Energy crisis in pakistan essay free download

The current trend, however, is just compounding the joblessness and pushing millions move into the poverty trap. All these hardships are hampering investment, both domestic and foreign in employment generating sectors, i. There are reports that a number of textile manufacturers have relocated their industry in other countries such as Bangladesh, Vietnam, Sri Lanka and Tanzania etc.

The Government and the economic managers should be mindful of the fact that de-industrialization has heavy toll on the social development of a society. When a factory is shut down either temporarily because of frequent power outages or permanently shifted to another destination—hundreds and thousands of households are forced to starve until their bread-winners have a new job. Apart from its implications on human development, de-industrialization or low industrial growth has serious repercussions for over-all economic development.

Economic survey of Pakistan has estimated that the manufacturing sector is employing 14 percent of the workforce, and contributing about 63 percent of taxes and making 25 percent of the GDP. Another equally neglected area is the agriculture sector that employs 45 percent of the workforce contributes 22 percent to the GDP and paying only 1 percent in income tax.

This sector requires urgent reforms in terms of redistribution of cultivable land, bringing the sector into the tax net and improving the lot of the less fortunate peasantry. But added value of the crops jumped to Rs. Inspite of this increase in value, no additional taxes are forthcoming.

Moreover, the substantial share of profits from agricultural proceeds is pocketed by landed gentry. More often than not, they are at the driving seat of the political system of the state as well. The land mafia is running the political show of the country in a way that furthers its vested interests.

They discourage social and infrastructure development projects in their areas rather fiefdoms. The gist of the matter is that the present politico-economic order favours the perpetuation of vested interests of the elitist groups in Pakistan today. The informal sector of economy, like agricultural, small and medium enterprises and services sectors employees more than 60 percent of the workforce, it contributes about 35 percent to 50 percent of the GDP.

This sector has yet to see the necessary reforms and regulations. According to an International Labour Organization report, the workers employed in the informal sector are more vulnerable to exploitation.

They are paid low wages, maltreated, over-worked and are not covered by social security nets. Tax evasions are rampant. The economic and political administrators need to pay special attention to modernize and regularize this expanding sector.

The services sector, nevertheless, is a redeeming feature of the struggling Pakistani economy. This sector has seen phenomenal growth over the decade.

This sector telecom, banking, real estate development marketing—contributes more than 50 percent of the GDP. Its share in jobs and taxes is 41 percent and 36 percent respectively. These sector employees are educated and trained workforce. A sustainable economic growth requires a balanced growth in all the sectors of the economy. It further requires reforms in the total system, reforms in energy sector. Uninterrupted provision of energy is the fundamental theme of sustainable economic growth.

The infrastructure is too weak to support the march of economic growth. Developmental projects always feature as the lowest priority of the rulers of the country.

In such a block scenario foreign investors are reluctant to try their luck in our part of the economic world. Foreign Direct Investment FDI is welcomed as an impetus to the sustainable economic growth of a country especially of a developing one.

Industries and other business enterprises are facing acute shortages of electricity and gas. In the face of bleeding energy problems the economy is merely surviving, not thriving. The manufacturing units are lying dead across the country. Alternate energy resources are increasing the cost of production, thereby losing the competitive value of Pakistan exports.

Foreign investors are reluctant to invest in such a grim situation of economic growth. It further projected that energy crisis has eaten up over Rs. The incumbent government has failed to bridge the gap between electric generation 15, and demand 20, MW. Reforms in energy sector are needed on war-footing, lest the socio- economic landscape slides into oblivion and darkness.

The story of FDI in Pakistan is the bulk of foreign investment goes into the services sector like telecom, Banking etc. But now it has touched lowest ebb-about m USD has been reported to have invested by foreign investors during the fiscal years Foreign investors are reluctant to invest in Pakistan mainly for the following resources; energy crises, high interest rate, security situation in country, slow economic growth rate, fiscal crisis in the west and bad governance and corruption at home.

Government generates revenues to meet their expenditures and finance public sector development projects through collection of taxes. But the story to tax collection is quite dismal in Pakistan.

Hence we are, more often than not, in short supply of funds to meet expenditures and complete development projects on time. Pakistan is one of the lowest ranked countries in tax-to-GDP ratio.

Tax evasion is very common phenomenon in the tax regime of Pakistan. This discovered gentry pay no taxes. The remaining Rs. The system of tax collection needs overhauling. The tax-net needs to be widened to cover all formal and informal sectors of the economy.

The tax evasion must be dealt with penal liabilities. Corruption on the part of tax collector should also be brought to an end. A transparency International report gave another but interesting account of tax evasion. It is yet to be seen if the scheme helps widen the tax net and generate more funds. The key to improve the economic outlook lies in increasing the tax-to-GDP ratio. Yet another cause of sluggish economic growth is the excessive borrowing of the present govt.

The government is also borrowing from the State Bank and the commercial Banks, hence doubting the domestic debt-liability. The national debt currently stands at Excessive borrowing is made to meet the fiscal deficit which stands at 08 percent of the GDP or Rs. The other Herculean task being done by borrowed money is to keep the balance of payment going.

Substantial amounts of the revenue go into debt servicing and interest servicing. To cap the fiscal deficit, government has asked for international loans from the IMF and so-called friends of Democratic Pakistan forum. The so-called friends of Democratic Pakistan forum had made pledges to extend financial support to Pakistan but failed to honour their commitments.

If the history and the experience there if anything to go by, foreign aids and debts have done more harm than good to the socio-economic and political landscape of the country. The alternate solution lies in the domestic resources mobilization. The perilous law and order situation has hampered the economic activities across the country. Terrorism and suicide bombing in Khyber Pakhtoon-Khwa have dealt a severe blow to the provincial economy.

