Discover why Pakistan needs foreign aid and how it can benefit from external assistance in terms of healthcare, education, and infrastructure development.
Why Pakistan Needs Foreign Aid.
Pakistan needs foreign aid for various development purposes. Some of them are being mentioned in the following paragraphs.
- For reorganization of the economic structure. Pakistan needs foreign aid for reorganization of her economic structure which cannot be made possible through limited indigenous resources. This reorganization process will lead to speedy transformation of economy from agrarian to industrial one. Further, this will also eliminate the element of uncertainty in the national output, enhance the level of employment, reduce the wastage of economic resources and finally improve the input and output ratio in production operations.
- For implementing social uplift programmes: Pakistan also needs foreign aid for implementing the social uplift programmes which include education, health and enlightening the people with modern social values. These programmes require not only huge money investment but also the modern machinery, tools and appliances. Further, they need services of trained and skilled personnel who are scarce in the country and are to be obtained from abrozid. All these can be provided with a huge amount of foreign exchange.
- For Accelerating Economic Activities. Pakistan needs foreign accelerate their economic activities so that the production level can be made possible through huge investment with which adequate earning and saving level in the country. This requirement can only be met through foreign aid as the earning and saving tendencies are very low in the country..
- For strengthening the defence forces: Strengthening the defence forces is the primary need of the country which is not possible to be achieved from indigenous sources. Foreign aid for military goods and skilled personnel has to be obtained to equip the defence forces with modem appliances and train the named personnel with latest techniques of defence tactics “
- Overcoming the scarcity of consumer and capital goods: Pakistan needs foreign assistance in the form of commodity aid in order to overcome the problem of scarcity of consumer and capital goods. The economy has to rely on foreign aid for these things until it reaches at equilibrium of full employment level. Further, the commodity aid checks the inflationary trend, stabilizes the price level, stimulates production and improves the efficiency of indigenous producers by making the home market competitive one.
- For removing the shortage of funds: Pakistan needs foreign aid in the form of public and private investment for removing the shortage of funds and to provide adequate quantity of foreign exchange for industrial, agricultural and commercial development projects.
- For implementing of development projects. Foreign aid in the form of technical assistance is also needed for the implementation of development projects which are being completed through five-yeas plans. These development plans not only require foreign technical personnel but also need people to be trained abroad. This can be made possible through fpreign technical assistance because the foreign exchange earning of the country is still not sufficient enough to finance these requirement, and thus, the country has to rely on foreign aid.