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EconomyCrisis

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What is Economy?

 The state of a country or region

in terms of the production andconsumption of goods andservices and the supply of

money.

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What is Crisis?  A crisis can be described as that period

of depressing economic performance.

During this time, the value ofinstitutions, especially nancialinstitutions, drops at unprecedentedspeeds and everything seems to be

valueless. !roduction is lo" and oftenfails to meet the level of demand.

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What is Economycrisis?

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Denition#A situation in "hich the economy of a country 

e$periences a sudden do"nturn brought on by anancial crisis. An economy facing an economic crisis"ill most li%ely e$perience a falling &D!, a drying upof li'uidity and rising(falling prices.

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!a%istan &D! )gross domestic

!roduct*

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Causes +f Economic Crisis *. -ac% of !roper !lanning

*. Corruption

/*. 0neligible 1inisters

2*. War on terror

3*.1artial -a"

4*.!olitical cauldron 5 Crisis 6*.Decrees in 0nvestment and Trade

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E7ects of Economy Crisis *. Energy Crisis

*.8toc% 1ar%et Collapse

/*. Devaluation of Currency

2*.+ther Crisis

3*. 9nemployment

4*.-o" savings 6*.0ncrease in !overty

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8olution *. Diagnose and $ the problem

*. Control E$penses

/*. A good :udget !olicy

2*. ;or !oor class Education 8hould :e;ree

3*. 8top Corruption

4*. 8top 1oney -aundering

6*. <udiciary must be e'ual for allclasses

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Causes

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-ac% of !roper !lanningAs 0 have al"ays complained that our

government lac%s a team of thin%=tan%s

and proper committee to sort out thesolution of various problems, thereforeour infra=structure is getting damageday by day, also our civil sectors are not

functioning properly and they arecollapsing to each other at variouspoints

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Corruption>o" the main reason of collapse of civil

sector and malfunctioning of system is

corruption. As corrupted mindsets arethemselves given responsibility to5@4ensure security and propertransfer5@6 of currency Bo"

throughout the system, therefore, theyare damaging the system by stealingmoney of their o"n.

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0neligible 1inisters 8uch people are hired "hose eligibility is

'uestionable, they are characterless,

possesses no virtue, insincere and donot "or% "ith dedication, thus theircharacter is contrary to the criteria ofconstitution of !a%istan, their character

completely reciprocate to the re'uiredcriteria.

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War on terror

>o" A biggest cause of Economic crisis isthe "ar against terrorist. Which is

continued and a lot of budget destroyedin this "ar. Also the terrorist attac%sdestroyed the most areas "hich cansupport the Economy.

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1artial -a" Due to corruption and ineligibility of our

ministers and other %no"n reasons, our army

imposes martial la" and uses its right givenby constitution of !a%istan 6/ article :,thus if you loo% at chart, you observe thatbefore impose of martial -a", the value of!a%istani rupee "as less than 43 rupee, and

even after the impose of 1artial la" andreta%e of governmental body, the !a%istanirupee value "as 4 as compare to 98 dollar.

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Decrees in 0nvestment and Trade

Due to above mentioned reasons, and "ar on terror andsituation "ith 0ndia i.e. Cargill case etc, !a%istan faced hugetrade loss as "ell, after 1usharraf imposed emergency dueto political crisis and seeing arachiFs situation, !a%istanalso lost investors and %ey role "as played by media suchas &E+ TG die to "hich 1r.1usharraf banned it for sometime till the political condition is balanced. Thus due to above mentioned factors, it a7ected to a

common man a lot, as due to devaluation of currency, "ecan see clearly the rise of prices on daily basis items etc. Thus this is the basic point "hich has triggered frustrationof common man.

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!olitical cauldron 5 Crisis After the incident of <ustice Chaudhry

and political crisis, the rupee value "as

declining, after 1r.1usharrafFs resignand in HardariFs era, rupee valuedeclined to I.s as compare to dollar.8adly, the value of !a%istani rupee "as

greater than 0ndian, thus !a%istan lostits currency value due to abovementioned reasons.

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E7e

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Energy Crisis

Energy crisis are as follo"s

 +il crisis

&as crisis

Electricity crisis

 These Crisis are due to ;inancial crisismostly in !a%istan. Economical crisisgenerate these crisis and these crisishave also a great e7ect on industrialcrisis.

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Devaluation of CurrencyDue to above mentioned reasons our

common man is most a7ected and

burdened, as our economicalinfrastructure is su7ered due to suchreasons that is "hy our currency isdevalued, here are fe" factors#

1artial -a"Decrees in 0nvestment and Trade

!olitical cauldron 5 Crisis

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+ther Crisis

Economical crisis also causes

the other crisis li%e EnergyCrisis, industry !roductionCrisis and many more "hichis a great e7ect of this.

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9nemployment

Employment is also e7ected byeconomical Crisis.

As "e can see that the EconomicalCrisis increase the ratio ofunemployment also increased.

:ecause thereFs nothing tomaintain the ne" employers andtheir salaries.

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-o" savings ;inancial Crisis also e7ect the savings

for the bad time. Due to Economic Crisis

saving rate decreased called lo"savings

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0ncrease in !overty Economic Crisis Directly e7ect the lo"er

class people. This causes the increase

in poverty because the ta$ rate and theprices of things are increased.

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8olution

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Diagnose and $ the

problemDiagnose and $ the problem. 0t "ill

ta%e a "hole turn of businessman to see

"hat nobody else sees, do "hat nobodyelse can do and act on a sustainableglobal solution. A businessman %no"sho" to bring good ideas to life and turn

them into viable enterprises. They also%no" that to treat a crisis, you have toidentify it rst and then o7er plenty ofoptions. ;or businessman, those optionsare only as limited as their imaginations.

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Control E$penses . Jelp you control e$penses. Jo" many

businessman have started a business on

a shoestring)a small budget*? Iaise yourhands. 1ineFs up. A businessman%no"s that every penny counts evenafter sales and prots roll in K or donFt

roll in, "hatever the case may be. 1anybusinessman trac% monthly sales andgross margins by hand until they get afeel for the health of an organiLation.+nce youFve been in a MJo" do 0 pay my

people?N position, you never forget or

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A good :udget !olicy

=&overnment needs to

"or% on its budget policy,that is they need to divideta$ation on the basis of

eligibility of classes to pay.

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;or !oor class Education8hould :e ;ree

Ofor poor class, education

must be made free onschool and governmentmust re=active.

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8top Corruption

 The most and E7ective solution is to stopcorruption at every stage. And

government should be active and focuson this and nd the corrupted mindsets.&overnment must diagnose thecorrupted mindsets "ithin to stop

corruption. -a" and enforcementagencies must be given free hand toarrest such criminals.

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8top 1oney -aundering=-ong term procedures such as

money laundering, should be %eptinto focus, this strategy to avoidbigger problems "ill not solveanything.

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 <udiciary must be e'ual for allclasses

 <udiciary must be made

approachable for all classese'ually, 0 support 1r. hanFsattempt to launch mobilecourt system in !. Thiscould ease publics frustrationto some level.