Daily Times

One of the mainstays of any country around the world for economic development is its existing reserves of the natural resources and assets base. Pakistan has plenty of natural resources such as large reserves of oil and gas, great quantity of copper and ore deposits, in addition huge coal and salt pits, and gemstones. Likewise, it possesses sound manufacturing industries of textiles and clothing, steel fabricating, cotton ginning factories, sugarcane mills, sports goods and leather manufacturing etc.

Apart from these mineral resources and industries, Pakistan also has vast tracts of agriculture land. Out of total geographical area, about 27 percent is cultivated, and of this, 80 percent is irrigated. Pakistan has one of the most developed irrigation systems in the world, i.e. Indus Basin Irrigation System. We have rivers and sea. We have harbours to export and import goods. We are blessed with four seasons and a fit tropical weather in terms of farming and agriculture.

There is no doubt that Pakistan is a resource-rich country and possesses mineral fuels, manufactured goods and beverage and tobacco (13%). Moreover, the other resources include: food and live animals (11%), crude materials (11%), chemicals (11%), machinery (8%) and miscellaneous articles (8%). In addition, we have 175 billion tons of coal reserve. It is up to 618 billion barrels of crude oil. The natural gas reserves are also in abundance, it’s about 885.3 billion cubic meters.

Despite being blessed with fertile agriculture land, abundance of minerals and sound industrial base, our economic development is not progressing as it should.

The major challenges in achieving economic development are:

Energy crisis: The constant leading power cut-off challenge has troubled the economy. Since the year 2000 this curse has wreaked havoc on the overall economy. As admitted by Federal Minister for Water and Power Khawaja Muhammad Asif during a National Assembly session a few days ago that the power shortfall has exceeded up to 5,000MW. Until energy lingering crisis is not resolved the determined economic development is a far-off dream.

Terrorism: It is a huge stumbling-block for economic generation in Pakistan. Since 2002 we are a war-torn country. The State Bank of Pakistan report (2016) says that war on terrorism has cost $118 billion. According to Global Terrorism Index (2016), out of 163 countries, Pakistan stands 4^th worst hit. This has long been a reason for Pakistan’s negative international image which has limited the foreign investment in the country.

Wealth Concentration: In Pakistan wealth is concentered among a few rich families. The rest of the population is dependent on them. Due to wealth concentration, around 35 percent people spend their lives under poverty line. According to Multidimensional Poverty Index (2016) 39 percent population of Pakistan lives in poverty, which means that 4 out of 10 people in Pakistan live in poverty.

Corruption: Since 1947, the ongoing corruption has steadily planted its roots. In current circumstances, it has become a highly political debate as even the prime ministers of the country are accused of it. The corruption has proven to be a menace for institutions. According to corruption perception index (CPI 2016) out of 175 countries Pakistan stands at 116.

Youth unemployment: We are blessed in having about 63 percent of youth population. Half of them are unemployed. According to Asian Development Bank (ADB) 50.7 percent of the population aged 15 years and above is employed. Of it, the female ratio is very less. The rest are struggling for survival. On an average, Pakistan needs to create 20 million job annually for young people alone.

Lack in quality education: Education is a key component for economic progress. Unfortunately, our current literacy is 60 percent, least in South Asian countries. About 25 million children in are out of school. More importantly, on grass root level, thousands of schools are lacking very basic facilities such of sanitation, water, electricity, boundary walls etc.

Poor health facilities: The public hospitals depict bleak pictures where we find lack of proper medicines, beds, equipment and etc. Due to absence of basic health facilities, 170 women die from pregnancy for every 100,000 births. For every 1,000 babies born, 66 die before their first birthday. In addition, approximately 44 percent children in Pakistan are stunted. Every day, due to malnutrition and poverty children are dying in Thar.

Tax evasion: Regressive tax system collects about 90 percent tax revenue from common men. Big corporations, landlords, businessmen, politicians do not pay their due share of taxes. They earn lot but pay less tax; on the other hand poor earn less but are taxed more. Each year billion rupees are evaded through tax havens established in foreign counties. The incidences of tax evasion have hampered Pakistan’s economic progress.

Lack of good governance: We lag good governance and pro-poor fiscal policies.

What should be done to overcome the above challenges?

Government should improve relations with neighbouring countries like India, Iran, and Afghanistan.

For economic information, communication and technology sectors among others should be given more preference and government should improve ICTs system. Because in forthcoming years, all the economies will be measured through technologies. India earns lots of money through its IT industry.

The employment zones for youth should be opened so as two-third of youth could contribute for the economy of Pakistan. They could use their potentials and skills for better Pakistan.

The alarming education system should be improved. The quality education from primary to university should be ensured. Proper school monitoring mechanism should be designed. New and upgraded curriculum need to be introduced. Instead of investing lot of budget on defence side, more budgets should be allocated for education.

Quality vocational training zones should be established in each district for youth as they could learn technical skills in different cadres and trades. Government should ensure those vocational zones that how they are operating and functioning. One of the primary ways of enhancing economy is to support entrepreneurship and to create new avenues for growth by guiding the youth.

Before everything else, the government ought to overcome the lingering energy crisis.

Pakistan should enhance export competitiveness by reducing cost of doing business. Pakistan should adopt strategic approach to increase its export in neighbouring markets and underline the need of holding single country.

As a result of overall economy dilemma, the common men and women in the country are facing economic deficiency and deprivation.

The writer is a research scholar at the Indus Consortium