5 Economic Problems In Pakistani Economy
Pakistan being a developing country is facing so many economic problems. Despite having sufficient resources, this country has not attained the level of development. Furthermore, there are socio-economic and political reasons behind the economic crisis in the country.
To discuss in detail the 5 economic problems in the Pakistani economy, we shall dive in the depth. Following are the economic problems in Pakistan.
1. Poverty
Poverty is a multi-dimensional concept. It is having a lack of education, malnutrition, and lower per capita income. Pakistan is facing this problem these days severely. Due to the Covid-19 pandemic, this problem has sparked the most.
2. Child Labour
One of the gravest crises in the Pakistani economy is child labor. Many children are out of school and working in different workshops. Unfortunately, due to covid-19, it has increased the ratio. Parents are also not ready to send them to school.
3. Low Economic Growth
Economic growth in the country is declining. It is found the lowest level of economic growth in the financial year 2020–2021. Decreasing economic growth impacts negatively on all sectors of the economy. So, this is a serious problem.
4. Rising Unemployment
It is also contributing to lower economic growth which ultimately increasing the economic crisis in the country. in 2019, the rate of unemployment in Pakistan was 4.08 % while it has increased 4.45 % in 2020. To add more, It is the need of the hour to control the rising unemployment level in Pakistan.
5. Inflation Spike
Inflation is known as the persistent increase in the general price level. Pakistan is facing the acute problem of food inflation. The prices of daily routine items have increased so drastically. The continuous rise in oil prices also has affected the Pakistani economy badly.
Solution
There are many areas in which work can be done to improve the economic well-being f the people of pakistan.
- Policy coherence along with ground realities is the need of the hour for economic revival.
- The government should focus on large-scale manufacturing which can contribute a sufficient amount.
- Industries should be revied in the country for economic development.
- Inflation should be controlled.
- Pakistan has beautiful land, mountains, hills, and weather. So, Tourism development can contribute positively.
- Last but not least, political stability along with control over corruption is needed.
To conclude, the Pakistani economy can thrive rapidly with consistent policies and by utilizing all its resources efficiently.