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Arisa Nishida Nakano
Professor Paul Nadeau
Development and Globalization
14th April, 2023
Pakistan current situation and challenges and its potential
Pakistan is a country that has been plagued by various terrorism, economic, and poor
education for decades. Those three factors are only some of the challenges that Pakistan faces
and, in some way, those three aspects also affect the country’s economy as well. One of the most
pressing issues for Pakistan is its ongoing struggle against terrorism and religious extremism.
This issue has led to widespread violence, particularly in the northern provinces of Khyber
Pakhtunkhwa and Balochistan, which affects tourism. In addition to these issues, Pakistan is
grappling with issues such as high inflation, which not only harms investments and the country's
growth, but also imposes high social costs, costs that tend to be inversely related to the income
level of individuals, implying greater penalization for the poorest. Moreover, Pakistan has also
been struggling in providing proper education for children. This is bad because the low
educational level and the low quality of education compromise the worker's ability to
understand, use, adapt and develop new technologies and production methods. This prevents
increased productivity. Pakistan's current situation is marred by a combination of terrorism,
economic, and poor education quality. These challenges have had a significant impact on the
country, affecting its overall stability and progress. In order to address these challenges, Pakistan
must focus its efforts on a comprehensive approach that addresses issues related to national
security, economic development, and education.
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Before going through the points, here is a little background of the country. Pakistan is an
Asian country located in the south of the continent as mentioned before, with Islamabad as its
capital. The Pakistani population is one of the largest in the world, with Karachi being the most
populous city in the country. Its economy is highly centered on the tertiary sector, which has
shown significant growth in recent years. In addition, Pakistani territory was the target of foreign
incursions, which established empires in the region in the last centuries before the current era.
About Pakistani culture, it was built over millennia of tradition, having in its traits the influence
of various peoples, such as the Indus and Mughals. Many of the customs and cultural norms
present in the country today are directly linked to the religion practiced by the vast majority of
Pakistanis, which is Islam. Another thing is that Pakistan is a country with most of its population
living in rural areas. In these areas, only “32.6% have access to safely managed drinking water,
while electrification covers 72%” (Folha de São Paulo). In urban areas, the safe system of water
reaches 40% of the inhabitants, while the share with electricity is 91%.Its energy matrix is
composed of fossil fuels (mainly), hydroelectric plants, nuclear sources and other renewable
sources. With regard to transport, highways are the main means of transportation in the country
and also of connection with neighboring nations. In all, there are more than 263,000 km of
highways, while the railway network totals 11,800 km. The country has 103 airports, in addition
to a main port located in Karachi.
Pakistan is suffering with their current situation. Even with all their rich natural resources
(which are a lot), good location, and their culture, Pakistan is facing and suffering. One of the
reasons is the current economy. Starting from the high index of terrorism. “Victims of a terrorist
attack may have suffered a bereavement, been physically injured, or experienced emotional or
psychological trauma. There is no single pattern of response or recovery after a terrorist attack –
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every person will have a different experience” (Gov.uk). In other words, it affects “thousands of
people in which, many of them die during those attacks, and not only that but the impact of the
travel and tourism industry can be enormous. It can lead to unemployment, homelessness,
deflation, and many other social and economic ills”(Baker). In addition, three years of primary
education, only a third of children can correctly formulate a sentence or add two-digit numbers.
Behind this disheartening picture are some of the greatest inequalities in the world. Boys from
urban families who are part of the richest 20% of the country have access to ten years of
education, on average (folha de São Paulo). As a consequence, the country does not form skilled
and thinking people/workers for the country, decreasing the productivity of the country and
affecting economic growth.
Pakistan is suffering with the high índice of terrorism, and it affects tourism. For many
people outside, it might not sound like a big issue, and many might ask how it impacts the
economy. Well, terrorism can be directed against individuals, but also against property, and most
common forms are by bomb attacks and by shootings, and this is what happens in Pakistan.
Usually, the causes of the terrorism attacks Poverty, inequality and poor economic conditions are
widely believed to be the main causes of terrorism. According to the annual report of the Global
Terrorism Index, “Pakistan recorded the second highest increase in terrorism-related deaths
worldwide in 2022, recording 643 fatalities in that year, which represented an increase of 120%
compared to the 292 deaths of the previous year” (Observador). This high index of attacks,
besides high, also scares many people outside that plans or at least, were planning to visit the
country. Tourism is linked to the consumption of goods and services by tourists, such as
accommodation, food, transport and cultural attractions. The tourist activity is one of the most
important in the economic sector and in the generation of jobs and income. But how can a
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country have a good index of tourism if the country is scaring the visitors? According to the
National Library of Medicine, the “ tourists perceive the existence of any risk of terrorism, they
become more careful as they plan their travel and tend to adopt risk-reducing strategies (Fuchs &
Reichel, 2011). Tourists are sensitive to terrorism threats and can be flexible in their destination
choices (Neumayer & Plümper, 2016), so they will avoid destinations they believe to be
connected with that sort of threat (Rittichainuwat & Chakraborty, 2009)” (Res). Also, without
tourism, the creation of new businesses and increased production of goods and services, since it
brings with it, development to the localities, and possible improvements in the infrastructure
would be much less, since when touristing the country tries to bring benefits to tourists and the
local community.
