Economic issues, the reasons why Pakistan economy is in deficit.
By Web Deskupdated : 5 days ago
Hyderabad: 12 January 2020: Before 2003 on every 100 dollar export we were importing 125 dollars, thus it makes a 25% deficit (khasara) few were remittances, capital income, few were loans this is how our economy was going. Now we as a nation are importing 230 dollars on every 100 dollars thus it makes an immense deficit of 130%. this can not be covered from remittances and any other capital influence. We have to seek debt to manage our needs. from those dollars, the unnecessary imports are being done in Pakistan like a cat, dog food, and their shampoos. Levying duties or increasing them will not work.
There is no need to buy apples from New Zealand, neither chocolate from Switzerland. Where 1/3rd children in Pakistan are malnourished. Some 5% of the population can afford such Luxuries, not the rest can buy or need such things. The rest hardly get by with three modest meals a day. With 17 % GST, our industries can hardly survive. Bring it down to 5% so industries can be developed and survived. This will catalyze employment and exports to generate a Genuine surplus. However, both suggestions will cause revenue to drop. Well, we cut down on non-development spending.
Here austerity measures are not about selling cows /Buffalos. We have 42 divisions in the Govt in Islamabad alone. Such as the Division for National Harmony, National Regulation, National Heritage. The post office used to be a part of the communication ministry but now it is a separate ministry. Previously it had one Director General and one additional DG, now we have one DG and nine ADGs in the post office. In today's technological time hardly anyone has posted a letter where mobiles are frequently used and communication is easier than before. Cutting non-development expenditure includes defense as well. There are two heads for the defense Budget: A) Combat B) Non-Combat
A big chunk of the defense budget has nothing to do with war. On the way from Peshawar to Lahore via GT Road one will find a cantonment every 40 KM they were made by Britishers when they were engaged in wars against Afghanistan.
There were three wars with imminent threats of attacks and the enemy was Russia in Tsarist time. Now we have fostered friendly ties up to Moscow. We need to stop spending on those cantonments. In the same way, we have the Coast Guard for some historical reasons these coast guards were under Army. The navy claimed that the sea is its territory and coast guards must be handed over to it, so instead of handing over it to the Navy they created another force called Maritime security agency.No there are two forces doing the same job.
If one's spending is less and does not reconcile with if there is no hope for the income to increase I must cut my spendings and extra lavish lifestyle. It is as simple as that, We slash development, so we cant built powerhouses, roads, schools, dispensaries. But the Non-development budget both civil and military. Wars can not be won merely through singing patriotic songs and making dramas, and films, and exaggerated heroic characters and fantasies.
You need tanks, warships, armored cars, fighter planes, etc. They all run on petrol, petrol is purchased from dollars, the dollar came from export, export is earned from the industries and industries provide employment opportunities.
SALMA Soomro
CSC
Economic issues, the reasons why Pakistan economy is in deficit.
By Web Deskupdated : 5 days ago
Hyderabad: 12 January 2020: Before 2003 on every 100 dollar export we were importing 125 dollars, thus it makes a 25% deficit (khasara) few were remittances, capital income, few were loans this is how our economy was going. Now we as a nation are importing 230 dollars on every 100 dollars thus it makes an immense deficit of 130%. this can not be covered from remittances and any other capital influence. We have to seek debt to manage our needs. from those dollars, the unnecessary imports are being done in Pakistan like a cat, dog food, and their shampoos. Levying duties or increasing them will not work.
There is no need to buy apples from New Zealand, neither chocolate from Switzerland. Where 1/3rd children in Pakistan are malnourished. Some 5% of the population can afford such Luxuries, not the rest can buy or need such things. The rest hardly get by with three modest meals a day. With 17 % GST, our industries can hardly survive. Bring it down to 5% so industries can be developed and survived. This will catalyze employment and exports to generate a Genuine surplus. However, both suggestions will cause revenue to drop. Well, we cut down on non-development spending.
Here austerity measures are not about selling cows /Buffalos. We have 42 divisions in the Govt in Islamabad alone. Such as the Division for National Harmony, National Regulation, National Heritage. The post office used to be a part of the communication ministry but now it is a separate ministry. Previously it had one Director General and one additional DG, now we have one DG and nine ADGs in the post office. In today's technological time hardly anyone has posted a letter where mobiles are frequently used and communication is easier than before. Cutting non-development expenditure includes defense as well. There are two heads for the defense Budget: A) Combat B) Non-Combat
A big chunk of the defense budget has nothing to do with war. On the way from Peshawar to Lahore via GT Road one will find a cantonment every 40 KM they were made by Britishers when they were engaged in wars against Afghanistan.
There were three wars with imminent threats of attacks and the enemy was Russia in Tsarist time. Now we have fostered friendly ties up to Moscow. We need to stop spending on those cantonments. In the same way, we have the Coast Guard for some historical reasons these coast guards were under Army. The navy claimed that the sea is its territory and coast guards must be handed over to it, so instead of handing over it to the Navy they created another force called Maritime security agency.No there are two forces doing the same job.
If one's spending is less and does not reconcile with if there is no hope for the income to increase I must cut my spendings and extra lavish lifestyle. It is as simple as that, We slash development, so we cant built powerhouses, roads, schools, dispensaries. But the Non-development budget both civil and military. Wars can not be won merely through singing patriotic songs and making dramas, and films, and exaggerated heroic characters and fantasies.
You need tanks, warships, armored cars, fighter planes, etc. They all run on petrol, petrol is purchased from dollars, the dollar came from export, export is earned from the industries and industries provide employment opportunities.
SALMA Soomro
CSC
