Citizens of Pakistan has chosen a future and vision 2030 presents a basis for overcoming the hurdles and challenges, coming on the way. The aim of the government is to obtain this vision within few years. It should be achieved in such a way that citizens experience good quality of life and get equal opportunities. The vision 2030 planning aims to overcome the challenges of present and future, and they are developing human capital and giving knowledge to the people.
Goals of Vision 2030
In 2030, macroeconomic framework will be attached to the globalization level at that time. No matter what is the level of globalization, Pakistan will have very little things to change and country will be engaged in keeping the balance between external, financial and economic levels. No matter what is the situation, the vital goal would be to keep the inflation level low. In case of tariffs, that would be kept according to the international standards or within limits. The number of taxes would also be reduced. The aim of the vision is to eradicate the poverty and all its forms even before 2030. After that, government will try to increase the employment and provide better quality of life to its residents.
Effect of Vision 2030 on GDP
GDP growth rates are 7-8 %, which are quite high as compared to the past. On the other hand, investments and saving are not much, it’s difficult to sustain the growth and giving the advantages of growth to the poor levels of society is still a big challenge. The vision hope that contribution of manufacturing will increase to 30% by the year 2030, which were 18.7% in the year 2005-06. Country manufactures textiles, electronics, pharmaceuticals and automobile, its needs to be shifted to match with the global requirements. The good news is, all these sectors are showing positive signs of growth.
Share of different sectors in GDP
Economy of Pakistan also depends on the services sector for the sustainable growth. In GDP its contribution is 60% and nearly 44 % people are appointed as work force in this sector. If we compare several countries around the world, it is reflected that the contribution of services sector is nearly 75% in most of the developed countries. Services and industrial sector is getting close and in modern economies, both of them are working together. Importance of function and content of the goods cannot be denied but at the same time, design of product, their marketing, advertising and consultancy services are also equally important. The share of manufacturing is also vital, like planning of resources, value chain analysis, fiscal services, warehousing, after sale facilities and communication and movements of the goods.
Infrastructure for the Vision 2030
For vision 2030, the above-mentioned elements are the main areas of interest. Required infrastructure will be provided by the government. Development of human resources will also be part of this, which includes development of skills and infrastructure related to technology and science. Financial incentives will also be used by the government, like tax holidays, tax credits, depreciation allowance, freight subsidy, subsidy for R & D etc. This is for the promotion of those industries, which are based on technology.
Increase in trade or GDP ratio, from the present 30% to 60% will be a tool to achieve vision 2030. 60% of GDP comes from services sector, which is not much in terms of generation of revenue. Some new additions are required for the establishment of infrastructure and for better quality standards. Public and private sector have to join hands for the improvement of quality and diversification, focus of all this activity will be to enhance the export competition.
Expected growth rate in Pakistan
Competition is increasing all over the world. According to some estimates, in many countries 20-50% growth in GDP comes from the productivity gains. TFP adds one third to the growth of Pakistan, recently. However, increase in productivity is not observed. When level of investment increase, but saving remains the same the result will be external debt. In Pakistan, saving rate is around 15% of GDP, which is very low. For the year 2030, 6-8 % growth rate is expected.
When it comes to industries, which are based on technology, Pakistan is entering in an era of intense capital investment. This will fulfill the requirements of infrastructure and energy and help in development of human resources as well.