Category Archives: Economy of Pakistan

Will Pakistan be able to achieve its Target by 2015?

Education is one of the important things, which is essential for the development of the human capital.pakistan-school-girls-ogb-79792 MDG2 has aimed to endeavor the increase in the primary education and achieve universal primary education in the country by 2015. The right to education has also been one of the clauses of the article 25a of constitution of Pakistan. Moreover the 18th amendment has also provided the extensive devolution of functions to provincial governments including the subject of education.
Primary School Enrollment
Contrarily statistics show that Pakistan is not progressing according to the targets it has set in order to achieve its goal. Pakistan adopted MDG target of 100 percent for 2015, against its baseline of 46 percent in 1990/91. So far currently the net primary enrollment ratio is only 57%. While in 2001-2002 the net primary enrollment rate was 42%. However evidence from the last 12 years shows that Pakistan has not shown enough progress on achieving its goal. Primary school enrollment increased by 10 percent to 52 percent between 2001- 2002. In spite of the fact that number of primary schools grew more than 50000 in 2005, the enrollment rate has not been appreciable. Keeping this thing in mind, it is really hard to meet the MDG target on this indicator.
On the other hand the completion of 1 to 5 grades is now only 50%; however which was 57% during 2001-2002. The MDG target is 100 by 2015. One of the major objectives is to achieve a total literary of 88% in 2015; the target so far achieved is only 58%, which were 45 in 2001-02.
Disparity among Provinces
There has been significant disparity among provinces as well. Punjab has the highest literacy rates however Baluchistan has its lowest. The national average of literacy has been pulled up by Punjab. The progress of the individual provinces is below.
KPK in spite of the war against terror, performing well as compared to other provinces; it does not witness the decrease in literacy rate.
Due to the impact of floods and the displacement of indigenous population Sindh as shown decrease its enrollments since 2008/09 falling from 54% to 50% in 2011/2012.
AJ&K has show progress up to 2006, but later on from 2007 to 2011, its progress remained stagnant.
The net enrollment rates of the GB climbed up to 41% in 2011-2012. FATA’s NER at 31 percent in 2012 is the lowest in country.
Thus the above statistics show that progress in Pakistan is not significant in the educational sector, either the government needs to speed up its progress or they need to revise its target.

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Urban Poverty rises persistently in Pakistan

A little boy carrying bag of waste in the urban areas of Pakistan.

A little boy carrying waste of bag in the urban areas of Pakistan.

Pakistan has been reported to be a place which is dangerous for human life; it faces range of challenges from lack of the good governance to the inequality of the wealth. Poverty rises as consequences of these challenges, which Pakistan is facing severely as a whole, however according to annual report recently issued by the State Bank of Pakistan, population in the urban areas is poorer than that of rural areas.
This is as a result of the poor economic growth, in addition to the high influx of the population to the urban areas. The distribution of the resources in urban areas is highly skewed than those of the rural areas, in urban areas 60% of the sources are availed by 20% of the population, in contrast this is not the case in rural area. It is worth mentioning here that the traditional perception of the urban and rural divide on the basis of economic prosperity is no more application in recent times.
Since 2008, country is facing an economic growth at a pace as low as 3%, ever since economy has remained sluggish. Average economic growth remained at 3%, contrarily in order to absorb the high influx of youth it must be high enough. On the other hand the wide range of the unemployment has forced the urban population into poverty, additionally savings ratio of economy as a whole is vanished. As reported by the State bank of Pakistan, for the FY-13 the national savings declined to 13.8pc, for sure which is a very bad indicator.
These facts and the statistics are enough to have a true picture of our economy; government is required to take immediate measure which could at least initiate the economic revival. It must take serious measures in order to pursue high economic growth, to reduce poverty and in order to improve human development. For this reasons it needs to consult experts, rather than relying on self-proclaimed economic rainmakers, who have been replicating the past policies. This is how we can End Poverty in Pakistan.

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Great Opportunities for Investment in Energy-President and PM welcomes His Highness Prince Karim Aga Khan

The President and PM welcomed His Highness Prince Karim Aga Khan and discussed great opportunities for investment in energy in the country.

