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PAKISTAN
ECONOMICAL PROBLEMS
Economical Problem:-
Tumbling stock- Lack of tourism
Loss in business
1>Power Crises:- Power crises are affecting
the economy of the world very badly. We are
facing an ever decreasing supply of power and
ever increasing demands. We are running short
of fuel worldwide. All the countries are
affected by the power crises. The power crisis
is followed by decline in production and at the
end the economy of the countries is affected
badly. Pakistan’s economic conditions are
pathetic. As if power crises, lack of foreign
investment for the development of industrial
zones, backward and out-dated technology
were not enough, Pakistan’s indulgence in war
on terrorism served as a fatal blow to the
already crumbling economic state.
2>War on Terrorism:- War against terrorism is
another very important reason behind the
economical problem. War benefits none,
someone is hurt badly and someone is
destroyed completely. War is affecting the
world’s economy and is causing problems like
shortage of fuel, lack of funds, increase in
health problem etc. When we talk about
Pakistan, Due to war on terror, local people of
war-ridden areas are migrating to other areas
of Pakistan. Country has seen the largest
migration since independence in 1947. These
people have left their homes, businesses,
possessions and property back home. This
large influx of people and their rehabilitation is
an economic burden for Pakistan.
Unemployment is already common and now the
question of providing employment to these
migrants has also become a serious concern.
This portion of population is contributing
nothing worthwhile to the national income yet
they have to be benefited from it. This
unproductive lot of people is a growing
economic problem of Pakistan.
3>Declining export:- Lack of power followed by
decline in production is the main cause of
declining export which is a major economical
problem worldwide. The production cannot
even fulfill the demands and hue to decline in
export and lack of trouble, the world economy
is suffering great problems. In Pakistan, Prices
of all consumer products in general and food
products in particular are rocket high. Core
inflation soared to 18.85% in first quarter of
year 2009. Cost of production increased due to
various factors. International increase in oil
prices and Pakistan’s internal unfavorable
business conditions are two important factors
responsible for high rates of inflation.
4>Tumbling Stock market:- The stock-market
is suffering a decline worldwide. Lack of funds
and unorganized system is the main cause of
the mistrust of certain companies in many
countries. Lack of investment and poor
economical condition of the people and
government is another cause of decline in
stock-market worldwide. More over lack of
power and decline in production are the other
factor. In 2009, many times Karachi Stock
Exchange has plunged to its lowest point in
the history of Pakistan. Local as well as
foreign investors are hesitant (shy) of investing
large sums of money in stock exchange in fear
of incurring unexpected loss. Stock exchanges
showed very poor performance throughout
2009. Situation was so unstable that
government had to freeze the market during
last quarter of 2009.
5> Lack of tourism:- Lack of tourism is also a
cause of the declining in economy. Northern
areas of Pakistan have been a place of great
tourist attraction. The beautiful hills, the lush
green valleys, shimmering lakes and flowing
waterfalls brought many a tourist from all over
the world to Pakistan. This contributed to
foreign exchange. Tourism Industry was one of
the booming industries of Pakistan. Besides
attracting foreign exchange, it also provided
employment to local people. Also, tourist
industry was a source of friendly relations with
other countries. Nevertheless, war on
terrorism has served as a serious blow to the
tourism industry of Pakistan. Local as well as
foreign media has projected Pakistan as a
dangerous and unsafe country. Its poor law
and order situation has alarmed the tourist and
thus Northern areas no more receive many
tourists.
6>Loss in Business:- The poor economical
system affects the business very badly. People
all over the world are facing serious losses in
business. In Pakistan sugar, cement and shoe
industry is on its downfall while textile
industry is breathing its last. Foreign investors
are not ready to setup their businesses in
Pakistan. They have their own set of problems
which include painful and lengthy procedure of
getting licenses and work permits in Pakistan,
power crises, terrorism and declining exports.
Multinational Companies are unwilling to open
their offices and franchises in Pakistan. More
than 70 Multinational Companies have already
packed up their business from Pakistan.
CONCLUSION:-
As stated in the start of my
presentation, no country is free from socio-
economic problems. These problems are
present in every country but the winners are
those who overcome most, if not all of them.
Though world is currently facing a lot of socio
economical problems but it doesn’t mean that
it is going towards its end. Nations face
multifarious problems but together they work
for towards the solution. The same is the need
of hour. Government as well as every single
citizen has to play its own specific role to
bring about a positive change.

