The Fluctuation of Pakistan’s Economy and Its Impact on our Lifestyle
As we all know, Pakistan’s economic growth has always been unstable which has created quite an uncertainty pertaining to its economic conditions.
Looking back, our economy first gained growth of 10% back in 1954 which then had a fall of 2% in 1956, followed by a 9% gain in 1969. It then had a 7.5% increase in 2004 and then dropped by 5.6% in 2007. Moving on, from 2008 to 2013, the growth rate remained stationary at 3.2%. Currently, the government is mainly aiming towards bringing back the economy as it witnessed a 5.28% increase in the latest stats of 2016-2017.
It is important to remember that all these values have a great impact on our lifestyles as the GDP growth rate has a massive impact on the living standards of the society. One is an increase in per capita income leading to more job opportunities.
In 2015, IMF positioned Pakistan 141 out of 194. Every one of these elements has made differences in salary and wealth in the nation. While the upper-class society is making the best out of the luxuries of high-end facilities, the middle and lower class is being denied of even the everyday necessities.
Moreover, the production capacity of Pakistan is extremely low. The profitable limit is low in Pakistan and keeping the nation down. Production capacity is reliant on 2 principles significantly i.e. investment rate and saving. With everyone joining the race to buy all the luxuries of life we are saving less and spending more. This leads us to rely more on foreign loans and investments.
This race for consumerism is hindering the development of Pakistan's economy as we have a developing dependence on debts. Especially with the external debt rising to 75747 USD Million. The state of the economy does not seem to be in any good shape, in 2016 the saving rate was 14.6% of GDP and investment rate of 15.2%. It requires a great deal of constructive steps to bring a rise in the saving and investment rates.
Unless our country along with its leaders and citizens begin to practice simplicity, we won’t be able to lose the “undeveloped country” remark.
The government has brought up the taxes on everyday items and lowered the interest rates. Making the life or every common, middle-class man, unhappy.
An important habit everyone should adopt is saving. Once the investment bounds of the nation are settled, the productive capacity of the country will increase.
Change begins with you, so start with yourself and within your household. Before you know it, you’ll be adopting a simple and modest lifestyle.