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PRESENETED BY:Ahsan Arain
THE ECONOMIC GROWTH
OF PAKISTAN
Economy of Pakistan The economy of Pakistan is the
27th largest economy in the world in terms of purchasing power, and the 45th largest in absolute dollar terms.
Pakistan has a semi-industrialized economy, which mainly encompasses textiles, chemicals, food processing, agriculture and other industries.
First five decades Pakistan was a very poor and predominantly agricultural
country when it gained independence in 1947. In the first five decades (1947–1997) Average annual real GDP growth rates[43] were;
6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in the 1980s. Average annual growth fell to 4.6% in the 1990s with
significantly lower growth in the second half of that decade.
Recent decades This is a chart of trend of gross domestic product of
Pakistan at market prices estimated by the International Monetary Fund
Economic History
Problems of Pakistan’s Economy We Consume More & Save less Import More & Export less High Fiscal Deficit & Inflation Share in World trade is Shrinking Badly lag in Social Indicators Energy & Water Shortage Governance & implementation Crisis Law & Order Situation
Year Gross Domestic Product US Dollar Exchange
Inflation Index(2000=100)
Per Capita Income(as % of US)
1960 20,058 4.76 Pakistani Rupees 3.37
1965 31,740 4.76 Pakistani Rupees 3.40
1970 51,355 4.76 Pakistani Rupees 3.26
1975 131,330 9.91 Pakistani Rupees 2.36
1978 283,460 9.97 Pakistani Rupees 21 2.83
1985 569,114 16.28 Pakistani Rupees 30 2.07
1990 1,029,093 21.41 Pakistani Rupees 41 1.92
1995 2,268,461 30.62 Pakistani Rupees 68 2.16
2000 3,826,111 51.64 Pakistani Rupees 100 1.54
2005 6,581,103 59.86 Pakistani Rupees 126 1.71
2014 22,032,565 105.95 Pakistani Rupees 260
2016 45,680,351 104.55 Pakistani Rupees 370 2.71
Role Of Industries In The Economy Of Pakistan And Problems To The Industries In Pakistan
Industry “industry refers to that sector of
economy which is related with manufacturing and production of products.
Major Industries in PakistanTextile
IT industry
Mining and extraction
Cement
Telecom Sports Surgical
Suger fertalizer
Textile Industry 3rd largest exporter of the world 8.5% contribution to GDP
Suger industry It is 2nd largest industry after textile At present 106 suger mills are opreating in
pakistan 15th rank in the world in suger production GDP contribution is 0.7%
Cement Industry Exported last year 700 million USD (47% increaed) Cement contribution in GDP is 3.5% Pakistan has ranked 5th position in world exporter of
cement
Sports Industry Sialkot export 70% of world demand Employement more than 200,000 Exporting goods worth $450 million
Fertalizer industry Contribution of fertalizers are 14% in GDP Emlpoyment are 4.7 million
Problems to the industrial Sector of Pakistan
Power shortage
Lack of trained manpower
Diffeculty in export
Lack of new technology
Changing political and economic policies
Bad law and order situation resulting in lower investment
Higher interest rate
Terorisum which reflects forigen inveters
Following are main problems to industrial which make obsticle in the way of growth in their producton, result in transforing industries to other
countries.
Suggested solution Forigen
investmentAttract foringen cargo airlines
Micro cridit
Innovative technology
Substitute of powers (oil, gas,
wind mills)
Decrease interest rate
privitization
Traning of labour Research development
‘Pakistan's Economy: challenges & solutions’
Why economy matters? Economy affects the lives of the people of Pakistan Two Pillars of the State
Strong Economy Strong Defense
A strong economy can ensure strong defense; it will enhance country’s power and hence make the country’s defense even more stronger
Economic Backwardness generates violence, social conflicts and political turmoil.
Recent DevelopmentsFood & Fuel Crisis (Common Challenges faced by
every economy)Intensification of War on Terror Political Instability Less than satisfactory security environment Energy Crisis Economy Remained out of Radar of the Government Instability in economic team Weak economic team Fiscal Indiscipline Weak governanceBreak down of public–private sector relations
What Needs to be Done? Newly Elected Government must bring a
strong economic team Political Leadership must provide full
support to the team No Room for Business-as-usual Policy Extraordinary situation Demand
Extraordinary Measures Financial Discipline is the key to success Bring Budget Deficit down to 3.0 – 3.5
percent of GDP in the next 3-5 years