Pakistan is facing inflation. In short, both the prices of goods and services are defined by
the amount of money in circulation. When we have a large supply of money and the supply of
goods and services does not grow to the same extent, thus increasing their price, this generates
inflation, and this is what is happening in Pakistan. Pakistani inflation is brought on by a number
of factors, one of which is an increase in the money supply. Because an increase in the money
supply drives up demand for goods and services, prices may rise as a result. Increased production
costs as a result of numerous factors, including a lack of infrastructure investment, as the lack of
goods and services is a major contributor to Pakistan's inflation. Also, last and not least
significant the power cost of creation has been ascending in Pakistan, and money cheapening,
since costs of imported things rise when the cash's worth falls, the debilitating of the rupee has
enormously helped expansion in Pakistan in view of the country's weighty dependence on
imports (Graana). Also, many news and researchers show that the current inflation in Pakistan is
one the highest ever done before. In the journal article called “Pakistan’s CPI soars to highest
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rate in nearly 50 years' ' for example, it relates that “Core inflation increased 17.1 percent and
21.5 percent year-on-year for urban and rural centers, respectively. Core inflation is a measure of
price increases that excludes volatile energy and food items'' (Aljazera). In other words, it means
that big consequences are affecting at least 80% of the population, since most of them live in
poor areas and in precarious conditions. The main consequence of inflation is the loss of
purchasing power over time, with rising commodity prices and currency devaluation. Another
consequence is associated with the real return on investments. Also, it can have an even greater
impact on the economic scenario. An out-of-control inflation, for example, can discourage
sectors of the economy from making investments and improvements in the country and cause
uncertainty in relation to the nation's economic directions.
The lack of proper education is affecting the productivity of Pakistan. This is a problem
because education leads to a lack of skilled labor and impacts the country's economic growth.
One of the biggest bottlenecks to economic growth is the lack of skilled labor. In Pakistan, the
poor quality of teaching in both public and private schools, a lack of government regulation for
private educational institutions, situations of corruption and a strong discrepancy between urban
and rural areas of the country. If they do not invest seriously in improving the quality of basic
education, Pakistan will be condemned to a profound constraint on growth: the productivity of
their workforce. They will be forced to “import brains” to be able to grow and produce again. As
mentioned, productivity is the great engine of growth, the ability to produce more with the same
number of workers. According to the EconomicsOnline page, “When we have more efficient
workers, they can complete the same type of job in less time and use less elements. This means
that the skills affect the industry, business and therefore the GDP. More trained workers can be
useful in the terms of an investment as well. In a nutshell, they can improve the business. When
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multiple businesses are improved, the economy is rising”. In other words, when they are
qualified, they produce more, increasing the economy's growth potential, job and income
generation. One of the main factors explaining this is that, although they managed to increase the
average schooling, they did not advance in the quality of education. There are several ways to
measure the impact of education on the economy. A more educated country spends less on public
health, has higher security levels, as it has lower crime rates. Greater education makes, directly
or indirectly, an economy function more efficiently. The low quality of education means that we
reinforce inequalities. In Pakistan, people who are born into poorer families do not have the
chance to earn a better income than their parents. Allowing them to compete on equal terms with
those lucky enough to be born into a wealthy family is a great tool for reducing inequality. If
there is no public education that guarantees the chance for the poorest people to increase their
income over generations, inequality ends up being reinforced.
According to the report, “in 26% of the country's schools there is only one teacher and in 18%,
there is only one class. In 22% of the schools there is no drinking water, in 32% of these schools
there is no electricity, in 22% of the schools there are no toilets and 21% do not have a garden
wall” (TRT). This is a serious issue because the kids are not only lacking knowledge, but also
their futures are committed. If the country does not give proper education for the children, they
will be not only committing the kids' future, but also the future of the nation, once they grow up
but they will not be able to cooperate with the productivity of the country. “Pakistan's average
productivity growth from 2010 to 2020 remains 1.5%: study. ISLAMABAD: In Pakistan,
average productivity growth has been 1.5% from 2010-2020 which is not enough if Pakistan
wants to achieve Gross Domestic Product (GDP) growth of over 7-8 percent on a sustainable
basis” (Shafiq).
