How Pakistan Become

Asian Tiger
Modern Economics
3/9/2015
Presented By: The Expendables
Presented To: Pro. M Nasir Chatta

How Pakistan
Become
Asian Tiger
Submitted By: Sajid Fajar
Abbas Ali
Mansoor Bhatti
Burhan Rana
Khalil-ur-Rehman
Shayyan Saeed

Submitted To: Pro. M.

Nasir Chattha

HOW PAKISTAN CAN BECOME THE ASIAN

TIGER
Asian crisis

- Background

Nine Asian countries, South Korea, Japan, china, Hong Kong, Taiwan,
Singapore, Malaysia, Indonesia and Philippines were considered Asian tigers
in the early 1990s. These economies were rapidly growing due to the inflow
of investment, improvements in technology, increases in education, and a
ready supply of labor as people moved from the country side to the cities to
work in factories, and reduced restrictions on trade and commerce leading to
free-market economies.

As long as asset prices continued to rise, the speculation continued. In the

case of these Asian countries, rapidly growing GPD and stable exchange
rates kept the speculation going. In the boom years, speculation loans were
mad to business whose credit worthiness did not warrant the loans. As the
crisis began, these businesses could not repay their loans.
As the realization started to spread that loans could not be repaid, currency
speculation began. The Thai baht was the first currency to experience
problems. Expecting the currency to devalue because macroeconomic
conditions dictated that the exchange rate could not be maintained at
current levels, speculators sold the baht. In an almost self-fulfilling prophecy
the baht devalued rapidly. This only exacerbated that situation. Since
Thailands debt was denominated debt. In effect, the currency devaluation
doubled the debt of Thai organizations, catching more organization in the
debt crisis.

At this time another phenomenon occurred. All of a sudden, investors began

to reassess their investment risk, not only in Thailand, but in the entire
region as well. As risk was reassessed, the events in Thailand spread like a
virus to eh other countries of the region. The I cant lose mentality quickly
turned into an I am going to lose big unless I get out mentality. Money
flows turned around quickly. Regional currencies devalued repeating the
same stress for many of the countries that Thailand was suffering. As the
crisis continued, the financial problems were worse than originally expected.
The crisis also exposed the varying levels of political risk inherent in each
country.
The crisis cascaded through the region like a row of strategically placed
dominos being knocked down when the first domino falls. One way to fight
the crisis would be through monetary policy; however, this was not an option
for these economies. Pumping more money into their economies would only
put pressure on their currencies futher, making the debt crisis worse. These
economies needed help from the IMF. When the IMF gets involved, it has
stringent rules. One is its insistence on the raising of interest rates.
Unfortunately, in the short-term, only deepens the recession.

Asian tiger:
THE ASIAN TIGERS IS A PAKISTANI MILITANT GROUP, FIRST
PUBLICISED WHEN THEY CLAIMED CREDIT FOR THE KIDNAPPING
OF FORMER PAKISTANI INTELLIGENCE OFFICERS KHALID
KHAWAJA , COLONEL IMAM , BRITISH JOURNALIST ASAD QURESHI
AND QURESHI'S DRIVER RUSTAM KHAN IN MARCH 2010.
KHAWAJA WAS KILLED IN APRIL 2010. QURESHI AND KHAN
WERE RELEASED IN SEPTEMBER 2010 AFTER 165 DAYS IN
CAPTIVITY. IMAM WAS KILLED IN JANUARY 2011.

DEFINITION OF 'FOUR ASIAN TIGERS'

The high-growth economies of Hong Kong, Singapore, South Korea and Taiwan. The four
Asian tigers consistently maintained high levels of economic growth since the 1960s, fueled by
exports and rapid industrialization, which enabled these economies to join the ranks of the
world's richest nations. Hong Kong and Singapore are among the biggest financial centers
worldwide, while South Korea and Taiwan are important hubs of global manufacturing in
automobile/electronic components and information technology, respectively.
The Asian Tigers or Asian Dragons is a term used in reference to the
highly free and developed economies of Hong Kong, Singapore, South Korea,
and Taiwan. These nations and areas were notable for maintaining
exceptionally high growth rates (in excess of 7 percent a year) and rapid
industrialization between the early 1960s and 1990s. By the 21st century, all
four have developed into advanced and high-income economies, specializing
in areas of competitive advantage. For example, Hong Kong and Singapore
have become world-leading international financial centers, whereas South
Korea and Taiwan are world leaders in manufacturing information technology.
Despite a World Bank report crediting neoliberal policies with the
responsibility for the boom, including maintenance of export-led regimes, low
taxes and minimal welfare states were also praised, but institutional analysis
also states some state intervention was involved. [4] The World Bank report
acknowledged benefits from policies of the repression of the financial sector,
such as state-imposed below-market interest rates for loans to specific
exporting industries. However, it also pointed out free trade and less
government spending were the driving force. As a result these economies
enjoyed extremely high growth rates sustained over decades. Other
important aspects include major government investments in education, nondemocratic and relatively authoritarian political systems during the early
years of development, high levels of U.S. bond holdings, and high public and
private savings rates.
A period of liberalization did occur, and the first major setback experienced
by the Tiger economies was the 1997 Asian financial crisis. While Singapore
and Taiwan were relatively unscathed, Hong Kong came under intense
speculative attacks against its stock market and currency necessitating
unprecedented market interventions by the state Hong Kong Monetary
Authority, and South Korea underwent a major stock market crash brought
on by high levels of non-performing corporate loans.

INDUSTRIAL SECTOR OF PAKISTAN

INTRODUCTION OF INDUSTRIES:
Industries are the backbone for a country as it can generate economic boost. The economy of any
country bases on its industrial development. A country cannot maintain its significant position in
the international market without having a sound industrial background.
The industrial sector of any country contributes major share in the GDP. The industrial sector of
Pakistan contributes 24% in gross-domestic product. The GDP is the gross domestic products.
GDP ratio is the measure of performance of any country.
Pakistan's industrial sector accounts for about 24% of GDP. Cotton textile production and
apparel manufacturing are Pakistan's largest industries, accounting for about 66% of the
merchandise exports and almost 40% of the employed labor force. [1] Cotton and cotton-based
products account for 61% of export earnings of Pakistan. The consumption of cotton increased
by 5.7% over the past five years while the economic growth rate was 7%. By 2010 the spinning

capacity increased to 15 million spindles and textile exports hit 15.5$ billion.[citation needed] Other
major industries include cement, fertilizer, edible oil, sugar, steel, tobacco, chemicals, machinery
and food processing.

Definition:
Industry refer to that sector of economy which
is related with manufacturing and production
of different products.

Industrial Sector Functions:

Industrial sector is of great importance in the development of economics of any country.

Industrial sector is of great importance in the development of economics of any country.
It is historical fact that countries with strong industrial sector have showed more
economic growth and development of Industrial sector in nation income and promoted
living standard of population.

There are many types of industries in Pakistan, these are

Textile Industry.
Vegetable Ghee and Cooking Oil Industry.

Sugar Industry.

Fertilizer Industry.

Cement Industry.

Chemical Industry.

Leather Industry.

Engineering Goods Industry.

Ship Building Industry.

Woolen and Worsted Textile Industry.

Cigarette Industry.

Textile Industry:
The textile industry is the largest industry of Pakistan. At the time of partition, Pakistan received
only 17 textile units in its share. The production of textile was very low and a large quantity of
textile had to be imported to meet the domestic, requirements. Now, Pakistan is a prominent
country for the production of textile. The textile industry accounts for 17.3% of value added,
32.2% of industrial employment and 60% of total exports. There were 354 mills operating in the
textile Industry in 2001-02. The installed capacity of spindles was 8841 thousand and installed
capacity of looms was 10 thousand in the same year. The production of cloth was 558 million
square meters by the organized mills sector. Various steps have been taken by the Government
for the growth of the textile industry e.g. the provision of incentives, freedom to acquire
technical assistance from abroad, directly financing institutions and improvements in
management and labor efficiency etc.
Historically, Pakistans industrial sector and clothing sector has always been a major contribute
in foreign exchange earner and still contributes.
Products:

Wool fabrics
Power loom products

Scarf

Blankets

Winter shawls

Hand embroidered shawls

Textile products

Handicrafts

Exports:

Faisalabad was once known for attracting workers into its textile industries but under the
current circumstances, the city is facing one of the biggest challenges ever in its history.
Over 200,000 workers have lost their jobs over the last year. Omer Nazar Shah, head of
the Industrial Police Liaison Committee, has considered the layoffs a very big threat to
the security of Faisalabad. He says, Since October, 2,500 people are losing jobs every
week from various industries in Faisalabad. Theyre either leaving the city or turning to
crime.
Vegetable Ghee and Cooking Oil Industry:
At the time of independence oil industry was very poor. Now there are 150 vegetable
ghee and cooking oil factories in Pakistan. Out of these 26 are in the public sector with an
installed capacity of 500 thousand tones of ghee and cooking oil. Total production of ghee and
cooking oil was 774 thousand tones in 2001-02. A large quantity of cooking oil is imported to
meet the domestic needs. The decline in the production of vegetable ghee is due to lower scale
turnover and operational difficulties & closing down of two units in N.W.F.P.
Sugar Industry:
At the time of independence in 1947, there are only two sugar factories in Pakistan.
At the present there are 106 sugar mills are operating in Pakistan.
It is the 2nd largest industry after textile industry.
In 1947, there were only 2 sugar factories in Pakistan, but at present there are 77 sugar factories
in the industry. During the year 2001-02 total production of sugar was 3247 thousand tones.
Revolutionary steps are required to expand the working capacity of this industry, which must be
expanded and facilities should be provided to farmers for the production of better crops.

