Economic challenges and initiatives for Pakistan to sustain

Pakistan is facing deep shortage of dollars and crisis seem to prolong because of multiple economic challenges looming large on the country's poor economy. Importers  are under stress as they are unable to make payments in dollars while exports have also fallen short because of closures of factories related to export oriented products.

LCs cannot be opened and thousands of containers carrying  food stuff, raw materials, medical equipment raw materials and other importable items are stuck up in karachi for lack of payment in dollars.

Rising inflation coupled with slow economic growth of 2% of GDP caused by political viz a viz economic instability is further compounded by weak foreign exchange reserves.

Pakistan Manufacturing industry are facing heavy challenges awaiting the clearance of loaded containers with food stuffs, medical equipment, chemicals, and medicines etc which for lack of required  foreign exchange, have been unable to start manufacturing operations  affecting all the economic indicators.

The  entrepreneurs and also business empires say that they have never seen such a bad economic situation which is forcing them either to switch over their businesses or close their establishments. The situation is not in any way investment initiated and unfavorable.

The foreign exchange reserves of Central bank of Pakistan has dropped to below 6 billion dollars, which is the lowest in last 9 years as per sources at the helm of affairs.

According to analysts, this foreign exchange is not enough even for about one month payable import bills. The economic disaster does not end here, it is further aggravated by the seasonal floods and damages to standing crops. The rehabilitation is gigantic task ahead in the wake of slow growth and closure of industrial units.

The political unrest, inflation has affected the peoples’ budget very badly even the purchasing power of  middle class is not sustainable.

 The inflation and spiral affect has raised the crime rate, financial corruption, while per capita income remained   unchanged. The import bill on unneeded luxurious items and misdirected pursuit of the Government functionaries has put the nation in deep troubles.

Rising cost of food stuffs, utility bills  coupled with energy crises with no increase in income especially lower and lower  middle class has forced them  to withdraw their   children from schools as rising education cost has multiplied their problems.  Rapid depreciation value of rupee against  dollars, Pakistan debt stands at about 90% of its GDP.

The recent donor conference in Geneva has though got relief as pledges and commitments of more than 10 billion dollars have been made but still economy needs long term economic strategy  and measures should be taken to curtail undue expenditures.

Focus should be on revival of industrial units for import substitution commodities, tax amenity for industries, energy saving initiatives including alternate sources of energy, promotion of raw industrial base, Promotion of IT and development of exportable software

These are some of the areas where Pakistan as a nation can work besides other drastic steps to economize the treasury to survive and sustain through weak economy.