How to recover Pakistan's Economy

[Patriot]

I am sure there are some economists here so how can we recover Pakistan's Economy.How can we improve the growth of economy..Do we need Chinese type iron fist government to improve economy..?
PS: This is strictly for Pakistanis, Chinese only as Indians will start flaming here.

 

[blueoval79]

Well...after this ongoing restlessness is over....here is a list of things that could help recover and propell Pakistan economy...

Focus on rural development...and get rid of something called Benazir Income Support Programme (BISP) where money is just handed over to poor people....which does not contribute to any kind of development...its would be better to give work...by kick starting some rural infrastructure development projects.....this will not only enhance infrastructure but also give confidence to people that they can earn a living for a longer duration ....so they will start spending rather than Hoarding Money for any future uncertainty. Remember for an economy to grow...people must Buy stuff and not sit on money. market activity is important.

Thats one ...thinking of next......

 

[blueoval79]

The next step should be to increase industrial output....

Well if the consumption starts thare has to be a supply to match that kind of demand. If the demand is not met by local industrial output..it will increase import...and will result in Dollar outflows......so this should be reduced as much as possible.

There would be a need to improve availability of power to industrial units.... which are as of now depending on in house power generation.

As of now the power situation in grim..so this can be met through Short term and long term initiatives.Long term mean building Power Plants across the country...and short term could use import of energy from may be Iran...

Thinking of next....

 

[blueoval79]

Bring in foreign exchange.....

The best way to do that is Export....and by exports I mean....export of finished goods....not export of raw materials...which gets finished outside...and comes back to your own country after a substantial value addition and ..your country pays more and spends more money on importing goods that it could have created locally....

Exporting services can be a lucrative business proposition.......Now I am not sure about ...how skilled Pakistanis are in terms of IT and other allied services.....but this could be one area..worth exploiting......this will not only bring in foreign exchange but also spur domestic demand...thus adding some valuable points to Pakistan GDP.

 

[Silent observer]

in my opinion, there are number of things we should do for economical betterment

major things
1. bring in people supported, un-corrupt leaders in the parliament with political stability. (the most important).

minor things (which come after achieving the major things)

1. industrial expansion
2. bring in foriegn investors
3. increase out exports
4. self reliance to decrease out imports
5. increase the quality of our goods and try to find new markets
6. put end to corruption once for all (very difficult but not impossible)

all the minor things can be done if we can get honest and people supported leaders in th parliment, so the only thing we need is good honest leader which unfortunately we did not get since the death of Mohammad Ali Jinnah.

why leaders are important because pakistan s earning or foriegn deals there is a big amount which goes as percentages in the pockets of our leaders and ultimately the double damage comes in that part of pakistan (1 by percentage going away and 2nd the deal is not worth while because the forign financer has paid the sum to the leader the thing will be not exactly what pakistan wants).

secondly, if the leaders are corrupt, that means all the system is corrupt. i mean if i (myself) take commission that means all the staff under me knows about me and will try the same whenever they get a chance. moreover i can not control them since i am corrupt myself. on the other hand, if i am right , i will try to make every one right under my command.

i think it is very important for pakistan to get an honest leader, if we want to end this corruption and stabilise the political envoirnment of the country. when we can achieve that the forig investors and exchange will come in automatically.

i am not an economist but this is in my opinion we can improve the economy of pakistan and make it prosper.

regards

sincerely

 

[Developereo]

Collect proper taxes.

http://en.wikipedia.org/wiki/Economy_of_Pakistan

Unfortunately for Pakistan, the level of tax evasion is very high amongst the population and there are apparently no laws against tax evasion or punishments against tax evaders. Out of a total population of 170 million people, fewer than 1.7 million pay taxes. This means only 1% of the total population pay taxes. To make matters worse, since Pakistan first gained independence in 1947, not a single person has ever been sent to prison for tax evasion. As a result of this chronic low tax collection, Pakistan is still a third world country which heavily relies on foreign aid. This has also seriously hampered Pakistan's economic development. Corruption within the authorities combined with illiteracy and ignorance among the population has not made things any better. Any attempts into solving this problem is almost impossible because it is believed that roughly 70% of Pakistan's population are living off the grid

