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Debate / Ideas for solutions to Pakistan's economic problems

Continued From Last Time.....

Pakistan Suffers From Massive Unemployment.In This Post I Am Going To Talk About Some Of The Things I Would Do If I Am PM IK

8.There Are Over A Million Vacant Posts In The Federal Government


Provincial Governments Face The Same Issues




On the Other Hand We Have PhDs and Graduates Unemployed and Looking For Jobs




.Now The First Thing That Comes To Mind Is That Won't This Put More Burden on The Exchequer???Well The Short Answer Is No Because No. 1 FBR Has Surpassed It's Targets and Is In Surplus To The Tune of Rs 143 Billion and If We Look At Our Budget,We Will Realize That We Don't Have To Spend Rs 500 Billion On Stupid Things Like "Save The Calf"


These Grade 1 To 16 Jobs Will Not Be A Great Burden on Exchequer But Will Go A Long Way In Giving Our Unemployed Youth Relief.


9.An Online Employment Exchange Should Be Setup That Will Bring Potential Employees and Emplyers Together

10.We Know That CPEC's Next Phase Will Require Skilled Manpower.For This We Need To Utilize Existing Mechanisms Like EDF PSDF etc. and Foreign Assistance To Create The Desired Skilled Workforce For Export Industry.The Chinese $1 Billion Grant Could Be Used For This

I Will Talk About Agriculture in The Next Thread
Thanks for detailed post. I will discuss and reply this on weekend
 
Karachi is the only Tax paying city of Pakistan. Every other city is tax usurping city therefore, we must support Karachi's special status in economy of Pakistan and must suuport to enhance its role.
After all Karachi chalta hai to Pakistan palta hai.

Can you provide some links to back up your claim?
 
What will be the most important industry by the end of this century.
Aerospace.
Pakistan needs proper investment in that sector.


To solve current major issues.
Biggest issue is corruption which is directly or indirectly affecting everything.
One Pakistan should invest in better banking system and make it cheaper and easier accessible for middle to lower class, force people to go for cashless economy it will force people to save in banks rather then storing gold and cash in homes specially in villages.
That will make ruppe and bank stronger.
With that Easier loan accessibility for new start ups. That will jump start middle to low class economy. Tax system will become digital make sure its hard to carry cash.
Will lower crime rate as well, easier to monitor money laundering and tax fraud.

Revamping the education system & justice system will directly solve many issues when you have corruption in police and court you cant really do much

Aerospace is one sector, what other sectors can you identify, given our limitations, that could be a major export for us?
 
one thing works all the time and every time.

Construction.

But knowing Pakistani crooked quom they will try to f#ck that up too.

I say Pakistan needs a civil war, a civil war is only thing that can wipe away the s#it stains called the crooked elite. All super powers became global powers after a civil war. if not then lock the country down and start a Pakistani version of the spanish inquisition targeting poojari's like peepee phutto mardood. poojari's of amritsari kabaria's. then others at the smaller scale. Until China wiped out all the druggies it began to function like a nation and today they have a probe on Mars!

for as long as scum like this lives Pakistan will get nowhere.
 
Last year, Pakistanis living and working abroad sent home $18 billion to support their families. This is the equivalent of 6.5 percent of the country’s GDP and the largest source of foreign income after exports. All of these factors can help Pakistan become economically resilient.
Mostly Pakistan diaspora is vocational workers. Now, imagine getting them educated and be Dr and other professionals. Only few thousands can send as much as 100 thousands from Gulf.
Pakistan needs to ensure that its people can participate in the economy and benefit from economic gains. And it needs to integrate itself more, globally and regionally.
Education is a must for basic civic sense, HQ product making, learning etc. For instance, adopting a new technology or medium, to grow your business. Also, to convince them for long term goals like making them realise impact of product quality on sale and market retention. Such as growing HQ onion gives more return. In UK 1.1£ for 3 A grade pieces. You can also buy a 1kg bundle for 60p. So, in Pak, we need to broaden our horizon., and only education can do that.
As a result of rapid population growth, Pakistan is now the 6th most populous country on Earth, with half the population younger than 24. At the present rate of growth, Pakistan’s population will exceed 300 million by 2050.
If we don;t educate our people, then 0+0+0+0+...= 0. Number cannot do anything, if they are not productive. Plus, they will eb a burden on our social system.
Pakistan must do far better on education.
The ticking of the demographic time bomb is getting louder
Not only better vocational training, but better HE. Basic education improves our understanding, quality, hygiene, work ethics.. Like, if you try to teach the work force in Pak that every step/break/delay you take cost money to entire country, people cannot grasp it

I argue we cannot improve our H.Education bcz it require huge investment in terms of human and capital. Like, in Pakistan with just one paper and PhD, you can become an assit Prof. Here, in UK, even some lab workers have published papers. Asst prof here publish 10s of papers and have supervised a lot of projects.
I have already argued that there is a reason why we achieve highest O/A level grade achievers but cannot translate them into scientists in Pak unis. Bcz, we don't only lack infrastructure but mental faculty to to teach HE subjects.

In June 2010 she was appointed as Managing Director of the World Bank Group and resigned as Minister of Finance
As finance minister from 2005 to 2010, Sri Mulyani was known as a tough reformist[2][3] and was largely credited with strengthening Indonesia's economy, increasing investments and steering Southeast Asia's largest economy
Brother, I always doubt theses credenials. Like we have not only ministers, but even a PM who was an employee of these orgs, and they made fiscal policy of my country to serve their institution in west. I hope she is legit.
@CriticalThought @Baibars_1260 @Blacklight @The Accountant
about teaching methods, this my thread.
@Samlee
some thoughts on agriculture
Seriously, I feel the same.. The people/org who have money, in Pak, just think of flour/sugar mils, property, news channel (not now), pvt education institutes, etc.

