Unemployment, Inflation

Present problems of Pakistan

In today Pakistan we are facing many problems. Like energy problems, terrorism, drones attacks, unemployment and inflation. These are main problems of today Pakistan.               

First of all I am talking about energy crises an energy crisis is any great shortfall (or price rise) in the supply of energy resources to an economy. It usually refers to the shortage of oil and additionally to electricity or other natural resources. The assassination of Benazir Bhutto on December 27 has brought light to the major issues that are confronting Pakistan today. “The country may face energy crisis by the year 2007 following healthy growth of 13 per cent in electricity demand during the last quarter, which will erode surplus production in absence of commissioning of any new power generation project during this financial year,” informed sources told The Nation. The report maintained that the difference between firm supply and peak demand is estimated at 5,529 MW by the year 2009-10 when firm electricity supply will stand at 15,055 MW against peak demand of 20,584 MW the country needs a quantum jump in electricity generation in medium-term scenario to revert the possibilities of load shedding in future due to shrinking gap between demand and supply of electricity at peak hours.

Inflation problem:

Pakistan, with a population of about 16 million people has undergone a remarkable macro economic growth during last few years, but the core problems of the economy are still unsolved. Inflation is one of these core problems. Government claims that in order to keep the prices of essential commodities under control, it has been taking various measures throughout the year. The inflation rate in Pakistan was last reported at 13.04 percent in April of 2011. From 2003 until 2010, the average inflation rate in Pakistan was 10.15 percent reaching an historical high of 25.33 percent in August of 2008 and a record low of 1.41 percent in July of 2003. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy .Conclusion: It needs to be controlled by strategic planning. Domestic production should be encouraged instead of imports; investment should be given preference in consumer goods instead of luxuries, Agriculture sector should be given subsidies, foreign investment should be attracted, and developed countries should be requested for financial and managerial assistance. And lastly a strong monitoring system should be established on different levels in order to have a sound evaluation of the process at every stage.

Unemployment Problems:

                     

                      

Unemployment is also well known problem of Pakistan today facing. The unemployment rate in Pakistan was last reported at 5.50 percent in December of 2009. From 1990 until 2009, Pakistan's Unemployment Rate averaged 5.88 percent reaching an historical high of 8.27 percent in December of 2002 and a record low of 3.13 percent in December of 1990. The labor force is defined as the number of people employed plus the number unemployed but seeking work. The non-labor force includes those who are not looking for work, those who are institutionalized and those serving in the military.