Effect of Law and Order Situation on Business in Pakistan
Reasons and Cures for the Economic Situation of Pakistan
Muhammad Nawaz Khan
Central Theme
Contemporary epoch is the period of stumpy and intensified conflicts rather than conventional ones that enhance the importance of non-traditional security threats. So, the securitization of non-traditional security threats compel us to understand Pakistan’s internal dynamics, challenges and threats which are directly linked with the spill over effects of the two Afghan wars and partly linked with the issues of mismanagement. Today, Pakistan’s internal challenges are terrorism, extremism, economic woes, energy crises, unstable political situation, ethnicity, sectarianism, drug mafia and geographic vulnerabilities. This policy brief looks into the internal challenges of Pakistan with special reference to the issue of economy. It also gives some possible recommendations to put the Pakistan’s economy back on track.
Analytical Perspective:
Pakistan’s economy is currently passing through the most difficult phase of its economic history. A robust economy has been transformed into a fragile one. Pakistan is not a unique case since a number of countries have broadly encountered similar economic challenges, implemented appropriate policies, and have restored selfsustaining rapid growth with internal and external stability over the medium term. The business cycle of Pakistan’s economy has shown anomalous behaviour over the last many years. The growth rate peaked at 9% cent in 2005 before hitting the bottom in 2009. It improved a bit to 4.2% last year, which is not enough to impact the grave issues such as economic growth, unemployment and poverty. All the serious challenges Pakistan’s economy is undergoing include: the ever widening budget and trade deficits, galloping inflationary pressures, incessant increase in the level of poverty, power outages, water shortages, closure of industries, food insecurity, and relying heavily on domestic borrowing due to lower revenue
Muhammad Nawaz Khan
Central Theme
Contemporary epoch is the period of stumpy and intensified conflicts rather than conventional ones that enhance the importance of non-traditional security threats. So, the securitization of non-traditional security threats compel us to understand Pakistan’s internal dynamics, challenges and threats which are directly linked with the spill over effects of the two Afghan wars and partly linked with the issues of mismanagement. Today, Pakistan’s internal challenges are terrorism, extremism, economic woes, energy crises, unstable political situation, ethnicity, sectarianism, drug mafia and geographic vulnerabilities. This policy brief looks into the internal challenges of Pakistan with special reference to the issue of economy. It also gives some possible recommendations to put the Pakistan’s economy back on track.
Analytical Perspective:
Pakistan’s economy is currently passing through the most difficult phase of its economic history. A robust economy has been transformed into a fragile one. Pakistan is not a unique case since a number of countries have broadly encountered similar economic challenges, implemented appropriate policies, and have restored selfsustaining rapid growth with internal and external stability over the medium term. The business cycle of Pakistan’s economy has shown anomalous behaviour over the last many years. The growth rate peaked at 9% cent in 2005 before hitting the bottom in 2009. It improved a bit to 4.2% last year, which is not enough to impact the grave issues such as economic growth, unemployment and poverty. All the serious challenges Pakistan’s economy is undergoing include: the ever widening budget and trade deficits, galloping inflationary pressures, incessant increase in the level of poverty, power outages, water shortages, closure of industries, food insecurity, and relying heavily on domestic borrowing due to lower revenue