Pakistan Economy

The Pakistani defense industry was established in 1951 to tackle the challenges at its borders. Now Pakistan is developing latest tanks, Jets,and guns which can be exported globally but due to issues of national security Pakistan is not exporting any item at a larger scale.

By Maham Fatiama

(Part-II)

The Information Communication sector is also growing and IT exports are increasing every year. The total number of IT companies increased to 1306 and the total estimated size of IT industry is $2.8 billion. According to Pakistan startups report almost 1 million Pakistanis to work as a freelancer over the famous freelancing websites like Elance, freelancer, guru,and fiver. This makes the Pakistani nation one of the five largest nations working as freelancers. This freelancergenerates income and helps the country by exporting the IT products to the international market and earn foreign reserve for the country. Pakistani textiles industry accounts for 70 percent of exports of the country. But the industry is not growing in accordance with the international standards and not using or adopting the latest technology. Infect they are using conventional technology which is the greatest drawback of the industry. Due to such low capacity, the country mostly exports raw material, raw cotton, yarn to the world and despite the fact that country has great potential in this area, Pakistan is not earning a handsome amount by exporting textile goods to the world. Such a lack of modern technology has caused textile imports from Chinawhich is causing flee of capital.
The Pakistani defense industry was established in 1951 to tackle the challenges at its borders. Now Pakistan is developing latest tanks, Jets,and guns which can be exported globally but due to issues of national security Pakistan is not exporting any item at a larger scale. This all has made the defense sector a white elephant but the nation has to praise and preach this elephant due to a danger on its eastern border. This all makes his sector a burden over budget and Pakistan has to cutoff subsidies to stay safe from her enemies in east. This was the situation of the main sectors of the economy. Pakistan International Airlines, Pakistan Railways,and Pakistan Steel had been in a great depression and in spite of making profits, these organizations have become white elephant over the budget and many times these organization survived by bailout packages. Similarly, there are many other public organizations which are not making profits and the government has to back them up. The national health system is subsidized by the government of center and provinces. There is not a custom of national health insurance in the country which is causing a bottleneck towards making health systems and hospitals independent of governmental funds to run their system.
Therefore, by viewing the entire system it can be said that the system is mismanaged. It needs a strong political will and the homework to tackle issues of the economy. The country is rich in natural resources, minerals and there is a very high potential in the tourism sector of the country. If the government would take a look into the possibilities of growth of Pakistan economy then the situation can be better. Pakistan has the potential to grow but needs to change its way of governance. The country has to develop strong trade ties with countries in her region and rest of the world to boost up exports and get subsidies in imports, it would be equally beneficial for Pakistan’s foreign reserves and tackling trade deficit. Pakistan must avoid any war and must finish as soon as possible wars that are being fought by her against terrorism. This will surely attract the attention of international investors to invest in Pakistan. Pakistan, on the other hand,must also change its system of governance and political culture as well. The country also needs to balance the power in the center and the role of its military in political issues must be limited if the country wants to look forward and change its luck.

(Concluded)

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