Pakistan faces many challenges at the beginning of the second decade of the 21stcentury: • Decades-long struggle with macroeconomic stabilisation arising from unsustainable fiscal policies • Pressure of demography • Legacy of economic distortions • Battering from external events, including earthquakes, floods and a continuing longstanding low intensity conflict • A large and loss-making public sector that impedes market development • Low and declining productivity • Heightened expectations of the population for a better life from a democratic government. Our growth experience of the last four decades has been volatile annual growth and declining trend in long run growth patterns. In addition, productivity growth (a measure of efficiency) has been low in comparison to our comparators. For the last four years per-capita incomes have not increased in real terms while double-digit inflation has prevailed.

1. Economic Strategy &
Growth of Pakistan

2. Group Members
Tariq Soomro (MBE-12-34)
Hina Ashraf (MB-10-936)
Maria Naz (MBE-12-55)
Arif Awan (MBE-12-37)
Sajid Iqbal (MBE-12-44)
Naveed Khaleel (MBE-12-46)

3. Introduction
Tariq Soomro
MBE-12-34

4. ECONOMY OF PAKISTAN
27th Largest
In The World
(PPP)
44th Largest
Terms Of
Nominal GDP
Semi-
industrialized
Economy
GDP
Agriculture:
20.1%
Industry:
25.5%
Services:
54.4%
Peoples
Agric: 45.1%
Indy: 20.7%
Ser: 34.2%
Source: CIA The World Fact Book

5. History Of Pakistan Strategy
•Short term Strategy
•Political Instability
•Change in Govt.
•New Short Term
Planning
•Wars and Floods
•Corruption in
Development
Projects
•Based on Foreign
Loan or Aid

6. Goals and Objectives
•Goal Is To Maximize Opportunity For
All Citizens
•Pakistan's Population Growing At 3 Per
Cent Annually
• GDP Needs To Grow At A Rate Of
Around 7 To 8 Per Cent Annually
•This Is The Policy Goal!

7. Monetary Policy
Fiscal Policy/Year
Budget
Main Focus

8. Definitions
Monetary policy relates to the supply of money, which is
controlled via factors such as Interest rates and reserve requirements
for banks. For example, to control high inflation, policy-makers
(usually an independent central bank) can raise interest rates thereby
reducing money supply.
Fiscal policy is the use of government expenditure and revenue
collection to influence the economy.
A budget is a quantitative expression of a plan for a defined period
of time. It may include planned sales volumes and revenues, resource
quantities, costs and expenses, assets, liabilities and cash flows. It
expresses strategic plans, activities or events in measurable terms

9. Agriculture, Manufacturing & Fiscal
Development
Hina Ashraf
MB-10-936

10. Agriculture Reforms
• Provide Electricity Tube well
• WWF and NRSP Program for Farmers
• Fix Highest Rate of Wheat and Cotton
• Green Tractor Scheme
• Subsidy for loan
Agriculture Reforms

11. Agriculture
Growth
• Growth This Year Stood At 3.1 Percent As Compared To
2.4 Percent During 2010-11.-
Cotton
production
• Increased To 13,595 Thousand Bales In 2011-12 From
11,460 Thousand Bales In 2010-11 Showing An Increase
Of 18.6 Percent.
Wheat
production
• decreased to 23,517 thousand tons in 2011-12 from 25,214
thousand tons in 2010-11 showing a decrease of 6.7
percent
Sugarcane
production
• increased by 4.9 percent to 58.0 million tons in 2011-12
from 55.3 million tons last year.

13. Manufacturing
During the first nine months of the current
fiscal year 2011-12, large scale manufacturing
LSM) (posted a growth of 1.05 percent as
compared to growth of 0.98 percent during the
same period last year.
Pharmaceutical (10.9%), Paper and Board
(8.4%), Wood Product (7.4 %), Food Beverages
and Tobacco (6.5 %), Non-metallic mineral
Products (2.9 %), Leather Product (1.8 %) and
Textile (0.8 %).
Generating Sets (143.9 %), Blankets (109.9%), Electric
Transformer (31.2%), Heavy Machinery & equipments
(21.0%), Sugarcane Machine (19.2%), Sugar (15.3 %),
Liquids/Syrups (14.1%), Tea blended (13.3%), Tablets
(10.7 %), Jeeps & Cars (8.8%), Footwear (6.2%), LPG
(3.4 %), Cement (2.9 %) and Sugar (15.3 ).

