Economic Condition of Pakistan
Pakistan is facing Economic challenges. It shows that our country is in the list of under developed countries. In this article we will discuss about the Economic Condition of Pakistan. In the last budget, the government gained 4.3 per cent economic growth but with gas and load shedding problems they didn’t achieve the targets. So due to lake of experience and knowledge they came in the figure of 2.2 per cent growth which shows almost no growth in the current year. The major problem in Pakistan is increase in population which is directly effecting our economic growth. Of course, due to higher rate of population, we should increase our investments but due to less financial reserves this investment is not possible. The present rate of GDP is around 14 percent which is lower than the developing countries. If we want to increase our investments for getting higher growth we should increase our savings for GDP to at least 20 percent, especially when foreign investments are not involved.
Cause of decreasing growth
Another challenge is inflation. Inflation means increase in the prices of commodity. It badly affects the salary based groups. This also shows our higher rate of taxes because tax is part of the inflation. When inflation rate high in our country then it generates the public debts, which is about 70 percent of the Gross Domestic Product. This problem is increasing day by day. So how we can overcome this problem? The answer is we have been producing less and consuming more. And if investor wants to invest so they should invest on human developments.
The major problem is immediate change in the situation of regional and international market. Utilities such as gas, electricity, water is another cause of a problems because IMF forced to the under develop countries to enhance their rates which is effecting the common man or salary based groups. They don’t save much in fact they just fulfill their basic needs.
There are just few challenges but if our government applies effective polices so under develop countries become develops countries.