Will Pakistan going to be bankrupt? This question is arising in almost every Pakistani these days due to a very high inflation rate.
Introduction to Pakistan
Pakistan is the fifth most populous country and has the second-largest Muslim population in the world. It has a population of around 240 million people. Pakistan has always been a strategically important country for big powers in the world due to its ideal strategic location. The country has borders with four countries China, India, Afghanistan, and Iran. While it is facing the Arabian Sea in the south.
Being a resource-rich country Pakistan is still lacking behind other countries in the region such as China or Bangladesh. There are several reasons that are dragging the country towards a situation of famine.
1.Political Instability
Due to political instability, there is no long-term planning, and each party that comes into power only focuses on projects that provide short-term benefits instead of focusing on long-term projects that can bring the country out of poverty. It also has to reduce its imports and increase its exports so that foreign reserves could be increased and this will ultimately benefit the people in terms of lower prices of day-to-day household items.
2.Corruption
Like most third-world countries Pakistan is also facing a very severe issue of corruption and it is found in almost every government department. Due to this many investors or people who want to do something for the country avoid investing here and rather choose another country in the region.
3.No Foreign Direct Investment
Investment is very important for every country and each country competes to get foreign direct investment. Pakistan in recent years has not been able to get any FDI and due to this, there is no big industry that can be established and can be created employment for the youth. Pakistan can also get benefit from its trade routes of both the sea and the land that connects the Middle East and Central Asia.
4.No Resource Utilization
Each Pakistani government has failed to use the natural resources which are found in Pakistan from Coal to Gold there are many precious metals and resources which can be extracted to earn the revenue that can fuel the country towards development. But that also requires huge investment and sincere efforts from the people in the power. In the last few years, China has agreed to develop the China-Pakistan Economic Corridor (CPEC) which can be beneficial for both countries and Pakistan seriously needs to complete the projects to get the benefits before it gets too late.
5.No Direction for Youth
Pakistan is a country where 70% population is below the age of 25 years and it is very important to create opportunities for the youth so that they can compete with the world. For that different training programs and job opportunities are needed to create in the country. Moreover, special importance should be given to providing education to each child so that no child is left behind due to his/her circumstances. The government should also introduce technologies that can benefit the youth and it should remove the ban on new technologies such as cryptocurrencies which may change the course of the future currency.