A period or periods of economic slowdown characterized by declining productivity and devaluing of financial institutions often due to reckless and unsustainable money lending is generally regarded as an economic crisis. It is a kind of situation or tenure in which the economy of a country experiences a sudden downturn undergoing many causes and effects resulting in many economic repercussions. This situation shocks economic institutes, domestic, national or multinational firms, breeds unemployment, downticks living standards and decreases GDP. If the financial failure gets worse, the stable economy falls and can no longer hold the rope of bread and butter firmly. The state also receives many blows and it has to face multi issues across the country. Pakistani economy is not far from the aforementioned dilemma. Many natural and unnatural causes stopped Pakistan from moving ahead. Some of the major can be understood briefly in the following.
Pakistan is a country enriched with many natural resources. It leads in some categorical products in the entire international market. Textile industry of the Land of the Pure has no global competitor. But it is too sometimes bulldozed under issues. The economy of our homeland is badly shaken by natural calamities, bad governance, energy crisis, terrorism, instable foreign policy, insurgency, removal of democratically elected governments, wealth stagnancy, corruption, lack of technical education, tax evasion, imbalance in imports and exports, want of domestic industry heavy loans and COVID-19.
Natural Disaster Management Authority (NDMA) was established in 2007 to fight against natural calamities but it is sad to pen that every year floods ravage the country despite the warnings of the very authority. Ripened crops of the farmers are destroyed and this leads to displacement of the people of flooded areas. They have to lose lives, cattle, crops and homes. This loss puts a serious question on the authority. The role of the authority is not more than prediction and facts and figures of the calamities. It is often seen that the affected people face and get rid of such pandemic by self-help. The loss by floods, earthquakes and recently locusts is a punch on the face of the economy. A strict evaluation of this authority needs to be taken.
True Democracy in Pakistan is just a label. The selected rulers hold the power and drive the country to their personal motives and gains. They breed nepotism and authorize kith and kin to run highly important institutes of economy. Their personal interest becomes policy and it helps them do money laundering, open fake accounts transfer funds to international accounts and raise reserves in foreign bank accounts. This causes ill circulation of wealth. Money is reduced in a few hands. Value of the rupee falls in competition with the dollar and other dominant currencies of trade. Inefficient officers in the finance departments harm the economy more than good. Their palm is greased and they draft fake reports in which everything is shown good and on track. Their assets become double and triple while the national economy trickles down. Bad governance anywhere is a threat to the economy everywhere. It is rightly said,
There can be economy only where there is efficiency.
With reference to the economy of our country, the Energy Crisis is an issue second to none. There is no solid and organized planning in Pakistan. If there are financial rules and power, there is no full-fledged implementation on these. Electricity, Gas and Petroleum are lifelines to any industry. No doubt man power is very important for industry but the power sector is primary. Load shedding of electricity, gas and petroleum is an unfair child of the energy crisis. Running industries are stopped by load shedding. It is the result of electricity theft and mismanagement of need and consumption. There is no check and balance in Pakistan. Might is right is a fit sentence applied in our country. The recent black out of Electricity in the main Power Plant has unleashed inability, carelessness and inefficiency on the part of our white collar officers. It has happened so many times but no accountability of such neglect has ever been done with iron hands.
Peaceful Pakistan is the guarantee to a developed and prosperous Pakistan. If there is peace, there will be foreign investors, tourism, friendly relations with neighboring countries and trade. But terrorism and insurgency of militants looted lives of hundreds of thousands of Pakistanis in the recent past. A series of suicide attacks in every nook and corner of our country, hybrid warfare and brain washing by the enemy have ruined the financial belts and given birth to unemployment and banishment of foreign investors. A hateful image of Pakistan was painted on the globe. Pakistan has been the active state and main player in the War on Terror for the last two decades. Our dedicated Law Enforcement Agencies including Police, Army, FC and other paramilitary forces have presented their blood to put Pakistan on the track of Peace and Prosperity. Civilians are not behind. Many nominated images of Pakistan became the food of Terrorism. The uncertainty of economy fueled by terrorism created social unrest and identity crisis among the citizens of Pakistan. A healthy economy needs the end of social unrest as Christine Lagarde, President of the EU said,
Social unrest and protectionism are the two major risks of the world economic crisis.
Strained relations with foreign powers are always a hurdle in economic prosperity. If foreign relations are not normal between mighty and poor countries, many economic sanctions are accorded. There is no hard and fast rule in our diplomacy. It has been moving at 90 degrees for the last many years. We have not learnt from our past. Ours is a strange nation. We don't believe in lessons of history rather we believe in experiments in diplomacy. We have lost our integrity as a nation. We are still in the doll drums of FATF. FATF has become more dangerous than the IMF & World Bank. Terror Financing is the bone stuck in our throat. It neither makes the world believe in us nor does it enable us to define our position in the international community. Strong legislature is needed in this regard. The role of India is not hidden any more. She has left no stone unturned to curb Pakistani economy via terror financing inside Pakistan. Such was the case between newly established America and England in the second war of Independence in the early 1800s but today they are not enemies. We are unable to understand this phenomenon that past enemies become friends when need arises.
There are a number of states where taxation is the backbone of their economy. People pay taxes which become a subsidy for them in hard times. Germany, Belgium, Denmark, and the USA are the highest tax collection countries. But here in our country, tax collection is more difficult than any other thing. We open our pockets for donations but become reluctant when tax collection becomes a national duty. Tax evasion is a lifestyle of our high ups. It is considered a cleverness if one evades tax paying. We want to see Pakistan prosperous but we can’t perform our duties. This is the double face of the whole nation.
The solution of our financial dilemma is not anywhere but in our own hands. It is not a herculean task to do. We need to promise and stick to our national call of duties. God helps those who help themselves. So Pakistanis should become responsible and self-accountable in every walk of life if we long for a strong and stable Pakistan.
We all knew this. We all knew that it would take more time than any of us want to dig ourselves out of this hole created by this economic crisis. (Barack Obama, US President)
