How Pakistan become a better n strong country if economic

center gravity changes?

Pakistan is a poor country, though it is very rich in its resources and fertile land. There is very
poor expansion of Industries and irrigation. No proper attention is taken to have the wealth from
mineral resources. These are main sources through which a country can be healthy and strong.

 To make our country strong and self sufficient in cash and edible crops, we should adopt
the modern process of irrigation and cultivation.
 A country can not be called a developed country, until it does not expand new industries
in all the possible places where resources are easily available.
 We have a lot of raw cash crops and we earn very little amount of income by exporting
them. if we arrange to product export items from them, we can earn many percent more
capital by such export.
 In the days of science and technology, many countries are adopting new technology in all
the fields and, as a result, they have reached on the top of technology and research and
now they are able to produce peculiar items of house holds and other beneficial
machinery.
 Islam is the religion of peace, unity and brotherhood among all the Muslims. If we obey
the Almighty, follow his orders and act according to Sunnah, we can make our country
and nation much stronger in all aspect and we can get our honor. Let us promise to make
our country self-sufficient in all the fields, wealthy and strong and prevailing unity
among the country men

Change in Economic Gravity center to make strong Pakistan by adopting

following measures:

1. Develop industrial policy

The Government through its industrial policy can:

1. Improve the operating environment for private investments (both domestic and foreign) and
sustainable industrial development.

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2. Encourage new investments, in particular, foreign direct investments;

3. Improve competitiveness and enhance productivity through macro-economic management

and industrial governance and by ensuring that the basic physical infrastructure, capital
resources, human resources and knowledge resources are adequately developed and are of
relevance to industrial development and competitiveness;

4. Direct and promote the diversification of economic activities, in particular, the

diversification of industrial production;

5. Minimize major constraints and impediments to industrial development such as,

administrative bottlenecks relating to the provision of government services, red tape and time
delays, tax administration, commercial laws, labour relations etc.

Effective Industrialization Policy a Growth

The Effective Industrialization Policy has a fundamental role to play in achieving the
accelerated and Shared Growth Initiative of Pakistan’s goals of accelerating GDP growth to over
10 percent by 2010 and to halving unemployment and poverty by 2014 and the further
intensification of industrialization towards a knowledge economy beyond 2014.

Expanding the tax base.

For expanding the resource base, it is necessary that the coverage of indirect taxes be reduced.
In designing the tax reforms, care has to be taken to minimise burden on the common man. The
share of direct taxes has also to be increased.

Tax on agriculture income.

The government can raise more revue by brining the agriculturists income in the tax net on
proper footings.

Self-reliance.

Pakistan is knee deep in foreign debt. If we are really desirous of increasing the rate of
economic development, we shall have to lessen our dependence on foreign assistance. The

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strategy of self reliance, as far as possible, should be followed for financing development
projects.

Export led growth.

For the rapid development of the economy, the strategy of export led growth should be carefully
chalked out. The production of value added goods on large scale, having comparative advantage
in production will greatly solve the problem of limited size of the domestic market. The
production of import substitutes at home will save the precious foreign exchange.

Strategy of self-management.

In communist countries, the development planning is being decentralized. Development planning

is declared a right and obligation of the planning agents. The system if adopted in a coordinated
manner shall help in quickening the tempo of economic development in this country.

Development of agricultural sector.

The Government of Pakistan, in view of the importance of agriculture in the national economy,
is attaching high priority to the development of this sector. Expanded credit facilities, provision
of fertilizer, pesticides and improved seeds are the right steps in improving agricultural
production which contributes 20.9% of GDP and accounts for 46% of foreign exchange
earnings in Pakistan.

Improvement of the infrastructure.

A great deal of improvement in the means of transport, power, roads, banking, education, etc.
has to be made for economic development.

Constitutional cover.

The state owned industrial units which are being privatized and other private units should be
given Constitutional cover. The state of uncertainty of their nationalization again be removed
once for all.

Stable fiscal and monetary policies.

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In order to accelerate the rate of economic development, the fiscal and monetary measures
should be carefully chalked out There should not be frequent changes after a few months in the
import and export policies, revision of taxes etc.

Promoting Technology.

For economic take off, it is very essential that we take effective steps in promoting science and
technology. The technological development will help in keeping our products and exports
competitive in the world market.

Administrative Reforms.

