The Ugly Truth About Pak Economy: A Brief History

[Umar Nazir]

Look at the Tax records of your MNA / MLA / Senators, and you will have your answer.

but who is owning 36% unregistered economy ? is it agricultural economy???? and what about indian agriculture, is there any tax on indian agricultural economy, if yes than why not in Pakistan ???????

 

[zulu]

Dear Khafee there is lots of if and buts but for start ?better take one step.WHy i say that ?by exp before starting any business try to cover as many points as possible but 100% in office?not possible even its shape up 70% do it rest will resolve head on day to day basis 20 years of exp never job for anyone for an single day.Like agri i did many taking crops options,fattening animals, all sitting in Karachi as no village background here in PAkistan.For those if they put just an acre of range free chicken or 5-10 acre different crops (better fooder how much its gonna cost them ?? ) do it in your village along with it u able to provide 1-2 or more person an job.About any small industry like solar how much it gonna cost ?? all cells are imported u just have to assemble it (making cells is another and big story ) all i wanna say better take first step anyone/everyone who can do it

What can be started - a lot of ifs and buts.

What needs to be done - Focus on your core competence.
Increase agriculture output per acre,
bring back the textile industry from Bangladesh,
Support industries that have high value, Def & Aviation, provide incentives for them to export
Open more vocational Schools, fix higher education, BBA & BCom by the truck load is not that helpful.
Setup govt agencies like ACIAR https://www.aciar.gov.au/ and sign MOU's with them for tech transfer.
Setup Co-Ops for SME's and farmers

A major overhaul of how the Govt works, and should work is required.

Sir your all points valid but need more time and efforst esp on top level

Ok. Let's first identify problems.

Remember that economy is inter-connected with good governance, political stability, rule of law and literacy.
Here are the key problems Pakistan face today in my opinion.

1) Poor System of Governance

i) This Parliamentary democracy is nothing but a sham. A hogwash. Even ministers can't be appointed other than the politicians elected in assemblies. Which means no experts in their field can ever become a minister. While politicians are complete morons.

ii)18th amendment. A sinister amendment done to constitution on orders of outside powers to weaken the federation and give more funds to provinces. Which ends up in hands of politicians by the way.

2) Decadent Judicial System

19th century's Anglo-Saxon colonial laws designed by British especially to persecute and oppress the weak majority while rich elite can never be touched. Which means corruption, corruption and only corruption. People often say that Pakistan's biggest problem is corruption. It's not actually. It is just a symptom. The real disease of our country is our rotten judicial system that can never touch the elite (politicians, Judges, lawyers, bureaucrats, generals, businessman and others)

3) Low Quality Education

i) The situation of education in our country is downright pathetic. Universities are handing out degrees like pamphlets. Thousands of students are graduating every year from our universities. But they don't have the required skills to work in industries.
There needs to be skill based education with government supporting them to become entrepreneurs and do innovation.

ii)Another problem is that they are never taught to think out of box. Result is there is no innovation in our country. Also same reason we aren't producing any high caliber intellectuals, academics and scientists.

4) Corrupt Police system

Again Pakistan penal code (1860), Code of criminal Procedure(1898) designed by British. Rotten system that needs to be removed ASAP.

5) Tax Reforms

i) Tax reforms are badly needed. The government has imposed so much taxes on people (indirect taxes) on things of everyday life like food, clothing, medicines, electricity, gas etc. But still it says that people don't give taxes (direct taxes). Utter nonsense.

ii) Pakistan right now is on 147th number on the list of ease of doing business countries (World Bank).
Taxes needs to be reduced for businesses and foreign investment needs to be encouraged. There needs to be major reforms taken by the government to reduce taxes.

Here are the problems I have identified. If these problems are solved, then Pakistan can become economically stronger. What do you guys think. @Mangus Ortus Novem @zulu

 

[Mangus Ortus Novem]

It isnt in the "business" of loans? Then how does it run without lending and getting back interest?

2ndly, it is the country's choice when you tell it to devalue its currency...Then it cant pay back [coz the same money they borrowed now has to be payed back not just with interest but also within its capacity/ currency = still paying more] and the 2 cant be linked...Then that isnt very smart economics, now is it?

Welcome to the neoliberal, post-Frankfurt school, economics. Money out of thin air... and whoa... you are in debt.

No need to colonise... we have human rights and democracy now. Just create debt traps... deploy your #EconomicTerrorist and have generations become slaves with stunted growth.

Pak needs to play its way out of debt trap very smartly. Not that easy... but doable.

 

[Khafee]

but who is owning 36% unregistered economy ? is it agricultural economy???? and what about indian agriculture, is there any tax on indian agricultural economy, if yes than why not in Pakistan ???????

CLEAN / BLEACH your legislative houses, progress will follow.

#SayNoToThieves

 

[Dubious]

And again, if the IMF conditions are not good for the country, then it is up to the country to refuse the bailout. It is their choice and their decision, and not up to the IMF.

Well there isnt exactly another / alternative choice now is there?!

That makes it a monopoly in the field...more like a mafia/ dakku....

2ndly, stupid conditions like devaluing the currency shouldnt really even be suggested! Rest I can agree too...

Welcome to the neoliberal, post-Frankfurt school, economics. Money out of thin air... and whoa... you are in debt.

No need to colonise... we have human rights and democracy now. Just create debt traps... deploy your #EconomicTerrorist and have generations become slaves with stunted growth.

Pak needs to play its way out of debt trap very smartly. Not that easy... but doable.

YESH!

