Economy

Crisis

What is Economy?
The state of a country or region
in terms of the production and
consumption of goods and
services and the supply of
money.

What is Crisis?
A

crisis can be described as that period

of depressing economic performance.
During this time, the value of
institutions,
especially
financial
institutions, drops at unprecedented
speeds and everything seems to be
valueless. Production is low and often
fails to meet the level of demand.

What is Economy
crisis?

Definition:
A situation in which theeconomyof acountry
experiencesa suddendownturnbrought on by a
financial crisis. An economy facing an economic crisis
will most likely experience a fallingGDP, a drying up
ofliquidityand rising/fallingprices.

Pakistan GDP (gross domestic

Product)

Causes Of Economic Crisis

1).

Lack of Proper Planning

2). Corruption
3). Ineligible Ministers
4). War on terror
5).Martial Law
6).Political cauldron & Crisis
7).Decrees in Investment and Trade

Effects of Economy Crisis

1).

Energy Crisis
2).Stock Market Collapse
3). Devaluation of Currency
4).Other Crisis
5). Unemployment
6).Low savings
7).Increase in Poverty

Solution
1).

Diagnose and fix the problem

2). Control Expenses
3). A good Budget Policy
4). For Poor class Education Should Be
Free
5). Stop Corruption
6). Stop Money Laundering
7). Judiciary must be equal for all
classes

Causes

Lack of Proper Planning

As

I have always complained that our

government lacks a team of think-tanks
and proper committee to sort out the
solution of various problems, therefore
our infra-structure is getting damage
day by day, also our civil sectors are not
functioning properly and they are
collapsing to each other at various
points

Corruption
Now

the main reason of collapse of civil

sector and malfunctioning of system is
corruption. As corrupted mindsets are
themselves given responsibility to
‘ensure security and proper
transfer’
of
currency
flow
throughout the system, therefore, they
are damaging the system by stealing
money of their own.

Ineligible Ministers
Such

people are hired whose eligibility is

questionable, they are characterless,
possesses no virtue, insincere and do
not work with dedication, thus their
character is contrary to the criteria of
constitution of Pakistan, their character
completely reciprocate to the required
criteria.

War on terror
Now A biggest cause of Economic crisis is
the war against terrorist. Which is
continued and a lot of budget destroyed
in this war. Also the terrorist attacks
destroyed the most areas which can
support the Economy.

Martial Law

Due to corruption and ineligibility of our

ministers and other known reasons, our army
imposes martial law and uses its right given
by constitution of Pakistan 1973 article 2B,
thus if you look at chart, you observe that
before impose of martial Law, the value of
Pakistani rupee was less than 65 rupee, and
even after the impose of Martial law and
retake of governmental body, the Pakistani
rupee value was 60 as compare to US dollar.

Decrees in Investment and Trade

Due to above mentioned reasons, and war on terror and

situation with India i.e. Cargill case etc, Pakistan faced huge
trade loss as well, after Musharraf imposed emergency due
to political crisis and seeing Karachis situation, Pakistan
also lost investors and key role was played by media such
as GEO TV die to which Mr.Musharraf banned it for some
time till the political condition is balanced.
Thus due to above mentioned factors, it affected to a
common man a lot, as due to devaluation of currency, we
can see clearly the rise of prices on daily basis items etc.
Thus this is the basic point which has triggered frustration
of common man.

Political cauldron & Crisis

After

the incident of Justice Chaudhry

and political crisis, the rupee value was
declining, after Mr.Musharrafs resign
and in Zardaris era, rupee value
declined to R.s 99 as compare to dollar.
Sadly, the value of Pakistani rupee was
greater than Indian, thus Pakistan lost
its currency value due to above
mentioned
reasons.

Effe

Energy Crisis
Energy crisis are as follows
Oil crisis
Gas crisis
Electricity crisis
These Crisis are due to Financial crisis
mostly in Pakistan. Economical crisis
generate these crisis and these crisis
have also a great effect on industrial
crisis.

Devaluation of Currency
Due

to above mentioned reasons; our

common man is most affected and
burdened,
as
our
economical
infrastructure is suffered due to such
reasons that is why our currency is
devalued, here are few factors:

Martial Law

Decrees

in Investment and Trade

Political cauldron & Crisis

Other Crisis
Economical

crisis also causes

the other crisis like Energy
Crisis,
industry Production
Crisis and many more which
is a great effect of this.

Unemployment
Employment

is also effected by
economical Crisis.
As we can see that the Economical
Crisis
increase
the
ratio
of
unemployment
also
increased.
Because
theres
nothing
to
maintain the new employers and
their salaries.

Low savings
Financial

Crisis also effect the savings

for the bad time. Due to Economic Crisis
saving rate decreased called low
savings

Increase in Poverty
Economic

Crisis Directly effect the lower

class people. This causes the increase
in poverty because the tax rate and the
prices of things are increased.

Soluti

on

Diagnose and fix the

problem
Diagnose

and fix the problem. It will

take a whole turn of businessman to see
what nobody else sees, do what nobody
else can do and act on a sustainable
global solution. A businessman knows
how to bring good ideas to life and turn
them into viable enterprises. They also
know that to treat a crisis, you have to
identify it first and then offer plenty of
options. For businessman, those options
are only as limited as their imaginations.

Control Expenses
.

Help you control expenses. How many

businessman have started a business on
a shoestring(a small budget)? Raise your
hands. Mines up. A businessman
knows that every penny counts even
after sales and profits roll in or dont
roll in, whatever the case may be. Many
businessman track monthly sales and
gross margins by hand until they get a
feel for the health of an organization.
Once youve been in a How do I pay my
people? position, you never forget or

A good Budget Policy

-Government

needs to
work on its budget policy,
that is they need to divide
taxation on the basis of
eligibility of classes to pay.

For Poor class Education

Should Be Free
>for

poor class, education

must be made free on
school and government
must re-active.

Stop Corruption
The most and Effective solution is to stop
corruption at every stage. And
government should be active and focus
on this and find the corrupted mindsets.
Government must diagnose the
corrupted mindsets within to stop
corruption. Law and enforcement
agencies must be given free hand to
arrest such criminals.

Stop Money Laundering

-Long

term procedures such as

money laundering, should be kept
into focus, this strategy to avoid
bigger problems will not solve
anything.

Judiciary must be equal for all

classes
Judiciary

must be made
approachable for all classes
equally, I support Mr. Khans
attempt to launch mobile
court system in KPK. This
could ease publics frustration
to some level.