Unemployment in Pakistan has come into the limelight after being considered a major problem attributed to lack of business activity by economists.
A recent report by the Planning Commission of Pakistan has stated that unemployment in the country is at the level of 7%, higher than in India and Bangladesh.
The ongoing crisis has raised some urgent need for economic recovery and sustainable job creation.
The principal cause of the worsening employment situation in Pakistan is the rise in production costs, a direct consequence of extremely expensive electricity, gas, and heavy taxes.
It is leading to the closure of hundreds of industries and millions of unemployment.
Daily wage earners in the meantime could be seen lining up at the busy Karachi traffic signals lamenting their agony in the face of no jobs for them.
Industrialists are also worried about production becoming low and the rising issues of running businesses under such circumstances.
Economic analyst Usama Rizvi pointed out that in less than a year of large-scale manufacturing, quite a substantial number of textile mills had already been shut down, which has contributed to a far more alarming figure for 4.5 million unemployed youth.
He put forth the view that Pakistan needs stringent economic reforms, which should lead industries back to the goals set, attract investment, and generate jobs.
According to the report of the Planning Commission, Pakistan needs to generate at least 1.5 million jobs each year if unemployment is to be effectively dealt with.
Without substantial reforms and improvements in the political and economic landscape both crucial for a stable economy unemployment rates will continue to rise, further exacerbating job scarcity amid the ongoing economic downturn.
Experts say Pakistan’s economy can recover only through government intervention, industry revival, and job creation.