Target killings in Karachi the commercial capital of the country, have also messed-up the socio-economic and cultural and political activities in the metropolis. The bad law and order situation has two dimensions. First, terrorism and related incidents have caused a loss of about 60 Bn USD to the business and property over the last 10 years.

The toll of life is still horrific. Investors, particularly the foreign investors are reluctant to invest in such a volatile atmosphere when both life and property are in great perils secondly, expenditures on defence and security apparatus have increased manifold over the last decade. Thus precious funds and resources that would have been spent on social and human development projects are going to the state security apparatus.

It is however, yet to be seen whether the strong security apparatus or the strong economy helps the nations to sail through rough waters!

Political stability is the first and foremost perquisite for sustainable economic growth. Weak and unstable political govt. Economy cannot grow in an uncertain political environment as political stability is necessary to boost private investment, create jobs and increase production.

Bad governance has contributed significantly to the incidence of poverty and slow economic growth rate. A report published by the Dr. The trade deficit stands at This deficit is mainly because of burgeoning bill of petroleum imports. Our total imports are about Instead of generating revenues, government has to bail-out them over time and again.

Mismanagement and corruption have retarded this potential to earn profits. If we want to turn these enterprises into profitable ventures, we will have to fix the problems of corruption and mismanagement and rectify the structural and institutional fault-limits. Organizational structure need to be downsized and reduce expenditures regulations need to be introduced to make them competitive with their international counterparts.

The pernicious effects of sluggish economic out-look have varied and multifaceted implications for the social and psychological development of an individual and a society. In these lines we will try to expound some of the most pressing and unavoidable implications of a failing economic system.

First, when the economic growth rate is slow but the corresponding population growth rate is high, it inevitably results into unemployment, hence poverty. The current scenario is that over one million persons enter the labour workforce every year, the growth rate of about 3. The un-employment rate is about 8. This rate will further increase if growth rate remains slow. According to the report, about Both the rural and urban poor continue to suffer multiple deprivations because of corruption, inefficiency and misplaced priorities.

Thirdly, low economic growth, unemployment and poverty are pushing our men to travel to abroad in search of jobs. Talented and professionals are leaving the country when their country needed them the most to contribute in its economics and social development. This brain drainage has affected the economic growth in more than one ways. Lastly, of course not least the dismal economic show and multiple economic problems have hampered the overall social development of the society.

Increasing inflation has reduced the purchasing power of millions and pushing them into the poverty trap. Lower classes and middles classes are struggling hard to make the ends meet. Inflation has eaten up the savings of the people. It takes years to develop new supply sources or vary production, and it is very hard for consumers to switch to other fuels or increase fuel efficiency in the near- term when prices rise. Under such conditions, a large price change can be necessary to re-balance physical supply and demand following a shock to the system.

Given the past history of oil supply disruptions emanating from political events, market participants are always assessing the possibility. Among the utmost crucial environmental issues is human overpopulation, mutely exacerbating the intensities that are behind environmental pollution, global warming habitat loss, rigorous farming habits. Depletion of limited natural resources for example fossil fuels, fresh water, and cultivable land, at a velocity that is much faster than the time it takes for them to restore.

Even so, environmental issues are merely the beginning. Lower life expectancy in the fastest developing countries will experience a deprivation of their quality also length of life as they continue to increase population facing difficulties to resource food, water, housing, jobs, and energy to their growing inhabitants.

That will eventually lead to major consequences for economic growth, a reduced access to medical care leading to poor health. In Reagan era, gas production soar, where in Carters, gas production decline. The environmental and energy crisis of the s did lead to the decline in the United States. The sugar act, which was passed a little under a year ago, already made things very hard on the family and this would just make matters worse.

The sugar act put taxes on sugar and molasses. The Cranes ' were not very happy about this second act that Britain was enacting. Everything was extremely hard on Bruce Crane because he did not earn a lot with his job at the local iron factory.

Coal is king, it controls the economy, and many states rely on it for electricity. Yet, many families involved in the gathering of coal are experiencing profound economic difficulty.

This must be resolved to improve the economic disparity in West Virginia. Many mining families experience this difficulty, due to health risks and job situations. In addition, the economy will not do so great in the near future if the government does not clean up its act and fix the problems that are going on; such as the national debt and how it can be causing a recession in the United States.

With the contributing factors of how the taxes should be taken care of, certain healthcare programs draining the little money the government has to offer, government welfare programs not being more supervised by not allowing people to take advantage of it, and lastly not allowing the government to borrow so much money from foreign countries to make our debt rise to the.

In today 's society almost everything that we use in our everyday lives requires some kind of energy source. With our reliance on these sources growing exponentially we have started to become more dependent on other countries to supply our fuel.

With this dependence countries debt continues to grow and this has a very negative effect on the country 's economy.

Energy can be split into two main groups renewable and nonrenewable. The difference between these two is the fact that one we cannot exhaust and the other we only have a limited supply of. Analytical report on the causes and remedies of the persistent energy crisis in Pakistan Energy is considered to be one of the most important factors for the development and growth of an economy.

Energy is used in running machines in factories and industrial units, in transport and for household uses. As a result of population growth and industrial development there has been a tremendous increase in demand of energy, but there is comparatively lesser energy production. Because of energy shortage load-shedding is a common phenomenon through power shutdown for many years which is restricting economic growth and development. The shortage of non- renewable energy resources, coal, oil, natural gas ultimately leads to supply shocks.

This coal produced electricity and gas is vital in industrial and agricultural processes. Due to energy shortage their progress remains hampered which results in limited productivity hence limited national income and creates many more economic problems such as unemployment, balance of payments deficit, lack of foreign exchange reserves, increased import bill etc.

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