Signs of Recovery in Some Sectors The Economy

Around 62 million out of the total population of 170 million have fallen below the poverty line. According to World Bank report poverty has reached 36.4 percent.  The rapid rise in poverty is due to surge in inflation and reduction in subsidies. In Pakistan, the share of “severely food insecure population” was also expected to have increased from 23 percent in the financial year 2005-06 to 28 percent in 2007-08.

The economic recovery though gradual but still most serious economic issues have to be settled once for all. The government should come up with programmes to root out terrorism, raise the tax to GDP ratio by gradual documentation of especially the agriculture sector which could immensely contribute substantial tax revenue to the government treasury. The Federal Board of Revenue must develop the data to curb tax evasion from the powerful political elites. In order to eliminate rising poverty the government take vital economic projects for providing jobs to million of unemployed educated, skilled and unskilled labor.

Too much dependence on  aid from the friendly countries of Pakistan for political interest and strengthening of laughing democracy will not bring any sort of economic prosperity either in the short run or even in the long run. No friendly countries will come to rescue the economy of Pakistan unless it shows its own awareness and efforts to improve the lot of the bulk of poverty stricken population. The country requires uninterrupted supply of power like gas and electricity to the industrial and agricultural units for accelerating domestic production and boosting exports. In this context the vital textile industry not to be sidelined and all its problems be sorted amicably by the government.

Pakistan’s high level of economic strength lies in the vast development of agriculture. The country’s emphasis should be on greater investment on agriculture. Priority should be to produce surplus food commodity for the hungry stricken people at reasonable rate. With better water management, introduction of mechanize method of cultivation, storage and marketing facilities there is no reason why Pakistan cannot develop this major sector which contribute 20 percent to GDP and  provide jobs to about 40 percent of the population.

Last but not the least the austerity drive should cover the entire Pakistan.This must include not only the government sector but also the private sector. Mere half hearted measure will not bring any good result to the economy of Pakistan. Several developed and under developed countries in the economic hour of crisis have taken full hearted austerity measures and were economically benefited.