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