Pakistan facing economic fallout
January 27, 2012
The World Bank has observed that Pakistan’s weak economic growth is due to worsening security condition accompanied by greater political uncertainty and a breakdown in policy implementation. It predicted country’s economic growth at 3.9 per cent during the year 2012.
The World Bank in its report titled “Global Economic Prospect 2012” has forecast that the world economy this year is set to grow by just 2.5 per cent, weighed down by ripple effects from the 2008 financial slowdown.
According to the report, GDP growth rate in Pakistan would be 3.9 per cent during the year 2012 that was 2.4 per cent in 2011. Pakistan’s weak growth outturns are also tied to the worsening security situation, accompanied by greater political uncertainty and a breakdown in policy implementation. Infrastructure bottlenecks, including disruptions in power delivery, remain widespread. However, a notable bright spot has been the increased exports, evident particularly in the first half of 2011, led by textiles that surged 39 per cent in the first half of the year.
United Nations Development Programme (UNDP) in its latest Report also placed Pakistan in deep waters
The recently released a report by the name of the Human Development Programme Report 2011 in which it is stated that Pakistan is one of the poor countries in the world.
More specifically, Pakistan has been characterized in the group of the multi dimensional countries that are classed as poor. As far as the human development rankings are concerned, Pakistan finds its place at the 147th number. Other countriessuch as China, India, Bhutan as well as Sri Lanka find themselves better off then Pakistan as they are classed as the medium development countries.
Time magazine in its report has ranked Pakistan on the top of list of those countries, which spend most of their money on providing two times meals. According to the report Pakistan is 125th country amongst 169 countries of the world whose 31 percent population is living below the poverty line. The inflation has also taken its toll on the poor people while gas and power load shedding has become order of the day due to which the industry has been affected badly and unemployment is increasing day by day. Punjab and Sindh who consists of major industries are being most affected due to the gas and power load shedding. The economic condition of the people is so low that they are force to sell their children as they cannot fulfill their food needs.
Only the rich class of the country is able to afford the quality and quantity of food which is required for a healthy human being. More than 78 percent of the population do not have access to clean drinking water and 38 percent of children are suffering from food deficiency. One child out of 10 dies before the age of 5. One percent of the country’s budget is spent on health while even in a country like Bangladesh 7 percent of the budget is spent on health, 6 percent in Sri Lanka and 2 percent in India. When the economic state of the people is so low they afford to put their children in school
The politicians in their electoral speeches make tall claims of reviving the economy, increasing spending on health and education sector and improving the quality of life of the people. But these just remain claims and no one has ever fulfilled their promises. The situation of the country remains the same, the problems remain the same and have even worsened.
Government’s inept policies are main reason behind the current economic crunch in the country. Rulers in their statements paint a rosy picture where there is no unemployment or poverty, while the opposition dubs the country at its lowest ebb, which is true.
The increasing inflation has also given rise to lawlessness. The truth of the matter is that respect for institutions has ended in the country. Mismanagement prevails in the country. The poverty elimination program launched by the government has completely failed. Government by not maintaining continuity in its policy is scaring away foreign investments, which is in now ay beneficial of the country. It’s time the govt strictly implements reforms and exhibits seriousness in putting the economy on track.