PAKISTAN is in the midst of economic crisis, with all indicators showing a poor state of financial health. The troubling situation is having significant negative socioeconomic impact on society. Data has shown that poverty increased in 2023 compared to the preceding year. The rate of unemployment had also gone up.
The rise in poverty and unemploy-ment has given rise to crimes, including terrorism. Multiple researches have shown that terrorism is inextricably linked to economic deprivation and social injustice. Many of the unemployed young feel extremely frustrated and end up joining terrorist outfits.
The scourge of terrorism can never be defeated without achieving economic prosperity first. And, unfortunately, Pakistan has been lagging far behind in achieving that target. The investment in agriculture sector can boost economic prosperity to a significant extent. Agri- culture contributes more than 18 per cent of gross domestic product (GDP) to Pakistan’s economy and absorbs 40pc of the country’s workforce. Investment in agriculture can reduce food inflation, create job opportunities and reduce current account deficit.
The agriculture sector is in a dire need of mechanisation. The previous govern- ment had launched mark-up subsidy and a risk-sharing scheme for farm mechanisation, which expired recently.
The scheme was successful in impro- ving farm mechanisation of agriculture by providing tractors to farmers on low interest rates. Therefore, it will be in the interest of the farmers and the country to revive that scheme and then to keep it going.
Furthermore, the energy crisis is also affecting the national economy. Currently, Pakistan is suffering nearly 70,00 MW of electricity shortage. The energy crisis is causing a lot of problems to the textile industry in particular, forcing plants to shut down and lay off workers. Accor-ding to the Pakistan Bureau of Statistics, every year about 1.8 million young individuals are graduating out of Pakistani universities and colleges.
Without a stable economy providing them gainful employment, the youth may well become a national liability, disrupting the socioeconomic fabric further.
Saad Khosa
Sohbatpur
Published in Dawn, January 6th, 2024
