THE CURSE OF EXCESS

THE CURSE OF EXCESS

THE CURSE OF EXCESS

It all started in the year 2008 when all the financial markets around the world started to collapse. I just remember a wonderful thought that once an economist said our younger generation is involving more in services that inventing something new and sooner or later all this would come to an end if we do not start to create new worlds for us. And now we can see that the thought has become a real nightmare for us.

As far as the situation of Pakistani financial markets is concerned, they were also affected by this global financial catastrophe and we saw frequent mergers and takeovers in the services sector especially in the banking sector. Due to severe liquidity crunch and increased interest rate by the state bank to cater inflation the manufacturing industry was badly punched like the textile sector was near to end. Our commodity producing sector (CPS) showed a negative performance of 0.8 in our GDP which was at 2% in 2009 and the rest of the portion was covered by the services sector which stood at 1.2%.

As the industry in Pakistan was shattered by the so called financial experts roaming like a king in gold mines of government created by the pinched people of Pakistan and soon these people started loosing their jobs. Still our so called prestigious educational institutes continue to toss their graduates in the market speeding up the whole process. I think they have gone visor towards the financial crisis and threatening unemployment havoc. More and more people are becoming jobless and if we remember our country is already very eminent for under-employment. I believe that our so called finance and economic ministers are extremely busy in making themselves affluent with public wealth and heavy taxation. I think they are the real followers of economic mysticism accumulating all the wealth and making them self sufficient and economic independent. But they should keep in mind that every thing is based on the free gifts of nature, as the resources are scarce and they would somehow come to an end. They should keep in mind that excess of every thing is bad, rather it's a curse.

We don't have any proper plan of action to follow; we do not have any basis for economic progress. Our resources are diminishing, our abilities are tumbling and our human resource is draining but we still don't have any noble and righteous personality who would jump into this dilemma and make a way out. Water resources are near to end, there is no energy, no fuel and yeah no infrastructure indeed. So we are roaming in disguise, having no vista of the future. And not to forget the most important factor Pakistani people, yes we don't escape even a single moment of wasting our own resources. We can sit idle for hours but would not protest against this misuse by our people and government officials.

I do believe that our economy could have survived this crisis if and only if our government would have been serious in maintaining Pakistan's economic health. The way we begged in foreign countries and yes we were able to have handsome amounts courtesy to our professional beggars. We didn't use that amount in creating more and more resources (the whole infrastructure) or using those resources in meaningful way by forming industries. Now I propose that the government should take a quick and wise action on the current situation. A proper economic board should be made comprising of pure and expert economic professionals. An estimate should me made on proper facts and figures regarding the unemployment. How much people have become unemployed in recent past. How many fresh graduates are searching for jobs? What is the level of education and skills of each person who is unemployed? The whole market should be sought, in order to check which sectors have scope in them to make more factories or industries in those sectors. Which product has demand in local as well as foreign market so that, those goods and services shall be produced, which have strong demand for them. Which resources are not scarce in order to make those products for which resources are in abundance.

The persons unemployed should be provided, with the jobs in these newly built factories and industries. Each and every company should comprise of an economic evaluation department, evaluating the number of workers required by the specific business, salaries of the employees, contribution of that company towards national growth, economic prosperity and national income. This department would also evaluate new or upcoming divisions, business units or products in that company to show the contribution or add up to economic development and growth in the country. How much jobs that specific newly built division would create? What would be the contribution towards the sector and GDP growth? How much earning or profit would be contributed towards national income? All these reports would be sent to the central economic board set by the government in order to maintain a balance in the economy.

There shall be no excess of anything like previously in years 2008 and 2009 more and more people were given loans in the name of personal loans which resulted in increased purchasing power contributing towards inflation. The state bank increased the interest rate to control inflation but the unworthy borrowers were unable to pay back so this resulted in a huge number of companies and people go bankrupt. All this happened due to excess of loaning in order to grow businesses without considering the state of infrastructure of our country, the condition of saturation in the local and foreign market, the demand for the specific product or service. All this could be balanced only if we have a proper economic board on our heads comprising of expert economists specialized in different areas like energy, environment, trade and financial markets, fiscal and monetary policies. This board shall be under control of government only if the government is sincere to the country otherwise this board shall be autonomous. It should be in the requirement of SECP to create an economic evaluation department in each company reporting to the central board in order to create and maintain balance in the economy.

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