Economic imbalance denotes the wealth concentration in a few hands whereas majority of the populace live on the verge of bare subsistence level. It’s a paradox of poverty in the midst of plenty. On the whole, limited ones enjoy all sorts of plausible luxuries. Independence vanishes when financial inequality prevails in the market and generates hindrances in the working of market mechanism. The result is elimination of cooperation, an essential for economic growth, and as a result demand for luxuries intensified, shifting resources from necessaries to luxuries.
The objective of economic growth progression is to condense poverty. Since the inception of Pakistan, swift industrialization has been an arduous feature for economic policy makers. During the fifties and sixties, Pakistan large scale manufacturing witnessed remarkable growth. This industrialization amplified the gap between the rich and poor as industrial incomes were absorbed by few. Millions of people were hurt by this irreplaceable economic development.
Dr. Mahbub-ul-Haq, the former chief economist of Pakistan, threw light on the phenomenon of superfluous disparity and inequality in economic power and incomes on April, 1968. In a speech delivered in Karachi, he stated that sixty six percent of the industrial assets and eighty seven percent of banking and insurance were in the possession of twenty-two industrial houses. The leading position of industrial houses was affected after the fragmentation of Pakistan and large scale nationalization.
Favoritism and nepotism, poor infrastructure, improper utilization of public assets, black marketing, hoarding, lack of social reforms, corruption, red tapism, urbanization, feudalism, injustice and drug trafficking are considered the main reasons for crafting economic inequality in Pakistan. Time to time, Government of Pakistan has taken steps to address these issues.
At current, the government has reduced the extent of individual land holdings by introducing land reforms. Progressive taxes are levied by government in order to shrink variances in incomes and provide protection to the middle class. Different employment exchanges are being opened by government, facilitating masses by providing transport facilities and enhancing the spread of information through media; all these efforts are to shrink income disparities. The government is also providing generous concessions in the form of interest free and low interest loans for establishing small scale business in Pakistan.
In this contemporary era, government endeavor to diminish economic imbalances by endorsing stability in society, social justice and welfare, increasing production and providing equal opportunities for all. Free medical assistance, free education, pensions for oldies and stipends for the poor students are some of the cures implemented for flowing some of the wealth of rich towards poor.
Author:
Manan Aslam and Shahid Latif
University of Management and Technology (UMT), Sialkot Campus
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