14. Money & Inflation Sectors
Maria Naz
MBE-12-55

15. Fiscal Development
Fiscal deficit is
recorded at 5.0
% during July
March2011-12
as compared to
5.5% last year.
Total
expenditure of
Rs. 3721.2
billion was
estimated for the
full year.
Total revenues
reached to Rs
1747.0 billion
during July-
March, 2011-12
against Rs
1495.3 billion in
the same period
of last year.

16. Money And Credit
SBP lowered the discount rate by cumulative 200 bps
points to 12 percent during first half of fiscal year 2011-12, to
assist in boosting the private sector credit and investment.
Government borrowing from the banking system for
budgetary support and commodity operations stood at
Rs1,003.3 billion during July-11thMay, 2011-12 as
compared to Rs. 506.5 billion in the comparable period of
the last year.
Government has borrowed Rs.442.3 billion from the State
Bank of Pakistan, while Rs 642.1 billion borrowed from the
scheduled banks.

17. Capital Markets
• The government conducted seven auctions of
Pakistan Investment Bonds (PIBs) during 2011-12
(Jul-Mar) raising Rs. 159.246 billion.
• The SECP has recently approved notification of
the Debt Securities Trustee Regulations (DST
Regulations)
• The Pakistani Stock markets performed well
during the current fiscal year as compared with the
other world indices.

18. Inflation
 The inflation rate as measured by the changes in
Consumer Price Index (CPI) stood at 10.8 percent
during (July-April) during current fiscal year 2011-
12, against 13.8 percent in the comparable period of
last year.
 Core inflation is estimated at 10.4 percent during
July-April 2011-12.

19. Trade & Education
Arif Ali
MBE-12-37

20. Balance of Trade & Payment
In absolute terms, exports have increased from $20460
million in July-April 2010-11 to $ 20474 million in the
period thereby witnessing a growth of 0.1 percent during the
first ten months (July-April) of the fiscal year 2011-12.
Imports during the first ten months (July-April) of the
fiscal year 2011-12 increased by 14.5 percent compared with
the same period of last year, reaching to $33.15 billion.
Foreign Exchange Reserves stood at $ 16.5 billion at the
end of April, 2012. Of which, reserves held with the
StateBank stood at $ 12.04 billion and by banks $ 4.45billion.

21. External And Domestic Debt
During first nine months of current fiscal year
(2011-12), total public debt registered an
increase of Rs.1,315 billion and stood at
Rs.12,024 billion.
Public debt as a percent of GDP stood at 58.2
percent by end-March 2012 as compared to
55.5 percent of GDP during the same period
last year.
Pakistan External Debt and Liabilities (EDL)
stock was recorded at $60.3 billion as of
March 2012.

22. Education Reforms in Economy
• Free Books and Uniform
• Compulsory Education
• Maar Nhi Pyar
• Registered Madrasa’s
• Adult Education
• Technical Education
• Foreign Scholarships
Education Reforms

23. Education
Literacy rate for the population (10 years and above) is 58
percent during 2010-11, as compared to 57 percent in 2008-
09 (by PSLM).
Province wise data suggest that Punjab leads with 60 percent
literacy followed by Sindh with 59 percent, Khyber
Pakhtunkhwa with 50 percent and Balochistan with 41
percent.
A total of 134,118 youth received vocational and technical
training under the President’s Funni Maharat Programme and
Prime Minister’s Hunermand Pakistan Programme.
During the period 2008-12 a number of 3996 scholarships
were awarded under different programmes,3572 scholars
proceeded to avail these programmes on merit basis and a
number of 1650 scholars completed their studies.

