Is Foreign Aid Is Blessing Or Curse?

Since the time of in appearence Pakistan has been facing macroeconomic exertions, such(prenominal) as vicious deal of p everyplacety, less utilization of available congenital resources, unfavorable semipolitical circumstances that influenced house servant deliverance and so on. To seize the deficiency, Pakistan has had to depend greatly on financial attention made by distant countries. Pakistan has been seek attend since 1947 from global lenders including International financial Fund (IMF), Asian Development banking company (ADB) and World Bank.This financial upkeep poured for the or so part in the make water of loans or debts with risque interest rates. Focal of such economic advocate is the socio-economic development of the sphere. Financial assistance at one time taken as a blessing, appeared as to remove all the dearth of the saving. Resultantly many of the sectors started nourishing at par. Pakistan commenced its way towards ontogeny nation precisely 2005s earthquake destroy Pakistan leaving its awful economy that worsen.Though impertinent support showered in the country but, in fact, it directly went to the bank accounts of few effluents and hence with the passage of time, it proved that extraneous aid has become a detestation instead of becoming blessing, non only(prenominal) when perished the confidence of topical anaesthetic commonwealth but corrupted much g everyplacenment officials. altogether the authorities here are direct seeking more and more aid rather than to rely on their accept available resources. Pakistan has already borrowed too a great deal irrelevant aid in the form of loans and is s work on borrowing that has reached the historic over $60 billion.Debt burden is forever increase so its interest rates that charge more than the debt itself. Now the economic arrange is so deteriorated that for the payment of interest, Pakistan tries to get more loans. Pakistan has become this instant an aid rob and does not make policies to develop their economy with their own house servant resources. Officials do not pay attention for the development of the technology. They tho become entirely dependent on others. Major portion of aid specially commodity aid is misappropriated by the concerned Government officials.Moreover, when aid is in terms of commodity such as wheat etc, which many times is provided at a very nominal price, discourages topical anaesthetic production of that commodity because of higher personify of production within the country. This situation discourages local agricultural production. If donor country has support in establishing import substitution assiduity then raw poppycock for the manufacture will stomach to be imported from loan accustomed country differently industry will not hide its production because particular raw material is not available locally.This causes heavy foreign exchange burden on economy. Pakistan is obtaining foreign aid for bridging g ap between domestic savings and investment and in any case to mitigate balance of payments position but till now it has not been able to carry out this task, rather both gaps are continuously increasing. Sometimes aid giving countries mediate in the defense and foreign personal matters of Pakistan. Thats why it is said that thither are always political set up attached to the bilateral loans. Thus this is to be reveal here that all aid is not for economic rationales but also political.Most of the politicians misallocate the aid for its appropriate concern so to raise their pay, power and prestige. Thus aid is also promoting greed and selfishness among the leaders of the realm. Pakistan was accessed as an independent nation but Pakistan is now fully dependent on the aid drug to eradicate all the absences. As soon as a in the altogether government takes office it is out to woefulness the US for aid, begs from the Saudis for a few crumbs and looks to countries equal China for h andouts. This must stop.To achieve ostentation and start to improve the lives of the impoverished mess the country needs corrective surgery. The starting point should be adopting a refining of austerity and simplicity. The President, Prime Minister, Army antique and Chief Justice should be given homes and protocol of ordinary citizens. The vestiges of colonial days, the pageant of office must go. Leaders must present themselves as a intention model of modesty rather to mingled the masses by their luxurious stuff.One has only to look across the border that how people present themselves in public in simple clothes, sans jewels and accessories, where ministers dont sweat in flashy imported vehicles if a role model is unavoidable. The next timber is to generate resources by taxing all. The start-off step should be agriculture. There is no more favorable time than now. In the past 3 to 4 geezerhood produce price including cotton have witnesses a runaway increase and most fa rmers have had their incomes increase by over 400 percent in triad years. Income tax is a failure in Pakistan however consumption tax contribute be promoted.All students going abroad for take on should be gather upd to get an NOC which would require their parents to explain the source of funds. All prop purchase, vehicle purchase and airline shred purchase should require an NTN number. Put in place consumption taxes. For examples vehicles over green cc should progressively be taxed. Measures such as the above would document the economy and bring more of the black economy into the main stream. With a corrupt bureaucracy, political elite and military this may almost impossible. So a revolution is needed to unshackle Pakistan.