Have you ever wondered how a country’s economy gets stronger and it becomes developed? Well, the strong infrastructure makes a country develop and its economy boosts. Infrastructure development is the process of improving the organisational and physical structures, like logistics systems, better roads, and transportation systems. The major issue is that it is costly to invest in the infrastructure of developing countries, including Pakistan. In this write-up, we will understand what infrastructure development is, its types, and the current situation of infrastructure in Pakistan. Read till the end.
| Key Takeaways |
| Infrastructure is important for a country to provide the best living standards for its citizens and eradicate the divide. Hard infrastructure includes physical assets, while soft infrastructure has services like education and healthcare. Pakistan is facing challenges like environmental damage, a growing population and urbanisation, and weak governance in infrastructure development.Possible solutions include empowering local governments, sustainable urban planning, and infrastructure investments. ADB’s $200 million investment in December aims to modernise infrastructure and the power grid, enhancing energy efficiency and reliability. |
What is Infrastructure Development?
Infrastructure is the system of a business, region, or country that includes the production of public goods or production processes. It also includes the basic necessities like the education system, communication network, banking system, water supply, sanitation, transport, and power supply.
Infrastructure development also refers to the creation of new systems and technology that help people use digital tools for banking and money-related activity conveniently and securely. It involved building a protected ‘digital highway’ that includes secure websites or apps, networks, and systems to protect personal information.
Types of Infrastructure
Hard Infrastructure
Hard infrastructure is the physical system that is needed to run a modern and industrialised nation. For instance, highways, roads, and bridges, as well as the assets needed to make them operational, like transit vehicles, buses, and oil refineries. The technical systems, like networking equipment and cabling, are also considered hard infrastructure and provide sound support to business operations.
Soft Infrastructure
It represents the human capital and institutions necessary to keep up an economy that delivers services to people like financial institutions, healthcare, government offices, law enforcement, and education.
Infrastructure in Pakistan
Pakistan’s infrastructure has progressed over the last few years. However, as compared to other developed countries, the rate of improvement in Pakistan has been the slowest for major public infrastructure sectors. The transportation system has also suffered from negligence.
Infrastructure is the backbone of the country’s economy, and infrastructure development is not only important but maintains a high growth rate. The weak infrastructure has been one of the major factors restricting the economic growth of Pakistan and damaging its investment prospects.
Pakistan is a low-middle-income country now with about 251 million people. Consequently, Pakistan is facing rural and urban disparities in income, poverty, and infrastructure development.
Over the past few years, the government of Pakistan has attempted to resolve the balance of payment crisis, achieving some good measures of macroeconomic stability. The current situation in Pakistan is not hidden; poor people do not even have basic living necessities, and the rich are living high standards of living. Rich people are evading taxes, and the poor are suffering from the high electricity bills despite having very little resources.
However, the Infrastructure Development Authority Punjab (IDAP) has taken new initiatives to improve the infrastructure of Pakistan.
One of the challenges is the initiative to achieve sustainable urbanization. Let’s get into it to better understand the current situation in Pakistan.
Pakistan National Urban Assessment
Pakistan is experiencing rapid urbanisation, which presents a complex challenge with far-reaching implications. The urban population is increasing and also straining the existing infrastructure development. Now let’s list out the major urbanisation challenges.
Population Explosion
The population of Pakistan is growing fast, with a considerable portion moving to urban areas. The growing population and urbanisation are putting excruciating pressure on cities and the urban areas.
Environmental Damage
Urbanisation is damaging the environment badly. Air pollution, water pollution, land pollution, and also the loss of green spaces are major causes.
Government Challenges
Corruption and the government’s inabilities also affect the planning of urban shifting. This also affects the delivery of a project to support the infrastructure.
Economic Divide
Urban areas are also facing an economic divide with the elite class enjoying luxury living standards while the majority of Pakistanis suffer from poverty.
Infrastructure Imbalance
Urban infrastructure, including water supply, housing, transportation, and sanitation, is struggling to supply the growing population.
Key Issues to Consider in Pakistan
Shortage of Housing
A severe housing shortage also exists in Pakistan, especially for low-income groups, leading to the growth of informal settlements.
Water Scarcity
Water scarcity is also a major challenge when urban areas are facing poor water quality or water shortage.
Sanitation Problems
Inadequate sanitation infrastructure leads to public health crises and poor hygiene.
Traffic Congestion
Fast urbanisation has caused severe traffic congestion, badly affecting the air quality and productivity in the city.
Urban Spread
Unplanned urban spread without any planning consumes agricultural land and exacerbates infrastructure challenges.
Possible Solutions to Improve Infrastructure
Infrastructure Investment: It is crucial to invest in the infrastructure of Pakistan because good infrastructure brings prosperity and a brighter future for the next generations. Investment in building roads and improving them, good water supply, convenient public transport, proper sanitation systems, and affordable housing improves infrastructure.
Supporting Local Government: Empowering the local governments to manage urban development and service delivery effectively is crucial.
Integrated Urban Planning: Developing strategic urban plans that consider the needs of all Pakistanis, including low-income groups of people.
Support Sustainable Development: Encouraging sustainable urban development initiatives such as renewable energy, green building, and waste reduction will help a lot with infrastructure development.
Improving Social Inclusion: We should focus more on addressing social inequalities and ensuring that all residents have access to basic services and opportunities.
Adoption of Climate Change: Development of strategies to reduce the impacts of climate change on urban areas, like heat waves, droughts, and floods.
ADB Approves $200m Loan for Pakistan
Recently, the Asian Development Bank approved a $200 million loan to support Pakistan in improving its power distribution infrastructure. This approval of the loan will help Pakistan to improve its power supply and eradicate its losses. The major initiatives will be to install the advanced metering systems, upgrade grid stations, and replace the feeder lines.
Moreover, the project will explore policy reforms to optimise the power distribution sector. This investment is part of the Asian Development Bank’s broader support for Pakistan’s infrastructure development, with a focus on the economy and energy sectors. With this recent support from ADB, how fast will Pakistan’s infrastructure improve, or will it again be neglected?
Wrapping Up
Pakistan’s infrastructure is a major and complex issue with many obstacles and challenges. The government has taken steps to improve the infrastructure despite major challenges such as population growth, corruption, and limited resources. Pakistan must include both private and public sectors to invest in the infrastructure strategically. Pakistan can improve its infrastructure and the quality of life for citizens by investing in its infrastructure.