I took basic commerce and accounting and believe me, we werent thought this much [I guess this is more economy] and so I really dont always get what BS people and "consultants" are suggesting!

 

[VCheng]

Well there isnt exactly another / alternative choice now is there?!

That makes it a monopoly in the field...more like a mafia/ dakku....

2ndly, stupid conditions like devaluing the currency shouldnt really even be suggested! Rest I can agree too...

Well, it is the lender of LAST RESORT.

The value of any currency is determined by what a country produces and what it consumes, and up to the country, not the IMF.

And if it is so bad, then a country should not make the decision to seeks its help. Very simple, actually.

May be that is why PMIK has not gone to the IMF to date.

 

[Umar Nazir]

currently biggest issue for economy is massive loans, govt should try to reschedule loan as Mushraff did in the past

 

[zulu]

Kinda same opportunity in export those from Sialkot (family /friends who in business )who can arrange better get an free account on alibaba and such b2b sites start marketing just an hour a day.if u get order in 6 months what the harm u not investing any money but effort.30% u will get in advance (works on LC only pay it to manufacturer game starts ).LAst year our footwear export increase to 33% we are still very good in leather(those soles are imported from china but design and manufacturing here ) same with leather jackets .Sir try lainy ko bht kuch hai esp if u think not only for you your country going to get it Allah niyaat ka phal bhi dy gaa and u r doing efforts too for economy

 

[Dubious]

Well, it is the lender of LAST RESORT.

The value of any currency is determined by what a country produces and what it consumes, and up to the country, not the IMF.

And if it is so bad, then a country should not make the decision to seeks its help. Very simple, actually.

Not very simple as you yourself stated few posts back, that the economic condition of a country for eg. Pakistan is in the current situation due to a number of reasons...Now how can one tackle all?
How has IMF been giving loans for decades if the situation is this chaos? What happened to so called conditions?

 

[Mangus Ortus Novem]

Well there isnt exactly another / alternative choice now is there?!

That makes it a monopoly in the field...more like a mafia/ dakku....

2ndly, stupid conditions like devaluing the currency shouldnt really even be suggested! Rest I can agree too...


YESH!

I took basic commerce and accounting and believe me, we werent thought this much [I guess this is more economy] and so I really dont always get what BS people and "consultants" are suggesting!

The so-called economists on TV or financial experts are all paid agents of neo-liberal school and IMF stooges. It is their job to create chaos....

If I tell you that within five years Pak can pay off its loans and create a long term growth framework... no one will believe me... but just as @Khafee posted... a clean bleaching is needed. Can Pak State do that?

Ever wondered why Pak State never aggressively explored natural resources?

 

[VCheng]

Not very simple as you yourself stated few posts back, that the economic condition of a country for eg. Pakistan is in the current situation due to a number of reasons...Now how can one tackle all?
How has IMF been giving loans for decades if the situation is this chaos? What happened to so called conditions?

If you remember, I have said numerous times here on PDF that PMIK needs some time to decide on his policies, and we need to wait for actual results. Let us see how he tackles these challenges. After all, he is the responsible person and not you or I.

 

[zulu]

Buddy u put us on presenting real on ground solutions and yourself engage in intellectuals i was trying to present things in simple so other can understand (did graduation in commerce,later masters involved in import/export,stock and manufacturing for last 20 years ) so not saying things randomly but as simple as possible

The so-called economists on TV or financial experts are all paid agents of neo-liberal school and IMF stooges. It is their job to create chaos....

If I tell you that within five years Pak can pay off its loans and create a long term growth framework... no one will believe me... but just as @Khafee posted... a clean bleaching is needed. Can Pak State do that?

Ever wondered why Pak State never aggressively explored natural resources?

YEs he just join last August and expecting him to clear all mess of so many years in such short time is un realistic Allah ussay kamiyaab kary not only for his sake but for ordinary peoples of Pakistan who are really suffering ameen

If you remember, I have said numerous times here on PDF that PMIK needs some time to decide on his policies, and we need to wait for actual results. Let us see how he tackles these challenges. After all, he is the responsible person and not you or I.

 

[Mangus Ortus Novem]

Buddy u put us on presenting real on ground solutions and yourself engage in intellectuals i was trying to present things in simple so other can understand (did graduation in commerce,later masters involved in import/export,stock and manufacturing for last 20 years ) so not saying things randomly but as simple as possible

Ah, my friend... what is better... that Paks employing thinking faculty or simply offering solutions.

Of course, solutions are right in front of us.

If you read what I put in my article all solutions are there within... give it a run... we shall come to structural solutions then....

However, it shouldn't be debatable that current system of #CriminalEnterprise is not condusive to socio-economic growth. Jinnah is still waiting... he didn't create Pak for a few... but for the masses. #NoToSocialism

 

[zulu]

So true also as point out by our friend @Reddington but problem is those steps are not in our hand thats why only presenting solutions which we can ourselves

Ah, my friend... what is better... that Paks employing thinking faculty or simply offering solutions.

Of course, solutions are right in front of us.

If you read what I put in my article all solutions are there within... give it a run... we shall come to structural solutions then....

However, it shouldn't be debatable that current system of #CriminalEnterprise is not condusive to socio-economic growth. Jinnah is still waiting... he didn't create Pak for a few... but for the masses. #NoToSocialism

 

[VCheng]

YEs he just join last August and expecting him to clear all mess of so many years in such short time is un realistic Allah ussay kamiyaab kary not only for his sake but for ordinary peoples of Pakistan who are really suffering ameen

PMIK's success can only be judged by the actual results he is able to deliver. We need to wait for those to become evident.