Ignoring energy and water infrastructure have affected FDI (foreign direct investment) as well as Uncertainty Avoidance Index (UAI) measure of tolerance and ability of avoiding uncertain situation on the face of crisis in the country-has reduced to alarming level during last two years. Not only international but local investors are also keeping their fingers crossed as situation regarding availability of basic facilities is getting worse and no light at the end of tunnel is in sight. Energy short fall in Pakistan has reached up to 4000 MW and industrial cities like Karachi, Lahore and Faisalabad are among most affected cities. Instead of creating new jobs this shortfall of energy has forced to shutdown many industrial units leaving thousands unemployed.
In social sector growth of education and health infrastructure not only reflects in overall development of a country but also contribute heavily to sustaining that growth. In Pakistan, due to lack of interest, limited resources and other problems both health and education sector infrastructure could not be developed. Urban centers in Pakistan are expanding by every passing day but health and education infrastructure remains largely the same.
Rural area health and education infrastructure is in more cumbersome situation. Deficiency in health, education and in some areas sanitation facilities are pushing young people into activates like militancy and street crimes. Some parts of rural population, due to lack of facilities and opportunities, are pouring into cities which is adding to management problems in cities for example Lahore and Karachi, two major cities, are experiencing a rapid growth in population due to migration of semi-skilled and non-skilled peoples into these cities which is adding to unemployment in cites and also adding pressure on existing infrastructure like transportation system. Inadequacies in health infrastructure are resulting in spread of communicable and non-communicable diseases.
Way out for Pakistan: Investment in Infrastructure Development
Before suggesting infrastructure development as a way forward for future sustained growth it is very important to understand the place of infrastructure in overall growth cycle and why it is critical for sustaining growth with no or minimal foreign leverage. Pakistan is ideally located on map where it can use its infrastructure for its own growth as well it can help other countries in region and in its adjacency.
Why Infrastructure Development?Â
Notion of sustainable growth is tightly bound with local demands and means to fulfill these demands without borrowing foreign financial input. This is something every intimidating endeavor due to fragile economic conditions.Â
In such a condition, best strategy is to convert needs of local population into demands and fulfill them with local resources. Every country grows at a certain pace according to its resources and most of the time it becomes impossible for a developing country to keep on growing without borrowing money from an external source, so there must be an engine which can push the idea of supplying local demands through local means. In Pakistan infrastructure can help to meet much of local demands like energy, clean drinking water, sanitation facilities, transportation system and can create many job opportunities at the same time. Apart from that it generates demand for more raw material which in return makes more income for these local businesses. Â
Infrastructure development also improves local conditions for foreign investment into other areas like industry and trade. Â
Apart from these all there are some rewarding regional benefits in spending infrastructure as well which Pakistan must make use of in order to enhance its financial and political sketch.
Regional Infrastructure and Pakistan
- Poverty alleviation from the country and region
Infrastructure improvement will allow Pakistan to get closer to its Millennium Development Goals (MDGs) set for 2015 in terms of water supplies, sanitation, health and education. Apart from that Pakistan is lacking behind in social development due to poor infrastructure. Â
According to a report published by World Bank "contributions infrastructure makes to the achievement of the MDGs, both directly (such as reducing the proportion of people without reliable access to safe drinking water and basic sanitation, or making housing and shelter more accessible) and indirectly, by supporting MDGs related to human development (e.g. education, of health, empowerment women) [2].Â
Infrastructure is essential in agriculture for region and for Pakistan in particular. Majority of Pakistanis are directly linked with agriculture and related businesses and it is also true for India and Bangladesh, two major countries in the region.
Having a reliable agriculture infrastructure will enable each country to increase its land under cultivation to fulfill needs for masses.
- Solution for Energy, Water and Food Crisis in Asia
On 24th June 2009 Asian Development Bank (ADB) President Haruhiko Kuroda clearly warned that to maintain strong growth, investment must not be allowed to be decreased on projects planned for supply of water. Economic growth, population expansion and the influx of people into cities have sharply raised the region's water requirements while increasing pollution risks. ADB President sighted reduction in infrastructure investment as a threat to poverty alleviation and economic growth.[3]
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