Need for an Economic Model

Nadeem Moulvi

The writer is a business analyst.

Pakistan’s economy has always been struggling due to political turmoil. On the other hand, the COVID-19 pandemic has increased the pressure on the government for recovering the economy.
Pakistan has always failed to formulate an economic model for the long term. The economic model that we have been using has failed to deliver. Economic models for a short period of time had benefited the country’s political figures. Unfortunately, till today we don’t have appropriate economic models.  
We should need to focus on how to reduce the cost of living and giving the people of Pakistan a quality life. Since many years, a trend of giving charity to poor people has started in different countries. In this regard,
Prime Minister Imran Khan had also launched a cash transfer programme. Under the programme, the government will provide stipends to mothers for two years after the birth of a child to ensure their nutrition and proper development.
However, the initiative is good but they are not developing employment for the people so that they can live a respectable and peaceful life without depending on the charity by governments.
The government spent billions of rupees on providing charity to the masses. Instead of this, the capital can be used in developing new state-owned industries where the government can provide employment and develop the economy.
Since the corruption and nepotism in our country have caused major troubles. The government always failed to run the state-owned industries on a merit basis and also failed to gain profits. The government instead of developing new industries or companies are selling the old ones or privatizing them, resulting in an increase in unemployment.
In order to develop our country’s economy, we should promote the educated people on merit basis and should opportunities for skilled labours. Luckily, Pakistan consists of a huge youth population and when the youth develop, the country will develop automatically.
Remember the private companies and industries will keep on increasing their rates of all products if the government does not establish industries in competition. Once it establishes, the private sector cannot dominate and will not take a huge amount of profit from people.
Presently, the government failed to maintain Steel Mills so our private industries are producing and selling steel on heavy profits. The same goes for the cement and industries.
I appeal to the government of Pakistan to develop the existing companies and also start building new state-owned industries in order to develop the country’s economy. And all this can happen through a proper economic model, which is the need of an hour.
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