Today Pakistan economy faces myriad problems. Economic development is a complete process. It covers economic, social, cultural, administrative, and political factors. There are mutual threats that the world faces in the form of epidemics, climate change, poverty, civil wars, class-conflicts, inter and intra state conflicts and economic crises. Pakistan is an agricultural based economy since its independence. 

There is a vast disparity in the country Economic growth and development which is not very encouraging. Using 2013-14 data, the poverty headcount ratio comes out to be 29.5pc of the population. Due to unequal distribution of wealth our economic growth is shattered due to which we are not able to break the vicious circle of poverty and enter into take-off stage. One of the economic obstacles which has affected the rate of growth in Pakistan is external debt, which is a serious threat to economic future of the country. The second is fiscal deficit, which reduces the capacity of the government to spend on key activities, our banking and financing sectors in crises, the poor performance of financial sector had adversely affected development, persistent deficit in BOP and financing the budgetary gap and deficiency of capital. 

Currently Pakistan is facing political instability which closes off sources of internal and external investments, internal disorder such adversely affect economic development. One of the core obstacles is corruption; it is difficult for businessman and industrialist to take part, stay and grow in business thus limits economic uplift. The citizens are not being provided right education which is necessary component of any successful development strategy on the other hand we are still struggling very hard to the issues. Experts say population is rising because death rates have fallen in developing countries, as a result of vaccination and other medical advances, but birth rate shows no signs of falling. 

Pakistan can counter these issues as it has plenty natural resources but requires a practical means of setting aside the barriers to economic development i.e. expanding the tax base, formulating a self-reliance policy, increasing export-led growth, industrialisation, development in agriculture sector, improvement in infrastructure, stable fiscal and monetary policy, promoting technological advancement, administrative reforms and the development of physical and human capital. In some key sectors, government needs to focus and put possible efforts which will bring economic growth and development. 


Karachi, November 5.