FACING CHALLENGES IN ECONOMIC REVIVAL
July 4 - 10, 2011
The present regime heavily relied on heavy borrowings and printing of currency notes, which caused manifold problems for the national economy. One of the major challenges posed to the present government is revival of national economy which in the presence of flawed policies appears a dream. One of the prerequisites for putting the country on a high growth path is substantial rise in domestic saving.
Tight fiscal policies and strong structural reforms including liberalization of financial markets is the need of the hour. Saving and investment are two key macro variables, which can play role in the economic growth, inflationary stability and promotion of employment.
Pakistan has highest population growth rate of 2.2 per cent in the region and lowest employment rate with percentage of unpaid workers both male and female increasing.
Rising corruption, injustice, and unauthorized use of national wealth and authority are the basic reasons behind the deteriorating economic condition, increasing poverty, unemployment and other social evils in the country.
A major portion of Pakistan's GDP in future will have to be used to repay the huge debts. Therefore, expenditure on education, health, sanitation and various other vital development programs will suffer because of that. Roughly, half of government expenditures may be dedicated to fulfilling debt repayment obligations in the near future.
Pakistan lacks the resources to bring about positive economic development. Without positive economic outlook and further improvement in the law and order situation, Pakistan is unable to attract more local and foreign investors.
According to annual plan 2011 -12 of the Planning Commission, the Ministry of Industries and Production, the government has set growth rate at 3.7 percent for manufacturing sector as a whole, while two percent and 7.5 percent growth rates have been fixed for large scale and small scale manufacturing, respectively in the financial year 2011-12.
According to the plan, the main growing industries in the year 2011-12 would be chemicals, automobile, pharmaceutical, electronics, leather products, paper and boards, and non-metallic minerals.
In order to see textile growing, support industries like textile machinery manufacturing, textile dyes & chemical and accessory industries are to be developed as most of the demand is currently met through imports.
As per plan, an allocation of Rs2,030 million has been earmarked for the industry sector in the year 2011-12 for about 43 development projects. The Plan said that major projects to be carried out in industry sector during 2010-11 included Establishment of (8) Advance CAD/CAM Training Centers (Rs321.1 million), Ceramics Development & Training Complex (Rs314.5 million), Development Pakistan Gem & Jewellery Development Company (Rs1,400 million), Development of Marble and Granites Sector (Rs1,980 million), Sports Industries Development Center, Sialkot (Rs435.64 million), Agro Food Processing Facilities Multan (Rs288.920 million), Export Processing Zones and Area Development Balochistan including ROZs (Rs4,000 million) and BMRE of Heavy Mechanical Complex Taxila (Rs23,428.2 million). An allocation of Rs414 million has been made for the textile sub sector for the year 2011-12, for the ministry of textile industry. Prominent projects to be launched in the year 2011-12 include Lahore Garment City Company (Rs497.6 million), Faisalabad Garment City (Rs498.8 million), Providing & Laying of Dedicated 48 inch Diameter Mild steel water main for Textile City (Rs636.6 million), and Pak-Korea Garment Technology Training Institute, Karachi (Rs300 million).
Major projects to be initiated in the Ministry of Commerce during 2011-12 include Adoption of Social Accountability-8,000 (Rs124.89 million), Purchase of Equipment, Furnishing, Curriculum Development and Training of Pakistan School of Fashion Design, Lahore (Rs755.7 million), Trade & Transport Facilities Project-2 Trade & Transport Facilitation Unit (TTFU) in MOC (Rs360 million), Restructuring of Pakistan Institute of Trade & Development formerly Foreign Trade Institute of Pakistan (Rs270.8 million), Program Management Unit (PMU) for setting up of Regional Reconstruction Opportunity Zones for Trade in FATA, NWFP Balochistan and AJK (Rs77.4 million).