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 infra-
structure 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:
Sir Main Rizwan Akhtar
Submitted by:
Rizwan Saeed
Sabit Alam
Raghib Ahmad
Muhammad Asif

Department of Management Sciences & Economics

Karakurum International University Gilgit NAs.