Pakistan, a global village, with its vast media has substantially influenced public opinions over the past few years. At its inception, Pakistan had a predominantly agrarian economy, with agriculture contributing 53% of GDP in 1947. But as of now, things have changed? A country with $1,547 GDP per capita in 2017 couldn’t reach its sublime heights despite its steady growth of economy of 5.4% in 2017.
Pakistan’s economy is a shadow of its past promises
The major issues looming over the administrations are the excessive taxes and security issues. Taking Pakistan to a whooping rank of 136th in ease of doing business and 173rd in the complicated tax system. Until 1960, Pakistan’s manufactured exports were higher than those of Malaysia. But now Pakistan exports stand on approximately $24 billion while that of Malaysia at a whopping $216.43 billion.
We would not get into that discussion that where things went wrong for us. But can we reciprocate a developing economy that has observed only trade surplus in the past 10 years with its real GDP standing on $364.36 billion? A country that persisted under the British colonial rule with Singapore as being its counterpart. It always had shared different conflicts and a fair bit of tension. Still, Singapore, being its largest export partner. Much to learn from it and extend our business ventures to our counterparts for the growth of economy.
To manage the trade with Thailand, they developed the Malaysia Thai chamber of commerce, wherewith the aid of adequate research different trading matters is resolved. Different MOU’s have been signed by Malaysia while one of the interesting ones is between banks of Thailand, another imperative incentive for traders that can be replicated from this developing economy.
Malaya Economy, the next big thing!
Malaysia is one of the founding members of ASEAN (association of south-east Asian Nations) and member of OIC (Organisation Of Islamic Council). Malay’s economy enjoys a healthy trade with our neighbor, India. In 2017 India and Malaysia signed a business deal worth $36 billion. The imports from India also increased by 55% in 2017. Electrical machinery, Mineral fuels, Plastics, and optical instruments are leading export items. Malaysia is also a part of D-8 (Developing 8) with Pakistan being its member. According to 2017 reports, exports to Pakistan are $1.17 billion and import being $0.17 billion.
Malaysia has implemented over 7 bilateral FTAs (Free Trade Agreements) and 6 regnal FTAs. It is currently negotiating 4 FTAs while 3 FTAs are signed but still pending ratification. In 2017, FTAs partners contributed 63.1% of Malaysia’s total exports. Overall in ease of doing business, Malaysia stands on 24th in 2018 in protecting minority investors it is 3rd on the list. Some encouraging numbers have let the inflow of FDI in the country. This shows the pivotal role, FTAs implementation plays in the upsurge of export.
Malaysia economy share of agriculture has fallen from 30% of GDP to below 10% and that of industry rose from 27% to 50% of GDP. FDI and high technology manufactured products played the most important role in the flourishing of industrialization with them rising from 5% of total exports to above 70% today.
Road to glory isn’t a walk in the park, so things to look forward to Pakistan economy
The Malaysia economy is on its way to achieving high-income status. The 11th Malaysia plan in this regard is one of the major steps. The plan put significant emphasis on skilled labor employment while also increasing there share income. More women in the workforce could also give them a chance to expand their growth. This factor can contribute positively to the economy. Promoting attempting to spur economic growth and job creation in its country.
Pakistan’s economy is in dire need of some strong initiatives and long term growth sustaining policies. The above-mentioned initiatives could also be replicated which should encourage the investors to invest their money. More Bilateral and regional FTAs signed in opposite implementation, industrialization, cheap cost of electricity, production of skilled labors, women in the workforce and MOUs signing between SBP (State Bank Of Pakistan) with the central bank of other countries are some of the incentives Pakistan economy could adapt to. During the replication process, Pakistan should be careful that it doesn’t just become a fabrication of another economy. A project like CPEC is the source of economic integration and prosperity in the region. Maybe a solution to the Pakistan economy crisis. It is that impetus for Pakistan Economy? Therefore, much can be adapted and from much can we acquire until the day Pakistan economy becomes the next big thing in Asia.
Growth of economy is a prospect every country is in need of. While Pakistan economy has each and everything to cash big. But the constant Pakistan economy crisis has worried the economists of Pakistan. Even the investors are showing disbelief in the economy. Therefore, there should be complete remodeling of the Pakistan economy structure.