Sugar by Product:
Alcohol (used by pharmaceutical industry)
Ethanol (used as a fuel

Fertilizer Industry:
Fertilizer is organic or in organic material of natural or synthetic origin
(other than liming material) that is added to soil to supply one or more plant nutrients essential to
the growth the plants. There are 10 fertilizer units (6 in the public sector and 4 in the private
sector) in the country, having an installed capacity of 42, 98,000 N. Tones (16, 74,000 N. Tones
in the public sector and 26, 24,000 N. Tones is the private sector). Total production of fertilizers
in 2001-02 was 5012 thousand tones. The low production was caused, by operational difficulties,
decline in working hours and power failure/load shedding. A number of concessions are provided
for the growth of this industry.

Major Fertilizer Cos and GDP Contribution:

Fauji Fertilizer Ltd
Engro Chemical Ltd

 Satara Chemical Ltd

GDP Contribution 14%

Employment 4.7 million

Cement Industry:
Cement industry is one of the prominent and energetic organization having
operations and interactions with cement industry. At present 24 cement factories are operating in
the country, out of these 4 factories are in public sector and 20 are in private sector. The installed
capacity of cement is 16,300 thousand tones out of which 9935 thousand tons of cement was
produced in 2001-02. This industry has been allowed duty free import of plant and machinery.
Cement Companies in Pakistan:

23 cement companies
4 foreign companies

3 controlled by armed force

19 companies are listed in stock exchange

GDP: -

3.5% contribution

Chemical Industry:
There are 12 chemical factories in the country producing, soda ash,
sulphuric acid, caustic soda, chlorine gas and other chemicals. The contribution of the chemical
industry towards GNP is only 3%.

This industry is not fulfilling domestic requirements, so a large amount of foreign exchange is
spent on the import of different chemicals every year.
Leather Industry:
The leather is made ups and finishing industries are symbolic and are important in
Pakistan.
Leather industry earning approximately more than 8 million from foreign exchange
country.

Leather Products:
Leather Garments
Leather Goods
Leather Shoe
Leather Gloves
Footwear
Uppers
Tanning
There are some Industrial problems and their solutions
PROBLEMS OR CAUSES OF INDUSTRIAL SECTOR

Causes of industrial backwardness may be divided into following four major categories:
A. HISTORICAL CAUSES

1)

Lack of Technical Knowledge:

Modern technology was introduced in the beginning of 20 th century. British used

the modern methods of production in Britain. But in sub-continent they used old method
of production in all the manufacturing units. So, quality and quantity of production was
very low it creates a bad view of our industry at world level.

2)

Industrial Share:

Before partition, there were 921 total industrial units in sub-continent. But out of
921 industrial units, Pakistan got only 34 industrial units that are just 3.69 % of total
industrial share. Accordingly, we started our economy without industrial sector.

B.

3)

ECONOMIC CAUSES

DISPUTABLE INDUST RIAL STRATEGY:

It is a huge barrier in the way of industrial advancement. In the history of

Pakistan, there was a policy of import substitution, in the early 1950s. There was a trend
of industrialization in the 1960s. The policy of Nationalization was adopted in Z. A.
Bhuttos period and Zia-ul-Haq adopted the policy of Privatization. The investors are
always hesitant to make investment in such situations.

4)

Lack of Mineral Resources:

There is acute shortage of mineral resources like oil and coal etc. These
resources are necessary for industrial development. Due to lack of mineral resources,
rate of industrial development in Pakistan is very low. Contribution of natural resources
to GDP is 0.8 % in Pakistan.

5)

Low Investment and Low Savings:

Deficiency of capital is one more major problem in the way of industrial
development. Pakistan is fundamentally, underdeveloped and there is shortage of
capital in the country. Industrial development is impossible without capital. Sufficient
capital is a major condition for industrial development. Total investment and domestic
saving are 13.4% and 9.5% of GDP respectively.

6)

Lack of Technical Know-how:

There is lack of technical and skilled workers in the country due to high rate of
illiteracy. Efficiency of labor is very low due to use of backward and orthodox technology.
It is also a main cause of industrial backwardness.
7)

LACK OF INFRASTRUCTURE :

The infrastructure for industrial development is necessary. There is shortage of

infrastructure in Pakistan. For example, gas, electricity, transport, roads, railways

network and communication are not available up to the requirement of industrial

development.
8)

Inflationary Pressures:
Rate of inflation is very high in Pakistan. The prices of imported machinery, oils,
chemicals and spare-parts are rising very sharply. These factors contribute toward
industrial backwardness. Very high rate of inflation is 14.1 % in Pakistan.

9) Unfavorable Industrial Structure:

There are inequalities in industrial growth in Pakistan. Manufacturing of

consumer goods is preferred over capital goods. No doubt, return on consumer goods is
more but capital goods are necessary for economic development.

10) Limited Market for Capital Goods:

The narrowness of domestic and foreign markets for the industrial goods is also a major
hurdle in the way of industrial development. Small size of market is due to low
purchasing power, low standard of goods and high cost of production etc.

11) Lack of Industrial Consultancy Firms:

The investment in modern industries is not only costly but also risky. The
capitalists are regularly withdrawn and hesitant in investing their capital in new industrial
ventures. No doubt, deficiency of capital is a problem in Pakistan but the major problem
is that existing capital is not properly utilizing due to lack of consultancy firms.
12) Lack of Industrial Research:

Research work for industrial sector is not satisfactory due to lack of technical
education and shortage of technological universities in the country. Improvement in
production and reduction in cost of production is impossible due to lack of research.
Number of technical and vocational institutions in Pakistan is more than 1522 out of
which 1140 are in public sector. These are providing training to 300,000 persons.
13) Frequent Breakdown of Electricity:

Like other power resources, electricity is also insufficient in Pakistan to meet the
domestic needs. There is irregular supply and frequent breakdown of electricity in
Pakistan. It is affecting the industrial production in the country. Growth rate of electricity
and gas sector, in Pakistan is -21.1%.
14) Global Recession:

The global economic recession in the last years adversely affected the growth of
manufacturing sector. The donor countries usually interfere in our internal affairs and
economic activities in the time of recession.

C.SOCIAL CAUSES
15) Lack of Education:

People have no idea how to set up the industry due to high degree of illiteracy.
They have no sufficient resources to start heavy projects. Efficiency of unskilled,
untrained and illiterate labor is very low that causes in industrial backwardness. Literacy
rate is just 57.7 % and expenditures on education sector are only 1.8 % of GDP, which
is lowest in Asia.

16) Faith & Fate:

Man should work hard first and then put the result in the hands of ALLAH. Mostly,
our people are irrational, they believe on faith and fate. They do not want to take the
risks. They are working just to meet their basic needs. There is absence of commercial
mind in Pakistan.
17) Corruption:

Corruption is a great evil, which is still increasing at very high rate in

Pakistan. It is found in government as well as private sector also. Due to
corruption, illiterate and dishonest workers come forward and cause
industrial backwardness. Pakistan is at number 34 th at the table of the most
corrupt nations and at number 1st in South Asia.

Suggestions of Industry
MEASURES OR SUGGESTIONS TO IMPROVE INDUSTRIAL SECTOR:
The following measures are suggested to improve industrial sector of
Pakistan:
1)
More allocation of funds for industrial research is required, which is
necessary, for the industrial development.
2)
Industrial sector can be promoted by increasing capital.
3)
Saving and investment should be increased to develop industrial sector.
4)
To promote industrial sector, there should be technical know-how.
5)
Tax concession is also needed to increase the investment in new
industries.
6)
In time supply of raw material is necessary for the improvement of
industrial sector.
7)
Advanced infrastructure is necessary for industrial development of
Pakistan.
8)
Financial institutions should provide credit facilities to industrial sector at
flexible terms and conditions.
9)
There should be expansion of markets, at domestic and foreign level, of
industrial goods.
10) Foreign investment should be encouraged; more incentives should be given
to investors.

11) Political stability is compulsory for the development of industrial sector.

12) High degree of technical education is required to produce skilled, technical
and efficient work force.
13) Problem of load-shedding and irregular supply of electricity should be
removed.
14) Commercial policy and self-reliance policy should be adopted to remove
industrial backwardness.
15) Foreign exchange reserves and the balance of payment position should be
favorable to develop industrial sector.

Conclusion

All above factors are causing industrial backwardness. Backwardness is not bad
but remaining backward is so bad. So, Pakistan is needed to make industrial
development through:
Use of advanced technology
Development in infrastructure
Provision of credit facilities
Increase in industrial consultancy firms

Agriculture sector of pakistan

HISTORY:
The history of agriculture dates back thousands of years, and its
development has been driven and defined by greatly different climates,
cultures, and technologies. However, all farming generally relies on
techniques to expand and maintain the lands that are suitable for raising
domesticated species. For plants, this usually requires some form
of irrigation, although there are methods of dry land
farming; pastoral herding on rangeland is still the most common means of
raising livestock. In the developed world, industrial agriculture based on
large-scale monoculture has become the dominant system of modern
farming, although there is growing support for sustainable agriculture.
What is agriculture:
The science, art, or practice of cultivating the soil, producing crops, and
raising livestock and in varying degrees the preparation and marketing of the
resulting products.

