Solution For Economic Crisis Of Pakistan
The government of Pakistan is economically passing through a tough time. There is no role of the current government in present economic panic in the country. The economy of the country was badly devastated by the previous governments and the current government only put the ground situation before the public. At present the current account deficit of Pakistan is $17.9 billion. To overcome all these challenges an efficient economic policy and strategy by the government is needed. Some measures that the government should take in fight against the current economic problems are;
Curb Money Laundering: Money laundering is one of the major economic challenges that the state and its departments should actively and efficiently tackled down. According to US State Department every year ten billion US dollars are laundered from Pakistan. The country though receives twenty billion US dollars every year in the shape of remittances but half of it the country losses due to money laundering.
Channelize Remittances: The government should provide incentives to overseas Pakistani so that they should sent money back to Pakistan through national banks. As per Prime Minister Imran Khan if overseas Pakistani sent all their money through banks, the government will be able to get an extra twenty billion US dollars through tax upon them which, according to him is enough for the government not to knock the door of International Monetary Fund (IMF) in future.
Broaden Tax Base: The taxation system of Pakistan has not only many loopholes that help people to avoid tax payment but it also has very limited scope. Now while the government is restructuring the taxation system it is necessary that the government should also include all those sectors that have been kept out taxation zone so far. This will help the government to generate more revenue through taxation.
Exploitation Of Natural Resources: Allah Almighty has gifted Pakistan with many natural resources. According to Prime Minister Imran Khan, only four mineral of Balochistan have a stated worth of over 460 billion dollars. This, according to him shows that how much Allah has blessed Pakistan with hidden treasures? Now it is necessary that the government should take some serious steps for the excavation and utilization of these resources for the fulfillment of country’s monetary needs.
Increase Domestic Rate Of Savings: Pakistan has one of the lowest domestic rate of savings as compared to other developing countries of the region. The government should therefore also focus on the mobilization of real domestic savings. Without raising the rate of national saving the country may not able to get out of its debt trap.
Overcome Trade Deficit: Since 2003 the country is facing consistent trade deficit due to high imports of energy resources. According to Pakistan Bureau of Statistics the trade deficit of the country during the fiscal year 2017-18 was $37.7 billion. To overcome the economic problems of the country for long terms the government should first overcome trade deficit.