Raza Abbas 27384 Bs Economic Assignment #1 10 /04/2019

Raza abbas
27384
Bs economic
Assignment #1
10 /04/2019
GDP OF PAKISTAN
350
300
250
200
billion us $
150
100
50
0
2014 2015 2016 2017
The gross domestic product of in Pakistan was worth near 250 billion us dollars 2014. After
2014 the GDP of Pakistan little increases in 2015. The GDP value of our country Pakistan
represents 0.49 percent in world economy. The average GDP of Pakistan is 71.19 billion us $
from 1960 t0 2017
budget deficit of pakistan

0
2015 2016 2017 2018
-1
-2
-3
billion $
-4
-5
-6
-7
Pakistan has faced economic challenges if we see the graph Pakistan has record budget deficit
Pakistan has record budget deficit of 541.7 billion (rupees) in 2019 from July to September
(1.4% of the GDP) due to the provincial government generated huge surplus and overcome in
development budget. The expenditure of country has stood RS 1.64 trillion against the total
revenues of RS 1.1 TRILLION during July to September of year 2019. According to the data of
ministry of finance the budget deficit of current financial year is more than the previous eras
when it was 1.2 % of GDP
Challenges and prospects of Pakistan’s economy

The current economic condition presents some chances for Pakistan. But the country also has some
thoughtful long term contests. Except the long term challenges are definitively undertook, such
opportunities will only prime to periodic rushes of growth rather than a constant upward route
Challenges
1. Mounting debt
2. Higher imports / fewer exports
3. Excessive taxation and regulations
4. Lack of political consensus
5. Low saving, more consumption society
6. Less investment and tax collection
7. Increased the government borrowing
8. Decrease share in world trade
9. Governance and operation weaknesses
10. Indecision due to lack of continuity of policies
ECONOMY OVERVIEW:
Periods of interior political conflicts and low level of foreign investment have headed
underdevelopment in Pakistan. Although some progress in recent years both defense and
energy a challenging security environment, less electric storage, and a heavy investment
climates have habitually discouraged investors. Agriculture balance sheet for one fifth of output
and two fifths of employment. Textiles and apparel account for more than the half of Pakistan’s
exports earning; Pakistan failures to expand its exports has left the country in danger to move
in world demand. The GDP of Pakistan is increased gradually after 2012 was 5.3 percent in year
2017. Formally unemployment was 6 percent in year 2017, but this fails to release the true
image, because much of the economy is informal and underdevelopment is remain increased.
Human development is continuously behind most of the regions if we see the graph of human
development Pakistan is situated 134 in the list. This is most dangerous issue because human
development is the basic tool of economy.
In year 2013 Pakistan government took fund from IMF almost $6.3 billion to focused on
decreased the energy storages, stabilizing public finance increasing revenue collection, increase
the balance of payments position. Although Pakistan missed many structural reforms criteria’s.
The value of rupee has remained stable in year 2015 against US$ though it is decline nearly ten
percent in year November 2017 and March 2018. Pakistan must continue to address many long
term problems, including increase investment in education, healthcare, sanitation; adapting to
the effects of climate change and natural tragedies; increasing the country business
environment.
Current government economic policies:

In recent times the IGC was approached by finance minister Mr. Asad Umer to help think
through serious economic condition facing Pakistan.
Key discussion points and policy recommendations

A. How do we carry growth back to the economy?
B. What would be the key drivers?
C. Will employment originate automatically with development or do we need to take
special procedures?
Policies
 Address the energy crisis:

 Open up markets and encourage trade
 Invest in human capital
 Land reform
 Reform the financial sector
 Improve service sectors such as Health and Education
 Improve the security situation
 Reform SOEs (State owned enterprises)
 Improve the regulatory environment
 Youth policy should be formulated
 Mobilise the private sector
 Encourage female labor force participation
 Create employment
 Develop a tax directory
 Reintroduce the wealth tax
 Introduce tax on agriculture
 Revamp the Board of Revenue
 Bring the informal economy into the tax bracket
 Job creation is essential for poverty alleviation
 Governance Reform
 Industry interventions need to be context specific and detailed
 Review the tariff structure.
My opinion
I support the mushraff policies because in this era PMLQ boom the economy of country. We
take some data…and compare recent government progress.
GDP
GDP growth which was 3.9% in 1999-00 grew at an average rate of 6% per annum during the
period from 2000-07. Total GDP which reached between Rs 769.7 billion (1988 to 1989) and Rs
2,938.4 billion (1998 to 1999), listed a huge growth during the last 8 years and ranged between
Rs 3,826 billion year (1999-2000) and Rs 9,970 billion year (2006-2007).
FDI
2000
1800
1600
1400
1200
1000
billion USD
800
600
400
200
0
2003-04 2005-06 2007 2008
FDI
According to graph Total Foreign direct investment during 11 years from 1988 to 1999
amounted to US$ 4.87 billion. The same during the following 8 years registered massive growth
and amounted to US$ 13.195 billion
Budget deficit
14
12
10
8
budget deficit
6 trade deficit
0
2003 2005 2006 2007 2008
Economic achievements
 Through his years in power, Pakistan followed consistent and favorable policies of
liberalization, deregulation and privatization.
 Economic recovery, institutional reforms and better supremacy were our declared
priorities.
 For economic recovery, the Management followed a two-pronged strategy of ensuring
macro-economic stability and introducing structural reforms for self-sustainable growth.
 As a result, the economy had expanded at an average rate of 7% per annum during the
last four years. Its growth touched a record level of 9% in 2004-05.
 Growth of large scale industrialized which was 3.6% during 1999-2000, registered an
average increase of 11.31 percent annum during the period from 2000-2007. Growth of
this sector was highest in 2004-2005 i.e. 19.9 percent.
 Exchange rate remained stable despite widening of trade and current account deficits,
clearly indicating strong inflows of external resources.
 Foreign Exchange assets have crossed US$ 16 billion mark and the increased assets can
now finance more than (thirty one) weeks of imports against only 10 weeks in 1998-
1999.
 Per capita income had improved from $ 526 (1999 to 2000) to $925 (2006 to 2007)

Raza Abbas 27384 Bs Economic Assignment #1 10 /04/2019

Uploaded by

Copyright:

Available Formats

Raza Abbas 27384 Bs Economic Assignment #1 10 /04/2019

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Raza Abbas 27384 Bs Economic Assignment #1 10 /04/2019

Uploaded by

Copyright:

Available Formats

Raza abbas

budget deficit of pakistan

Challenges and prospects of Pakistan’s economy

Current government economic policies:

Key discussion points and policy recommendations

 Address the energy crisis:

You might also like