Drones Further Drowning Down Real Issues from Pakistan Economy and Business Sector
European Journal of Scientific Research, 87(3), 2012
11 Pages Posted: 3 Nov 2012
Date Written: September 15, 2012
This research paper mainly focuses on the identification of real issues prevailing in Pakistan economy and Business sectors through theoretical approach and literature available. Seven real issues have been identified and top of all is the ethnic clash and Islamic Militancy which have given birth and led Pakistan to high inflation, high unemployment and economic slump in terms of lowering GDP and Budget Deficit. Pakistan’s economy continues to remain exposed to the impulses of international developments as well as internal security environment. Pakistan’s macroeconomic environment is affected by increase of war on terror and deepening of the global financial crisis which penetrated into domestic economy through the route of substantial decline in Pakistan’s exports and a visible slowdown in foreign direct inflows. Although contraction in export receipts is more than compensated by massive import compression coming from global crash of crude oil prices, the external sector weaknesses needs a review. The global economic slowdown is making inroads into real economy through contraction in demand in the export sector and as well as shrinkage of external inflows. The intensity of the global financial crisis has further added to Pakistan’s difficulty. Despite support from the IMF and other bilateral and multilateral donors, Pakistan’s external account remains exposed to a number of uncertainties. Pakistan’s problems are by now well-known and they are multi sectorial. They affect not only stability of the Pakistani state itself, but also its immediate neighbors as well as the West. Pakistan economy still faces pressures from higher inflation driven by spike in food prices due to flooding of crop lands, the acute power shortages, bewildering stock market etc.
Keywords: Pakistan Economy, Drones, FDI, CPI, Textile production, Electricity
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