obstacles in way of development of pakistan economy

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OBSTACLES IN DEVELOPMENT OF PAKISTAN’S ECONOMY

Pray for me reader

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Economic Obstacles

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Economic Obstacles 1

 Deficiency of Capital and Foreign Exchange

There is scarcity of capital and foreign exchange in Pakistan

Lack of capital and foreign exchange are a big hurdle in way of economic development

 Per capita income is very low i.e., $ 1095

Foreign exchange reserves of Pakistan are just $ 13.0 billion. 

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Economic Obstacles 2

 Backward Natural Resources:Developing countries including

Pakistan have rich and many resources. But due to backward state of technology these resources are un-utilized under-utilized or miss-utilized

 Share of natural resources to GDP is less than 1 %.

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Economic Obstacles 3

Backward State Technology:Use of backward technology is

another problem of economic development

 Due to use of backward technology productivity level of our labor and its efficiency is very low

Productive quality and quantity is also inferior due to use of old means of production

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Economic Obstacles 4

InflationThe year-on-year CPI inflation has declined

to 2.1 percent in April 2015 from 8.2 percent in June 2014 (source monitory policy of May)

Government should maintain this inflation rate other wise Inflation decreases purchasing power of people their consumption increases and saving decreases. Low saving leads to less investment and a country remains poor and backward.

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Economic Obstacles 5

Dependence on Agriculture  68% population is living in 46,894

villages. Their main occupation is agriculture that is at backward stage.

Old methods of cultivation, less credit facilities, unorganized markets and limited irrigation facilities are factors, which are hurdle in the process of economic development

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Social obstacles

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Social obstacles 1

Illiteracy Only 63 %(est 2012) population is

literate in Pakistan. Due to illiteracy our farmer and industrialists are ignorant

Efficiency and productivity level of our labour is poor due to illiteracy

Use of modern techniques of production is impossible due to illiteracy. 

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Social obstacles 2

 Low Standard of Living  Our population is backward and its

growth rate is as high as 4.04 % (est 2014)

Poor population is not provided appropriate facilities to make high standard of life

Low level of living, low income, inadequate housing facilities, poor health etc. are some of important social obsticles.

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Social obstacles 3

Joint Family and Caste system Joint family system is also one of the

main obstacles in the way of economic development

 In joint family system all the members of the family do not work. They depend upon one another

Similarly, due to caste system rich and superior class do not work hard. 

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Social obstacles 4

Consumption Oriented SocietyMost of the population of Pakistan is

consumption oriented. People have to make huge consumptions due to demonstration effect

 Due to Superiority locality, friends and relatives people have to adjust their consumption styles. Consumption of people is very high due to fulfillment of customs, traditions and habits.

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Social obstacles 5

Under developed Human resource Labor force is illiterate & unskilled Not up to mark for physical health.

Short Comings in Technology According to latest Research 6% to 5%

population is dependent upon agriculture We have outdated methods for agriculture. Although there is advance machinery out there. Due to this Lack of export and more import due

to this losing our foreign exchange.

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Social obstacles 6

Severe shortage of Medical facilities.According to latest statistics of 2009

Facilities Statistics

Doctors (2009) 139,555

Dentists (2009) 9,822

Nurses (2009) 69,313

Health visitors (2009) 10,731

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Social obstacles 7

In united states alone there are 17000 doctors of Pakistan’s origin.

Many Pakistan’s doctors are choosing to migrate to other countries due to whichShortage of highly qualified doctors

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Social obstacles 9

We can clearly observe that our Medical facilities are inadequate to handle this much population.

Family planning is not as efficient as it suppose to.

Increase in population is result in increasing in Children hence they are consumer only not a contributor to Pakistan's economy.

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Bilal Khan

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Social obstacles 8 Population Pressure

Population199,085,847 (December 2014 est.)[1]

Growth rate 1.49%[2]

Birth rate 31 births/1,000 population (2009 est.)

Death rate 8 deaths/1,000 population (2009 est.)

Life expectancy 63.39 years (2009 est.)

 • male 62.4 years (2009 est.)

 • female 64.44 years (2009 est.)

Fertility rate3.58 children born/woman (2008 est.)

Infant mortality rate 57.48 deaths/1,000 live births (2012 est.)[

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CULTURAL OBSTACLES

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Cultural obstacles 1

Customs and Traditionspeople spend huge portion of their

incomes on customs and traditions  Sometimes they have to take part in

the arrangements of rural festivals that reduce their savings

People have to spend more on marriage, birth and other local festivals in our country.

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Cultural obstacles 2

Low Participation of WomenAlmost 49 % population is female in

Pakistan and out of them only 20 % takes an active part in economic activities

 little participation of women in economic activity that is also an obstacle in the way of economic development.

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Cultural obstacles 3

 In-efficient EntrepreneurDue to illiteracy and lack of training

institution in our country entrepreneur is in-efficient

In-efficient entrepreneur is a cause of economic backwardness. Illiterate entrepreneur cannot maintain the proper record of his business to earn maximum profit

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POLITICAL OBSTACLES

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Political instability 1

Political instabilityInstable political conditions

No unity among political parties

Political riots, dharna’s caused a decreased in stock exchange our trade hence decrease in dollar price.

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Political instability 2

 Mis-use of AuthoritiesMis-use of authorities and powers is

a big problem in the way of economic development

 Mis-use of authority leads to corruption and favoritism

there is no regard for talented, intelligent and brilliant brain.

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Political instability 3

Insincere LeadersPolitics in Pakistan creates insincere

leaders

 Political leaders have no interest with the welfare of population but their own interest

The Feudal involve in politics for the sake of status and power

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ADMINISTRATIVE OBSTACLES

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Administrative obstacles 1

Corruption In developing countries most of the

officers are included in the curse of corruption (i.e case of Exact company)

hey have to make corruption due to any big administrative or political pressure.

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Administrative obstacles 2 Favoritism and Nepotism Nepotism means selection according to

relationship, not according to ability   In developing countries like Pakistan,

there is favoritism and nepotism

Which is causing economic backwardness. Preferences are given to the friends and relatives for the jobs.

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Administrative obstacles 3 Lengthy Legal Process In developing countries law and order

and legal process is very lengthy and costy

To obtain social justice, people have to waste their income and time

People have to depend upon the mood of the officer for their work in Pakistan

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Administrative obstacles 4 Mis-use of Authorities In our country, use of authorities is

not reasonable. Officers use their powers for their personal interest

They give first preference to their own benefits and second preference to the public welfare.(again example of EXACT)

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Administrative obstacles 5 Law and Order Improper situation of law and order is

also a problem in the way of economic development

 Law and order conditions are not satisfactory in case of Pakistan

Hope that current government will focus on them and rectify them.

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Thanks for listening