An economy’s level of output depends on its level of total spending relative to its production capacity. When the level of total spending matches the economy’s production capacity, human and property resources are fully employed and prices in general are stable. But sometimes total spending is either inadequate or excessive and the result is either unemployment or inflation which ultimately leads any nation to the economic crisis. Economic crisis occurs as the result of the heavy cost of war, unemployment and low prices and low levels of trade and investment.
 
The economic crisis was suggested by several important indicators of economic downturn in Pakistan. The influential indicators that strike like lightening to man’s thinking are what? Let us explore this........ What is the origin of economic destability in Pakistan? How the overall output of any industry regarding any field is downsized by economic crisis? How despicable/ contemptible judiciary law in forcement strengths the economic destability? And what is the role of government to attain the healthy economic growth?
 
All these questions reflects the major economic issues prevailing in our country and all these questions comes in the mind of the people, thus to understand these crisis certain aspects should be looked in depth. For beneficent economy, it needs to be perfectly consistent as the time progress but unluckily this consistency is disturbed time to time by the intervening of dictators through martial law or by the new elected government. To meet strong stability consistency is needed as mentioned earlier, but when a new government or dictator came into rule, they abolished or rejected the policies with respect to the economy of Pakistan and impose its own new policy that conflicts the running strategies to attain a stable economic growth of the precdecors.
 
Pakistan has been facing an unprecedented energy crisis since last few years, particularly which are used to generate electricity which is water reservoirs, wind mills and coal or solar energy. We haven’t sufficient water in our dams as the millions of cuses of water are wasted in rivers and thrown out straight to the sea with out much use. It’s high time to construct small dams and water reservoirs for electricity production. Even rain water should be conserved in special reservoirs build for the moon soon season. On contrary to windmills, that produce cheaper electricity, is expensive and not in the budget range of government.

These energy crises which are mentioned above effects our economy severely, as our textile industry needs supply of electricity 24/7, which isn’t fulfilling in a present state that causes high and uncontrollable rate of unemployment and inflation.

Pakistan’s economy is facing mounting pressures from ever rising inflation, food prices, the acute power shortages, a bewildering stock market, a perceptible slow down in the manufacturing and services sectors a sharp increase in interest rates, and widening current account deficit. The inflation rate as measured by the charges in consumer price index CPI stood 25%. The food inflation is estimated as 31.2% and non food inflation as 19.2%. Food inflation is still quite high and is attributable to the increase in prices of edible oil, pulses, rice, milk, sugar, poultry, meat, wheat, wheat flour, fresh vegetables and fruits. The non food inflation is also very high because of hike in petroleum prices leading to spurt in transport group and house gent index.

The textile industry which has remains the major driver of export growth once again depicted sluggish performance and it registered growth negatively. Thus, the share of textile sector has declined from 60.4%. We still need to look into the structural problems of the textile industry. Where as our imports reached to $19.1% billion. The current growth in imports outstrips exports expansion, could draw down and dampen GDP growth. Pakistan needs more measures to cut its petroleum imports either through looking into alternative fuel sources or demand management. The import of edible also needs to be looked into carefully and may be given priority for domestic substitution. 

Another aspect behind the crucial position of our economy is that unfortunately any government is failed to bring any positive change to our economy. Our claims and protest against the dictatorship wasn’t false but this new government is representing the exact mirror image of dictatorship, and the things are going towards dead end due to contemptible law enforcement in Pakistan. In this scenario the system of accountability regarding politicians and beurocracy is pathetic because of despicable judiciary. This injustice permits our politicians to misuse the nation revenues which are generated from the heavy taxes paid by the public. Rather saving our revenue and utilizing it in new projects or developing projects which consequently generate a lot of revenue or politician are eager to enjoy foreign tours and protocol from these revenues. How can we say now our economy should meet the level of boom with this injustice? There must be proper accountability system through valid check and balance on our past and present leaders to achieve goals related to economic stability.

Government doesn’t have an easy task in performing the aforementioned economic functions. Government enhances the operations of the market system by providing an appropriate legal foundation and promoting competition. Transfer payments, direct market intervention and taxation are among the ways n which government can lessen income inequality, government can correct for the over allocation of resources associated with negative externalities through the legislation or taxes, it can offset the under allocation of resources associated with positive externalities by granting government subsidies. Thus, try to stabilize the economy, the government can adjust its spending and tax revenues can take monetary actions that lower or increase interest rates.

Pakistan rupee has lost much of its value. The stress on macro economic stability mainly emanated from unsustainable balance of payments position and the depreciating value of rupee, escalating food and non food inflation and structural problems like power shortages resulting in perceptible slowdown in economic activity. The domestic socio potential upheavals and rapidly changing global economic environment added to multifaceted problems.