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Pakistan

A Portrait of the Death of an Economy

My topic deals with Pakistan, its relationship with the IMF and World Bank, and its internal problems that are causing unemployment, poverty, economic crisis and hunger. I shall be analyzing the situation using the neo-classical theory, as it is what the economists of the Pakistan government and the IMF are using to alleviate the economic instability of the country.

Situated in the sub-continent, Pakistan is a low-income country, with great promise for growth. Unfortunately, it is held back from reaching middle-income status by chronic problems like a rapidly growing population, sizable government deficits, a heavy dependence on foreign aid, recurrent governmental instability and large military expenditures. It is to address these fundamental faults in Pakistan's economy that the IMF has initiated the Structural Adjustment Programs (SAPs) in the country. This is discussed in further detail later in the paper.

Like all developing countries, Pakistan's population is largely employed in the agricultural sector, which accounts for about 48 percent of the labor force. In today's world the Industrial and Service sectors are the largest growing areas of a developed county's economy. Yet Pakis


In Pakistan, the provision of basic infrastructure and services in the urban and water sector lags considerably behind the rapidly growing urban population. To improve the living conditions of the urban population, particularly those of the poor, major efforts are proposed to improve Pakistan's water supply and sewerage and solid waste management systems which include reforms to develop local governments' capacity to meet this need with private sector participation in urban services delivery.

4) Pakistan suffers from the typical problems that all third world countries suffer. One of these is massive corruption at all levels, estimated at Rs 100 billion a year. This means that a large portion of national wealth has been stolen from the poor. No wonder, the country is unable to lift itself out of the quagmire of poverty and hunger.

Due to the high levels of public debt and its effects on the budget, the government is to adopt a debt management policy to reduce the debt and debt-service ratios.

 A few months ago, the IMF opened a resident office in the capital, Islamabad, to monitor the economic policies and performance.

Plans have been made to remove the remaining restrictions on exports and imports and to further lower import tariffs. The elimination of import bans on textile products is expected to be agreed upon during negotiations between Pakistan and its main trading partners. Only tariffs applying to automobile imports will remain for balance of payments reasons.



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Approximate Word count = 6044
Approximate Pages = 24 (250 words per page double spaced)


  

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