Pakistan has been facing different challenges regarding to its economy. The economic situation of Pakistan is very critical and people are looking towards the solution of these challenges faced by the economy of Pakistan. Pakistan has different opportunities which can help it to solve its economic problem. But without tackling long term challenges and problems decisively, country will no longer be able to take advantages of opportunities. Increase in debt, increase in import and decrease in export, low saving, lower investment, low tax collection, lack of policy implementation, excessive taxation are some of the challenges faced by the Pakistan’s economy. Some of the solutions of these problems are offering low interest rate, collection of the taxes, proper use of young labor force, use of technology, governance and decentralization.

Decentralization is one of the factors which can help increase the economy of the country. An individual sitting in capital can’t identify the needs of the different areas of country but the local people those are living there know exactly what they needed, what are their requirements. One has to transfer power to other, decentralize and delegate authority, provide resources to the local/district governments so that they can take decisions at their own at district level. District government will take decision according to the requirement and the needs of the areas. Local government should report to the provincial government about its activities and provincial government should report to federal government. If our government does so we can do more by same resources which are being wasted today. Economic growth rate can be raised from 6-7 percent average to 8-9 percent annually.

Interest rate is one of the factors which can increase the economy of country. Government can offer low interest rate to the public so that it becomes easier for the investors to borrow money from the banks and invest it in their business. Return in the form of interest rate should be low so that people do invest their money. Borrowing at low interest rate and investing money will increase the level of demand in the economy. It will increase the demand of labor force to meet the high production level. GDP and living standard of people will improve.

Tax collection can play a vital role to improve the economy of Pakistan. For the past four years, Pakistan has witnessed 81 percent rise in tax revenue, which is a big plus for Pakistan. There was 5.4% growth in GDP, which is highest and the first time in over a decade. Government should allow Federal Board of Revenue (FBR) to work as impartially, independently and transparently which will make FBR an efficient and effective tax administration. This will increase the confidence of taxpayers in FBR and increase tax collection in fair manner. This higher collection of tax can be used for the development of infrastructure. It will help to create jobs by reducing unemployment and generate income for the millions.

Pakistan is among those countries which has a young labor force which can be bound for its own and global economy. If we tool these young women and men accurately, we increase the female participation in labor force, give them knowledge and skills, they can become the labor force for the rest of the world. This will give immense boost to Pakistan’s economy. In 2001, worker allowances were less than a billion dollars; today we have almost 7-8 billion dollars. Currently this can be multiplied by three or four times if we have educated labor force i.e. skilled labor force going for foreign employment. This is the best mode to create employment opportunities because if you have younger people approaching to labor force and you don’t have job opportunities for them you can have social disturbance. Therefore, it is commanding to make employment opportunities for them and train them in the kind of skills which are not necessary only by the national economy but also by the international economy. Pakistan can put over 30 million plus population by drilling training in various fields to meet the market needs in the age group of 25-35.

Technology has been spreading like a wild fire. 5 years ago, not every individual had mobile phone but today 95 million Pakistanis have mobile phones today. This technology can be used to provide individuals banking services, information on climate/weather, agriculture extension, health, education etc. Technology particularly the information/communication technology can be used for the betterment of social and economic problems of Pakistan. Pakistan is making good progress on Business-to-Business (B2B) front as software industry aims to achieve the goal of $5 billion export mark by year 2020 through software development and service out-sourcing which will help to improve economy of country.

While there is a crucial need to fix persistent challenges, more innate reforms are required to improve and attract talent to serve in the businesses and public sector. Instead of politicians, the academics, intellectuals and community leaders should come forward and play their role in social revolution.