What is Pakistan’s economic story? What are its challenges? What should we focus on? Faiz Ahmed (Founder, Macro Pakistani) & Sennen Desouza (Co-founder, Investors Lounge) will help you understand "Why hasn't Pakistan become the Asian Tiger it was destined to be?" in this first episode of BaKhabar.

1. F O R C I R C U L AT I O N
Why hasn’t Pakistan become the
Asian Tiger it was destined to be?
Macro Pakistani

2. 2
Upper middle income
$3,996 – 12,375
Low income
Below $1,026
Lower middle income
$1,026 – 3,995
High income
Above $12,375
Important to define Pakistan’s comparison set of countries
It is a lower middle income country with lower real growth than peers
Source: World Development Indicators

3. 3
Differentiate between real and nominal growth
GDP growth has been consumption led with price changes dominating
Note: Change in volume is the real GDP growth and change in price is the GDP Deflator at 2005-06 prices
Source: Pakistan Bureau of Statistics (PBS)
3.92%
25,169
27,443
29,076
31,922
34,616
37,972
Nominal
GDP
41,727

4. 4
Pakistan follows 10 year consumption based growth cycles
This is why, even before the pandemic, Pakistan’s economy was slowing down
Source: Pakistan Bureau of Statistics; International Monetary Fund
Forecast
~10 years
Took 10 years to recover
from previous period of
low growth (not recession)
and grow at the same level
as before
Economic value of
over PKR 17 trillion
expected to be lost
till 2024