KARACHI:
Currently, Pakistan is experiencing an economic crisis as the country is struggling with high inflation, low growth, and a widening trade deficit among other problems. Unfortunately, government efforts have failed to yield any significant results. One of the major factors contributing to the current economic crisis is the high inflation rate. According to the State Bank of Pakistan, inflation has been hovering around 12% for the past few years, which is significantly higher than the average inflation rate in other developing countries. Resultantly, people’s purchasing power has declined and made it difficult for them to make ends meet.
In addition, the country’s growth rate has been hovering around 3%, which is significantly lower than the average growth rate in other developing countries. Due to this, the government has been unable to generate enough revenue to address the country’s economic problems. Businesses are also struggling to grow and create new jobs, which has had a negative impact on the overall economic situation. Pakistan’s trade deficit has been increasing steadily over the past few years and has now reached a level of $19 billion. The high trade deficit has led to a decline in the value of the rupee. It has increased the cost of imports, which has negatively affected the standard of living of the average Pakistani.
To address the current economic crisis, the government needs to create a favourable investment environment by easing rules and regulations and improving infrastructure. The government must also implement policies that encourage export and increase the competitiveness of Pakistani products in international markets. Crucially, corruption must be dealt with strictly. The government should increase transparency and accountability in both public and private organisations. These measures can help stabilise the economy to some extent.
Shehzad Mughal
Gilgit Baltistan
Published in The Express Tribune, February 14th, 2023.
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