The economy of our country has been sick along with the economies of several other South-Asian countries that rightly form the club of “sick men of Asia” as once Turkey was the sick man of Europe. The sickness of these countries is not innate (possessed from birth) or intrinsic (coming from within), but transfused (transferred or instilled into) from the ugly, deformed and diseased bodies of their filthy (dirty and nasty) politicians, landowners, mill-owners, capitalists and criminals who have indulged in corruption of various kinds.
The failure to start running the closed or sick industrial units and to set up new ones has partly halted industrial progress. The causes of the closure of a number of textile factories, for example, have not been intelligently explored nor efforts made to restart their production. Another such area of imbalance is that of sugarcane production in the fields and sugar production in the factories.
The governments, one after another, failed to construct suitable dams in a proper number, and, as a result, the agriculture was badly affected and hydroelectricity production (from water) did not rise The rates of electricity went very high after the government contracted with foreign companies to produce thermal electricity (from coal and oil).
The new taxation policies of the government have been quite effective. Those who had not been paying taxes in business and industry have been brought in the tax net, and government revenues have increased. The government can spend more on education and public health from these public funds.
After the terrorist attacks in the US in September 2001, the economic situation in the country improved in some ways. The sanctions on Pakistan were lifted. Aid began flowing in. The huge loans that Pakistan had to repay were mostly rescheduled or their dates of payment extended. Pakistanis abroad sent huge amounts of foreign exchange to the country adding a lot to our reserves.
The balance of payments (export and import) situation is extremely unfavorable. The exports of food items like rice and cotton and leather products and handicrafts have increased, but not of industrial finished products, computer parts or machine tools as said earlier. There has not because of any hopeful expansion in the industrial and agricultural sectors. Population, unemployment, and prices continue to rise shockingly. No wonder, then, the stock exchanges have lost foreign investment and business at home.
Now the population is rising in lacs each year, and the common people are hopelessly caught up in the whirlpool of economic problems. If industrial and agricultural production does not rise to certain levels, greater inflation will naturally be the result. There is an urgent need to frame’national economic policies for the expansion of industry and agriculture and the promotion of exports besides educating the common people.