Inflation, Unemployment and Poverty: Still Major Problems of Pakistan

Pakistan with a population of 182,143,000 in 2013, it is one of the most populated countries in the world, but it is also one of the least developed (poverty in Pakistan) (WHO reference). Poverty is a prevalent issue through out Pakistan: “about one quarter of the population lives below poverty line” (Poverty in paki). Pakistani’s living in poverty being less common in the urban areas, and more common in the rural areas with about half of the rural population still under the category of absolute poverty (Poverty in paki). Poverty in Pakistan and throughout the world impacts the population’s ability to live healthy lifestyles. Without the means to acquire adequate nutrition, health care, and services, these people are unable to meet their individual health needs. Due to the link with poverty and health, it has remained priority in almost all national plans of Pakistan (Pakistan poverty).

Moreover, almost six years ago Pakistan was at the verge of bankruptcy that it only had a little more than $1 billion in foreign exchange reserves, stock market teetering worth of only $5 billion, foreign debts were high that almost 65% of GDP was used and our exports were at a pitiful $7.5 billion. The rate of unemployment and inflation was very high. In simple words the system and state of Pakistan was just failing and was referred as failed state by the world.

Proud parents happily celebrating as their children are able to move onto a university level education, and continue into the job world well-equipped and ready to bring in a substantial income. Families escaping poverty after generations of impoverished relatives. If only life in Pakistan reflected this utopia. The reality is that thousands of tired, hungry children still struggle to get to school and receive a proper education. Families cannot send their kids, and the cycle of poverty proves inescapable. Until the government intervenes, there is no way for the country to pull itself out of an impoverished state and bring prosperity for future generations. With minimal federal intervention, Pakistan could swiftly increase the standard of living and level of education for its citizens. Every day, more and more young girls and boys could be trekking to newly constructed school buildings with a lunch in hand and the realization that they will learn substantial and relevant information with their newly appointed teacher. Literacy rates will spiral upwards, and the poverty strain will ease slightly. Although it will take time, this improved world can be achieved through the assistance of the federal government to already existing groups working to alleviate

Economic factors: Due to income disparity in Pakistan and the adverse economic conditions, people are tending to save rather than to spend. Moreover, the increase in unemployment rate and inflation rate also supports these assumptions. However, on the other hand, the increase in the wealth of already wealthy people has increased the use of Dine in restaurants which is one of the stimuli for McDonald’s to open a branch in Pakistan. Furthermore, cost of labor has decreased over the years making labor cheap in Pakistan as compared to other countries has also influenced foreign investments. Examples of Economic factors are Growth rate, inflation rate, unemployment rate, interest rates, exchange rates, labor costs, labor supply etc.

According to a report of Economic Affairs of the United Nations, the inflation rate in Iraq until 2006 amounted to 64.8%. According to the report, Iraq is the country most of inflation among the 22 Arab

Pakistan is an incredibly important nation when it relates to the United States and foreign policy. With just shy of two hundred million people, it is the sixth most populous nation on Earth and also has significant influence on southern Asian and middle eastern politics (Worldometers). In the coming paragraphs, many important factors of Pakistan such as geography, language, religion, and political make-up will be analyzed and discussed in how it relates to the United States and the military.

Literacy rates are important beyond the obvious reasons of having an educated society, as for some developing countries, the youth may represent the largest segment of the population, which predicts the future capacity of a nation. For literacy rates to improve, government expenditure on education is a key indicator for the youth to have accessible education at little to no costs, gain employment opportunities and be part of the political process of their country (Unicef, 2016). Given the importance of literacy among children and adults, there is no doubt why it’s recognized as a right for all and contributes not only to modernizing societies but improving economic growth. The most common understanding of literacy is understood in terms of having a set of discrete skills such as reading, writing, and skill-based training (Midgley, Davies, Oliver, & Danaher, 2014, p. 127). Pervez Musharaf’s nine-year rule remained of the longest in the history of Pakistan, but which also brought many changes in the capacity socio-economic indicators for the country. To consolidate his power and become more elusive after overthrowing an elected government in 1999, he put social policies and structural reforms at the top of his priorities, which led to the economy growing (Khan, Amjad, & Din, 2005, p. 456). In fact, his tenure laid the groundwork for important reforms to build strong institutions, which became apparent by 2008, as not only “annual GDP at

