Is Foreign Aid a Blessing or Curse?

Since the time of in frontence Pakistan has been facing macroeconomic exertions, such as vicious circle of poverty, less utilization of available natural re offsets, discriminatory political circumstances that influenced domestic economy and so on. To seize the deficiency, Pakistan has had to depend greatly on financial assist made by inappropriate countries. Pakistan has been seeking maintenance since 1947 from global lenders including International Monetary Fund (IMF), Asian Development Bank (ADB) and World Bank.This financial forethought poured mostly in the form of bestows or debts with high interest rates. Focal of such assistance is the socio-economic development of the province. 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 but 2005s earthquake ruined Pakistan sledding its awful economy further worsen.Thou gh foreign aid showered in the farming but, in fact, it directly went to the bank accounts of few effluents and hence with the passage of time, it prove that foreign aid has become a curse instead of go blessing, not only when perished the confidence of local people but profane more government officials. All the authorities here are direct seeking more 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 historic over $60 billion.Debt burden is continuously increasing so its interest rates that expenditure more than the debt itself. Now the economic position is so deteriorated that for the makement of interest, Pakistan tries to reconcile believe 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 technol ogy. They just become entirely dependent on others. Major portion of aid particularly commodity aid is defalcate by the disquieted 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 hail of production within the field. This situation discourages local agricultural production. If donor country has assisted in establishing imported substitution industry then primitive material for the industry will have to be imported from loan given country otherwise industry will not come on its production because particular raw material is not available locally.This causes heavier-than-air foreign exchange burden on economy. Pakistan is obtaining foreign aid for bridging kerfuffle between domestic savings and investment and also to improve parallelism of payments position but till now it has not been able to procure this task, rather both gaps are continuously increasing. Sometimes aid bountiful countries interfere in the defense and foreign affairs of Pakistan. Thats wherefore it is said that there are always political strings machine-accessible to the bilateral 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 rapaciousness and selfishness among the leaders of the realm. Pakistan was accessed as an independent nation but Pakistan is now richly dependent on the aid drug to eradicate all the absences. As soon as a new government takes office it is off to woe the US for aid, begs from the Saudis for a few crumbs and looks to countries like China for handouts. This essential stop.To achieve self-respect and start to improve the lives of the impoverished masses the country needs corrective surgery. The starting point shoul d be adopting a husbandry 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 moldiness go. Leaders must present themselves as a role stick 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 humanity in simple clothes, sans jewels and accessories, where ministers dont drive in garish imported vehicles if a role model is needed. The next step is to repay 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 have witnesses a runaway increase and most farmers have had their incomes increase by over four hundred percent in three years. Income tax is a failure in Pakistan however consumption tax can be promoted.All students going afield for stud y should be required to get an NOC which would require their parents to explain the source of funds. All property get, vehicle purchase and airline ticket purchase should require an NTN number. Put in place consumption taxes. For examples vehicles over constant of gravitation cc should progressively be taxed. Measures such as the above would scroll 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.