Economics

1. UNEMPLOYMENT SITUATION IN PAKISTAN

First of all what is unemployment?

Unemployment which is defined by the International Labor Organization that it occurs when people are without jobs and they have actively looked for work within the past four weeks. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force.

Now we see that in Pakistan what is the situation of unemployment and what are its economic and social impacts.

ECONOMIC IMPACT

From Okun's law we know that for every 2% fall in GNP relative to potential GNP, the unemployment rate rises by 1% point. High unemployment is a symptom of waste for means if unemployment is high the economy is not producing up to high level. When economy is not producing sufficiently, we can say that we are unable to use our full resources for production purposes. Economy will not grow as fast as it can if become able to produce at high level.

ROLE OF GOVERNMENT:

The government is trying to reduce the unemployment rate. Under Prime Minister's Self Employment Scheme, different Banks and Small Business Finance Corporations are extending loans to unemployed youths and skilled professionals having diploma/degree and business experience. Loans ranging from Rs.10,000 to be Rs.500,000 for small business and from Rs.500,000 to Rs.5,000,000 for small industries etc. Small Business Finance Corporation is playing role in reducing unemployment. Upto March 1999, the Small Business Finance Corporation has sanctioned Rs.2,208.4 million, against amounting to Rs.1,551.95 million have been disbursed to 9,383 persons.

The SBFC has generated employment for 28,149 persons under the Prime Minister's Self-Employment Scheme up to March 31, 1999. A Small and Medium Enterprises Development (SMEDA) has been setup for growth and development of self-employment schemes in Pakistan.

During the year 1998...