Sectarianism and militancy has become a major security issue for Pakistan. The history of sectarian conflict in Pakistan is as old as the existence of this country. But the militant culture in Pakistan has been on the rise for more than a decade. Sectarian killings and extremism has posed a serious threat to society. This has not only affected the society but also its institutions. Pakistan has witnessed various trends of militancy from intolerance to extremism, radicalization and violence. The coordination of al Qaeda with the Taliban and the induction of sectarian extremist groups into this have proved to be a deadly mix and have given a complicated tilt to the militancy issue.

Pakistan is located in south-central Asia and is bordered by India, China, Iran, and Afghanistan. Pakistan gained its independence in August of 1947 and has had disputes with India over the borders ever since. Today, Mamnoon Hussain is the President of Pakistan. Hussain and the Pakistani government have spent billions of dollars over the years to strengthen the military but they have focused very little on the education system. As a result, high out-of-school rates and lower teaching quality has been seen throughout the nation. Illiteracy is one of the top social issues and has yet to be tackled as the Pakistani government has continued to turn the other cheek.

With the goal of avoiding religious bloodbath, what seemed to be a simple, quick-fix solution for state separation posed a series of problems for Pakistan. The problem lay in the fact that there were two completely different nations that were forced to coalesce into one state. This dilemma can be seen with the fundamental differences between West and East Pakistan. Although East Pakistan contained a little over half (54.8%) of the total Pakistani population, it only took up about an eighth (15.1%) of the total land area. However, the disparities between the East and West do not end with land distribution. In both foreign aid and per capita income, West Pakistan dominated their Eastern counterpart. This economic disparity persisted during the ten years of Pakistani independence, and the per capita income actually worsened over a ten-year period (between 1950-1960). The offices of the central Pakistani government were all located in the west, and recruitment for civil, military, and administrative positions were predominantly given to West Pakistanis.

Inflation is blazing subject that delays the economic development of the country. It is becoming extra hectic to economists, politicians and even people also. Factors on both demand and supply effect the inflation. So the stabilization strategies ought to consequently focus on both demand manipulation as well as

Foundation of state lies on the social justice. In a state like Pakistan social injustice is very common because the system has failed to do justice with people and different departments. Poor people are being punished but feudal and landlords are not. Punishments are given according to the status, rich are being saved contrary to the poor.

A country plagued by a myriad of critical issues, Pakistan’s deepening woes have dented its image in the social and economic strata. While theorists have provided several ideologies concerning its current dilemma, this paper discusses Pakistan’s predicament in the light of the principles of the development theory: modernization and dependency theories. Both the theories relate to the implications of development in Third World countries; in this case being Pakistan. For a country to be seen as modern, modernisation theorists say it has to undergo an evolutionary advance in science and

I would in the light of my understanding ascribe inflation as a consequence of human indiscretion due to wants and not of needs. People always have an insatiable desire for more and more goods that are describe by many as the economic problem. When I draw up my policy framework for the performance of the economy I will address and prioritize the following issues namely price stability (control inflation), full employment, balance of payments, equitable distribution of income in order to stimulate economic growth.

The government is running out of choices as on the one hand it has to meet the harsh conditionalities of the IMF and on the other has to save the economy from total collapse-balancing the two wheels is rather a difficult job for the economic managers of the country. The harsh IMF conditions at the moment are doing no good to the economy, instead, have added to the frustration of common men. What Pakistan needs right now is a growth which is not only demand driven but job oriented which will help increase consumers’ income and standards of living of average Pakistanis. But with high prevailing interest rates, poor security situation coupled with carrot and stick game of the IMF, the task is unlikely to be achieved. Hence the growth will remain subdued in the near