INTRODUCTION The Northern Areas have the unique distinction of being the converging point of three of the mightiest mountain ranges in the world, namely, the Himalaya, Karakoram and Hindu Kush. These ranges have many of the world’s highest peaks and the world’s largest concentration of glaciers outside the Polar Regions. In the Karakoram's alone 30 peaks soar over 24,000 feet (7,500 m) and culminate in the 28,250 feet (8,612 m) high K2, second only to Mt. Everest in elevation. Sheer rock walls and ravines, plunging thousands of vertical feet down to the rivers flowing below, mark the scenery. The remoteness and limited accessibility of the Northern Areas until now have meant that people here have had a high dependence on the natural environment, without access to many modern facilities. Traditional modes of living ensured harmony between the natural environment and human beings. But growing population, greater communication links and infrastructural and developmental interventions are changing traditional lifestyles and increasing the pressure on natural resources In addition to the trading importance of Gilgit and its environs, its location at the doorstep of China and Central Asia, with Afghanistan and India also close by, makes it a very strategic area culturally and geopolitically. The people of this area not only share the mountainous terrain with their neighbors to the north and west, but also ethnicity, history, religion, culture and languages. Faces in Gilgit reflect the kaleidoscope of ethnic groups that make up the population of the entire Northern Areas. Its geopolitical importance was evident during the British era when the Gilgit Agency was a vital arena in the Great Game politics between Britain and Russia. Today it is still an important strategic link between Pakistan and China and the Muslim countries of Central Asia. The valleys and mountains of the Northern Areas present exceptional challenges and opportunities. Unemployment Unemployment is the situation where the country is not making full use of its resources. Unemployment is a central problem because when unemployment is high, resources are wasted and people's incomes are depressed; during such periods, economic distress also spills over to affect people's emotions and family live. In Northern Area due to the non availability of human capital most of people are unemployed .this is the hurdle problem for this region. The major causes for unemployment among the poor in Northern Area include a lack of technical skills, little or no education, low income worsened by indebtedness to moneylenders, no career guidance, lack of awareness regarding available jobs, high expectations without commensurate experience, little understanding of work ethics and the weak economy. Low income can be improved by small enterprise development (SED) activities, entrepreneurial and technical skills, increased financial resources and management skills, and increased participation of women in economic activities providing more income for the family as compared to a single breadwinner. Child Labor Child labor is a big problem in Northern Area. The reason is Nike. Nike has been accused repeatedly of using exploitative child labor in the production of its soccer balls. Nike is the main culprit of the soccer ball case, but technically they are not the ones hiring the child laborers. Like a good chess player, Nike always thinks a few
moves ahead. They don’t just jump right in and hire children, but instead subcontracts them through a local firm. In this The local firm is supposed to abide by Nike's international rules and regulations, and in turn, it is the duty of the business hiring the firm to check the local firm's actions. This is not what happens. Nike doesn't check its local firms, and the local firms are not abiding by Nike's rules. Poverty Poverty is one of the main social problems in Northern area facing today. Poverty is multi-dimensional concept. The concept of poverty and being poor has changed over time. Education and opportunity are considered as essential as the bare necessities of life In Northern Area over one third of the population lives below the poverty line. There is only one doctor for every 1590 persons, 90% of the villages lack basic health facilities and the state of roads, canals, schools, building and other infrastructure is rapidly deteriorating.
DISPUTED AND CONTROVERSIAL INDUSTRIAL STRATEGIES It is also a big impediment in the way of industrial development that we have not yet adopted any clear economic strategy regarding industrial development. And our planners and policy makers failed to assess that the industrial development is based upon agriculture development. But there was a ruthless craze to install more and more industrial units in the NAs. in this respect private sector should to be given a lot of facilities, concessions and rebates etc LAACK OF INFRA-STRUCTURE FACILITIES The industrial development is based upon the provision and existence of infrastructure facilities like roads, water, gas electricity, energy, fuel, telephone and telegraphic facilities. on the other hand we are very much deficient in case of such all facilities the roads from harbour to industrial area and big cities are reduced in number defective as well as not so board to accommodate the long trailers and big vehicles . The industrialist fails to get electricity –the basic producing element, because of persistent load shedding in NAs. UNAVAILABILITY OF COLD STORE AND WAREHOUSES Since sowing to harvesting the element of uncertainty dominate the agriculture sector. The farmer is not sure of the success of the seeds sown because of uncertainty of weather availability of water and fertilizer etc .when such stage is the over the process of harvesting or plucking etc. starts because of weak financial position they are unable to construct the warehouses and cold stores they have to store their corps in their houses where they are at the mercy of rats and other insects--- thus reducing their value. if they sell their produce just after harvesting they will not be able to get handful amounts against the products sold the official cold store and warehouse are meant for official stock of wheat rice potatoes and onions the private cold storage facilities are very expensive and are beyond the range of small and poor peasants in such situation the income of the farmers remain low more properly the terms of trade go against the agriculturist when they get reduced payments against their products this situation rise particularly because of perishable nature of agriculture goods. PROBLEMS OF AGRO MARKETING The farmers are confronted with the fluctuations in respect of their products and prices. Accordingly their incomes are always prey to variations and changes to protect their incomes and yields, the farmers have to face the problems of payment while selling agro products. Above all the behavior and commission agent is furnished with the exploitation of small peasant they take the advantage of the weak financial position of the farmers and they know that the farmer is unable to store their produce. They are in need of money and the transportation of potatoes and other vegetables is an extremely cumbersome job the farmer while selling their
produce have to give a lot of commission. NEGLECTING THE AREA The fact is this we have not yet adopted the basic norms which are necessary for a nation. The rural sector is surrounded by illiteracy having no notion for a change. The civil and military bureaucracy is found of powers and authority. Accordingly the bureaucrats follow those practices which were used by the British rulers. They are found of departmental procedures which are big obstacle in the way of industrialization. the prospective industrialist have to go for licenses , import licenses no objection certificates gas electricity and telephone connections.such all is cumbersome and time consuming. UNAVAIABILITY OF INDUSTRY If we study about industrial base in NAs then we come to know that we are inherited the industrial backwardness we were deliberately kept backward and deprived of industrial base. although we have a large quantity of raw materials and natural resources in NAs for industries(like marble and cement industry etc) By comparing NAs with other parts of the country we come to know that lack of industries is the a major socio economic problem in our society. SOIL DESEASIS Land is like producing unit. The good agriculture production is attained through giving reasonable amounts of inputs like better seeds, ample water, proper ploughing, sufficient amount nutrients, protection against natural vagaries and greater use of pesticides but ours is a reverse situation. The water supply to the form is mostly provided through canals. Such system of irrigation has worstely affected the health of soil. A greater seepage of water is observed resulting in water logging. This is not only a national wastage but it also affects the productivity of the lands.
POLITICAL INSTBILITY pakistan in particuler and northren areas are genral are being affected by political crisis in the country.Due to the political situations in the country economic activities of the northren areas are bedly affected.Diffrent political parties infulence the areas economic activities for the sack of there personal intrests. SECTARIAN DISPUTES The northern areas are facing sacterion clashesh since 1988. The sacterian clashes have distroyed almost all the economic actvites. Running economnic activities have been stopped and the outside investments have been also stopped due to uncertaininty emerge by sactarion clashes.
Macro Economics Topic Macro Economics Problems of NA,s
Submitted to: Submitted by:
Sir Main Rizwan Akhtar Rizwan Saeed Sabit Alam Raghib Ahmad Muhammad Asif
Department of Management Sciences & Economics Karakurum International University Gilgit NAs.