Also,
http://www.nation.com.pk/pakistan-n...ns/18-Jun-2009/Tax-holiday-for-feudal-lords/1

The current share of agriculture in GDP stands at 20.9 percent but its share in taxes is only 1.2 percent. Compared to it the share of the manufacturing sector in GDP is 18.9 percent while its contribution to taxes is 50.8 percent

 

[EjazR]

Reform the tax structure.

I just read recently that all the wealthy landlords and industrialists are given tax breaks that are unjustified. They should be bought int he tax net


Target corruption

Although a long term goal. IT has to be tackled at the earliest with carrot and sticks approach

 

[b1 lancer]

Pak has beautiful places especially in Po,K, if Pak destroy all terror org,then it can change Pak to a tourism destination and place for adventure sport...

For that they have to destroy all...... terrorist org which too give them a better image in internation community.

 

[b1 lancer]

There is a epicode in "Don't Tell My Mother I'm In Pakistan- NAT GEO ADVENTURE" program,which show that so many land is under army and landlord control and those farmer working day and might without pay...

So many Pak NGO is working on that issue,in my view it a very big problem...

 

[gogbot]

Pak has beautiful places especially in Po,K, if Pak destroy all terror org,then it can change Pak to a tourism destination and place for adventure sport...

For that they have to destroy all...... terrorist org which too give them a better image in internation community.

Pak doesn't even acknowledge they have terrorists.
how can they get rid of them

 

[oct605032048]

1 according to china's experinces and pakistan's comparative advantage, pakistan should focus on labor-intensive industries such as textile industry,Processing and so on.

2 these industries that rely on pakistan's relatively cheap labor costs have competity even in the world and win the world market and also bring in the foreign currency exchange into pakistan.

3 forthemore, this export-model will attract more foreighn investment into pakistan which will bring in new capital(for infrustructures) and technology and that will begin a new round industy upgrading.

4 if an iron fist is necessary to provide order and an expected future than the an iron fist is needed under certain circumstances and during certain times, but that should be pakistan's internal affair and should be totally decided by your own people.

 

[Rajkumar]

actually pakistan needs complete land reforms, this will increase the productivity of farms.

 

[Developereo]

http://www.defence.pk/forums/nation...-lets-have-suggestions-restore-our-pride.html

 

[oct605032048]

land reform yes！almost every eastern asian economies experienced land reform before rapid economic development and industralization including Skorea japan taiwan and mainland China.

government's buying the land from landlords and re-attributing the land to landless peasants will greatly increase the output of the land and the country quickly gets rid of famine and food shortage.

besides, the regime(communist in mainland and nationalists in taiwan) wins the heart of most people for further reformtion.

 

[flameboard]

Everyone talk of industrial expansion slow down and think for a moment, right now Pakistan has the potential to be one of the greenest and environmentally safe country in the world. Many companies are looking for places to invest in, and the infrastructure is there in Pakistan and Pakistan is the prime location for such an under taking. Look at India it's people are suffering greatly the poor people of Pakistan are better off than the poor of India, mostly in terms of health. Life expectancy in Pakistan is slightly longer than in India.

Move forward but wisely, we could get foreign funding and sponsors for this like Dubai is getting for its green city. Look at how Iceland depends on geothermal plants for electricity, which have minimal effects on the environment and has a lot of hydrogen cars, that have water coming out of the exhaust.

Please change you outlook don't try to be China or India picture countries with better living standards such as UK or the US. Uk is smaller than Pakistan which means we can do better, than a country many look up to. Don't compromise the people for a short boom. I mean no disrespect to any country I think all countries should go green and look for better living standards.

As for economy look at Japan they imported ores made steel and exported it for a lot more pure profit and little pollution. We can make Pakistan the country everyone wants to live in.