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Essay / Pakistan is on the verge of a macroeconomic collapse
Suppose you are a foreign journalist to whom this country and its events are absolutely foreign. "A tragedy occurs and triggers a public outcry. Leaders, ministers offer their condolences; the media cry; the students protest. The tears flow. In a week, everything settles down. I am told of another loss, of 'another misery - it's so cliché I don't listen to it a second time Now my ears are bleeding "That's what you would get when interviewing a grieving mother who is losing. his son in another terrorist attack in the country. Imagine asking an orphaned child what he thinks of the land he lives on, and you might get a response like, “This cemetery is not my land. » Although it may not be the best thing to predict the next 30 years among the most impactful countries. problems, but it is the only way to get the country back on track. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Terrorism tops all our other problems. From terrorism alone, Pakistan lost $68 billion (estimates for the last decade). This explains why the country's economic growth declines as soon as there is some improvement. Because every time we move towards something big, terrorism creeps in. Drowning all our aspirations in Blood. Despite the malicious intentions and devious plots of enemies, we remained for more than 70 years. Without a doubt, this is an achievement on our part. But over the past few decades, we have been plunged into a cocktail of flawed leadership, corruption, a failed justice system, inflation, rape, murder and so on. It's rather difficult to say whether we really prospered. Although the new government gave us hope for significant improvements, it inherited a bigger challenge: stabilizing a crippled economy amid other problems. Given the constrained economic state the country finds itself in, the journey to 100 would be tumultuous. Debts from CPEC projects have accumulated to a whopping $95 billion (Rs. 11 tr). The rupee was devalued for the fifth time since December 2017, weakening by around 27% since then. Additionally, foreign exchange reserves have slowed significantly. The Asian Development Bank estimates that Pakistan's economic growth could fall to just 4.8%. This grim situation calls upon us to take immediate regulatory action. While the current government implemented austerity measures by increasing taxes; By increasing gas prices by 35%, the inflation rate is expected to reach 6.5%. This will only make the survival of the poor stifling. The first solution is to make the country self-sufficient. The share of our agrarian economy in our GDP is about 24% (which is much lower. For comparison, we produced 53% of our GDP from agriculture in that year. 1947). Redundant irrigation system requires extensive upgrading. Investments in agricultural technologies and techniques can improve crop yields. Industrially, we are mainly importers. We export raw or semi-processed products. We are seriously deficient in the production of processed goods due to the incompetence of the industrial system. Every year we spend around $2 billion importing agricultural products. The bridge between our imports and exports continues to widen. Our motto should be:Substitute imports. Increase exports. The consequent devaluation of the rupee, however, has increased exports several-fold this year. We cannot count on such an improvement whose sole basis is the depreciation of the currency. In previous years, our export rate was much lower, reflecting the need to modernize our agricultural and industrial sector. With such reforms, we can unlock 12.8 billion of the country's export potential. According to the World Bank's Human Capital Index, Pakistan scored 0.39, while India scored 0.44. Singapore took first place, thanks to its efficient and flexible education system and healthcare facilities. The notion ofHuman capital takes into account indicators of health, education and economic growth of a country. In the World Economic Forum Human Capital Report 2017, Pakistan ranked 125th out of 130 countries. Compared to other South Asian countries, our performance is the worst. Whether in terms of enrollment rates, learning outcomes or standardized test scores. While at one end, the country's higher education is opening up to new academic forums, primary and secondary schools (especially those under the government) produce almost nothing! Singapore was also once a country with low literacy rates, but thanks to its leaders' willingness to make this change, the country is now thriving. Thirty years will not be enough to take education to a new level, but with different initiatives we can still do a lot. One such initiative is that of the Pakistan Innovation Foundation, which inspires young students to do something scientific. National Summer Schools also help students see education from a real-world perspective, which is non-existent in our traditional school. What is missing in our education is developing the skills of young people. The main emphasis is on acquiring theoretical knowledge, especially from obsolete books. The Ministry of Education must work in this direction. We spend barely 3% of our budget on education, which is completely unjustifiable. Substantial projects to invest in vocational training and remodel our existing education system should be highlighted. Only a well-educated and competent workforce can help us repay our debts. By training our population in relevant areas, their raw talent can be transformed into a useful skill set. Healthcare provision also needs to be improved if we are to employ more human capital. With active aging, older people could contribute effectively to the economy. Having set the country on this path, we will address issues that could hamper our future investments. While China has invested heavily in Pakistan, there is some uncertainty over the completion of the projects and their tangible economic benefits. Such investments can also be seen as debt trap diplomacy, as demonstrated by our current crippled economy. The next few days will reveal whether we will become the next Malaysia or the next Srilanka. To maintain investment, we must reduce security threats to foreign investors, take anti-corruption measures and work to ensure uninterrupted power supply. The next 30 year timeline, through high volume exports, improved human capital and large numbers of skilled workers, could reduce pressure on our economy and welcome new.