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Release Dr. Aafia Siddiqui


2007-08 Economic downfall of Pakistan

Fiscal year 2007-08 will always be recalled as one of the most turbulent years in Pakistan’s economic history. Amid this year several records were broken not in terms of progress or development but rather in increased double figure inflation which was recorded 12% illustrious since 1990-91. Productivity crisis in manufacturing sector was another addition in this record. Oil crisis, emanating water predicament; all these factors accelerated Pakistan’s coarse towards economic devastation adversely affecting all sectors.

Amid 2007-08 Karachi Stock Exchange 100 index and its capitalization market endured a decline of more than 10% over the previous year. The current account gap and trade gap were recorded at 14.1 of GDP in 2007-08 and 15.3% highest ever. Continuation of this trend in economic sector can emerge as single most undermining factor for economic nonplus. Trade deficit in 2007-08 remained 53% on account of rising prices of petroleum products and decline of textile industry in Pakistan.

All these indicators of economic distress have cultivated the sense of deprivation and insecurity. Today the low income groups and the poor are highly concerned and worried about the socio-economic substitutes as there is no silver lining for them. The rising unemployment is now compatible in the minds of every individual. In order to counter all these challenges the main objective of government should be to achieve self reliance and improve productivity. Problem areas that need urgent consideration are low industrial productivity, falling foreign investments, rising tariffs, electricity generation, and declining exports. For rapid development agriculture, small scale industry, forestry, livestock production and fishery should be inaugurated at various levels. To achieve these goals the government must establish a special fund. Unemployed, educated and young individuals should be included on priority basis in such schemes.

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