The government needs to introduce a stimulation package to spur economic activities in the country as the nation is heading toward financial crisis in a couple years when it will start repayment of loans to the international donor agencies. Besides, the country has been witnessing an education revolution for the last one decade as the government, private and public sector universities are producing thousands of graduates every year and they need placement. It seems financial crisis as well as unemployment are going to emerge as major challenges for the next government. The security situation has significantly improved after the army operations in the tribal areas and elsewhere in the country. The latest statistics indicate decline in terrorism-related incidents by 70 percent since the operation started last year. The country has though gained economic stability to some extent, but fact remains that the borrowed money will have negative repercussions on the national economy in years to come.
However, the government still has the chance to take steps for the revival of the economy. The petty issues like imposition of withholding tax need to be resolved as early as possible by taking the business community into confidence. It is a matter of trust deficit between the government officials and the business community. Everyone in this country understands the level of corruption and presence of black sheep in every government department. Everyone citizen, who has to deal with government departments, has a story of a bitter experience. Therefore, totally relying on the officials with small salary and ultimate authority is illogical. The government should have to introduce a system of check and balance in every government department and misuse of authority should be an offence punishable by law. Only termination from the service should not be deemed sufficient.
Prime Minister Nawaz Sharif has recently told the UN General Assembly that global threat of terrorism cannot be defeated without addressing the underlying causes. Pakistan has made progress on the security front and international institutions as well as investors are keenly observing the emerging situation. The International Monetary Fund extended a $6.2 billion loan in August and praised steady growth in gross domestic product, projecting 4.5 percent growth for the next year. However, the growth is attributed to macroeconomic stability, low oil prices, planned improvements in the domestic energy supply and investment related to the China-Pakistan Economic Corridor. Inflation has also been within limits for the last one year. Most of the economic indicators are in
favour of the government and it will be a high time to introduce a stimulation package.