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Prince Karim Aga Khan– the spiritual leader of the Ismaili community met president and the prime minister on Monday and discussed the great opportunities for investment in energy sector. Both the president and the prime minister appreciated the developmental projects and the services of Prince Karim Aga Khan across the world particularly in Pakistan.
Aga Khan Development Network has provided its services in the sectors of education, health, poverty alleviation and the socio-economic uplift of society. It is a model network for the other development organizations, it develops, designs and executes its various project related to health, education, poverty alleviation, cultural heritage, and socio-economic upliftment with scientific lines and focuses on the improvement of the quality of life.
The Aga Khan Development Network Paksitan has helped socio-economic upliftment of the people through its various projects particularly in the northern areas of Pakistan. These projects have made tremendous impact on the lives of the people in improving the quality of life, provision of the better health facilities, access advanced education system and better infrastructure.
Northern Areas have various opportunities which can be utilized to overcome the energy crisis in Pakistan; the government of Pakistan in collaboration with the Aga Khan Development Network will explore the opportunities in order to overcome the energy crisis in Pakistan. The resources if utilized will have a positive impact on the economy of Pakistan as a whole.

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Pakistan needs Reforms for its Economic Revival

A lot can be done with the economy of Pakistan economy to lead the country towards imagesthe development path. Most importantly the civil society can play an important role. Developing world is growing at a pace around the world, there is lifting poverty and development has lifted life of the middle class to a comparatively great level. To make it possible in our economy we need to reform the domestic policies so as to create the stable economic environment.
In order to get the stable economic environment we need to manage industries in an outward oriented manner, reconstruction and diversification is required. The social capital should be mobilized as well as social subsidy should be given to the people.
Moreover there is an immense need of investing in the skill development of the people in the country; this will result promoting exports. According to recent statistics services sector contributes even more than that of agriculture sector to the national income. For this reason it is essential to provide trainings and technical education to the people. For example Singapore, Taiwan and Thailand invested billions of dollars for the skill development of the people; as a result they have developed economically.
Strengthening and regulation of political institutions is another important attempt which could help economic revival in the country. In a nutshell our economy will perform only reforms are brought about. By and large we need to agree on this thing; only structural reforms can strength economy of Pakistan.
There is a lot of literature in Pakistan, and many of the Think Tanks available in Pakistan need to work to have a positive result for economic revival.

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Nanga Parbat Killing-Impact on Economy of Gilgit Baltistan

The killing of the tourists in Gilgit Baltistan from across the world seems to be the killing of Imagethe foreigners’ but this accident has a severe negative impact on the economy of Pakistan and Gilgit Baltistan in particular. Whichever is the cause of the incident, although it seems to a play of the foreign agents or it is the result of terrorism but whatever it is, it has a list of the negative impacts. Without considering the importance of the KKH, and the geographical importance of Gilgit Baltistan, if we consider the losses of the tourism, we come to know that it has been affected negatively. Gilgit Baltistan is not a hub of the killing of the tourists and economic concern of the 3 hundred thousand people of Gilgit Baltistan has a direct or indirect relation with the tourism sector. According to a statistical report by Pakistan Association of Tourism, before 9/11 on average more than 20 thousand tourists visited Gilgit Baltistan. According to a rough estimation a single tourist used to spend 3 thousand dollars which roughly makes one fifty thousand PKR as that time the currency value was 50 PKR, therefore it would be a total amount of 3 million PKR, this is about the casual visits. As for as mountaineers are concern they spend almost 8 thousand dollars, which is doubled accordingly. but unfortunately after 9/11 the visits of the tourists curb in the area, but still as less as 5000 tourists visit in the area, which makes a total amount of 75 Koror to 1 million, after 2007 when the situations were bit feasible tourists from china, Russia, east Europe used to visit as well.

Here is a rough estimation of the value of earning through tourism by the people of Gilgit Baltistan.Image

In the last few years, due to the appreciation of the dollar, a single tourist spends 3000 dollars, which roughly makes 3 hundred thousand PKR, and a tourist on campaign spends almost 8 hundred thousand. Earlier this year before the accident of the Naga Parbat more than 50 teams of the mountaineers were expected to visit the area, even if each time consist of 10 mountaineers per team there would be 500 mountaineers in total. There spending in the area would have been increased accordingly The Nanga Parbat accident happen at a time which was best for the inflow of the tourists, after which tourists were send back to their home countries, and all the embassies become conscious about it, and all the tourists were ordered to leave for their respective resident countries, and thus the impact of the 9/11 has finally reached Gilgit Baltistan as well. Tourism is the only mean of the livelihood of the 3 hundred thousand residents of Gilgit Baltistan. This has not a single impact but it has deter rioted bilateral relations with the neighboring countries emphasizes to China. It has not only negative impact on Pakistan internationally but the image of Gilgit Baltistan has been affected in particular. Now onwards people will consider KKH to be danger zone, in fact it is not. In short the accident has destroyed the Economy of Gilgit Baltistan.

