Problem of Unmployment in Pakistan

Topics: Unemployment, Industry, Economics Pages: 10 (3651 words) Published: December 31, 2012
The Problem of Unemployment in Pakistan (A case of study of Khyber Pakhtunkhwa) Principle Author/Corresponding Given Name Dr. Habib-Ur-Rehman, Family Name, Dr. Habib-Ur-Rehman, Email: Cell +92-300-5872937 Phone +92-91-5846508-9 Affiliation Address: Sarhad University of Science and Information Technology, 36 B, Chinar Road University Town, Peshawar, Khyber PukhtunKhwa, Pakistan.

The Problem of Unemployment in Pakistan
(A Case Study of Khyber PakhtunKhwa Province) Abstract The Pakistan’s economy has covered a long distance from backward to developing stage and has now attaining the stage of take off. During the period it has confronted a number of hurdles and difficulties. The major problem related to absorbing ever growing population through providing them job opportunities. The economy being basically agriculture had surplus labour. The process of mechanization of agriculture added fuel to the fire and subsequently aggravated the problem because of additional labour rendered surplus by the agriculture sector. The slow process of industrialization amid the population explosion worsened the situation. This paper focuses on the basic issues and as an objective will suggest practicable measures for increasing the rate of employment or for that matter reducing the level of unemployment. Research Methodology To make an enquiry into the problem, find out the reasons for suggesting solution, secondary data available on official record will be used. First hand information where deem necessary will be collected through local inquiries with the use of questionnaire and face to face interview from a selected segment of the population. Variable: Unemployment rate. Objective of the study This paper primarily is meant to create awareness about the unemployment rate in the country and causes of unemployment in Khyber Pakhtunkhwa. As such it aims at creating an understanding among the readers on the issues relating to low rate of employment and its consequences on the overall life of the people. It, therefore, suggests practicable measures so that the State agencies as well as the public at large may play their role in minimizing the rate of unemployment.

Employment in Pakistan Pakistan emerged on the world map on 14th August, 1947 with a population of 32.5 million (1). Majority of the population is relying on agriculture. The economy was basically agrarian in nature and large population was concentrating in the rural area where they could hardly earn their livelihood by tilling the land. Agriculture being carried on primitive methods was sustaining the population only because there were no other alternative job opportunities in the market. Thus there was in fact disguised unemployment in the country. Pakistan had poor industrial infrastructure. For this very reason we could not appropriately promote our industries. Being cognizant of the significance of the industrialization Govt; of Pakistan developed her industrial policy in April, 1948. The policy emphasized upon the establishment of those industries raw material for which was available in the country. To facilitate industrial planning, implementing programs and promoting industrial culture the Govt; set up Pakistan Industrial Development Corporation in 1950. Consequently, during the period from 1949 to 1954 there was encouraging growth of nearly 23.6% in the large scale manufacturing. These efforts had twin objectives, i) To utilize own raw material and save foreign exchange spent on import as well as earn foreign exchange by exporting finished goods, ii) To deploy surplus labor disguisedly unemployed in agriculture. The pace of industrial development brought in its wake vast employment opportunities and the nation was moving towards fast growth. This situation under the accelerator and multiplier’s effect increased economic activities which in turn enhanced the scope for unemployed labour force to be absorbed in lucrative pursuits. However amid the rising...
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