Agriculture, also called farming or husbandry, is the cultivation

of animals, plants, fungi, and other life forms
for food, fiber, biofuel, drugs and other products used to sustain and enhance
human life.[1] Agriculture was the key development in the rise of sedentary
human civilization, whereby farming of domesticated species created
food surpluses that nurtured the development of civilization. The study of
agriculture is known as agricultural science.

The magnanimity of the agricultural problems in Pakistan has undoubtedly crippled

the economy. In 1947, agricultures contribution of GDP was 53% that has shrunken
down to 21% last year. Pakistan has great agricultural potential because of its
alluvial soils. However, it is producing almost 50% below its potential. Neighboring
India and Bangladesh have shown significant improvement in their agriculture
sector unlike Pakistan. Where China is growing padi crops in Gobi desert, Pakistan is
still relying on perennial canal system of irrigation. Let us make an attempt to study
the agricultural profile of Pakistan followed by a brief discussion on problems in this
sector.

Problems of Agriculture in Pakistan:

Irrigation issues:
Quite unfortunately, network of water channels existing in Pakistan has become redundant.
Perennial canal system of irrigation, when formed, was a very efficient in 1960s. But today,
Pakistan is deprived of the modern ways of irrigation that is drip and sprinkle irrigation. A huge
amount of water is lost due to seepage and evaporation. Moreover, due to problem of distribution
of water in fields, farmers do not practice the standard water required in fields. Thus, this leads to
mismanagement of water.

Water issues:
In Pakistan, construction of water reservoirs has become a matter of political tussle. Due to
which construction of dams has been in halt since last major project of Terbela. Indus Basin
Treaty 1960 has failed to stop India from constructing water reservoirs on the channels flowing
to Pakistan. However, Pakistan consistently failed to establish its view point on international
forums. The present canal water is not effectively used in our irrigation system. 25% - 35%
losses of water are recorded out of total applied to fields. Out of 142 MAF, total quantum of
water available to crops is only 42 MAF. Due to shortage of canal water farmers have to use tube
well water. This water is brackish and having higher concentration of different salts and enhances
the problem of soil salinity.

Deforestation:
Less than 4% of land in Pakistan is forested and rate of deforestation is around 3%. From
northern highlands to the coastline of Karachi, Pakistan has diverse range of forests from
coniferous to mangroves respectively. However, deforestation is the result of increased and
unplanned urbanization. Therefore, expanding urban units grow at the cost of trees. This is not
only causing environmental hazards, but also accentuating the impacts of global warming.
Absence of Land Reforms:
During Ayubs era, first time land reform was practiced. Mr. Zulfiqar Ali Bhutto introduced more
reforms in 1972. The Law Reforms Act 1977 was also enforced by Bhuttos regime. The most
important change was that individual holdings, including shares in shamilat, if any, in excess of
100 acres of irrigated land or 200 acres of un-irrigated land. Furthermore, notwithstanding the
above, no land holding could be greater than an area equivalent to 8,000 PIU. However, these
laws were declared in contradiction to Islam and have ceased to be in effect since 1990. Thus,
absence of land reforms has always caused a lot of damage to the agricultural sector of Pakistan.
Salinity and water logging:
Due to excessive use of canal water, most of cultivated lands have become victims of these two
dangerous diseases. Every year, salinity alone is turning about 100,000 acres of arable land into

marches and salt lands. Water-logging is no less injurious. About 25% of the irrigated area of
Pakistan is affected by water logging and salinity problems.

Solutions for Agricultural problems In Pakistan:

1. Feudalism:
Feudalism should be abolished and lands should be allotted to poor farmers. This will
enhance the productivity and per acre yield of all the crops in Pakistan. Taxes should be levied
on Agricultural income but not without devising limit of land holding. Otherwise it would
directly affect poor farmers.
2. Federal seed certificate and register:
Federal Seed Certification and Federal Seed Registration
is approved but it should taken responsible steps in approving seeds as it has already approved 36
new kinds of seeds. Specially, those seeds should be banned which can create pest problem in
near future. These seeds are of cotton mainly. International seed makers are providing those
seeds which are not successful in our country as these seeds are not tested on our soil.
3. New agricultural policy:
A new Agricultural policy must be framed in which following steps
should be focused on.
4. Small farmer:
Small farmer must be focused. The major problems of small farmers should be
solved first.
5. Consumer friendly policy:
Consumer friendly policy must be projected.

6. Productivity enhancement program:

Productivity enhancement program must be constituted to
adjust and support prices.
7. Agriculture zones:
Different Agricultural zones should be introduced. As Multan in famous for
its Mangoes and citrus fruits so it must be made Mango, citrus zone by which Perishable
products should be exported. This would enhance agro based industry and increase foreign
reserves. Pakistan Agricultural storage & Services Corporation needs to take steps in this regard.
8. Corporate farming:
Corporate farming like giving lands to Mitehels, Nestle and Multinational
companies is also a good idea that will also help those who own a large area of fertile land but
cant manage it.
9. Vegetable and fruits exported:
Surplus vegetables and fruits must be exported. A Rs 39 million
scheme has been approved for the current fiscal year for establishment of agro export processing
zone for fruits, vegetables and flowers. This will also help in commercializing agriculture and
farmers will be able to earn more revenue.
10. Latest machinery:
Latest machinery should be provided to the farmers to increase the per acre
yield. This provision should be on easy installments so that the farmers can avoid the burden of
loans. If possible subsidy should be given by the government of modern machinery.
11. Modern techniques:
Modern techniques of irrigation can solve the problems of irrigation in
Pakistan. This includes drip irrigation and sprinkle irrigation methods. By using this technique
the farmers can save a huge some of money which he pays for irrigation through tubewells
and tractors.

ENERGY CRISIS SECTOR OF PAKISTAN

1. Introduction
2. Pakistans Energy Sector
2.1 Energy Supply
2.2 Energy Consumption
3. Sources of Energy in Pakistan
3.1 Non-renewable resources (Fossil fuels)
a). Petroleum products
b). Natural Gas
c). Coal

3.2 Renewable Resources

a). Hydro power
o Current Hydropower stations
o Potential Hydropower stations
3.3 Alternative Energy Sources
a). Wind
b). Solar
c). Agricultural biomass /biodiesel
d). Tidal
3.4 Nuclear
4. Causes of Energy Crisis
4.1 Growing Energy Demand
4.2 Lack of proactive and integrated planning for production of energy
4.3 Imbalanced energy mix
4.4 Non-utilization of enormous indigenous energy resources
a). Thar Coal
b). Hydal power generation
5. Consequences of Energy Crisis
5.1 Economic Factors
5.2 Agriculture Sector
5.3 Industrial Sector
5.4 Unemployment
5.5 Social Issues
5.6 Poverty
6. Conclusion
7. Recommendation/Solutions of Energy Crisis
7.1 Judicious energy use/saving unecessary energy usage
o electricity saving devices
o Awareness campaign for energy saving
o Reduction in unnecessary transportations
o Installation of effective equipment/energy efficient in industries
o Decreasing line/transmission losses
7.2 Developing new energy resources
o Tapping indigenous resources
o Using renewable resources (water) by constructing new dams and hydro power plants
o Import of natural gas
o Utilizing alternative energy resources

 Wind power
Biodiesel /Biomass
Solar
Tidal
o Enhancing civilian nuclear capacity
1. Introduction:
Energy is considered to be life line of any economy and most vital instrument of
socioeconomic development of a country. Energy is pivotal in running machinery in factories
and industrial units, for lighting our cities and powering our vehicles etc.
There has been an enormous increase in the demand of energy as a result of industrial
development and population growth, in comparison to enhancement in energy production.
Supply of energy is, therefore, far less than the actual demand, resultantly crisis has emerged. An
energy crisis can be defined as any great bottleneck (or price rise) in the supply of energy
resources to an economy.

2. Pakistans Energy Sector:

Pakistans energy infrastructure is not well developed, rather it is
considered to be underdeveloped and poorly managed. Currently the country is facing severe
energy crisis. Despite of strong economic growth and rising energy demand during past decade,
no serious efforts have been made to install new capacity of generation. Moreover, rapid demand
growth, transmission losses due to outdated infrastructure, power theft, and seasonal reductions
in the availability of hydropower have worsened the situation. Consequently, the demand
exceeds supply and hence load-shedding is a common phenomenon through power shutdown.

