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The flexible economic stability achieved over the past one year has not been translated into the creation of jobs. Moving forward, choosing the best places to create jobs depends on factors such as investment trends, productivity and government policies.
Economic stability measures can prevent a crisis. However, as a result, a large number of jobs have not been created – at least not in the short term. Millions of youths entering the job market every year will not have stable employment opportunities because large -scale manufacturing requires policy assistance for long -term investment and expansion in sectors like large -scale manufacturing.
The need for stability will be discussed in the aftermath of this article. Let’s first discuss the three major sectors of the national economy: agriculture, services and manufacturing jobs.
The agriculture sector has a moderate ability to create new jobs. It already uses a large part of Pakistan’s manpower (37-40 %). However, its productivity is less due to old techniques, small lands and limited mechanization.
The potential for development is primarily in agricultural process. Value Edition (milk, meat, organic farming); Modern techniques of irrigation; And exports (such as gardening). The challenges facing agriculture faces include a piece of land. Climate change; And lack of necessary investment in research and development. Probably jobs in this sector will move towards agricultural business and food processing rather than traditional farming.
The service sector has a strong ability to create new jobs. Services now support more than 50 % of GDP. IT, tourism, retail, logistics and financial services have the potential to create job opportunities. The IT department is spreading to freelancing and software exports. E -commerce and Fine Tech are also promising. Tourism, if well -developed, can absorb semi -skilled wages. Important challenges for the services sector include informal, professional training lack and weak regulatory framework.
In this sector, the job creation point is strong because the right policies, especially the IT, transport and retail, can rapidly create jobs.
The industrial sector has the highest potential for development. However, its gradual rate rate is a significant damp. Manufacturing, which is 20 % of GDP, is struggling due to high energy costs, contradictory policies and dependence on imports. Engineering equipment, textile (high value exports), have a great potential for development in automobile manufacturing and renewable energy industries.
The challenges facing the manufacturing sector include high cost of capital, weak supply chains and imported inputs. If these challenges are resolved, it can create a large number of jobs. Even slow industrial growth can create stable, well -paid jobs. Pakistan will have to increase its industrial base (especially SME -led manufacturing) to create a stable, well -paid jobs.
In the short term, only the services sector, especially IT, e -commerce and retail, are ready to create job opportunities. Modifting agricultural businesses can meet industrial job opportunities but will never be a central driver. In order to increase sustainable employment, Pakistan needs an expansion of the service sector and a mixture of industrial maintenance, with focus on export -based production.
The cost of stability
Stability is focused on economic indicators, not employment, because economic policies are designed to secure external financing rather than controlling inflation, improving financial discipline and accelerating employment development. Strict financial policies and high interest rates discourage business extension and job opportunities.
Economic stability is just the first step. Pakistan will now have to focus on the creation of employment and industrial expansion to ensure that the benefits of stability reach the public. Without it, millions of employees will face uncertainty and informal work, limiting the economic movements and social progress.
Focus should now go towards development -based policies such as reducing interest rates to restore investment, reducing tax burden on documentary businesses, trying to eliminate tax evasion and SME growth Should support.
Stability was essential but it came to a higher price in the form of slow growth, weak job creation and pressure on business. Without stability, Pakistan took a default risk on debt payments, which would create a severe economic crisis, which included eliminating necessary imports such as hypertension, capital flights and fuel and raw materials. However, needed policies of stability.
Among the most affected by the stability process included young graduates. Employment creation in industries and services is too slow to meet. Less skilled workers are also caught in informal, unstable jobs with low wages. Due to cultural and structural obstacles, women’s participation rates are low, which further limit their access to new job opportunities.
The long -term take in the process of stability has worsened the employment situation. It had an impact on every major sectors creating employment. The most affected was the industrial sector, which was already struggling with the uncertainty of the policy. The industrial sector produces permanent jobs that employees have the ability to lift the ladder when they gain experience. Unlike daily wages workers, industrial workers usually enjoy employment safety and social protection.
Prior to stability measures, Pakistan faced severe external imbalances, which included a large -scale current account deficit and dangerous low foreign exchange reserves (barely a few weeks of imports). The short -term, high interest loans were heavily dependent. The fiscal deficit was unstable due to subsidy and low tax collection. Imported sanctions and supply chain problems led to more inflation, which eliminated most consumers’ purchase power.
Although stability helped prevent default, many businesses increased the interest rate of many policies to 21-22 %. Expensive credit made it difficult for businesses to increase or maintain operations. Understandably, industries lobbying against strict monetary policies, and argued that more debt costs are killing investment.
Currency depression increased the price of imported raw materials, making manufacturing and exports more expensive. Depending on the import of business (automobile, pharmaceuticals and consumer goods).
More tax and document requirements also increased the burden, especially retail, trade and small manufacturers, who worked in a large -scale informal economy. Traders protested against sales tax measures and digital payment. Real estate and stock market investors opposed the capital Gen Tax. Big businesses have argued against the increase in corporate tax, fearing a reduction in profit.
The elimination of energy and fuel subsidy resulted in more transport costs for industries to rely on production costs and logistics. Textile manufacturers, a major export sector, demanded concessions at electricity and gas prices. The transport sector protested against rising fuel prices.
During need, many people were difficult to stabilize. This caused the economy to shrink and damage the business. The lack of tariffs targeted meant that SMEs and job creators were inadvertently affected. IMF’s mandated efficiency made it difficult for industries to recover soon. This delayed job creation.
In place of economic stability, Fox should now move towards development -based policies such as reducing interest rates to restore investment, reducing tax burden on documentary businesses while continuing to eliminate tax evasion. Keeping, supporting SME growth through financing schemes and business friendly rules. And encourage exports by reducing bureaucratic barriers and improving infrastructure.
Stability was essential to prevent destructive default, but the steps were painful. Now the challenge is to move from stability to growth – the business that can expand, investment can resume and create job opportunities.
Author is a senior economic reporter
