Impacts of law and order situation on economy


Economy always follows politics and politics remains the byproduct of law and order situation prevails in a country.

If law and order situation runs smoothly, the politics play smoothly and therefore the stable economy of the country – universal truth.

The law and order situation arises when there is insecurity, threat of violence or violence arising due to a host of factors disturbing the ordinary conduct of life and businesses in a society.

It may be a product of one or more of the following:
External aggression
Internal upheavals
Religious/sectarian extremism
Labor unions/strikes, boycotts, lock outs, and similar activities
Ethnic/racial/linguistic cleavages
Economy fact sheet

Pakistan: Decades of internal political disputes and low levels of foreign investment have led to slow growth and underdevelopment in Pakistan. (CIA Facts Sheets-Pakistan)

Agriculture accounts for more than one-fifth of output and two-fifths of employment. Textiles account for most of Pakistan’s export earnings and Pakistan’s failure to expand a viable export base for other manufactures has left the country vulnerable to shifts in world demand.

Official unemployment is 6%, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high.

Over the past few years, low growth and high inflation, led by a spurt in food prices, have increased the amount of poverty.
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