2.1 Energy Supply:

During 2009-10, Energy supply and per capita availability of energy
witnessed a decline of 0.64 % and 3.09 % respectively in comparison to previous year.
Pakistan needs around 15,000 to 20000 MW electricity per day, however, currently it is able to
produce about 11,500 MW per day hence there is a shortfall of about 4000 to 9000 MW per day.
This shortage is badly hampering the economic growth of the country.
2.2 Energy Consumption:
Pakistans energy consumption is met by mix of gas, oil, electricity, coal
and LPG sources with different level of shares. Share of gas consumption stood at 43.7 %,
followed by oil 29.0 percent, electricity 15.3 percent, coal 10.4 percent and LPG 1.5 percent.
3. Sources of Energy in Pakistan:
3.1 Non-renewable resources (Fossil fuels): [Limited Expensive]
Nonrenewable resources are primarily fossil fuels
emanating from remains/decomposition of animals and plants deposited deep into the earth crust
and converted into oil and gas. These resources cannot be replenished. There are three main
types of fossil fuels: coal, petroleum, natural gas and liquefied petroleum gas (LPG).
a). Petroleum products:
In 2009-10, consumption of petroleum products was 29% of total share of
energy. Majority of crude oil is imported from gulf countries to meet the demand. Power,
industry and transport sectors consume higher quantity of petroleum followed by agriculture and
households. Petroleum is also used in generation of electricity, which counts 64 percent of total
electricity generation (34 coming from hydro generation). Balance recoverable reserves of crude
oil in country have been estimated at 303.63 million barrels and we are extracting approximately
24 million crude oil annually, meaning if we do not explore new wells, we will exhaust our
current crude oil reserves in 12-13 years.
b). Natural Gas:
Importance of natural gas is increasing rapidly. Average production of natural gas
is 4,048.76 million cubic feet per day as against 3,986.53 million during corresponding last year,
showing an increase of 1.56 percent. Natural gas is used in general industry to prepare consumer
items, to produce cement, for manufacturing fertilizers and to generate electricity. In form of
CNG, it is used in transport sector. Share of natural gas in energy consumption is 43.7 percent.
Due to price differential between CNG and Petrol, vehicles are using converted to CNG and
approximately 2.0 million vehicles are using CNG and currently Pakistan is the largest CNG user
country in the world. Liquefied petroleum gas (LPG) contributes around 0.7 percent to total
energy supply in country and is being imported to stop deforestation in hilly areas.
c). Coal:
Pakistan has coal reserves estimated at over 185 billion tones, including 175 billion tones
identified at Thar coalfields. Coal is primarily being used in brick kiln and cement industries and
approximately 67 percent coal is imported because indigenous coal is not considered of good

quality.
Guddu plant is largest plant thermal operated plant with a capacity of 1,650 MW, while two
largest Independent Power Plants (IPPs) in Pakistan are Kot Addu (1,600 MW) and Hubb River
(1,300 MW).

3.2 Renewable Resources : (Unlimited sustainable clean)

Renewable energy resources are those, which are naturally replenished and comes from
resources such as water, sunlight, wind, rain, tides, and geothermal heat.
a). Hydro power:
Hydro power is generated by using electricity generators to extract energy from
moving water. Pakistan is having rich resource of energy in hydal power, however, only 34 % of
total electricity generation is coming from hydro power. Currently we are having 6555 MW
against the potential of 41000 to 45000 MW.
Current Hydropower stations:
Tarbella Dam : 3,478 MW
Ghazi Brotha: 1450 MW
Mangla 1,000 MW
Warsak 240 MW
Chashma 184 MW
Potential Hydropower stations:
Diamer-Bhasha Dam 4500 MW
Munda Dam Swat river in Mohamand Agency 740 MW
Kalabagh Dam 2400-3600 MW
Bunji Dam 5400 MW
Dasu Dam 3800 MW
3.3 Alternative Sources of Energy:
a). Wind:
Wind power harnesses the power of the wind to propel the blades of wind turbines.
These turbines cause the rotation of magnets, which creates electricity. Though Pakistan has
potentials of wind energy ranging from 10000 MW to 50000 MW, yet power generation through
wind is in initial stages in Pakistan and currently 06 MW has been installed in first phase in
Jhampir through a Turkish company and 50 MW will be installed shortly. More wind power
plants will be built in Jhampir, Gharo, Keti Bandar and Bin Qasim Karachi.
b). Solar:
Solar power involves using solar cells to convert sunlight into electricity, using sunlight
hitting solar thermal panels to convert sunlight to heat water or air. Pakistan has potential of
more than 100,000 MW from solar energy. Building of solar power plants is underway in
Kashmir, Punjab, Sindh and Balochistan. However, private vendors are importing panels / solar
water heaters for consumption in the market. Alternative Energy Development Board (AEDB) is

working for 20,000 solar water heaters in Gilgit Baltistan. Mobile companies have been asked by
the government to shift supply of energy to their transmission towers from petroleum to solar
energy panels.
c). Agricultural biomass /biodiesel:
Biomass production involves using garbage or other renewable
resources such as sugarcane, corn or other vegetation to generate electricity. When garbage
decomposes, methane is produced and captured in pipes and later burned to produce electricity.
Vegetation and wood can be burned directly to generate energy, like fossil fuels, or processed to
form alcohols. Brazil has one of the largest renewable energy programs from biomass/biodiesel
in the world, followed by USA. Alternative Energy Development Board (AEDB) of Pakistan has
planned to generate 10 MW of electricity from municipal waste in Karachi followed by similar
projects in twenty cities of country.
d). Tidal:
Tidal power can be extracted from Moon-gravity-powered tides by locating a water
turbine in a tidal current. The turbine can turn an electrical generator, or a gas compressor, that
can then store energy until needed. Coastal tides are a source of clean, free, renewable, and
sustainable energy.
Plans are underway in Pakistan to harness tidal energy; however, no implementation has been
made so far.
3.4 Nuclear:
Nuclear power stations use nuclear fission reaction to generate energy by the reaction
of uranium inside a nuclear reactor. Pakistan has a small nuclear power program, with 425 MW
capacity, but there are plans to increase this capacity substantially.
Since Pakistan is outside the Nuclear Non-Proliferation Treaty, it is excluded from trade in
nuclear plant or materials, which hinders its development of civil nuclear energy. Remaining
issues in development of nuclear energy are enrichment of uranium from U235 to U238,
controlling chain reaction and dumping of solid waste.
Pakistan Nuclear Power Reactors
Reactor Type MW Construction started Commercial operation
Karachi PHWR 125 1966 1972
Chashma 1 PWR 300 1993 2000
Chashma 2 PWR 300 2005 expected 2011
Total 425 MW
* Pressurized heavy water reactor (PHWR) - Canadian based reactors
* Pressurized water reactor (PWR) Chinese based reactors

4. Causes of Energy Crisis: Pakistans energy crisis traces its roots to following distinct causes:
Growing Energy Demand
over the years there is greater need of energy because of;
Increase in population,
enhancement in lifestyle
industrial and agricultural growth
greater transportation needs

Lack of proactive and integrated planning for production of energy:

Pakistan has had wider potentials to tap energy, however, due to lack of any integrated/proactive
planning, very less number of power producing plant were installed to meet futuristic demands.
Resultantly, over the years, the gap between energy demand and supply drastically grew and now
against demand of 20000 MW, we are having around 11500 MW.
Imbalanced energy mix:
Energy mix in Pakistan is quite imbalance in comparison to other countries, with greater reliance
on non-renewable resources of gas (43.7 %) and oil (29 % - majority of which is imported).
Prices of petroleum products/crude oil fluctuate and in current Afro-Arab political crisis, the oil
prices are likely to increase manifold affecting oil prices in Pakistan.
A rational energy mix planning ought to be developed giving greater dependency to renewable
(hydel power), indigenous (coal) and alternative energy resources (wind and solar energy).
Nuclear energy can
Non-utilization of enormous indigenous energy resources:

o Thar Coal:
Pakistan is having one of the largest coal fields in Thar, having reserves of more than 175
billion tones, which exceeds equivalent oil reserves of Saudi Arabia, Iran etc.
In addition to power generation, this coal can be used for chemical and fertilizer production.
Moreover, employment provided to workforce can be instrumental in increasing GDP and
economic prosperity to many families.
o Hydal power generation :
Pakistan has potential of hydro resources to generate 41000 to 45000 MW, however, only
6555 MW is currently being generated by this important renewable resource.
Four large hydro power dams namely Kalabagh 3600 MW, Bhasha 4500 MW, Bunji 5400
MW and Dasu 3800 MW can be constructed to generate hydro electricity.
Similarly, many small to medium hydro plants can be installed on rivers and canals etc.
5. Consequences of Energy Crisis:
i). Economic Factors: Energy is pivotal for running all other resources and crisis of energy
directly influences all other sectors of the economy. The economic progress is hampered by
decline in agricultural productivity as well as by halting in operations of industries. One
important factor of lower GDP and inflation of commodity prices in recent years is attributed to
shortfalls in energy supply.
ii). Agriculture Sector: Agricultural productivity of Pakistan is decreasing due to provision of
energy for running tube wells, agricultural machinery and production of fertilizers and pesticides.
Thus higher energy means higher agricultural productivity.
iii). Industrial Sector: Nearly all Industrial units are run with the energy and breakage in energy
supply is having dire consequences on industrial growth. As a result of decline in energy supply,
industrial units are not only being opened, but also the existing industrial units are gradually
closing.
iv). Unemployment: By closure of industrial units and less agricultural productivity, new
employment opportunities ceased to exist and already employed manpower is shredded by the
employers to increase their profit ratios. Thus energy crisis contributes towards unemployment.
v). Social Issues: This factor is primarily related to the domestic usage of energy (cooking,
heating and water provision). Load shedding cause unrest and frustration amongst the people and
results in agitation against the government.
vi). Poverty: Declination in economic growth, lower agricultural productivity, unemployment
and shackling industrial growth result in increasing poverty. Currently, around forty percent of
our population is living beyond poverty line and this ratio is increasing day by day. Ample
control of energy crisis will surely yield in curbing the menace of poverty.

