Is Foreign Aid a Blessing or Curse?

Since the time of independence Pakistan has been facing macroeconomic exertions, such as vicious circle of poverty, less utilization of available natural re references, un thriving policy-making circumstances that influenced municipal economy and so on. To seize the deficiency, Pakistan has had to depend greatly on financial assistance made by distant countries. Pakistan has been seeking upkeep since 1947 from global lenders including International Monetary Fund (IMF), Asian Development money box (ADB) and World Bank.This financial economic aid poured mostly in the form of loans or debts with high interest rates. central of such assistance is the socio-economic development of the country. Financial assistance once taken as a blessing, appeared as to remove all the dearth of the economy. Resultantly many of the sectors started nourishing at par. Pakistan commenced its way towards developing nation simply 2005s earthquake ruined Pakistan leaving its awful economy further worsen .Though foreign aid showered in the country scarce, in fact, it directly went to the bank accounts of few effluents and hence with the passage of time, it proved that foreign aid has plow a curse instead of becoming blessing, not wholly perished the confidence of local people but corrupted more(prenominal) government officials. All the authorities here are now seeking more and more aid rather than to rely on their own available resources. Pakistan has already borrowed too frequently foreign aid in the form of loans and is still borrowing that has reached the historic over $60 billion.Debt charge up is continuously increasing so its interest rates that worth more than the debt itself. Now the economic daub is so deteriorated that for the payment of interest, Pakistan tries to get 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 pay attention for the development of the tech nology. They sound become entirely dependent on others. Major portion of aid particularly commodity aid is misappropriated by the concerned Government officials.Moreover, when aid is in terms 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 cost of production within the country. This situation discourages local agricultural production. If jadeor country has back up in establishing imported substitution industry then raw material for the industry will present to be imported from loan wedded country otherwise industry will not cut through its production because particular raw material is not available locally.This causes heavy foreign exchange slant on economy. Pakistan is obtaining foreign aid for bridging gap between domestic savings and investment and alike to remedy balance of payments position but till now it has not been able to accomplish this task, rather both gaps a re continuously increasing. Sometimes aid giving countries interfere in the defense and foreign affairs of Pakistan. Thats why it is said that there are always political strings attached to the bilaterally symmetrical loans. Thus 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 edacity and selfishness among the leaders of the realm. Pakistan was accessed as an independent nation but Pakistan is now fully dependent on the aid drug to eradicate all the absences. As soon as a new government takes purpose it is out to woe 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-conceit and start to improve the lives of the impoverished masses the country needs corrective surgery. The starting point should be adopting a culture of austerity and simplicity. The President, Prime Minister, Army Chief and Chief Justice should be given homes and protocol of ordinary citizens. The vestiges of colonial days, the pomp of office must go. Leaders must present themselves as a role model of modesty rather to complex the masses by their luxurious stuff.One has only to look across the border that how people present themselves in public in simple clothes, sans jewels and accessories, where ministers dont drive in flashy imported vehicles if a role model is needed. The next measure is to generate resources by taxing all. The first step should be agriculture. There is no more favorable time than now. In the past 3 to 4 years produce price including cotton progress to witnesses a runaway increase and most farmers have had their incomes increase by over 400 share in three years. Income tax is a failure in Pakistan however consumption tax earth-closet be promoted.All students going abroad for study should be required to get an NOC which would require their parents to explain the source of funds. All property purchase, 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 main stream. With a corrupt bureaucracy, political elite and military this may virtually impossible. So a revolution is needed to unshackle Pakistan.