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Pakistan econimical problems

  • 1. PAKISTAN ECONOMICAL PROBLEMS Economical Problem:- Tumbling stock- Lack of tourism Loss in business 1>Power Crises:- Power crises are affecting the economy of the world very badly. We are facing an ever decreasing supply of power and ever increasing demands. We are running short of fuel worldwide. All the countries are affected by the power crises. The power crisis is followed by decline in production and at the end the economy of the countries is affected badly. Pakistan’s economic conditions are pathetic. As if power crises, lack of foreign investment for the development of industrial zones, backward and out-dated technology were not enough, Pakistan’s indulgence in war
  • 2. on terrorism served as a fatal blow to the already crumbling economic state. 2>War on Terrorism:- War against terrorism is another very important reason behind the economical problem. War benefits none, someone is hurt badly and someone is destroyed completely. War is affecting the world’s economy and is causing problems like shortage of fuel, lack of funds, increase in health problem etc. When we talk about Pakistan, Due to war on terror, local people of war-ridden areas are migrating to other areas of Pakistan. Country has seen the largest migration since independence in 1947. These people have left their homes, businesses, possessions and property back home. This large influx of people and their rehabilitation is an economic burden for Pakistan. Unemployment is already common and now the question of providing employment to these migrants has also become a serious concern. This portion of population is contributing
  • 3. nothing worthwhile to the national income yet they have to be benefited from it. This unproductive lot of people is a growing economic problem of Pakistan. 3>Declining export:- Lack of power followed by decline in production is the main cause of declining export which is a major economical problem worldwide. The production cannot even fulfill the demands and hue to decline in export and lack of trouble, the world economy is suffering great problems. In Pakistan, Prices of all consumer products in general and food products in particular are rocket high. Core inflation soared to 18.85% in first quarter of year 2009. Cost of production increased due to various factors. International increase in oil prices and Pakistan’s internal unfavorable business conditions are two important factors responsible for high rates of inflation.
  • 4. 4>Tumbling Stock market:- The stock-market is suffering a decline worldwide. Lack of funds and unorganized system is the main cause of the mistrust of certain companies in many countries. Lack of investment and poor economical condition of the people and government is another cause of decline in stock-market worldwide. More over lack of power and decline in production are the other factor. In 2009, many times Karachi Stock Exchange has plunged to its lowest point in the history of Pakistan. Local as well as foreign investors are hesitant (shy) of investing large sums of money in stock exchange in fear of incurring unexpected loss. Stock exchanges showed very poor performance throughout 2009. Situation was so unstable that government had to freeze the market during last quarter of 2009. 5> Lack of tourism:- Lack of tourism is also a cause of the declining in economy. Northern areas of Pakistan have been a place of great
  • 5. tourist attraction. The beautiful hills, the lush green valleys, shimmering lakes and flowing waterfalls brought many a tourist from all over the world to Pakistan. This contributed to foreign exchange. Tourism Industry was one of the booming industries of Pakistan. Besides attracting foreign exchange, it also provided employment to local people. Also, tourist industry was a source of friendly relations with other countries. Nevertheless, war on terrorism has served as a serious blow to the tourism industry of Pakistan. Local as well as foreign media has projected Pakistan as a dangerous and unsafe country. Its poor law and order situation has alarmed the tourist and thus Northern areas no more receive many tourists. 6>Loss in Business:- The poor economical system affects the business very badly. People all over the world are facing serious losses in business. In Pakistan sugar, cement and shoe industry is on its downfall while textile
  • 6. industry is breathing its last. Foreign investors are not ready to setup their businesses in Pakistan. They have their own set of problems which include painful and lengthy procedure of getting licenses and work permits in Pakistan, power crises, terrorism and declining exports. Multinational Companies are unwilling to open their offices and franchises in Pakistan. More than 70 Multinational Companies have already packed up their business from Pakistan. CONCLUSION:- As stated in the start of my presentation, no country is free from socio- economic problems. These problems are present in every country but the winners are those who overcome most, if not all of them. Though world is currently facing a lot of socio economical problems but it doesn’t mean that it is going towards its end. Nations face multifarious problems but together they work for towards the solution. The same is the need
  • 7. of hour. Government as well as every single citizen has to play its own specific role to bring about a positive change.