6. Conclusion:
Energy Crisis has, moreorless, plagued all sectors of Pakistans machinery ranging from
economy to industry, agriculture to social life, inflation to poverty and it is hampering national
progress in a drastic manner. Nonetheless, menace of energy crisis can be overwhelmed by
government through making effective policies and its proactive implementation. Simultaneously,
it is the responsibility of us, the people of Pakistan, to utilize the available energy astutely and
wisely to play our due role for progress of the country.
7. Recommendations/Solutions of Energy Crisis:
Energy crisis can be curtailed by:
i). Reducing unnecessary energy use:
o Usage of electricity saving devices
o Awareness campaign for energy saving
o Reduction in unnecessary transportations by developing good public transport systems and
strengthening Pakistan railways

o Reduction in industrial uses with installation of effective equipment/ energy efficient and with
increasing efficiency of workforce (cost effective)
o Decreasing reliance on rental power projects, because instead of doing any good, they are
increasing prices of electricity.
o Decreasing line losses by using efficient power transmission cables
ii). Developing new energy resources:
o Tapping indigenous resources (Thar coal)
o Using renewable resources (water) by constructing new dams and hydro power plants
o Import of natural gas by IPI (Iran Pakistan India) and TAPI (Turkmenistan, Afghanistan,

Pakistan and India) pipelines

o Import of electricity from Tajikistan -through Pak Afghan Tajikistan transmission- and Iran
(approximately 1000 MW from each of them) pipelines
o Utilizing alternative energy resources :
Wind power
Biodiesel /Biomass
Solar
Tidal
o Enhancing civilian nuclear capacity

BANKING SECTOR OF PAKISTAN

INTRODUCTION:
Banking in Pakistan first formally started in Pakistan during
the period of British colonialism in the South Asia. After independence from British
Raj in 1947, and the emergence of Pakistan as a country in the globe, the scope of
banking in Pakistan has not been increasing and expanding continuously, as
because of lacking some financial problems and Robbery in accounts especially in
the National Bank Of Pakistan.

Pakistan's oldest bank is the State Bank of Pakistan, which is also the central bank
of the nation. Before independence on August 14, 1947, the Reserve Bank of India
was the central bank of what is now Pakistan. After independence, Muhammad Ali

Jinnah took actions to establish a central bank in Pakistan which resulted in the new
founding of the State bank of Pakistan, with its headquarters to be based in Karachi.
Only 7% of the population uses the banks, has tremendous potential but this needs
to be pushed a little further.

Problems & solution of banking sector of Pakistan:

1. Not establishing a relationship with a banker:
Too often we find our salved in a branch, standing in line like sheep, waiting for our turn to
execute a 60 second transaction, or using ATMs and drive-up tellers for cash withdrawals and
deposits. If we add online banking to the mix, there is very little personal interaction with the
actual bank.
SOLUTION: Meet with and establish a relationship with the branch manager of your
neighborhood bank.
A 30 second phone call is all you need to setup a meeting with your bank's manager. Establishing
a relationship with your bank has several benefits. It can plug you in to the local community and
financial pipeline of your community. It will also align you with the best deals your bank has to
offer. It is nice to have the bank offer lower mortgage rates, special interest rates on Certificates
of Deposit, and/or to have a physical person to talk about unusual activity, or unnecessary fees on
your accounts (think NSF resolution). In addition, many loan decisions are contingent upon the
opinion of the branch manager. Establishing a relationship can help with all of the
aforementioned and there's the added bonus of knowing that the person on the other end can
really help with your account needs.

2. Review your banking statements:

We receive banking statements in the mail, and some of the more "green" of us receive an email
that our monthly statement is ready. We tend to ignore the information because, hey, I know what
my current balance is. This is an awful practice because it minimizes your expenses to the status
of "junk mail"
SOLUTION: Take a few minutes to review your monthly bank statements.
Many of us have the visual of our parents sitting at a table reconciling their checkbooks against
the bank statement. Today, we have online banking tools which have basically eliminated the
need to perform 4th grade mathematics in a tiny ledger book. What we didn't see was that the
reconciliation our parents went thru was more about making sure the bank(s) had not made a
mistake on their account. Mistakes on your account, unnecessary fees, and payments that you
didn't make can be found quickly with a scan of your monthly statement.

3. Paying for banking:

In Part 1 of this series, we broke down how banks work. With this information at your disposal,
there is zero (0) reason anyone should ever pay for banking. Whatever maintenance is being
performed on accounts, monthly fees, or conveniences the bank provides, these services should
be free since we have graced them with the use of our money.
SOLUTION: Shop banks...and don't forget about credit unions!
There are over 8000 commercial banks and over 45,000 credit unions operating in the United
States. Most of your key money services are available at all of these. With so much competition
for your deposits, why pay for banking? The options are endless from online banking, to
membership credit unions. Even if one cannot open a bank account due to the dreaded Check
Systems list, there are several free options including non-traditional banking using "personal
money accounts". Do not pay for someone to hold onto your money. It can easily save hundreds
of dollars per year.

4. Loyalty to a bank:
Imagine that you are at a restaurant and the server refuses to refill your beverage, brings you cold
food, and drops off your bill before you have finished eating. It is safe to assume that you would
pay for the food, but also consider not coming back to the restaurant. The same applies for your
banking.
SOLUTION: If you are not satisfied with your bank, move your money.
Okay, so your direct deposit is landing at the bank. It's a 60 second process with your HR
department to get your direct deposits changed to another bank. Opening an account online now
takes 2-3 minutes. Are less than 5 minutes out of your life worth the satisfaction of having your
money handled the way you want.
When shopping for loans, there's no rule that you must use your bank for loan products. Of
course, if you have established a relationship with your banker, a loan through your bank may be
the best rate and easier to obtain. Do not be afraid to shop loans. There may also be opportunities
to have multiple banks compete for your loan request (think LendingTree.com). Banks make
money off of loans, so we are well within our rights to shop around. Your money will still be safe
:).

5. Leaving cash in an account:

Whether its $50 or $5000, your money can work for you. Many of us live check-to-check; lawd
knows I have, but we all work hard to get to a point where there is a little something left between
each...maybe even in a savings account. For the past year, the average interest rate for a savings
account has been between a paltry 0.25% and 0.38%. This means that your $50 will earn about
1 per month.
SOLUTION: Find higher yielding products for your "sitting" cash.

The are literally thousands of products and places to put your extra money. We will investigate
several higher yielding accounts in detail, but Certificates of Deposits (CDs), Money Market
Accounts (MMAs), Money Market Funds, and even some Interest Checking Accounts are good
places to earn 8x-to-10x the interest from a savings account at your local bank. It may not seem
like much with the $50, but consider what you could purchase for 12 versus what you could
purchase for $1.20.
Addendum: Although this section is on sitting cash, one of the things I have done recently to
maximize the interest I gain is open an online, interest-bearing checking account. The thing to
note is that I have my direct deposit land in this account and to maximize the interest, I setup all
of my bills to be due on two dates slightly after pay periods. This allows maximizing the interest
gained on the account while the balances are high. During one 12-month period, when I going
check-to-check, this process earned over $100 in interest; now that's a lot of Jr. Bacon
Cheeseburgers :).

6. Using ATMs:
We already know that ATMs are about convenient access to your money, but why give the bank
10-15% just because they processed your transaction? I know that there are times when it cannot
be avoided, but ATM fees are some of the most intrusive fees that exist within the banking
industry. Nationally, the banks make $2-3 billion annually on ATM fees. WOW! That's allot for a
60 second transaction. Going back to common problem #2, Review your banking statements, we
are often charged twice for an ATM transaction. Big banks want these ATM fees because it
makes it difficult for small community banks and credit unions to compete. Well, isn't the free
market about competition? There are several solutions for ATM fees.

SOLUTION 1: Go to your bank's website and find the free ATMs within your normal
operation areas...and learn your "interbank network" (see below).

SOLUTION 2: Get cash back on transactions at grocery and department stores.

SOLUTION 3: Take more money out of the ATM to limit the percentage the bank makes
on the transaction (e.g. a $20 withdrawal and a $2 ATM fee is 10%, whereas $200 is only
1%.
There are states in the union (Iowa and Connecticut) which have banned ATM fees. If legislation
has been passed which bans ATM fees, then someone made arguments to them being illegal,
right?
Most ATM machines are connected to an interbank network which identifies and allows
individuals to withdraw money away from the bank. On the back of almost every ATM card is a
list of interbank networks where you should be able to use your card without the ATM surcharge.
Examples of the banking networks are All point, Cirrus, STAR, PULSE, and NYCE o name a
few. If you know your interbank network, you can easily choose ATMs which do not charge a
fee.

7. Identity Theft:
I wouldn't be worth my salt in technology if I did not address identity theft. For the record, IT
"CAN" HAPPEN TO YOU. This does not mean you can't use the conveniences that a bank
provides such as online banking and paper statements. These are important tools for your
financial health. However, there are some safeguards you should take into account when banking
in a non-traditional fashion:
SOLUTION 1: Do not check the "Remember Me" box on a public or work computer (and
possibly not on your home machine).
SOLUTION 2: Shred all paper statements.
SOLUTION 3: If your wallet/purse is lost, call the bank immediately and have them
monitor transactions on your account or cancel the card(s).
Protecting your identity is "your" responsibility, but banks and credit card companies are more
than willing to help. They do not want the expense of reimbursing money. Identity theft is an
expensive enterprise for many, so determine the things which affect you financially and guard
against illegal emulation.

