- Proactive policies, please!
Prime Minister Imran Khan is constantly holding meetings to find a solution to Pakistan’s economic crisis. We have even seen the government seeking financial assistance from Saudi Arabia and China. Simultaneously, Pakistan is witnessing an increase in the price of goods and the devaluation of its currency against the dollar, both of which are crushing the country’s population. Based on the country’s current situation, what measures should the government take to improve the economic condition of the country? In the short to medium term, at least, the manufacturing sector does not appear to have any productive future in this country. The fundamental reason for this is the lack of affordable energy sources in the country. Moreover, Pakistan’s water reserves are being further depleted with each passing day. This will negatively impact our agriculture sector. On top of that, most of our manufacturing sector is related to agriculture in one way or another. Under such circumstances, the government needs to take measures to increase its foreign reserves, augment the income of its people, and get the economy back on the right path.
One glance at India’s economic strategy would reveal that their government has been focused on information technology for a long time now. Their country is now able to export software worth billions of dollars. Information technology is a sector that does not require much in terms of raw material or investment as the raw materials in this sector are human thoughts and ideas. This industry allows you to develop end products that can be readily exported, without making any heavy investment in infrastructure — as must be done in many other sectors. If our government were to also focus all of its attention on the information sector, this would be the easiest and the most practical way to turn around the country’s economy. To accomplish this, they would need to attract talented foreign professors and task them with producing and polishing brilliant IT graduates from within Pakistan’s universities. These professors, educational institutions, and students should have the maximum support of the government.
Programs for IT skills should be subsidised by the government so that underprivileged students could also be able to excel in this field. This could prove to be a credible opportunity for our people to earn money without leaving the country. These measures could create jobs and thereby strengthen the economy of the country. Throughout the world, the online medium has not only created call centers and software houses but has also enabled people to work from home in fields like financial services. What could be better than providing the skilled people of Pakistan the opportunity to earn money from home? However, they would need training and guidance, both of which require a distinct change in policy at the government level.
The Pakistani working class overseas is another sector that can play a significant role in reviving the country’s economy, but this group has been largely neglected. Right now, the skilled and working classes in Pakistan cannot get visas to foreign countries. There are several reasons for this, the biggest of which is that when Pakistanis go abroad they disappear to avoid returning to their country. They do not possess the skills that are in demand in those countries. Thus, some people enter the world of crime. Additionally, due to human rights laws, some governments are impelled to support unemployed or low-income immigrants financially, thus making these people a burden on their economy. These reasons compel foreign countries to deny visas to Pakistani nationals.
The government should stop taking loans from private banks. It should instead persuade those banks to give loans to small businesses
What should the government of Pakistan do in such circumstances? Taking charge of immigration and sending skilled Pakistani labour to foreign countries would benefit the government. It would also benefit the impoverished skilled labourers who pay human smugglers, put their lives in danger, and sometimes even face death on the way out of the country. They sometimes spend their lives as thieves in foreign countries, even working at half wage to be able them to provide a better life for their families back home. These people are living in foreign countries under the constant fear of deportation.
If the government were to take responsibility for these skilled people, their circumstances could be changed completely. The first step should be for the government to identify countries that need skilled labour. For example, Japan has an increasingly aging population while the ratio of young population in the country is decreasing. Germany, which has one of the most robust economies, faces a similar situation. They are in real need of the labour of skilled youth. The government should identify countries like these and enter into agreements with them. Then they should offer training in skills that are in demand in these countries and impart that training among more people in Pakistan. The government should also provide assurance that these skilled people would not run away or be involved in crime. To do so, the government should become their guarantor and internally take their guarantees from the friends and family of the skilled workers. This would benefit both the skilled labor and the country. These people would no longer be an unnecessary burden on foreign economies. Moreover, their foreign jobs would improve the country’s foreign reserves, create more jobs, and reduce unemployment.
The injustice with B-tech degrees in vocational institutes affiliated with the Technical Education and Training Authority (TEVTA) as well as governmental blunders have damaged human resource development in Pakistan to its core. However, the government should now focus all of its attention on vocational training. Based on the requirements of the countries that they enter into contracts with, the government should start training programs for skilled people. An example of this can be seen in the Philippines. Filipino women work as nannies for the children of the affluent class of Pakistan and are making their income in dollars. These Filipino women are able to do so because they are trained in childcare in their country.
Finally, the government should stop taking loans from private banks. It should instead persuade those banks to give loans to small businesses to allow the economy to grow. Focusing on all of these aspects on an emergency basis could put Pakistan’s weak economy back on the track towards success. Otherwise, the country’s economy does not appear to be getting any better.