3. 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.
4. 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
5. 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
9. “industry refers to that sector of economy
which is related with manufacturing and
production of products.
Major Industries in Pakistan
Textile IT industry
Mining and
extraction
Cement
Telecom Sports
Surgical
Suger fertalizer
10. 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%
11. 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
12. 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.
13. Forigen investment
Attract foringen cargo
airlines
Micro cridit
Innovative
technology
Substitute of powers
(oil, gas, wind mills)
Decrease interest rate privitization
Traning of labour Research development
14. 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.
15. Food & 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 governance
Break down of public–private sector relations
16. 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