In Conclusion:
We have listed several of the common banking problems and suggested solutions to each. You
may be wondering, "why no mentions of NSFs"? Well, NSFs are a large enough issue that we

have isolated and addressed them in the next section. If any of the aforementioned solutions have
worked for you, please share with the readers your experiences. We are all in this "financial
crisis" together and together we can work our way out.

EDUCATION SECTOR OF PAKISTAN

INTRODUCTION:
Education either functions as an instrument which is used to facilitate integration
of the younger generation into the logic of the present system and bring about
conformity or it becomes the practice of freedom, the means by which men and
women deal critically and creatively with reality and discover how to participate in
the transformation of their world.

Education a basic definition:

Education, in a very general sense can be summed up at a
basic level as referring to an experience or act that has a formative effect on the mind, character
or physical ability of an individual. In the sense that it is formative means that education is
serving to form something and particularly something that will have a long lasting effect on the
persons mind and faculties. The most obvious example of this is the ability to understand and use
language and mathematics a skill which is then utilized throughout an individuals life.

PROBLEMS & SOLUTIONS OF EDUCATION:

A. Low literacy level and low standard of education:
These are general problems and need no elaborate comment here.
B. Inappropriateness of curricula and pedagogy:

The curricula and related pedagogy are usually inappropriate or at least

inadequate for the set goals in many disciplines. Furthermore, there is no
integrated system in which one step leads to the next to enable a student to
develop a truly sound base for the discipline he or she is worth its name to
help a student in gauging his or her potential or in deciding on a suitable
academic career. Interested in Moreover, even at the higher levels of
education, there is no mechanism
C. Multiplicity of educational systems:
There are many systems working here, resulting in not synergy but social
division and conflict. For example we have English medium schools, Urdu
medium schools, and religious madrasas. Students coming out of English
medium schools, especially good private sector schools, have little or no
awareness of their religion and culture whereas those passing out from Urdu
medium schools are usually destined to work in clerical and lower level
positions. Religious madrasas churn out yet another class that are usually
unaware of the world outside their own and, with their strong sectarian bias
and little or no training in modern disciplines, are usually ill-equipped to
interact meaningfully with the larger society and are also monumental at
times in spreading sectarianism.

RECOMMENDATIONS:
A. Declare educational emergency
The present government should declare a national educational
emergency and involve the whole nation, including the army, in
waging a war against illiteracy. Some steps that the government
might consider taking in this regard are:
1. Declare education as the highest priority of the government.
Explain that unless the impediments of illiteracy and lack of
education are removed, the road to democracy will remain fraught
with the danger of exploitation of the masses by the select few, and
that in the absence of political will in the ruling classes to do
something tangible in this arena, it seems that it is up to the army to
defend the country against illiteracy and lack of education, for there
is no factor more important to the well-being of a nation than human
resource and no negligence worse than ignoring its development.
2. Make it mandatory for government and army officers at all
levels to do stints at various educational institutions in relation to
their skills and national requirements.
3. Make it a mandatory requirement for various degree programes

that the candidates, after taking their exams, shall spend a specified
period of time [for specified hour(s)] in teaching at assigned
institutions. (These assignments should be given in a judicious and
practical manner).
4. Ask for volunteers with specified qualifications to contribute
their services in their areas of work or residence under organized
bodies that can be formed for this purpose by the government.
5. Ask the public to contribute financially for this purpose. Modern
marketing and fund raising techniques can be adopted for this task.
6. Many government school buildings can be converted into
commercial schools of good level. The government can consider
offering many of these schools to private sector organizations in the
field of education on the condition that a specified percentage of
bright students from the lower and middle classes will be granted
admission and scholarships. Tax benefits/exemptions may also be
made part of the deal to encourage entrepreneurship in this area.
7. Offer tax benefits/exemptions and other such incentives to
private sector groups to invest in education in rural and less
developed areas.
8. Make it mandatory for each industrial unit/agricultural estate of
an area above a specified limit to provide for a school within the
premises/area. Alternatively, the owner can be asked to share costs
with the government for setting up such school. Another option is
giving various financial/tax incentives.
9. Introduce standardization of curricula and licensing and
certification of teachers to improve standards (as is done in the
USA).
10. Introduce high quality selection procedure for higher level
teachers and offer the candidates better incentives.
11. Use electronic media more extensively for educational
purposes. A channel could be devoted to just education. In this
regard,
a. teachers of high caliber can take classes for different subjects
at various levels,
b. these lecturers can be telecast as well as recorded,
c. the lectures can be delivered by telecasting them or by playing
recorded cassettes even in schools in far flung areas where quality
education is usually not available,
d. later on computers can also be used with sufficient data banks

and with internet and e-mail facilities for more interactive education,
and
e. if an appropriate system is designed, more students can be
taught in one school using cassettes, discs, etc. with relatively less
teachers.

12. In rural areas, provide each school with at least one army man to
ensure that people face no resistance from the feudal in educating
their children.
13. Provide people with incentives to educate their children. This
can be done in various ways. For instance
a. even lower level government jobs as for clerks, peons,
constables can be linked to a minimal level of education and
entrance tests.
b. various loans (e.g. agricultural loans) can be linked to whether
an applicant has educated or is educating his children.
14. Link agricultural loans/tax benefits to feudal landlords with a
specified number of people they have helped in obtaining a required
level of education.
15. Similarly, link industrial loans to education.
16. Similar linkages can be made in relation to adult education
programmes
B. Improve, update and form curricula, texts, pedagogy, and
examination and evaluation techniques
There is no need to say that improvement, updating and new
work needs to be done in these areas. Again, some steps that the
government might consider taking are:

1. Give more importance to language education and mathematics

at the primary and secondary levels. The unfortunate fact is that
usually even our postgraduates lack basic skills in these areas.
Language and mathematics are the foundation on which acquisition
of other skills depends. Though much of the problem is due to poor
teaching, yet curricula, texts, pedagogy and examination techniques
also have a lot to do with the current situation.
2. Various teams of experts should be involved in performing the
above mentioned task of improvement and formation.
3. Instruction in science, history and social studies should be
incorporated in language teaching at the primary and secondary
levels through activities and projects.
4. Computer education should also be introduced gradually right
from the elementary stage in education.
5. At the proper stage, instruction in foreign languages (especially
Arabic for closer cultural and economic ties with the Arab world, for
curbing sectarianism and fanaticism, for greater unity in the
Ummah, and for better understanding of Islam in the educated
classes) and social skills (for enhancing Emotional Intelligence)
should also be encouraged (Goleman,* 1996). Both these areas have
gained immense importance in the wake of globalization.
6. More emphasis should be given to the development of
educational institutions for some unconventional disciplines as
fashion designing, art, music and literature. There is a lot of talent in
the country in this field and a great, high return international market
for the products and services of skillful people in this area.
7. Similarly, a system of continual vocational training should also
be introduced for workers in different fields.
8. Interesting and informative documentaries and activities should
also be designed for the education of students. Similarly,
institutions as museums, internet clubs, libraries, etc. should also be
developed. Contributions from the public can also be sought for this
purpose.
9. Various bodies of academic experts should also be formed to
monitor, standardize and develop all the above mentioned
programmers (1-8).
C. Eliminate multiplicity in education gradually

A uniform system of education should be introduced gradually to

eradicate the problems multiplicity of systems creates as pointed
out earlier. Two important things that the government should
attempt in this regard are:
1. Introduce one medium of instruction. In the international
environment of competition today, English has assumed
unprecedented importance. Although Urdu will perhaps remain a
language of our people for a long time to come, English has to be
given preference if a choice is to be made (as too many languages
undermine instruction in any one).
2. Religious education should be incorporated in the mainstream
education. For this purpose, the most important thing is introduction
of Arabic as a second language at the appropriate stage. This may
not be as difficult as it seems. Some work may be required in
forming the curricula and pedagogy, but the rest can be done just by
including good level Arabic in Civil Services and Army entrance
examinations. Similarly, good Arabic can be made a prerequisite for
entrance into a number of other professions and for promotion. (For
example in the judiciary it makes sense to have a judge who has a
sound base in Arabic deciding about Islamic law). Demand will
create its own supply, and it is expected that schools, institutions
and parents will also be important contributing factors.

MANUFACTURING SECTOR OF PAKISTAN

INTRODUCTION:

Manufacturing is the production of goods for use or sale using

labor and machines, tools, chemical and biological processing, or
formulation. The term may refer to a range of human activity,
from handicraft to high tech, but is most commonly applied
to industrial production, in which raw materials are transformed
into finished goods on a large scale.
PROBLEMS OF MANUFACTURING:
1. Thinking a Strong Market Will Buy the Company Time:

When sales are strong It is easy to postpone difficult tasks such as improving business
processes. Yet even in healthy markets there are rewards for the companies that can
improve competitiveness by reducing cycle times, operating expenses and poor delivery
performance. In weak markets, lack of competitiveness can be painful. Avoid putting
your company in a vulnerable position by taking steps now to benchmark performance
against competitors and close gaps.

