Ever since I became conscious, I have been hearing the news of inflation and the instability of the economy in every era. The instability of the economy is discussed in the headlines and on talk shows on every TV channel, but no one has been able to find a solution to date:
In order to govern the country, our political leaders have discovered a formula that they have been using for the past 35 to 40 years: they borrow money from the IMF. It is unfortunate that our nation was unable to find superior economists who could make plans to steer the economy in the proper direction. If someone in Pakistan is capable of doing this, he is not permitted to do so at all because the seat of authority is only held by a small number of families.
Although there is a lot of talk about economic stability, the reality is quite different. Because there was an extraordinary fall in the value of the rupee in July, the reasons for which Finance Minister Miftah Ismail explained were that the imports remained high in the month of June, which led to more payments than the inflow of dollars in the month of July. which burdened Rs. These are concepts that are above the level of the average person. If the people are interested, the basic needs should be cheap like flour, ghee, sugar, etc. However, it is crucial for every Pakistani that the stock exchange also declines as soon as the rupee does.
The stock market crash was reported briefly, yet it had a significant effect on the average person. A decline in the stock market does not indicate a favorable environment for investments in the nation, and investors who do have the money swiftly withdraw it from the market, closing more employment doors and contributing to deeper poverty.
Any nation’s stock market serves as the center of commerce; as a result, when the stock market continues to decline, so does foreign investment in that nation. Because stock market conditions are a good indicator of the country’s investment climate for overseas investors.
What are the causes of the negative trend in our country’s stock market is a crucial question. which no political leader is focusing on and for which no clear planning has ever been disclosed. The stock market declines as soon as the currency weakens and interest rates increase since our nation is heavily indebted to the IMF.
July ended up being a disastrous month for the regional currency. This particular month saw a 14% decline in the value of the rupee.
Economists say that this situation is not only due to important factors, but the environment of political instability is also a reason. The administration should not only take these factors into account but also complete planning that goes beyond the current political unrest and power struggle in order to encourage investment in the nation.
Instead of using valuable foreign currency on pointless investments and imported items, domestic industries should be created, but our political leaders do not take this into consideration either.
The secret of the economic development of any country is mostly on the industries of that country. It is our misfortune that all the political leaders have involved themselves in a political tussle, which is affecting the country’s economy and people.
The nations that attained independence after us are also the ones that are most comparable to today’s industrialized nations.. If we compare the policies of many countries, the secret of their development is that they have focused on their industries and made better policies, including China and Bangladesh, which focused on industrialization and Delivered their product to the top markets. And not only brought those products to the global market, but also created a demand for those products, which had a positive impact on their economy, and also provided employment opportunities to the people.
Watan e Aziz has a sizable market with more than 22 million consumers, however many businesses here sell imported goods as well as domestically produced goods. Surprisingly, rather of concentrating on their production, many commodities that could be better created in Pakistan have been replaced by imports. In this scenario, there is less chance that the value of the rupee will significantly improve over the long term.
Governments all across the world make sure that imports rise in order to boost their own profits rather than those of the most developed nations. The majority of the nations in our region are traveling in the same direction.
Those countries are not only trying to increase the production and export of products and raw materials from their manpower and skills but are also largely successful in doing so. But in our country, energy resources, etc. on the one hand, 10 billion dollars are spent annually on food, while our country is an agricultural country. Instead of planning, this sector is also suffering from neglect.
If the value of the rupee is linked to import payments, strengthening the rupee by reducing imports and increasing exports should be a long-term and consistent policy.
