Downward Revision of Growth Target-2013


 

It would not be ironical to say that the government officials promise at the start of the tenure when they feel like they would unable to win the election otherwise, they make plenty of promises however when it comes to fulfill them they give various reasons for the failure and they blames the others for their inability to fulfill promises. Same is with the current government which has announced a downward revision of the growth rate.Image

With the starting of the second quarter of the fiscal year 2013-2014, the official has announced the downward revision of the growth rate. When the budget was announced for the current fiscal year the target growth rate of GDP was 4.4% however, this has now been revised and it would be less than that. The GDP growth for the fiscal year remained almost 3.5%, on the basis of it, the target was set at 4.4%  however they have decided a downward revision, and given the current situation and the instability  I am sure that in the third and fourth quarter the growth rate would again be downward revised.

The growth rate is necessary to be increased in order to curb the unemployment and to cater the flooded youth coming out of the institutions at a large scale. There is an increasing trend in unemployment rate. Currently its figure is 6% , moreover in order to curb this figure the country needs to perform in growth rate.

It has been noticed that despite the global financial crisis the growth rate in the neighboring countries remain 5-7%, however in Pakistan it is 2-3%, this is again due to the law and the order issues which are to me the grass root level evils for the bad performance of the economy.

Many of the reasons have been mentioned, they claim various grass root level causes for the failure to achieve the target. Most important is the power crisis which is being faced for many years, it has been claimed that the power shortage has caused 2% downfall in GDP annually. Moreover the corruption and the social unrest contribute equally to this cause.

What so ever I have noticed so far is that my leaders are excellent orator in expressing what the problems are however they are less concern with suggesting solutions and finding the reliable and timely solutions to this? The power crisis which they keep on mentioning can be overcome if they complete the pending projects for the last many years. The Diamer-Basha dam only has a capacity of 16000-17000 MW. Along with this many of the other issues can also be resolved provided the sincere efforts leaders. So that a day will come when the government will have a upward revision of the growth. 

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