'Is Foreign Aid a Blessing or Curse?\r'

'Since the time of independence Pakistan has been lining macroeconomic exertions, such as vicious mobilise of poverty, less utilization of oper open natural resources, admonitory political circumstances that influenced domestic rescue and so on. To seize the deficiency, Pakistan has had to depend greatly on pecuniary supporter made by distant countries. Pakistan has been pursuance support since 1947 from global lenders including International Monetary computer memory (IMF), Asian Development Bank (ADB) and World Bank.This financial attending poured mostly in the form of loans or debts with high interest rates. Focal of such assistance is the socio-economic development of the country. Financial assistance once taken as a blessing, appe bed as to remove each the dearth of the parsimony. Resultantly umpteen of the sectors started nourishing at par. Pakistan commenced its expressive style towards developing nation but 2005s earthquake destroyed Pakistan leaving its awfu l economy further worsen.Though contradictory service showered in the country but, in fact, it immediately went to the bank accounts of few effluents and hence with the passage of time, it prove that alien serve has become a oath instead of becoming blessing, non only perished the assertion of local people but corrupted much government officials. All the authorities here are now seeking more than and more aid rather than to rely on their own available resources. Pakistan has already borrowed too much foreign aid in the form of loans and is still borrowing that has reached the historical over $60 billion.Debt burden is infinitely change magnitude so its interest rates that worth more than the debt itself. Now the economic scene is so deteriorated that for the stipend of interest, Pakistan tries to squeeze more loans. Pakistan has become now an aid addict and does not make policies to develop their economy with their own domestic resources. Officials do not fall in a ttention for the development of the technology. They just become exclusively dependent on others. Major portion of aid peculiar(prenominal)ly commodity aid is mis abstractd by the concerned Government officials.Moreover, when aid is in monetary value of commodity such as wheat etc, which many times is provided at a very nominal price, discourages local production of that commodity because of higher salute of production within the country. This situation discourages local awkward production. If donor country has assisted in establishing trade substitution fabrication then raw poppycock for the industry will have to be trade from loan given country otherwise industry will not continue its production because particular raw material is not available locally.This causes soggy foreign exchange burden on economy. Pakistan is obtaining foreign aid for bridging gap between domestic nest egg and investment and also to modify balance of payments position but till now it has not bee n able to accomplish this task, rather both gaps are continuously increasing. Sometimes aid giving countries interfere in the defense and foreign affairs of Pakistan. That’s why it is said that there are always political strings attached to the bilateral loans. and so 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 in full dependent on the aid drug to prohibit all the absences. As soon as a new government takes office it is out to distress the US for aid, begs from the Saudis for a few crumbs and looks to countries like china for handouts. This must stop.To achieve self-respect and start to improve the lives of the impoverished quite a little the country needs strict sur gery. The starting point should be adopting a nicety of austerity and simplicity. The President, Prime Minister, Army chieftain and Chief Justice should be given homes and protocol of unexceptional citizens. The vestiges of colonial days, the pomp of office must go. leadership must present themselves as a power model of modesty rather to complex the masses by their luxurious stuff.One has only to look crosswise the border that how people present themselves in existence in simple clothes, sans jewels and accessories, where ministers don’t compel in flashy imported vehicles if a billet model is needed. The next step is to generate resources by taxing all. The first step should be agriculture. in that location is no more favorable time than now. In the past 3 to 4 years pose price including cotton have witnesses a jamboree increase and most farmers have had their incomes increase by over 400 percent in tercet years. Income tax is a failure in Pakistan as yet ingesti on tax can be promoted.All students breathing out abroad for study should be required to get an NOC which would require their parents to explain the source of funds. All station buy, vehicle purchase and airline ticket purchase should require an NTN number. Put in place consumption taxes. For examples vehicles over 1000 cc should progressively be taxed. Measures such as the above would document the economy and bring more of the black economy into the briny stream. With a corrupt bureaucracy, political elite and troops this may virtually impossible. So a novelty is needed to unshackle Pakistan.\r\n'