Despite of such a sever incident few of the tourists have seen to visit the area. Therefore it is utmost responsibility of the authorities to provide them full security, so that the region could prove itself to be peace loving and the terrorist free region. So that it could be an initiative for the revival of economy of the Gilgit-Baltistan.

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Budget 2013-2014 at a glance

Total budget for the 2013-2014: Rs 3,591 billion

Total revenue: Rs 1,502 bn

  • PSDP Rs. 1155 bn upto 35.7 pc
  • Forex reserves to be increased to $ 20 bn by 2016
  • Fiscal deficit to be reduced by 6.3 pc by 2013-2014
  • Fiscal deficit to be reduced to 4 pc of GDP by 2016
  • Fiscal deficit of 2012-1013 is likely to be 8.8 pc
  • Rs 2.59 tr to be collected as taxes
  • Inflation to be kept in one digit
  • GDP growth is to raised by 7 pc
  • Tax to GDP ratio to be raised to 15 pc by 2015
  • Investment to GDP ratio to be increased to 20 pc
  • Programme to sell state assets to be revised
  • Professional managers to run state run firms
  • GST increased from 16 pc to 17 pc
  • Corporate taxes to be reduced in 5 years from 35 pc to 30 pc
  • Rs 59 bn allocated for new water reservoirs
  • Rs. 225 bn allocated for energy projects
  • Circular debt to be addressed in 60 days
  • Ra 31 bn for railways restructuring
  • Pension to be increased by 10 pc. No raise in salaries
  • Minimum pension raised from Rs.3000 to Rs 5000
  • Rs 3 bn allocated for laptop scheme for HEC recognized institutions
  • PM’s microfinance scheme for soft loans with zero percent mark up
  • Expenditures of PM office reduced from Rs 726 to 396 m

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First Day at Pak Secretariat…I continue to learn

With high aims in my mind and with the passion to work I stepped into the Pak Secretrate,Imageeverything amazed me, where I did not find any limitations in security for the people where not even a small creature can move through. Due to the security concern they do not let the public transport let it, thus who own their vehicles can take them in, since I do not own one, therefore I had to walk through a long distance about twenty minutes in the boiling summer while sweating. While walking through the premises of the secretrate I wonder what is the output of the people who has so much security measures for them.

It was evidence that Pakistan spends a large of its budget on defense. My heart bleeds inside thinking of the people who lie down on the roadsides, with hunger, under the boiling temperature, who do not have access to food, shelter and clothing. The lives of the officials are so secured as compared to the public who are not even food secured, I believe they work there all the national level decisions are taken but I do not understand what the product of their services is.

Rumbling and tumbling I got into office where I had to waited for half to the meet the official, as I was appointed to work there, I was enthusiastic enough because I joined it for the first time.  I was send back saying that they will post me to the respective department on the next day, since it happened for the first time again with the same enthusiasm I went to them next day,  I was shocked to listen that they are going to post me after three to four day. It was one of the bad news I heard ever.

Decision less I thought to enter into library another most interesting thing I found there is there were some personal computers next to the study tables, I wanted to use them but none of it was working, and the incharge was busy considering the office time as leisure time,  he has plugged earphones inside and was enjoying his leisure time, I could not stop myself I asked the person to fix the issue, he nodded and did not bother to fix it until I left library after five hours.

The story does not end here, I stepped out of the premises right at 3.50, because the office timing is 4 p.m , thinking to inquire about if there is any transportation system arranged by the officials, but I was shaken to see people  standing at the bus steps at 3.45, surely for which they must have left their offices at 3.30. One more thing is that out of the total working hours, they have a lunch break of 30 minutes, which takes maximum one hour. It is said that expectations hurts, this is what I experienced. Now you can image how of the time they spend on work.

Lastly I found no reason of such people being there. Young people ought not to be idle, it is very bad for them. I know that young people have more ideas than the others, many of the things restrict their progress, but I am hopeful that we will get something better to learn out of that, and I believe that development is a consistent process. The only thing I can do is to adjust with the situations; therefore I continue to learn…..

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