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Economy in global perspective

Economy in global perspective

It is a common rhetoric in the official circles that Pakistan is on the verge of economic take off, but piling up debts, electricity shortage and law and order situation in various parts of the country come as a big hurdle in exploiting the huge potentials the country offers in the fields of trade and investment. The country has also shown very bleak performance in export sector despite achieving General System of Preference (GSP Plus) facility from the European Union. As modern economies are heading toward integration, economic blocs and organizations are being established in various regions of the globe as well aspolitical and financial structures are being developed to increase connectivity among various economies. Europe consists of the first world countries and Pakistan needs to improve its relations with developed nations.

The cost of production in Pakistan is high, but it is higher in the European Union. As a result, the European entrepreneurs are making huge investment in China, despite having different political and economic chemistry. Investors feel it safe to put their money in China rather than Pakistan where security situation is still not up to mark according to the European standards. The government has launched an army operation against terrorists, but it is also sending wrong signals to the world that there is a trouble in Pakistan. However, unless Pakistan involves India and Afghanistan in the peace process, chaotic situation will continue to haunt people in parts of the country.

On the electricity side, all burden of energy crisis has been placed on the federal government. However, despite achieving provincial autonomy, the provinces still lack capacity to launch any electricity generation project. A democratic government is in the office and it should consult Khyber Pakhtunkhwa and Sindh governments to construct Kalabagh Dam, which has been politicized at the behest of India. Pakistan and India should coordinate for economic and political solutions where there should be a win-win position for both the countries. The United Nations and other international organizations should play their role in bringing peace between the two hostile nations.

Until now, Pakistan has paid a heavy price in the war on terror and regardless to the notion that the decision to take part in war was good or bad, the government must aloof itself from all kinds of militancy. This is the century of peace and economy and wars are the things of the past. As there is enhanced cooperation between Pakistan and China, India can also benefit from the China Pakistan Economic Corridor if it brings core changes in its policy toward Pakistan and China.