Enlightene the performance and problems of public and privat

Enlightene the performance and problems of public and private sectors in the economic growth of Pakistan. Also suggest some measure to solve the problems of these sectors.

Solution

We know that Pakistan has increased much in the sense of economic development and growth since independence. After independence, more than 30 million people depend upon the imported foodstuffs., imported energy and also the imported cloths. The economy was going difficult situation in that time period. But today the country is one of the largest self-sufficient food producers in the world. They are also producing poultry, milk, meat, wheat, and rice. Pakistan is not only the self-sufficiency in clothing but also the largest exporter of textile products in the world. More than 50 percent of country\'s energies are produced from the local products. The annual growth rate of Pakistan is around 6 percent for the last four decades and the per capita income of the country increased triple from the independence. Also, the poverty of the country decreased 50 percent to 34 percent in the last decade.

The tremendous achievement of country\'s development because of the active involvement of private and public sector of the country. The public sector of the country provide, better education, health, social security, internal and external security, maintains the macroeconomic stability of the country, etc. on the other hand the private sector they have the capacity to produce and distribute goods and services to the economy with least cost. In case of public sector enterprises, speaks about the damage of the overall performance. But private enterprises contribute income, employment and economic growth for the last several decades. The stability of the sector depends upon the policy of the government. If it wants to continue into the future it must create new investment and starting new businesses or expand the existing businesses. The economic growth of the country only happens when the rise in income, expanding and creating new investment. The privatization, liberalization, and deregulation are important for the development of the public sector in the economy. The private sector contributes 90 percent of the total labor force in the country whereas the public sector contributes less than 10 percent of the total labour force in the country. More than 80 percent of the population depends upon the small and medium scale enterprises in the country. So the overall analysis we found that the private sector contributes more economic growth than the public sector in the country.

The important measure to strengthen the economy on the basis of active monitoring and good economic governance. Dor making the policy formulation it is important to consider the cost and benefit part of the sector. Also need transparency, consistency and accurate rule of law. Need sound economic policies in terms of lower tariff and economic barriers, reasonable taxation policies, active credit and financial system, change in the political involvement, and also required trained labour force.