Major Causes of Unemployment: i. 1.

Employment in the private sector absolutely stopped because they shifted their capital to other countries because of nationalization of industrial units badlyaffected the investment industrial sector. 2.The higher growth rate of population is the major cause of unemployment inPakistan. The resources of the country are limited because population hasexceeded the optimum level. 3.Karachi is the biggest industrial base of Pakistan, but investors are reluctant toinvest there because of unrest and violence. 4.Our educational system is also responsible for increasing unemployment rateamong the educated youth. The attitude of our youth towards the choice of acareer is unrealistic and unproductive. Rapid mechanization and computer technology also causing unemployment. 5.Lack of infrastructure and facilities in the field of energy, telecommunication andtransportation also prevent the industrialist from setting up new industries. 6.Lack of enough industries to employ ever increasing number of graduate inPakistan 7.The government is not involving in capital expenditures which create more jobs. 8.Main issue of unemployment in our country is that when ever a new technologycomes as software or hardware then all the people starts studying about that. Thenat the end, you will see ten thousand students of a particular field about 5 to 10 job vacancies. 9.Things are not handled in appropriate manner, as the vacancies are less but jobseekers are more than that. 10.Opportunities are not enough and system of reference is so much indulged in our society that if a company needs employees then workers

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of that company will provide some resume to them of their relatives and friends so in this way many people don't get the opportunity to apply for those jobs.

Reasons for growing unemployment inPakistan

Unemployment is one of the biggest problems of Pakistan. That person is unemployedwho has ability to do work and is willing to do work but is unable to get job opportunity.In the current situation more than 30 lakh people are unemployed in Pakistan andunemployment ratio is more than 12%. i. The biggest reason of unemployment in Pakistan is concerned with the backwardnessof agriculture sector. Agriculture is the biggest sector of our economy that contributes 20.9% to GDP and 44% people get jobs from this sector directly or indirectly.Unemployment in this sector is from two sides.First is due to the adoption of latest machinery and capital intensive technology. Due tothis, demand for labour has been decreased. Second is the backwardness of this sector.There is less availability of fertilisers, pesticides, quality seeds, absence of land reformsand lack of agriculture education. Due to all these factors agriculture sector is notexpanding and there is general and disguised unemployment. Industrial sector is the second largest sector of our economy and contributes 19% tonational income. This sector should employ a large number of labor. But due to backwardness it is employing a small number of people. Due to electricity breakdownalready established industry is deteriorating, resulting in the prevailing unemploymentratio. High cost and low quality are responsible for less demand for our agri and industrialitems. Because of less demand of such kinds of goods both the domestic and international producers are losing their interest in production. Thats why people are becomingunemployed.

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iv. In Pakistan education system is defective. There is no educational planning. Thissystem is producing the stuff, which is useless in technical fields of the country. There islack of technical and vocational institutions. Public attitude towards education is wrong,they want to get their degrees in general and arts subjects. Nobody can set up his own business without technical education. Millions of people in Pakistan are poor. Due to poverty people are overburdened withexpenditures and their savings are very low. It is said that for the reasonable growth of economy saving rate should be at least 25% in any country, but in Pakistan it is only 13to 14% which is very low. Low investment level is due to less savings, ultimately there isunemployment. In Pakistan majority of the businessmen are less educated. They do not know how torun their businesses properly. So they become bankrupt. This factor generatesunemployment on a massive level. In Pakistan there is lack of every kind of planning. There is a huge difference between the demand and supply for labor. There is absence of such kind of planning to produce doctors, engineers, technical experts scientists etc, according to the need of different sectors of the economy.

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viii. Loadshedding of electricity is disturbing economy, especially the industrial sector.Due to less availability and high rates of basic inputs like electricity, gas and oil etc,many industries have been closed. ix. In Pakistan, tax system is not satisfactory. Ratio of direct taxes is more than indirecttaxes. Tax evasion is common. Due to less income from the taxes, government cannotstart developmental projects. If there is no investment, then from where public would find jobs. On the other side if government takes step to increase indirect taxes, it would alsoaffect investment and ultimately employment level. Current international financial crisis is one of the biggest reason of unemployment inPakistan and in the whole world. This crisis originated from the banking sector of USA,UK and some European countries and is now a global phenomena.

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Pakistans population growth rate is 1.8% which is the highest in the region. Our resources are limited. Different sectors of economy are unable to provide jobs to thegrowing population. So there is unemployment. Fiscal and monetary policies are also responsible for unemployment. In view of fiscal policy, Pakistan has less funds to invest in job providing projects. Every annual budgetshows deficit. Through the monetary policy if the government increases the rate of interest, it discourages the investors from getting loans. Political instability, bad law and order situation, armys interference, bomb blasts,terrorism, inconsistent economic policies etc are the factors which are disturbingdomestic and foreign investment. Pakistan investors are taking away their money toDubai and other countries of the world. Due to 9/11 incident, Gulf war and the baseless allegations of terrorism the image of Pakistan has been affected very badly at international level. So in the current scenarioPakistan has limited job opportunities in other countries of the world. Craze for work only in government sector, instead of private sector and seasonalfirms, industries are also responsible for unemployment. Since 1947, Pakistani rulers got loans from IMF, World Bank and many other sources. Such loans were not utilised honestly. Current external debt of Pakistan is morethan 50 billion dollar. Government has to allocate a big amount for the repayment of loans with interest. So due to less resources for developmental projects there isunemployment.

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Suggestions: i. Economic Revival package should announce by the government for the revival of industries sector, to stimulate production and investment.

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Government should try to boost exports through broadening the tax base andlowering tariffs. Government should announce multiple packages for the development of agriculture sector.

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