"They didn't think about MEMS lab, composites, high strength steel, etc. You now, our chemical imports are 5$ billion dollars !! No one interested in chemical industry except fertilisers. Then we don't have vaccine manufacturers. We need good chemical indutries for making can food, long life milk, toffees , chocolate... It will reduce bill on imports

Even we can have some HQ agrarian products, if our institutes can just do research. Like Japanese Ruby Roman grapes, 1000$/bunch, or Wagyu beef 1000$/kilo. and Gulf can be the target market to sell these expensive items. "
 
Long term Pakistan simply needs a massive drive on sciences:
  • Reduce allocation to commerce / non-science educational institutions and re-allocate to sciences
  • Increase duties on non-essentials - use the revenue earned to fund heavy industries and sciences
  • Bring in PPP model on funding engineering, chemical and bio projects
Short term:
  • Massive drive needed on digitizing governance; from tax collection to policing and municipal services. Fail to understand why someone needs to go to the police station and undoubtedly pay to get submit an FIR or complaint. Reduce human involvement.
  • Further disincentivize cash and incentivize formal transactions.
 
  • SEZ for chip making, software parks all across Pakistan.
  • 0 percent tax for 20 years for all investors and income; conditionalized with new job creation/ compulsory hiring of new graduates and expansion, subsidies/tax breaks in setting up factories, 0 percent tax on equipment imports and duties.
  • Tax free economic zones in Gwadar/ across CPEC route for all industries
  • Abolish undergraduate degree requirements for skill based jobs, rather skill based 2 year diplomas after high school should be maximum criteria for specialized skilled jobs.
  • Set up online business registration; all that should be required is to have CNIC number, personal details, and a bank account number. Any person should be able to get his/her business registered in less than 2 minutes.
  • If Pakistan implement these basic changes; I have no doubt that Pakistan will be one of the strongest economies in next 30 years
 
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All good advice/recommendations. How about we start with ensuring every school going kid both male and female actually goes to school and does so till Matric at the very least?


The Asian countries that appear as shining stars of development China, Japan, Korea and Singapore started off by educating their people on a war footing. Only when a large critical mass of population had achieved sufficient level of education did these countries skyrocket.


Pakistan has one of the highest number of kids out of school in the world. Either those kids never went to school or dropped out after a few grades. Even if the quality of school education sucks it would still be better than not going to school in the first place. In my opinion we need to first work towards getting all kids to school.
 
solution is easy ...

either let the country bankrupt
or
ship the people who vote for corruption out of the country

the consequences of both actions means pakistan wont exist in its current form
 
Can you provide some links to back up your claim?
Well being a professional finance person and having close coordination with tax authorities he is partially right.

Tax payment is comparatively better in karachi and compliance as well. There r various factors involves which includes a better corporate culture, a much stronger fbr.

Lahore is third best in term of compliances and islamabad is in the top.

But if you compare it with cities like faislabad gujranwala peshawar then compliances are very low and that due to comparatively lower professional culture.

Alot of business keep their corporate offices away from KLI to avoid taxes.
 
Regarding the call for industrialization.

It's important that we do this with a very focused objective.

The goal shouldn't be indigenization for its own sake. No. Rather, our goal should be to get a respectable slice of the global market so that we earn enough in foreign/hard currency to back our imports.

The most traded goods are automobiles / auto-parts, ICs, pharmaceuticals, fuel, medical instruments, and insulated wires (among some others). These are also the things we tend to import a lot too. So creating a "flip" where we export this stuff instead of importing would be a boon for our accounts.

However, the gov't will need to kick-start the process of investing in R&D in these areas, encouraging private investors to build Pakistani companies across each, and building a well-educated and trained labour force to support the reworked economy.

Basically, our governments will need to layoff 'show' type programs such as roads and move towards less flashy things, like setting up an ecosystem of SMEs, design/engineering firms, and other necessary inputs.
 
My suggestions:

Presidential system

Judicial and administrative reforms

100% automation regarding taxation, customs, excise, and all other forms of revenues like house, car, land etc. registration. No human touch at all

Privatizing the state owned businesses at an accredited rate

Educational reforms. Teach STEM subjects in Madrassas, and Islamic Sciences in normal schools. One set of syllabus for all

Documenting and regulating the undocumented economy in a gradual manner

Fiscal discipline

Give incentives to technology based business like IT, electronics, software etc. Leverage 5G in the Chinese domain by emphasizing on AI, machine learning etc.

Initiating mass housing, elementary and trade schools, public health, basic nutrition for poor kids etc.

Carry on with the connectivity (CPEC, RPEC etc.), SEZs, ports etc. Be a part of the supply chain managements, final manufacturing, assembly, logistics, storage, sorting, mailing etc.

Tourism of all sorts including religious, medical, adventures etc.

I agree with all your points except one:-" Privatizing the state owned businesses at an accredited rate "

This should be bi-directional. Yes privatise state owned businesses for a profit (money to be used for public/community projects) and nationalise poorly run/mismanaged/ national importance businesses , revitalise them and sell them off for a profit. Also where a private sector business has a monopoly or near monopoly the gov should give it competition by creating a state controlled business and then selling this business off for a profit or maintaining a majority gov controlling share. More competition and liquidity the better for the state.
 
our goal should be to get a respectable slice of the global market so that we earn enough in foreign/hard currency
if only our people could understand that. As technologies have got so much complex, indigenisation is a myth now. We should look for gaps in global market, and try to cover it with good quality but cheaper products.
 

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