April 25, 2018 / BY AKD

The 4 Critical Roots of Pakistan’s Economy

A successful economic development strategy must focus on improving the skills of the area’s workforce, reducing the cost of doing business and making available the resources business needs to compete and thrive in today’s global economy. – Rod Blagojevich

Since the day Pakistan was established its economy is under very crucial consideration. It faced a number of hard challenges in the name of political instability, sectarian and ethnic violence, political instability, extremism, terrorism and strained foreign relations. Considering the fact that each of little or huge thing has an impact on the country’s economy.

However, in recent years Pakistan’s economy has grown in a noticeable way. These considerable improvements in Pakistan’s economic environment are made due to the decreased domestic and external risk.

Indeed, the economy has improved but isn’t stable yet. Hence, we are looking for crucial ingredients that could add sustainability to it. Having said that, a few things which can add a sound progress to the economy are mentioned below.

Improvement of business conditions in order to invite foreign resources

Knowing the fact that due to the lack of resources and domestic savings, there is a dire need to attract foreign resources who can invest in country’s business. Even though Foreign Direct Investment (FDI) has been declining over few years and many of Pakistan’s squints were attracting them. But the results were zero because of the bad business environment. Thus, improving business conditions in Pakistan is necessary.

Decentralization of workforce

Active youth and powerful workforce are important assets of the country. An educated and skillful mass population helps a lot in the progress of any economy by contributing a big chunk of their skill to the economic sector of the country. Thus, it becomes important for provincial and federal authorities to improve decentralization framework which will contribute to their education and health in order to make them productive for the state.

Accelerating the economy by implementing reforms

The government currently has introduced many reforms to improve the investment and welfare diversity of the country. This also includes a few amendments in polices to bring back privatization efforts, which are likely to improve management and services and private participation. Such steps require strict implementation in order to accelerate the economic growth.

Increasing investment policies in order to fight for future challenges

The positive economic growth of Pakistan provides a basket full of opportunities to address structural reinforcements which are holding back the country from realizing its true potential to become a stable state.

However, the share of investment to GDP is still the lowest in the world and about half of the South Asian average. This is an alarming situation which means that the investment is not being made in health, education, infrastructure, and residential sector. And so, this decreased investment level needs to be maintained for further sound development.