Wednesday, May 29, 2024
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Unemployment in Pakistan

By Tayyaba Tehseen

The hardest work in the world is being out of work. The foremost problem world is facing today is unemployment. The ratio of unemployment is increasing day by day due to lack of resources and when unemployment place then so many crimes are automatically be created. Asian country Pakistan has plenty of problems and unemployment is one of those. It causes numerous problems for people of nation. Pakistan has countless natural resources but unfortunately resources are being wasted since Pakistan came on worlds map. You may find many Graduates, Masters, IT experts, Engineers and Doctors wondering about job opportunities due to bad employment system. The people of Pakistan are considered highly talented and hardworking in the world but the picture inside the country is totally different therefore, it is the reason many of educated people travel to foreign countries and utilizing their abilities for earn their livelihood.

Pakistan population comprises on youth according to Pakistan’s demographics profile 2016, total dependency ratio 65.3% are youth. As of 1st January 2017, the population of Pakistan was estimated to be 194 931 848 people. This is an increase of 2.10 % (4 014 982 people) compared to population of 190 916 866 the year before. And Pakistani universities have been producing over half a million graduates, including over 10,000 IT graduates, every year since 2010, according to HEC data. The number of university graduates in Pakistan increased from 380,773 in 2005-6 to 493,993 in 2008-09 now more than this. The think tank of Pakistan needs to create numerous vacancies for youth in both Government and Private sectors. Increasing number of industries would be helpful to reduce the ratio of unemployment rather than offering the schemes like Prime Minister Youth program which is already facing inside corruption and not giving the benefits as the government wanted to achieve and youth is facing the depression already which is the indication of poverty and poverty creates bad scenarios which will increase the number of crime in Pakistan.

In the general survey many people complaint about unemployment and when you see universities in Pakistan you will find the number of students as well which are complaining after completion of their Degree program that they are facing the hurdles not because of their grades but because of lack of vacancies in industries and low number of employment but the trading economic platform has given the forecast 2016-2020 is that Unemployment Rate in Pakistan is expected to be 6.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, they estimate Unemployment Rate in Pakistan to stand at 6.10 in 12 month’s time. In the long-term, the Pakistan Unemployment Rate is projected to trend around 5.70 percent in 2020, according to their econometric models. Pakistan Unemployment Rate Forecasts are projected using an autoregressive integrated moving average (ARIMA) model calibrated using their analysts expectations. They model the past behavior of Pakistan Unemployment Rate using vast amounts of historical data and they adjust the coefficients of the econometric model by taking into account our analyst’s assessments and future expectations. The forecast for – Pakistan Unemployment Rate – was last predicted on Saturday, January 14, 2017.

These figures are most probably true but the question raises that if the ratio of unemployment decreased as the above graph than why poverty is increasing day by day in Pakistan as the solution recently Government presented the report which shows that 40% Pakistanis live in multidimensional poverty. Rather than income and wealth alone, the multidimensional poverty index (MPI) uses broader measures to determine poverty based on access to healthcare, education and the overall standard of living, thus giving a more detailed understanding of poverty, says a UNDP Pakistan report. While the poverty index showed a strong decline, with national poverty rates falling from 55% to 40% from 2004 to 2015, the progress across different regions is uneven. Poverty in urban areas is 9 percent as compared to 55 percent in rural areas, emphasizing the need to make rural-centric economic policies. It is worth noting, moreover, that some two-thirds of Pakistan’s population of more than 184 million live in rural areas.

Disparities also exist across provinces. Among the provinces, multidimensional poverty is highest in Balochistan (85%) and lowest in Punjab (31%), whereas considering the standard errors, there is no significant difference between the poverty levels of Sindh and KP. The report found that over two-thirds of people in FATA (73 percent) and Balochistan (71 percent) live in multidimensional poverty. Poverty in Khyber Pakhtunkhwa stands at 49 percent, Gilgit-Baltistan and Sindh at 43 percent, Punjab at 31 percent and Azad Jammu and Kashmir at 25 percent. There are severe differences between districts: Islamabad, Lahore and Karachi have less than 10 percent multidimensional poverty, while Qila Abdullah, Harnai and Barkhan (all in Balochistan) have more than 90 percent poverty.

Deprivation in education contributes the largest share of 43 percent to poverty followed by living standards which contributes nearly 32 percent and health contributing 26 percent. These findings further confirm that social indicators are very weak in Pakistan, even where economic indicators appear healthy. The report also found that the decrease in poverty was slowest in Balochistan, while poverty levels had actually increased in several districts in Balochistan and Sindh during the past decade.

In Sindh, Tharparkar has been declared the poorest district with 87% population living under the poverty line followed by Umerkot 84.7%, Tando Muhammad Khan 78.4% and Badin and Kashmore where almost 75% of the population is poor. In Punjab, Muzaffargarh (64.8%) and Rajanpur (64.4%) are the poorest districts, followed by DG Khan 63.7% and Bahawalpur 53%. All these districts are part of southern Punjab, which has been neglected by successive governments over the years. Planning Minister Ahsan Iqbal said poverty came down largely because of the growth in the informal economy. “It is unfortunate that many millions are still left behind,” he said while commenting on the findings of the report. Mr. Iqbal said the development was not about numbers but about people. “No matter how good numbers look, such development only caters to the need of the elite and the powerful,” Iqbal said.

With better job and business opportunities, Karachi maintained its reputation as the ‘mother of the poor’. Poverty in Sindh’s capital stood at 4.5% in 2014-15, decreasing the poverty ratio for the province as a whole. In 2008-9, 10.5% of Karachi’s population lived below the poverty line. The report has been compiled with technical support from UNDP Pakistan and the Oxford Poverty and Human Development Initiative (OPHI), University of Oxford. People are suffering for the basic needs in Pakistan. Figures from the government are showing the healthy results isn’t it strange we need to think with the ground realities social indicators are very weak in Pakistan, even where economic indicators appear healthy. This is the main reason that the ground realities aren’t matching with the figures and the ratio poverty and unemployment is increasing rapidly in ground and people are suffering badly.

Government need to refocus for the betterments of people of Pakistan. It is the responsibility and must be first priority of the government to solve one of the major problems of Pakistan “Unemployment” due to huge population. Number of subtraction in unemployment will give the positive result as the ground realistic ratio of poverty will definitely decrease and government will get high appreciation from the nation. But still we have given some solutions to reduce the unemployment and decreased the poverty level in Pakistan and we are hopeful by following these solutions the ratio of unemployment in Pakistan can be reduce and poverty will decrease.

Reduction of poverty and unemployment in Pakistan will be possible through proper planning by the Government of Pakistan in manner of this slogan Say No To Corruption. Jobs should be giving purely on merit. The education system of Pakistan should be equal and well managed especially on governmental level the conditions of government institutions aren’t good enough and they need to proper care as well as proper check and balance on staff except putting the salaries on their accounts. So they will work which will give the positive and visible change.

Illiterate people of Pakistan need to be train in different fields for that well recognized training and technical institutions are need to be establish and open the door of skills programs which market demands highly will be offer over there free of cost. Health sector should be highly prioritize by government. The age of retirement should be at least 55 years. Reduction in energy crisis and peace across the country will be the positive indicator for foreign investors to choose Pakistan thus job placement will automatically increase. The agriculture sector should be more developed. Welcome Multinational companies in Pakistan. Family planning centers should be opened to control the flow of over population.



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