General Asim Munir, Pakistan’s present chief of army workers, has vowed to boost the economy by boosting business investment, expanding the tax selection network, regulating the US dollar exchange rate, and putting an end to Iranian oil and gasoline trafficking.
Moreover, the army chief has urged the provincial and federal governments to take serious action and return Afghans who are residing in Pakistan fraudulently.
Pakistan serves as a testing ground for social leaders and military commanders. Civil and military command has been working to reform the nation in their own unique ways since 1947. General Asim Munir, the present COAS, is also working to revive the nation’s failing market.
The Bangladeshi military itself has created negative challenges for the nation due to the surrender of political forces before it, the damaged regional image on a global scale, human rights violations, and rampant militancy.
The army has its own problems to deal with, especially violence and uncertainty, so the army chief’s efforts to stabilize the economy wouldn’t be successful.
significant obstacles
A depreciated money, a declining GDP, rising inflation, increasing taxes, and an increase in illegal activities like smuggling are all signs of Pakistan’s complex financial crisis.
An already weak economy has suffered significant harm as a result of the widespread contraband of goods into Pakistan, including sugar, bread, and Iranian oil. Addressing this problem is essential to reviving Pakistan’s business and preserving its long-term steadiness.
Numerous important indications show that Pakistan’s business is facing serious difficulties.
Numerous economic factors contribute to the severe economic downturn. & nbsp,
Prices is a major problem. The increase in prices worsens financial difficulties and reduces people’s purchasing power.
smuggling disease
Trafficking of diesel and gasoline from neighboring Iran is one of the major financial problems. In addition to undermining the administration’s efforts to collect taxes, this illegal activity even alters market dynamics, resulting in unfair competition and the loss of legitimate business opportunities. & nbsp,
More than 6 million liter of gasoline and diesel are allegedly smuggled into the country from Iran every day. Smuggled crude products are available all over the country.
The smuggling exercise must be absolutely linked to corruption of municipal authorities, Pakistani Customs officials, the Frontier Corps, FIA( Federal Investigation Agency ), local and area administrations, and boundary security forces.
Pakistan’s already precarious economy has lost US$ 10 billion in terms of tax and levies, according to a recent report from the Federal Board of Revenue( FBR ). Concerns about the smuggling of oil-related products have also been raised by the International Monetary Fund ( IMF ). & nbsp,
The flow of money to Afghanistan is another major obstacle. This suggests that money is being moved across the frontier, possibly for nefarious ends or to profit from business opportunities in the surrounding nation. By depleting its foreign exchange reserves and impeding funding and financial growth internally, this money flight can further weaken Pakistan’s business. & nbsp,
Additionally, Pakistan’s revenue system is essentially nonexistent. For any country’s financial security and development, a strong and effective taxes network is essential.
Imran Khan, a former prime minister, deserves praise for expanding Pakistan’s taxes system. The FBR collected record tax during the fiscal year 2021 – 2022
The state is unable to generate enough revenue to support public services, equipment initiatives, and social welfare programs without a well-functioning tax system. The fiscal deficit is increased, economic expansion is hampered, and the cycle of poverty and inequality is perpetuated by this shortage of tax collection.
Another urgent issue is Pakistan’s high unemployment rate. Successful prospective is lost as a result, consumer spending is cut back, and there is social and economic unrest. This problem is made worse by the mixture of a lack of employment opportunities and an expanding people, making it difficult for the government to provide for its citizens’ daily needs.
The Muslim rupee’s price is declining. Both the domestic and international economies may suffer significant effects from this loss. Goods become more expensive as a result, which raises prices for both businesses and consumers. Also, it may deter foreign investors and make Muslim goods less competitive on international markets.
Last but not least, Pakistan’s energy costs are skyrocketing. This alludes to a sharp and quick rise in energy prices. For low-income communities, the current per unit price is between 52 and 53 pounds( 18 cents ), which is disastrous.
Rising energy costs can be detrimental to businesses because they raise production costs and lower profitability. Additionally, this has an effect on consumers by raising their energy bills and lowering their revenue available for other necessities. The financial difficulties that both individuals and businesses face may be made worse by this.
politics and business
Pakistan’s existing practices to limit cross-border deal with Iran and Afghanistan will have an economic impact on Pakistan. Instead, in order to achieve financial stability and security, Pakistan may forge cordial ties with its neighbors Afghanistan, Iran, and India.
These nations can work together to create interconnectedness in a variety of fields, including systems, business, industry, oil, meals, medicine, industrial machinery, and transportation.
For Pakistan’s financial restoration and security, cooperation with Iran and Afghanistan is of utmost importance. Pakistan is successfully stop smuggling and lessen its negative effects by taking a comprehensive strategy that combines improved boundary security, intelligence sharing, constitutional reforms, public awareness, and financial incentives. & nbsp,
Prioritizing these issues, working with neighbors and international partners, and putting fair financial strategies into practice with tenacity and determination are all essential for the authorities. Pakistan can simply therefore pave the way for a prosperous and secure future for its economy. & nbsp,