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Snag of economic growth, poverty cutback

Snag of economic growth, poverty cutback

Government of Pakistan has been reviving industrialization yet, as the only procedure to alleviate poverty and attain inclusive growth by wealth creation. It is said that this is the first government which has a strategy to industrialize and incentivize through promoting ease of doing business to raise investment and alleviate poverty in Pakistan. No doubt, international experts recorded that the world is marked through huge inequalities. The effects of the disparities are multifaceted, and they are constantly present in the interplays between states, regions, and the whole world with its markets, trade patterns and political structures. But it also affects people’s lives, their daily interaction, their capabilities and empowerment. Not least it affects the huge part of the citizens that lives under severe poverty. Furthermore, they also recorded that economic development is hoped to be the main to overcome these issues, and is seen as the chief aim of the global economies. It is a complex issue it is also said, that can be explained as improvement of welfare, and the focuses have developed as the views of development have done so. With the turn of the new millennium, the world has experienced structural changes, and states in the world have managed to reduce the fraction of poor, hand in hand with the increased economic growth.

Presently there is a great problem in defining the contemporary economic developing processes, and one of the greatest contradictions is the fact that various states do experience economic growth, but yet they suffer from the severe bearings of poverty.

The Government of Pakistan had faced tough times during Covid-19 but successfully navigated by it which was also acknowledged through the World Health Organization (WHO). Furthermore, the Government of Pakistan is also resolving the issues as well as supporting SMEs for creating more career opportunities to the people. Sources record that the industrialization will assist uplift of the neglected regions such as Gilgit-Baltistan, merged tribal regions and South Punjab. It is also noted the example of China for steering 700 million citizens out of poverty by industrialization, the Government of Pakistan said Pakistan was now executing China Pakistan Economic Corridor (CPEC) to connect its less-developed regions with sea by Gwadar for their uplift. Historically Pakistan at the time of independence was the food basket of united India. Though the country was poor, the state and the civil society ensured that the poor did not sleep hungry. Industry was scarce and small and cottage units offered employment to most of the population of working age. Also, agriculture absorbed most of the workers as landholdings were larger. A daily wager could afford one weeks’ food for the family on his paltry daily wage. Two decades later, sources recorded that the industrialisation grew, which accelerated migration into the cities. As land became scarce, prices of rents started going up too, reducing the consumable surplus for food. The poor could send their children to public schools, where the standard of education was well. Some of the families wriggled out of poverty when some of their children through hard work and dedication entered civil services or other career opportunities. The poor started to feel the heat of deprivation after two more decades. A decade later, the poor started facing all dimensions of poverty. They tasted hunger like never before. Shelter became a luxury for them. The rents went sharply up. Corruption started rising with every passing day. The poor started living in fear. Landholdings in rural regions diluted, also growing rural poverty. Overall, state services and infrastructure, counting education, healthcare, and transport deteriorated excessively, making the condition worse for the working classes.

In following decades, there was an unbearable spike in food inflation. Industrial growth remained lopsided. In some years most industrial sectors operated at full capacities followed by a steep fall and huge unutilised capacities. This effectively stopped new investments. The country on average added 2.5 million workers in the job market yearly. There were fewer jobs than the addition in the workforce. This further pushed the working classes below the poverty line. Furthermore, the last 3-year has been a nightmare not only for the poor, but also for those, who are living just above the poverty line. The food prices have increased as never before. The rise is all across in the food chain. The economic experts reveal that as things stand now it seems certain that poverty is going to stay in the country in the predictable future. The economic profile of the country, however, identified that economic growth mostly funded by consumption is not creating enough career opportunities for middle and higher skills and social exclusion by numerous characteristics is highly prevalent and seems to be culturally rooted and is reflected in economic disparities. Globally Pakistan is the fifth most populous country. A comprehensive investigation of the population condition was required, in order to offer the basis for an integrated appraisal of Population and Reproductive Health (RH) dynamics, their linkages, and impacts on poverty, inequality and development. Present statistics showed that population situation in Pakistan points to the prevailing high-level annual population growth, amounting to 2.4 percent for period 1998-2017. The population raised 6-fold between 1951 and 2017 from 34 million to 208 million and estimated to stand 263 million by 2030 and 383 million by 2050 – a rise by 84 percent during the period 2017-2050 unless serious actions are taken to halt population growth and rationalise population dynamics.

As far as economic growth is concerned China-Pakistan Economic Corrirod (CPEC) can support Pakistan to decline poverty. It is said that the significance of creating a new regional economy along CPEC’s route as an attempt to address issues of poverty and underdevelopment.

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