Prospects of Economic Revival of Pakistan

Abstract

Strength of economy is a very important factor for survival of any country. All countries of the world are conscious of this fact . More so that economic development is a very slow and painstaking process. It requires perspective planning on the part of economic managers. Results of policies emerge in decades rather than years . Hence there is a need to make realistic economic policies, follow them in latte and spirit and then results follow in due course of time . This paper reviews the policies of successive governments of Pakistan since 194 7 , highlights their impact and then moves on to analyze economic. The decade of 90's has been a period of pronounced economic decline for the country. During this period, the economic activities have decelerated, the macroeconomic imbalances have grown larger, and the irflation has risen steeply. The rising debt burden has been yet another factor that has brought the country at the verge of bankruptcy. The declining trend of economy has also affected the public at large, which is visible by increased unemployment and reduced real wages. As a consequence , the living standard of the poor class in particular has deteriorated considerably . The country was facing a serious economic challenge when it was enterinJ in to the new millennium. The Government of General Pervaiz Musharaf developed a strategy for economic development of Pakistan when it took over in October 1999 . It was necessary because Pakistan's economic policy makers failed to ensure continuity and consistency in planning and implementing stages . As a result, Pakistan ' s economy failed to achieve coherent and progressive economic development during these past years. The structural reforms undertaken by the present government and its firm resolve to monitor the economic revival is already indicating fruitful results in shape of foreign exchange reserves , which exceed US S 12.50 billion . The interest rates are low and currency is stable due to economic strength of the country. The current study examines the economy and its revival program under the current regime. Towards the end, few recommendations have also been made so that Pakistan's economy, which has already back on the right track, accelerates further.