By: Ammar Shaikh
During the first phase of covid-19, Pakistan encountered severe economic tragedies with an inclining rate of poverty and unemployment adding to the ongoing economic crises of the country. According to the Pakistan Institute of Development Economics (PIDE), the poverty rate is likely to increase from 23.4% to about 59% (125 million people are likely to be below the national poverty line). World Bank states that Pakistan is among one of the worst economically effected country leading to unemployment. During the lockdown several employees got laid off their jobs and faced extreme difficulties as Government’s support wasn’t enough. PIDE states that around 56% of our workforce is dependent on vulnerable employment. People dependent on daily wages had to starve for days till some (NGO/GOVERNMENT AGENTS) arrives with food. Unemployment not only affected these families physically and mentally but also risked their children’s future. According to a report, about 42 million students had to leave their schools due to the unemployment of the guardians. Unemployment and poverty are also the major contributors to crime. The crime rate in urban areas has also increased significantly.
Pakistan’s birth rate has reached above 27% and is now amongst the top birth rate countries of the world. Pakistan is the 6th most populous country in the world. It is expected that by the end of 2050 the country’s population will increase up to 350 Million. This rapid increase in population besides limited resources, fewer opportunities available in the country also leads to an increase the unemployment rate.
Inflation has contributed much in increasing the cost of living. Inflation has reached to its highest peak 14.6% in the decade. Inflation has doubled the effect of poverty and unemployment.
In our society we also observe the culture of nepotism, which is also one of the major contributors in resulting these disastrous conditions. Nepotism steals the rights of the poor/unprivileged deserving candidates. The upper class steels this right, resulting in forcing people to live below the poverty line. The poor does not only have to compete in academics, he requires strong references (parchi) to get a job.
Pakistan also lacks industries, mainly due to uncertain law and order situation of the country. The undisciplined management causes huge losses to the country’s economy and people’s lives. Some of the most recent examples are of the Pakistan Steel Mill and Pakistan International Airline (PIA) where thousands of employees were initially deprived by the salaries and at last they lost their jobs. Both organizations caused huge losses to the economic growth only due to mismanagement .The demand of labor has decreased over the years because of lack of industries and increase in imports resulting in burdening the economy.
Pakistan’s low literacy rate is also among the major reason of unemployment and poverty. Only 58%of the total population is literate, the rest remains illiterate and most likely to live below the poverty line. Literacy rate plays a vital role in country’s economic development.
Government should take serious steps to cope up with these issues. The only solution to this crisis is the Economic Growth. Research suggests that developing countries focus on the economic growth and that’s the only way to eradicate poverty and unemployment. It is estimated that a 10% increase in a country’s average income will reduce the poverty rate by 20- 30 %. China took over 450 million people out of poverty since 1979 by rapid economic growth.
Equal opportunities should be provided to all and nepotism should be eradicated in both government and private sector. Merit should be prevailed. World Bank had funded several projects for eliminating poverty and unemployment but the funds weren’t used in public interest. Pakistan’s government should stabilize the economy by establishing industries for production and educating the youth, and making the labor force learn useful skill. New technological aspects should be implemented to maximize the production so that our product can compete in the international market.
We’re heading towards the second wave of covid-19 and most likely similar kind of lockdowns will be implemented as were previously implemented. We should all take precautionary measures and strictly follow SOP’S so that we can help stop spreading this virus to postpone the lockdown which results in extreme difficult times for majority of the people and economic losses. We should also donate to the needy ones as per our limits. It is our social and moral responsibility to help our people in these difficult times.
Let’s hope and work for a better tomorrow. Long live Pakistan.