24. Health, Population &
Transport
Sajid Iqbal
MBE-12-44

25. Health And Nutrition
 At present, there are 972 hospitals, 4,842 dispensaries,
5,374 basic health units and 909 maternity and child
health centre's in Pakistan.
 the population and health facilities ratio worked out 1,206
persons per doctors, 16,426 persons per dentist and 1,665
persons per hospital bed.
 The total outlay of health sector is budgeted Rs.55.1
billion which included Rs.26.2 billion for development
and Rs. 28.9 billion for current expenditure which is
equivalent to 0.27 percent of GDP during 2011-12 as
compared to 0.23 percent in 2010-11.

26. Population, Labor Force & Employment
Population of Pakistan is estimated 180.71 million during
the year 2011-12. Population Growth Rate is 2.03 percent
in 2011-12 while it was 2.05 percent in 2010-11
Urban population has increased to 67.55 million from 65.3
million in 2010-11 while rural population has increased to
113.16 million from 111.82 million in 2010-11
The total labor force has increased from 56.33 million in
2009-10 to 57.24 million in 2010-11.
Total unemployment rate has increased from 5.6 percent in
2009-10 to 6.0 percent in 2010-11.

27. Transport And Communication
 The roads in Pakistan carry over 96 percent of inland freight and 92
percent of passenger traffic and undoubtedly the backbone of
Pakistan’s economy.
 Pakistan’s current road network is about 260,000 km which caters
services to eleven million vehicles of all type.
 NHA has completed 12 projects of flyovers, bridges, interchanges
and road up gradation during the last one year at a cost of Rs 19.6
billion.
 Heavy rains and floods severely damaged the Transport and
Communication system during last two years.
 Pakistan International Airlines Corporation earned increased
revenue amounting to Rs. 116.02 billion in year 2011 as compared
to 107.0 billion last year
 Revenues of the telecom sector during the 2011-12, standing at Rs.
363 billion compared to the last year 344.2 billion show an increase
of 5.4 percent.

28. Energy
Primary energy supply during current year is 64.52
million TOE compared to 63.09 million TOE last
year thus showing an increase of 2.3 percent.
The average crude oil production during July-March
2011-12 remained 66032 barrels per day showing an
increase of 0.05 percent.
Natural gas in the form of CNG posted a positive
growth 10.8 percent during July-March 2011-12.
The household sector consumed 44 percent of the
total electricity generated followed by industrial (26
percent), government (12.3 percent), agriculture (10.4
percent) and commercial (6.8 percent) during July-
March 2011-12.

29. Budget 2011-12

30. Bad Impact & Conclusion
Naveed Khaleel
MBE-12-46

31. Bad Impact on Economy 2003-08
• Suicide Bombing
• Drone Attacks
• Fear of Investing
• Low Business level
• Stop Development Projects
• Stop Funding by IMF &
World Bank

32. Inadequate Market
Development
• Lack of competition
• Tax tariff and policy
• distortions
• Entry barriers
• Government
• involvement
• Poor regulation
Lack of Efficient Public
Sector Management
• Provide core governance
goods such as security of life,
property, transaction and
contract
• Facilitate markets and
investment with informed
policy and competent
regulation
• Promote deepening of
physical, human and social
infrastructures
Constraints to Economic Growth of
Pakistan

33. •Competitive Market
•Productive Human Resource
•Healthy Population
•Meaningful Education
•Connecting Market And People
•Knowledge Creation And Commercialization
•Diffusion And Absorption
• Development Of Cluster
Reforms For Productivity

34. If all the Oil reserves of Saudi Arabia & Iran were put together,
These are approximately 375 Billion Barrels, But A single Thar
Coal Reserve Of Sindh is about 850 Trillion Cubic Feet, which is
more than combined Oil Reserves Of Saudi Arabia & Iran.
Just 2% usage of Thar Coal Can Produce 20,000 Mega Watts of
Electricity for next 40 Years without any single second of Load
Shedding.
We have Best and largest Canal System in the world
Pakistan has 1,339.25 tonnes of gold reserves situated in
Balochistan with 63.50 tonnes at Saindak and 1275.75 tonnes at
Reko Diq, sources told Daily Times.
Think About it!