Despite the official claims that country's economic situation is much better than before and the government's reluctance to get further loans from the International Monetary Fund (IMF), the condition of poor people is going from bad to worse day by day due to uncontrolled and sky-rocketing price hike.
According to a report foreign investment is a major source of ongoing price hike as a large number of multinational companies, especially the mobile companies, are responsible for extra burden on poverty-hit people.
The daily advertisements by these multinational companies through electronic as well as print media have made imperative for every citizen to buy expensive mobile sets, which caused a major dissatisfaction among the masses.
In such circumstances, the chances of development of a country are impossible. As every coming government tries its level best to increase foreign investment thinking that investment would help eliminate poverty but instead of that the country plunged into turmoil and such extra burden brought more difficulties and miseries for the masses.
To tackle the situation, an austerity drive by the government could pull the country out of such crisis as internal resources are more credible than foreign investment.
All the developed countries of the world have followed such drives by using their own resources instead of foreign investments and encouraged own industries instead of such foreign investments.
For example Japan had established heavy industries and sold these industries to rich business families of the country, which helped it in getting rid of foreign loans and at present Japan is an economically strong country. Pakistan has such resources but the rulers always depend on foreign investment instead of sincere efforts and doors remained open always for foreign investment.
Pakistan has become a lucrative country for these multinational companies as they are not bound to get permission from the government regarding increase in the prices and durability of their products. There was a trend in the country that due to the investment by these companies, the living condition of the people is going to improve day by day but the situation is quite different on the ground. There will be no way-out for Pakistani government if these multinational companies closed down their business from the country.
All the multinational companies working in the country have never bothered about the price hike as they are not answerable to the government. It is pertinent to mention here that these companies are not free in their countries of origin to increase the prices of their products on their own.
The beverage companies have also increased prices manifold in the last three years. These multinational companies have also increased the prices of medicines. The government of Pakistan has always discouraged the savings schemes and banks were restricted to give only 2 to 3 per cent interest despite the fact that the Pakistan government has fixed Euro Bond price at about 6 percent in the international market. Savings are always discouraged and the country remains always dependent on foreign loans.
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