There should be far reaching administrative reforms in the country. The professionally qualified
personnel should be inducted and assigned specific targets to be achieved in the allocated
sectors. There should be reduction in the administrative expenditure also.

Development of physical and human capital.

Development of physical infrastructure, roads, railways etc. and increased investment on

education, health and nutrition etc. can play a dominant role in increasing economic development
in the country.

Slowing the rate of population growth.

High rate population growth (about1.8%) is also intensifying constraint on the development of
savings, foreign exchange and human resources. If we want the qualities of human life,
prosperity in place of poverty, education in place of ignorance, health in place of illness,
environmental beauty in place of deterioration, we shall have to take measures to control the
family size.

Government has identified five key sectors for promoting economic growth

During the last four years, the government has identified five key sectors for promoting
economic growth and bringing it to the level of 8% growth rate.

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These sectors include (i) agriculture (ii) housing and construction (iii) small and medium
enterprises (iv) information technology and (v) oil and gas sectors.

Preferred measures to change investment, saving and debt structure

ƒ A sustained increase in domestic savings to serve as the primary source of investment is

central to self-sustaining growth and adjustment.

Foreign direct investment, rather than debt creating inflows, is the preferred mode of financing
external current account deficit.

Since savings are endogenous and follow income growth, tax policy is crucial in the initial
stages for mobilizing domestic resources for growth and to contain external imbalances.

Clear and definite Economic policy ƒ

Assigning multiple and conflicting objectives to specific policy instruments is

counterproductive. In particular, monetary policy must not be directed at more than one primary
objective.

Good governance

Good governance – objective commitment to implementation of difficult policy measures – is

the single most important ingredient of successful reform.

ƒ Good governance implies not only absence of corruption, but also – and more importantly –
not leaning against market forces unless there is an explicit case of market failure.

As , in current scenario: Economic Reforms In Pakistan

One Step Forward, Two Steps Backwards

So, we should change economic structure to make pakistan better and strong country.
These are as follow:

Change in National Psyche and Mindset.

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We as a nation are too much negative oriented and too much cynical where we find everything
wrong in this country. Unless we change our mindset and unless everybody who is doing what
he is supposed to do, carries out his or her task with sincerity and honesty, we are not going to go
anywhere.

We should not expect any Messiah to come and fix our problems we have to do it ourselves
individually and collectively. There are no short cuts available.

Media is muddying the water by their sensational stories and inviting so called experts who
contribute in projecting negative thinking and negative national psyche. Unless we have a
positive “can do” mentality, it will be difficult to progress.

Unless each one of us changes our mindset rather than blame the government and the system, we
are not going to go anywhere in this race for global economic survival. This is easier said than
done. But I expect our younger generation to be more responsive and responsible.

Building up of Human Capital.

There is no substitute to building up human capital. Private sector, public sector, NGOs, local
communities, philanthropists etc, all here to put their hands on deck and participate in making
sure that every child goes to school. Every high school graduate has some technical and
vocational skill or goes for higher education.

Unless we build up human capital, we are just going to be left behind because the world
economy is going to be a knowledge based economy. It is not an economy where you memorize
material or reproduce that in the exam and forget about it - that is no longer the case.

One has to acquire the knowledge and use it in order to apply to problem solving. This is a new
paradigm where human capital is as important as machinery and equipment. Pakistan lags behind
other countries in the institutions, infrastructure and incentives for human capital formation. We
have no choice but to accelerate the pace to catch up with others.

Governance, Devolution and Decentralization.

As the population is increasing, one cannot govern Pakistan sitting in Islamabad, Karachi,
Lahore, Peshawar or Quetta. One has to devolve powers, decentralize and delegate authority,

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provide resources to the local/district governments so that they can take decisions at their own.
Those decisions would be very much in accordance with the requirements and the needs of those
communities.

Sitting in Islamabad one cannot visualize what is needed in Chaghi or Loralai, but the people in
Loralai and Chaghi know exactly whether they need water, fertilizers or fruit processing
industry.

Let us devolve powers to the people at the grassroots level and there would be much better
allocation and utilization of resources.

Accountability by every pillar of State

There must, however, be accountability of the local governments by the provincial governments
and of provincial governments by the federal government but not interference or usurpation of
powers. If we do that, then a lot more can happen with same amount of resources which are
being wasted today, and the economic growth rate can be raised from 6-7 percent average to 8-9
percent annually.

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