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Pakistan should have the military army in command in order to reinforce national
security and call the tourists' attention again. And one of the ways that Pakistancan do it, is
investing in the military army forces. The Armed Forces are national institutions authorized to
use force in the defense of their country, including through the use of weapons, at three levels of
action: strategic, tactical and operational. For each of the institutions of the Armed Forces, the
military can carry out the most varied activities, in the most different areas. The military are
classified, according to their status, into officers and soldiers who, in turn, are divided into
different positions. Officers exercise command, leadership and direction functions, while squares
are executors and auxiliaries. During his career, the military lives with risk, whether in training,
in the daily routine or in war situations. In addition to preserving national sovereignty, military
power also contributes to enhancing the country's image before the international community
through other areas, such as joint military exercises with other nations and peacekeeping
missions under the aegis of the Organization of the United Nations. An example of military
command in the past that combated the terrorismwas the Operation During Freedom (OEF). “In
response to the September 2001 terrorist attacks on New York's World Trade Center and the
Pentagon, President George W. Bush launched the Global War on Terror (GWOT). As it
evolved, his objective was twofold: to destroy al Qaeda, the Taliban, and other terrorist groups in
Afghanistan and around the world, and to remove Saddam Hussein from power to forestall
threats from his presumed possession of weapons of mass destruction (WMD). Operation
ENDURING FREEDOM began on October 7, 2001, when the United States launched military
operations in Afghanistan, including airstrikes against Kabul and Kandahar. In sustaining
military operations for over a decade, American troops continue to fight a widespread insurgency
and establish a viable government” (DCAS).
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Pakistan can control inflation in the short term. This method is usually the hardest for the
country, but for Pakistan might be the best option considering the current delicate situation of the
country. In the short term, what Pakistan can do is Inflation control involves fiscal and monetary
tightening measures. This means; reduction in public spending, higher taxes, high interest. In the
short term, these measures help contain demand for products and services. With lower demand
for a given supply in the short term, the tendency is for the pace of price increases not to be too
high. In other words, the idea is to reduce the demand for a given supply, so that the price
increase has a slower pace. Of course, this also ends up having a recessive impact on the
economy. Therefore, controlling inflation requires sacrifices in the short term. For example, the
lowest growth and highest unemployment. These sacrifices are very painful for a country with
short-term inflation caused by rising costs. For example, more expensive energy causes firms'
costs to increase. This increase is partly passed on to consumers. With the high cost, companies
tend to produce less. If, in this condition, the government opts for measures to control inflation,
such as fiscal and monetary tightening, the recession could deepen. That's why, in certain
situations, it makes more sense to stick with a little more inflation temporarily so that growth
doesn't suffer and unemployment doesn't rise.
Improving the infrastructure in schools in Pakistan can improve education. One of the
biggest bottlenecks to economic growth is the lack of recognized labor. Thanks to their terrible
education, Pakistan's workers are six times less productive, compared to many other countries.
So a good way of starting is investing in better infrastructure. In Pakistan “Around 48 per cent of
schools in the country do not have toilets, boundary walls, electricity and drinking water while
Punjab and Khyber-Pakhtunkwa (K-P) are ahead of the other two provinces – Sindh and
Balochistan – on various educational parameters'' (Khan). In other words, not only do they not
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provide good resources for the instructors but they also don’t provide basic school instructors at
all. Many times, teachers are often unable to carry out practices and adopt different
methodologies because they suffer from limitations. Therefore, it is important that the
maintainers invest in the improvement and expansion of the structure, allowing the increase of
academic practices in the school's facilities. Having a library stocked with books, large and wellstructured courts, very modern computer and science laboratories so that students can carry out
research, are some improvements that can be made to improve the student's learning experience.
In the World Bank page, there is an article that says that “Buildings, classrooms, laboratories,
and equipment- education infrastructure - are crucial elements of learning environments in
schools and universities. There is strong evidence that high-quality infrastructure facilitates
better instruction, improves student outcomes, and reduces dropout rates, among other benefits.
For example, a recent study from the U.K. found that environmental and design elements of
school infrastructure together explained 16 percent of variation in primary students’ academic
progress. This research shows that the design of education infrastructure affects learning through
three interrelated factors: naturalness (e.g. light, air quality), stimulation (e.g. complexity, color),
and individualization (e.g. flexibility of the learning space)” (Teixeira). So basically, if they
invest more in the school infrastructure, they will not only provide a better environment for
students and teachers but, they will assure that the young will have proper education, but also in
the future they will increase the productivity of the country, even because “greater education
makes better workers. They are more efficient and they can help the industry develop more.
When it develops more, capital rises and economics is improved” (EconomicsOnline), boosting
their economy.
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In conclusion, Pakistan still has chances to develop better economically. For sure, there
are still many other aspects that they still have to work on, but if they want to improve in their
economy, they need to start from somewhere. Starting with national security, controlling
inflation and providing better infrastructure for education can already make a huge difference in
order to expect better results in the future. This is because inflation, security and education is
something that affects not only the general population, but also the government in some way.
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