The economy of Pakistan has now a day facing different challenges regarding its economy and if these challenges are not solved in time, the country will be then stuck in an abyss critical situation which cannot be handle in the future. The new government is looking towards the solution of this critical situation of the economy of Pakistan. Current government is facing some serious economic problems like increasing external and internal debt, increase in unemployment, decrease in exports, increase in imports, decrease in investment opportunities, low tax collection, worst policy implementation, check and balance on the current projects. To do this the government has to decrease interest rate which will leads towards increase in investment. Collection of taxes should be made in such a way that direct taxes should be increase and the indirect taxes should be decrease as Pakistan main source of revenue is indirect taxes which will lead to increase in the general price level of different commodities. Steps should be taken to decrease unemployment. Use of technology, governance and decentralization.
Government should decrease the interest rate to the public so that it will become easier for the investors to brought out the money from the banks and invest it in their own businesses. It will also help to increase the aggregate demand of the economy and also helps in controlling the current unemployment situation in the country. In this way the GDP and the living way of people will improve.
For the past four years Pakistan tax revenue has been increased to 81 percent of the tax revenue. The GDP growth rate is reaches to 5.4% which is the highest and the first time over a decade. The government should allow FBR to work transparently, there should be no political interference, and this is will help to increase the direct taxes in the country in a fair manner. Increase in the transparency of FBR will also help to increase the confidence of the tax payers on the government.
Pakistan is among those countries which have young labor force which is unemployed.
Better suggestion is that to provide knowledge and skills to the unemployed young graduates. In 2001 worker allowances were less than a billion dollars. Today our worker allowances reaches to 7 to 8 billion dollars. Currently it can be multiplied by three or five times if we have well educated and skilled labor force.
Technology has been spreading in the world like a fire. 5 years ago, not every individual had mobile phone but today 105 million Pakistanis have mobile phones today. Technology especially information technology can be use for the betterment of the social and the economics problems of Pakistan.