November 02, 2017 / BY Faizan Shahzad

Four Ingredients that Play an Important Role in Developing Pakistan’s Economy

Since its birth, Pakistan’s economy is under very crucial consideration. It has been facing a number of hard challenges in terms of political instability, sectarian and ethnic violence, terrorism, extremism and strained foreign relations. Each of little or huge thing has an impact on the country’s economy. There is a very strong relationship between society and economy as Morihei Ueshiba says:

"Economy is the basis of society. When the economy is stable, society develops. The ideal economy combines the spiritual and the material, and the best commodities to trade in are sincerity and love".

Economic growth in Pakistan is expected to grow from 05% in 2017 to 5.5% in 2018. These noticeable improvements in Pakistan’s economic environment are made due to the decreased domestic and external risk. Foreign exchange reserves are improved and many other amendments have been made in the economic culture that is proving to be sound for unlocking the potential of the state.

The economy has surely improved but it isn’t stable yet. Thus, we are still looking for crucial ingredients that could add sustainability to it. So what could be those ingredients that can help Pakistan’s economic environment grow even faster contributing to greater prosperity to the state?

Adding more to investment policies in order to face future challenges

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

However, the share of investment to GDP remains minimal as 15.78% which is the lowest in the world and about half of the South Asian average. This is a caution alarm which means that the investment is not being made in infrastructure, health, education and residential sector. This low investment level needs to be raised for further sound development.

Improving business environment to welcome foreign resources

Considering the lack of resources and domestic savings, there is an urgent need to attract foreign resources so that they can invest in country’s business. Even though Foreign Direct Investment (FDI) has been declining over few years and there was a time where many of Pakistan’s squints were attracting them. But it resulted in nothing that beneficial because of the bad business environment. Improving business in Pakistan is therefore very much needed.

SEE ALSO: Venture Funds And Pakistan: What Needs To Be Done

Implementation of reforms to accelerate economy

The government has introduced a number of reforms to improve the investment and welfare diversity of the country. This also includes certain amendments in policies to bring back privatization efforts, which are likely to improve management and services and private participation. Such steps need to take under implementation in order to accelerate the economic growth and providing better services to the public which will ultimately lead to prosperity and stability.

Decentralization of services delivery

Active youth and the powerful workforce is a major asset of the country. If this mass of the population is educated and skilful it can contribute a big chunk of their skill to the economic sector of Pakistan. Since it is 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.

Businessmen like Aqeel Karim Dhedhi have been playing their role in suggesting effective reforms for the development of country's economy.

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