REIMAGINING PAKISTAN'S ECONOMY | SOLUTIONS TO PAKISTAN'S ECONOMIC CHALLENGES CSS | CSS CURRENT AFFAIRS

 This article discusses solutions to Pakistan's economic challenges and way forward for reviving the country's ailing economic sector. The solutions discussed here are innovative, based on deep understanding of Pakistan's structural problems.

Economy of Pakistan is dwindling and has worsened to such an extent that it has become a significant national security threat. Given the economic challenges of Pakistan, can the country come out of this debacle? What proactive and prudent measures can be adopted to ensure a sustainable, all-inclusive economic growth in the country?

Pakistan surely has the right resources and a geostrategic location at its disposal for an economic turnaround, all that's missing is a right mindset to steer the country towards economic prosperity. Given below are some of the solutions for Pakistan's economic challenges.   

1. Set-up agri-based industries and promote R&D in agriculture

According to Pakistan Bureau of Statistics' Labor Force Survey, agriculture employs a whooping 39.2pc of the total workforce in Pakistan while only contributing 19pc to the country's GDP. This shows that Pakistan's agricultural sector is highly unproductive despite being an agrarian economy. Efforts need to be made to revamp the country's agricultural sector. This can be done by setting up agri based industries. Agri based industries will convert agricultural raw materials into finished goods like fruit jams, pickles, squash, linens and textiles etc. These finished goods have higher shelf life than raw materials and will fetch more dollars in the international markets, thereby reducing Pakistan's trade deficit. Example of Bangladesh as a textile exporter economy can be emulated. Further, R&D in agriculture is the need of the hour, especially after the devastating affects of recent floods. It is highly important that more investment is done in agricultural sector to produce high yielding variety crops, water resistant crops, improved farming techniques, better water management system and incorporating geographical information system in cultivation. R&D will help Pakistan in the long run my making us food secure in the face of worsening climatic situation. For this help of China can be sought, and Pak-China cooperation on agriculture can be expedited under long term CPEC projects. 

2. Harnessing Tourism potential

Pakistan has an immense tourism potential- from ice capped mountains in the north to grainy natural beaches in the south. Pakistan offers a plethora of cultural interactions to tourists vis a vis religious sites like Nankana Sahab and Buddhist monastries in Taxila as well as rich Mughal architecture and historical sites. According to World Trip and Travel Advisory, 1.2m foreign travellers visited Pakistan in 2019. Similarly, Pakistan has been ranked as number 1 travel destination by Conde Nostre travel magazine. Pakistan is a hidden gem for foreign tourists, and recent interest shown by international YouTube travel vloggers in Pakistan proves increasing interest among the international community to visit Pakistan. This tourism potential can be harnessed by improving visa regime: initiating e-visa facilities, visa on arrival for travelers and partnering with international vloggers to promote Pakistan's soft image internationally. A strong tourism industry will earn Pakistan precious foreign exchange as well as generate employment locally. 

3. Export Human Capital

Pakistan is the fifth most populous country in the world with a population 220 million. According to UNDP report 2021, 64pc of Pakistan's population is under the age of 30. This puts Pakistan in a very unique position, while the rest of the world ages Pakistan would continue to have a relatively younger population. Therefore, it is imperative to utilize our young workforce by imparting vocational as well as technical skills among them. This youth bulge of Pakistan can become a significant economic dividend by exporting skilled and semi skilled labor to other States particularly petro States of Gulf region. This will result in increased remittances being sent back to the country which would help in curtailing current account deficit of Pakistan.

4. Digitize economy to improve ease of doing business

As discussed before, majority of SMEs in Pakistan remain unregistered due to cumbersome registration process. Poor ease of doing business regime has also resulted in dwindling foreign direct investment in Pakistan. Hence, in order to document the economy and attract foreign direct investment it is prudent to cut the red tape by digitizing the economy. This can be done introducing one window registration operations, initiating online registration at SECP and effectively integrating new technology in the economic sector. In this regard, the launch of RAAST by State Bank for easy cash transfer and Roshan Digital Account for attracting investments from overseas Pakistanis are prime examples of how technology can improve Pakistan's economy. 

Economic challenges of Pakistan are surely many, but so are the solutions that can be employed to achieve a sustainable economic growth in Pakistan. All that is required is a forward looking approach, ditching the predatory neoliberal lending institutes and an  inwards growth.