Pakistan’s economic decline

#Pakistans #economic #decline

Lahore: In 1990, Pakistan took the most GDP per capita in India, Bangladesh and China. However, 35 years later, it finds itself at the bottom of the list, highlighting the urgent need for clear reforms to regain economic grounds.

In 1990, Pakistan’s GDP was $ 495 per capita, which is 7 367 in India, $ 317 in China, and Bangladesh, which was significantly poor. According to IMF data, as of December 2023, Pakistan’s GDP 338.37 billion was $ 1,663.99 per person, which is $ 2,940 of India, $ 2 of Bangladesh, Bangladesh’s $ 2 , 551 and China’s $ 12,614.06 behind.

In order to reduce the widespread economic gap with its neighbors, Pakistan will have to gain more annual GDP growth than its current performance. Between 2001 and 2019, the country’s average GDP growth rate was a slight 2.377 %, while India’s stronger 7.021 percent. In order to overcome India’s growth rate, Pakistan will need to implement variable reforms and maintain a permanent high growth in decades.

Modifting agriculture is an important area that can accelerate GDP growth by increasing production capacity and export capacity through better methods and supply chain capacity. Investing in industrialization, especially in textile and manufacturing, can promote exports and generate employment. Similarly, the development of the IT sector can increase service exports and the integration of the global digital economy can be enabled. With focus on renewable sources, increasing the energy infrastructure will not only support industrial growth but also ensure energy safety. Improved transportation and logistics can further facilitate trade and attract foreign investment.

To mobilize the resources needed for development, Pakistan will have to prefer to attract foreign direct investment (FDI) through a better business environment, regulatory ease and tax concessions. The expansion of the Special Economic Zone (SEZS) can fold multi -nation firms. It is also important to promote business capacity to restore profitability to local businesses and industrial groups and to strengthen the SME sector through target loans. Public Private Partnership (PPPS) can play a vital role in developing large -scale infrastructure projects and agricultural prices chains.

Adding migrants to invest in startup, real estate and industrial projects can provide an additional promotion to economic development. Introduction to Daspura bonds and investment schemes can open important financial capabilities from Pakistanis abroad.

Exports and diversity are essential to accelerate GDP growth. Non -textile exports such as IT, engineering and agricultural products must be increased. Talking about better trade agreements, including GSP+ and agreements with China and GCC countries, can open new markets. At the same time, reducing import dependence will help strengthen foreign exchange reserves and strengthen the economy.

Governance reforms are equally important. Crackdown and smuggling on corruption will prevent the leakage of resources. Talking with international organizations like the World Bank, IMF, ADB and AIB can provide the necessary funds for infrastructure, energy and industrial development.

To eliminate economic differences with your neighboring countries, adopt political stability, permanent governance and investors’ confidence, as well as a bold, forward -looking policies. Tating these challenges can pave the way for an effective economic growth and bright future.