Pakistan

Reasons for the Bad Economic Condition in Pakistan

economic

Pakistan never faced economic, political and social stability since 1947 and this is due to a lot of internal and external reasons.

First Prime minister of Pakistan, Nawabzada Liaqat Ali Khan was invited by USSR (union of the soviet socialist republic). USSR was the big economic and big military power; the program of the visit was scheduled in the government of Pakistan. A surprising thing happened which changed the direction of Pakistan and as a result, the whole country is facing the music today. 

The astonishing thing was the invitation of USA to Prime Minister and Prime Minister Liaqat Ali khan preferred to visit the USA instead of going to USSR. The USA is the country of the world about which two sentences are very popular “friendship with the USA is more harmful than its enmity” and “if two fish are at quarrel at the base of the sea, undoubtedly the USA will be responsible for its conflict”.

The government of Pakistan’s preference for friendship with the USA instead of the USSR proved to be the first step to deprive Pakistan of the economic progress and stabilit.

Funding and Restrictions:

American gave heavy funds to Pakistan in the form of aid and loan directly and through the World Bank and IMF. At the time of extending the funds along with a lot of terms and conditions, one condition was very harmful to Pakistan. The term was, the funds could not be used for heavy industrialization for increasing literacy rate in the real term, for enhancing the better health condition and or raising the level of human resources. 

The major part of the extended firm was used to pay back to the USA, IMF and World Bank as dead servicing. So Pakistan’s economy could not come to the track as being the weak economic condition of the country, the government could not take the step for the establishment of a strong industrial setup. 

Although, being a friend of the USA, the first heavy steel mill was established in Karachi, Pakistan with the help of the USSR. The second heavy mechanical complex in Taxila was established with the help of china. Hidden hands in-country working for the interest of external powers destroyed both of these heavy economic projects. 

Students of economic know that the establishment of heavy mechanical, electrical and steel or iron projects are the key to success for economic development. The dependence on the agrarian sector is considered to be a fragile dependence on strong economic development. 

Pakistan is a very rich country which has all the requisites of being economically strong. Unnecessary dependence on the USA, IFM, World Bank and other financial institutions, deep roots of corruption, no friendly relationships with neighboring countries and illiteracy are important reasons behind the weak economy of the country. 

Useable Platforms:

Pakistan has two important options, one is SAARC and the other is the Shanghai conference. From the platforms of these two important regional forums, Pakistan can start to strengthen its industrial setups and a strong industrial setup means a developed and strong Pakistan. 

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