.
They should also put penalty on marriage halls and banquets to operate within the certain time
limit and not put heavy lightings as it consumes heavy amount of electricity instead, they should
shift to investors, this is how the electricity consumption could be reduced.

2. Reduce import cost

Pakistan is continually in current account deficit as the import bill always exceeds the exports.
Certain policies should be designed to reduce the import cost.
Government should restrict the import by putting heavy amount of taxes on the luxury
imported items to discourage them.
Instead, government should subsidize the local industry to increase demand locally or make
packages for MNCs to locate in Pakistan

3. Interest rate
The interest rate keeps fluctuating which is a negative point if you want to attract investors. So
Pakistan should have a stable interest rate by designing an effective monetary policy that will
attract investors and also support the local industry.

4. Taxes
The taxes should be put on import bills to discourage them and not on necessities like electricity
or food. VAT should be discouraged as it causes cost push inflation and harms the GDP growth.
The taxes should instead be put on luxury imported item so they can be discourages as putting
taxes on necessities will only take the economy towards downfall.

5. Food shortages
Government should ban 10-12 dishes in marriages or other events, as excess supply of food
taken by them increase the gap between demand and supply which causes food shortages for
the poor.
Maximum two dishes should be allowed in the events; this will help reduce the food insecurity
that could arrive.

6. Support price scheme

Government should focus on giving support price to cotton industry, as it is the basic raw
material used by textile industries, and they must import it due to the shortage of cotton.
Textile industry contributes to the exports of Pakistan therefore government should support
them by making the raw material i.e., cotton available locally and at lower price.