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The right steps

The PTI government took yet another significant step towards poverty alleviation through the launch of the Ehsaas Kafalat Card inaugurated by Prime Minister Imran Khan on January 31.

Under the new initiative, Rs2000 monthly cash payments will be made to seven million women. Coming under the umbrella of the Ehsaas programme, it boasts of major differences with the earlier BISP initiative. To ensure that only deserving women benefit from it, the survey methodology has been revised to enable the ongoing identification of beneficiaries through desk registration.

Also, a new system of payment has been installed, cash transfer has been increased and it offers digital and financial inclusion opportunity to women by providing better access to mobile phones. All beneficiaries will be able to access payments at special ATMs, and bank branches and will also have the option to deposit funds into saving accounts.

The prime minister also said another similar initiative within the next two weeks would be launched, under which cows and buffalos will also be distributed among deserving women to empower them economically. Building shelters for the homeless and the launch of Ehsaas-Sailani langars and distribution of health and ration cards among the poor are other commendable steps. Though they seem small, they will have wider social and economic impact leading to improvement in the lives of the less privileged segments of society.

To encourage entrepreneurship and employment, the Kamyab Jawan programme – a component of the Ehsas programme- – is a very significant step. The loans given under it will help the youth to establish small and medium enterprises generating thousands of jobs. The progamme envisages advancing interest-free loans up to one hundred thousand rupees among the weaker segments of society in 45 less developed districts of the country. The other two categories include loans up to Rs500,000 and Rs5 million.

The youth will not only be provided money to start their own businesses but will also be assisted through online feasibility studies carried out by the government. The other hallmark of the programme is that women will have 25 percent quota in it.

The Kamyab Jawan programme will be supplemented by the Hunarmand Jawan initiative launched by the prime minister on January 9; the project is to prepare the youth for employment at home and abroad by imparting training and education in high-tech and emerging technologies. These two measures are essential ingredients for promoting entrepreneurship.

An incisive appraisal of the developed countries reveals that their phenomenal economic growth was propelled by entrepreneurship, which is rightly regarded as a key to economic prosperity. Entrepreneurship is the capacity and willingness to start a new business venture and the hallmark of entrepreneurial spirit is innovation and risk taking.

Entrepreneurship therefore has rightly been called an engine of growth. In Pakistan the government employs only 7-8 percent of the labour force. So like all other nations the only option available to it is to propel economic activity in the private sector by encouraging entrepreneurship and making available the necessary resources and technical know-how to the youth entering the labour market.

Entrepreneurship serves as a channel for the spillover of the knowledge acquired in one organization and becoming commercialized through innovative activity in a new start-up. New start-ups ensure that the costly inventions and creative ideas created in one industry or business concern are shared, commercialized and converted into innovative pursuits which not only revolutionize those industries but also spur economic growth, job creation and development of a competitive culture within the country.

The youth are the future of the country. Engaging them in productive pursuits and self-employment avenues is the best insurance against poverty and an indispensable guarantee for economic prosperity. The country can move forward only when there are greater employment opportunities in the private sector. Pakistani youth are around 40 percent of the total population and any move that ensures their gainful employment is bound to accelerate the process of economic progress due to its multiplier effect besides enhancing tax revenues of the government that this newly initiated economic activity will generate.

The measures initiated by the government are meant just for that. Availability of financial resources and technical know would enable the youth to start their own businesses. Others would be able to find gainful employment in the country and abroad. The successful implementation of the programmes will surely put Pakistan on the path of sustained economic development.

Apart from providing an enabling environment for promoting entrepreneurship, the government has also decided to fill the 129,301 vacant posts in the federal ministries and divisions within four months as per the directive of the prime minister. That will also improve employment situation in the country.

There is no denying the fact that to stem the rot in the economy the government had to take some tough decisions which created difficulties for the people due to their inflationary impact. However, it is encouraging to note that the government has been able to stabilize the economy as a result of the taken steps and now there are positive signs about its revival.

To promote the well-being of the people and ensure increased employment opportunities for them is the prime duty of any incumbent government. The PTI government seems to be moving in the right direction in that regard.

Malik Muhammad Ashraf, "The right steps," The News. 2020-02-04.
Keywords: Economics , Economic development , Financial resources , Economic activity , Economic prosperity , Economic progress , Employment opportunities , PTI government , Entrepreneurship