2. Thinking a Company Can Solve Big Problems by improving Only One Area:
A companys competitive performance is a result of the effort of the total organization.
Each employee should have the satisfaction of knowing his or her contribution is
important and valuable. Unfortunately many Improvement efforts focus on only one part
of the business. When that area improves, but no overall benefit becomes apparent,
employees dont take additional improvements seriously because nothing really
changes. Avoid this problem by defining problems in system-wide terms, communicate
outcomes and actions to all employees so that everyone gains in understanding about
how the business works and what actions result in improvements that count.
3. Focusing on High Yields at the Expense of Customer Satisfaction:
The quest for the highest possible yields drives the decision to allow long production
runs, or big batch sizes, to maximize an outdated idea of efficiency There are three

problems with this approach. First, it is company-focused, not customer focused, thus
misses an opportunity to increase customer satisfaction. Second, It lacks flexibility, so
increases In sales stretch out lead times, thus reducing customer satisfaction further.
And third, It gets in the way of increasing profits. Avoid these problems by transforming
your manufacturing operation from an efficiency culture to a customer culture. This is
accomplished by establishing a build-to-order operation characterized by fast cycle
times.

4. Making Bulk Buys for False Economies:

Purchasing in bulk and measuring purchasing department performance in terms of
purchase price variance wastes money and forces you to miss opportunities for growth
and profit. Bulk buys tie up precious capita! in slow-moving Inventories that must be
stored, maintained, insured, have taxes paid on them, etc. Solution: start seeing
vendors once every week or two instead of every eight to twelve weeks. Buy only what
you need and have It delivered more frequently. If your purchase levels are the same
you may not even have to pay a premium, but if you do, you will still come out ahead.
One manufacturer opened a new production line in the space used to store bulk
purchases, turning a cost center into a profit center.

5. Confusing Earned-Hour Efficiency with Business Effectiveness:

It is a mistake to make production decisions by focusing on misleading internal
performance metrics, such as earned hours. In fact there is no direct relationship
between this performance measurement and customer satisfaction. A better focus is
scheduling production in a First-In. First-Out (FIFO) sequence for customer satisfaction.
Shipping complete orders fast builds business, internal efficiencies that add no value
from the customers perspective are a waste of time and resources.

SOLUTION OF MANUFACTURING:
Manufacturing process-improvement ideas are best generated by the people
doing the work, whether it is on the manufacturing shop floor or in the office
taking orders over the phone. Supervisors and managers must become adept
at soliciting process improvement suggestions. Employees performing
processes must be mindful of concepts such as waste, the value of
standardizing processes and a focus on continuous improvement --- no
matter how small the improvement is. Lean manufacturing concepts
embrace continuous process improvement and offer an excellent basis for a
process-improvement program.
1. IDENTIFY WASTE:
Waste is the opposite of improvement. Through waste identification, many
processes can be streamlined. Waste includes defects, movement,
overproduction, inventory, processing, waiting and transportation. Lean
manufacturing training identifies the wastes and how to uncover them.
Elimination of waste is a great way to identify process-improvement ideas.

2. ELIMINATE WHAT THE CUSTOMER DOESN'T VALUE:

Attempting to eliminate what the customer doesn't value also helps to
identify process-improvement ideas. Designing tolerances into products
that the customer doesn't care about is not valuable. Such overdesign can
be eliminated. A process called value-stream mapping identifies every
step in the manufacturing process, and whether the customer values the
step. If the customer doesn't value the step, then the step should be
analyzed for elimination. Many times, waste identification will overlap with
identifying what is not valuable. Firms use value-stream mapping along
with waste identification to find ideas for process improvement.
3. TRAIN MANAGEMENT AND EMPLOYEES:
Management trained in eliciting process improvement from those doing the
actual work results in more process-improvement suggestions. Training
employees in how to identify process improvements is also necessary.
Employees who realize that improvement suggestions are part of their job
and will be acted upon by the company readily offer ideas.
4. CONTINUOUS IMPROVEMENT CULTURE:
An attitude that any improvement suggestion, no matter how small, will be
analyzed for approval and implementation provides an environment for
continuous improvement. It is very important to provide an analysis,
approval and implementation process for ideas that is quick and easily
understood. Encouraging ideas without this process quickly results in
discouragement and failure of the program.

Conclusion
The distinction between manufacturing and services is therefore becoming
blurred through service additions such as after-sales maintenance contracts,
delivery, leases and finance options.
Many non-core activities, such as delivery of finished goods and logistics
have been transferred from the manufacturers to specialized service
providers. This also creates a strong and interdependent relationship
between the sectors.

Un-Employment SECTOR OF PAKISTAN

INTRODUCTION:
Unemployment (or joblessness) occurs when people are without work and
actively seeking work. The unemployment rate is a measure of the

prevalence of unemployment and it is calculated as a percentage by dividing

the number of unemployed individuals by all individuals currently in the labor
force. During periods of recession, an economy usually experiences a
relatively high unemployment rate. According to International Labour
Organization report, more than 197 million people globally are out of work or
6% of the world's workforces were without a job in 2012.
There remains considerable theoretical debate regarding the causes,
consequences and solutions for unemployment.

Problems of Un-Employment
The two key problems resulting from unemployment of resources, especially
the unemployment of labor, are personal hardships and lost production. The
owners of the unemployed resources suffer personal hardships due to the
lack of income. The rest of society also suffers from unemployment due to
the lack of available production.
Population of Pakistan is about 154 million whereas the growth rate of
population is about 2.6 percent per year. The total labor force is 47.67
million, out of which 44.01 million is employed and 3.66 million is
unemployed. The main cause of unemployment is as under:
1. High Population Growth Rate:
Due to rapid increase in population unemployment rate is increasing very
fast.
2. Low Rate of Investment:
In Pakistan, per capital income is very low, therefore savings are very low,
and hence investments are less. Due to low investment are employments
opportunities are not coming up.
3. Mechanization of Agriculture:

Agriculture is under process of mechanization. Machines are replacing labor

and creating unemployment. Migration from villages to cities is also a cause
of increase in unemployment, as cities have already reached to the saturated
level and could not absorb new job seekers.
4. Sick Industries and Privatization:
Industries are facing many problems. Many of them are at the verge of
collapse due to lack of availability of imported raw material, short of demand
in local market, reduction in their exports and competition with foreign
imported goods. Number of sick industries is increasing day by day which is
causing unemployment in the country. Moreover due to privatization policy of
the government, state owned industries are being sold out to private sector,
where labor is being reduced thus causing unemployment in the country.
5. Decrease in Foreign Employment Opportunities:
Due to war between Iraq and Kuwait, attack on Afghanistan and Iraq
economic crises in Middle East and in other European countries, Pakistani
workers have been removed from their jobs thus creating unemployment
situation in the country.

Suggestions of Un-Employment
A range of government policies are available for Governments wanting to
reduce the scale of unemployment in the economy. These policies need to
focus on the underlying causes of unemployment for them to be successful.

Real Wage

Keynesian

Structural

Frictional

1. Real Wage Unemployment:

Prescriptions for reducing real wage unemployment normally focus around
the strategy of making each labor market more flexible so that pay
conditions become more adaptable to changing demand and supply
conditions. Real wages should rise when demand, output and employment
and rising, but they may need to fall if an industry experiences recession
which puts jobs at threat. The UK economy has developed a flexible labor
market model similar to that of the United States during the last fifteen
years.
Trade Union reforms were a centre-piece of the Conservative Government's
strategy to improve the performance of the labor market. The Labor Party
under Tony Blair has not reversed these reforms since coming to office,
although some new legislation has been introduced to give workers the right
to achieve union recognition. A National Minimum Wage has also been
introduced.
2. Keynesian Unemployment:
Policies to reduce Keynesian demand-deficient unemployment need to raise
the level of aggregate demand for goods and services in the economy. A
number of options are available.

3. Increased Government Expenditure:

The Government can raise the level of its own spending. This "fiscal pumppriming" directly increases aggregate demand and can have a multiplier
effect on equilibrium national income. The government could raise current
expenditure (for example raising pay levels in education and the health
service) or expand spending on capital projects which add to the stock of
capital (for example spending on new roads, new hospitals or other major
infrastructural projects). Sustained economic growth provides a platform for
more jobs to be created in the economy.
4. Lower Taxation:
A reduction in direct taxation increases consumers' disposable income and
should boost household spending. The effect may be greater if taxes are cut
for people on lower than average incomes. These tax-payers are likely to
spend a greater percentage of their disposable income.
5. Lower interest rates:
A relaxation of monetary policy through lower interest rates encourages the
demand for credit, reduces saving and increases consumers' real 'effective'
disposable incomes; all of which will boost consumption and demand. It may
also encourage firms to invest, as the marginal cost of investment will fall.
Remember that interest rates are not set by the government. The Bank of
England now sets interest rates each month at the meetings of the Monetary
Policy Committee.
6. Depreciation of the exchange rate:

A lower value for the pound should lead to a rise in the orders of exports
from UK firms and to a reduction of import penetration by making exports
cheaper and imports more expensive.
7. Remember the importance of time lags:
Government policies to stimulate increased aggregate demand for domestic
output take time to have their effect. There are variable time lags between
the government reflecting the economy using fiscal and or monetary policy
and the final effect on output and employment in specific industries.
Structural Unemployment:

There are a number of different approaches that can be adopted to help

alleviate structural unemployment. These are sometimes known as active
labor market policies. The first involves direct government action to match
jobs to the unemployed.

