Stagflation: a bane for prgress | Pakistan Today

Stagflation: a bane for prgress

Most letters on the above topic miss the point that in a balanced economy the private sector has to be the big employer, in particular industry and agriculture. While industry absorbs the blue collar, skilled, semi skilled, and unskilled workers in great numbers, more than 48% of the total labour force is engaged in agriculture.

Agriculture is the mainstay of our economy, accounting for 21% of the GDP. Together with agro-based products, it fetches 80% of the countrys total export earnings. The price hike also is directly related to industrial and agricultural production

The above balance is upset when the government resorts to massive employment in the public sector on political basis, badly affecting its profitability. This is then offset through heavy borrowing from the banks, squeezing out the private sector from the banking market.

The above vicious circle can be broken only through growth in industry and agriculture, both requiring mega quantities of power and water.