8.Regional policy incentives:

Gives grants and subsidies to firms to locate in areas of high unemployment.
However, this does not solve the problem of occupational immobility. Often
regional policy requires extra retraining schemes to give workers the relevant
skills to allow them to take up new jobs.
9.Investment in worker training:
Spending on training schemes to re-skill the unemployed through investment
in vocational education or guaranteed work experience for unemployed
"outsiders" in the labor market.

10. Improving geographical mobility of labor:

The government could provide grants or low cost housing to encourage
workers to move to other regions where there are jobs. The problem with this
policy is that people are inherently immobile as they are often bound by
family and social ties.
11.Market solution - no need for government to get involved:
One approach is to simply leave the problem of structural unemployment to
the market. Some economists argue that intervention slows the natural
reallocation of resources to high growth areas and only makes the problem
worse. In areas of above average unemployment it may make some sense to
allow wage levels to fall to attract new capital into an area.

Frictional Unemployment:
Lower real values of unemployment benefit and improved job
information:
The implementation of the Job Seeker's Allowance in 1996 ensures that
workers are actively seeking work as the payment of benefit is dependent on
them proving this at fortnightly interviews.
However, if the government reduced the real value of unemployment
benefits, or limited the duration of a claim, search times between jobs could
be reduced even further as workers would have to quickly take on new
positions before their financial situations deteriorated.Better information on
job vacancies in the labor market can help to reduce job search.
Cuts in direct taxes:

The government could reduce direct taxes for the low paid to increase the
post tax wage and, therefore, encourage them to find work more quickly. The
Labor Government is introducing a 10% starting rate of tax to encourage
more low income groups back into work.
Most analysts believe that tax cuts on their own are insufficient to reduce
frictional unemployment. Complementary reforms to the benefits system to
reduce the problem of the poverty trap may also be needed.

Conclusion
Unemployment is a term used to describe the state of a person who is not
involved in paid work. This could be due to a number of reasons - illness,
disability, and lack of qualifications of the economic climate of their country.
Currently, the rates of unemployment in countries such as America and
Great Britain are very high. This is because employers generally have less
money to spend on workers, so may refuse to hire extra staff, or may make
others redundant. This can lead to a downwards spiral known as the cycle of
unemployment. The cycle of unemployment states that, if employers have
little money to pay staff, they may make a number of staff unemployed. This
means that the now-unemployed staff have little money in their pocket to
spend. As a result, demand for goods drops, meaning businesses make less
profit. If businesses make less profit, they have less money to pay staff... And
so the cycle continues.

GLANCE OF WHOLE ASSIGNMENT

ASIAN CRISIS _ BACKGROUND
Asian tiger
Definition of four Asian tiger
1. INDUSTRIAL SECTOR OF PAKISTAN
Industrial Sector Functions:
Definition:

Textile Industry.
Vegetable Ghee and Cooking Oil Industry.

Sugar Industry.

Fertilizer Industry.

Cement Industry.

Chemical Industry.

Leather Industry.

Engineering Goods Industry.

Ship Building Industry.

Woolen and Worsted Textile Industry.

Cigarette Industry.

PROBLEMS OR CAUSES OF INDUSTRIAL SECTOR

B. HISTORICAL CAUSES

1)

Lack of Technical Knowledge

2)

Industrial Share
B.ECONOMIC CAUSES
3)

Disputable Industrial Strategy

4)

Lack of Mineral Resources

5)

Low Investment and Low Savings

6)

Lack of Infrastructure

7)

Lack of Technical Know-how

8)

Inflationary Pressures

9) Unfavorable Industrial Structure

10) Limited Market for Capital Goods

11) Lack of Industrial Consultancy Firms

12) Lack of Industrial Research:
13) Frequent Breakdown of Electricity
14) Global Recession:

C.SOCIAL CAUSES
15) Lack of Education
16) Faith & Fate
17) Corruption

Suggestions of Industry
Conclusion
2.Agriculture sector of

pakistan
HISTROY
What is agriculture?

Problems of Agriculture in Pakistan

Irrigation issues
Water issues
Absence of and Reforms
Deforestation
Salinity and water logging

Solutions For Agricultural problems In

Pakistan
1. Feudalism
2. Federal seed certificate and register
3. New agricultural policy

4. Small farmer
5. Consumer friendly policy
6. Productivity enhancement program
7. Agriculture zones
8. Corporate farming
9. Vegetable and fruits exported
10. Latest machinery
11. Modern techniques

3. ENERGY CRISIS SECTOR OF PAKISTAN

1. Introduction
2. Pakistans Energy Sector
2.1 Energy Supply
2.2 Energy Consumption
3. Sources of Energy in Pakistan
3.1 Non-renewable resources (Fossil fuels)
a). Petroleum products
b). Natural Gas
c). Coal
3.2 Renewable Resources
a). Hydro power
o Current Hydropower stations
o Potential Hydropower stations
3.3 Alternative Energy Sources
a). Wind
b). Solar
c). Agricultural biomass /biodiesel
d). Tidal
3.4 Nuclear
4. Causes of Energy Crisis
4.1 Growing Energy Demand
4.2 Lack of proactive and integrated planning for production of energy
4.3 Imbalanced energy mix

4.4 Non-utilization of enormous indigenous energy resources

a). Thar Coal
b). Hydal power generation
5. Consequences of Energy Crisis
5.1 Economic Factors
5.2 Agriculture Sector
5.3 Industrial Sector
5.4 Unemployment
5.5 Social Issues
5.6 Poverty
6. Conclusion

7. Recommendation/Solutions of Energy Crisis

7.1 Judicious energy use/saving unecessary energy usage
o electricity saving devices
o Awareness campaign for energy saving
o Reduction in unnecessary transportations
o Installation of effective equipment/energy efficient in industries
o Decreasing line/transmission losses
7.2 Developing new energy resources
o Tapping indigenous resources
o Using renewable resources (water) by constructing new dams and hydro
power plants
o Import of natural gas
o Utilizing alternative energy resources

Wind power
Biodiesel /Biomass
Solar
Tidal

o Enhancing civilian nuclear capacity

4.BANKING SECTOR OF PAKISTAN

INTRODUCTION

Problems & solution of banking sector of

Pakistan

1. Not establishing a relationship with a banker

SOLUTION: Meet with and establish a relationship with the branch
manager of your neighborhood bank

2. Review your banking statements

SOLUTION: Take a few minutes to review your monthly bank
statements

3. Paying for banking

SOLUTION: Shop banks...and don't forget about credit unions!

4. Loyalty to a bank
SOLUTION: If you are not satified with your bank, move your money

5. Leaving cash in an account

SOLUTION: Find higher yielding products for your "sitting" cash

6. Using ATMs
SOLUTION 1: Go to your bank's website and find the free ATMs
within your normal operation areas...and learn your "interbank
network" (see below)
SOLUTION 2: Get cash back on transactions at grocery and
department stores
SOLUTION 3: Take more money out of the ATM to limit the
percentage the bank makes on the transaction (e.g. a $20
withdrawal and a $2 ATM fee is 10%, whereas $200 is only 1%

7. Identity Theft
SOLUTION 1: Do not check the "Remember Me" box on a public or
work computer (and possibly not on your home machine)

SOLUTION 2: Shred all paper statements

SOLUTION 3: If your wallet/purse is lost, call the bank immediately
and have them monitor transactions on your account or cancel the
card(s)

Conclusion

5.EDUCATION SECTOR OF PAKISTAN

INTRODUCTION

Education a basic definition

PROBLEMS & SOLUTIONS OF EDUCATION
A. Low literacy level and low standard of education
B. Inappropriateness of curricula and pedagogy
C. Multiplicity of educational systems

RECOMMENDATIONS
A. Declare educational emergency
B. Improve, update and form curricula, texts, pedagogy, and
examination and evaluation techniques
C. Eliminate multiplicity in education gradually

6.MANUFACTURING SECTOR OF
PAKISTAN
INTRODUCTION
PROBLEMS OF MANUFACTURING
1.Thinking a Strong Market Will Buy the Company Time

2. Thinking a Company Can Solve Big Problems by improving Only

One Are
3. Focusing on High Yields at the Expense of Customer Satisfaction

4. Making Bulk Buys for False Economies

5. Confusing Earned-Hour Efficiency with Business

Effectiveness

SOLUTION OF MANUFACTURING:
5. Identify Waste
6. Eliminate What the Customer Doesn't Value
7. Train Management and Employees
Continuous Improvement Culture

Conclusion
7.Un-Employment SECTOR OF
PAKISTAN
INTRODUCTION

Problems of Un-Employment
1.High Population Growth Rate
2. Low Rate of Investment
3. Mechanization of Agriculture

4.Sick Industries and Privatization

5.Decrease in Foreign Employment Opportunities

Suggestions of Un-Employment
1. Real Wage Unemployment
2. Keynesian Unemployment
3. Increased Government Expenditure
4. Lower Taxation
5. Lower interest rates
6. Depreciation of the exchange rate
7. Remember the importance of time lags
Structural Unemployment
8. Regional policy incentives

9. Investment in worker training

10. Improving geographical mobility of labor
11. Market solution - no need for government to get involved

Conclusion

Conclusion

Pakistan can become a model country by both individual and

collective efforts by all Pakistanis and Pakistani expatriates around the world.
Pakistan has a very large number of financially successful individuals and
corporations that need to participate in moving Pakistan forward. Together, InshaAllah, Pakistan will be a proud nation.