The economy of Pakistan has grown since independence in 1947 but still faces challenges. In 1947, Pakistan had 30 million people with a per capita income of $100 and was dependent on agriculture and imports. Today it has 170 million people and per capita income of $1000 in 2008. Agriculture remains important but Pakistan imports more than it exports and consumes more than it saves. It also faces issues like a large government budget deficit, energy and water shortages. To improve, Pakistan needs to invest more, raise more tax revenue, decentralize services, and improve its business environment.

1. Economy Of
Pakistan

2. An Overview of Pakistan’s
Economy
• The economy of Pakistan is the 26th largest in the
world in terms of purchasing power parity (PPP),
and 44th largest in terms of nominal GDP• In 1947,
Pakistan had 30 million people with per capita
income of 100$. Agriculture accounted for almost
50% of economic output with hardly any
manufacturing, as all industries were located in
India

3. .• Therefore, it was
unable to feed 30 million
people and was
dependent on imports
from the USA.From
thereon, Pakistan has
come a long way.
• Today with 170 million people, our per
capita income in 2008 was 1000$ which is
ten times more than it was in the
beginning.

4. AGRICULTURE
 Agriculture is considered the backbone of
Pakistan's economy, which relies heavily on its
major crops.[1] Pakistan's principal natural
resources are arable land and water. Agriculture
accounts for about 18.9% [2] of Pakistan's GDP and
employs about 42.3% of the labour force. The
most agricultural province is Punjab where wheat
& cotton are the most grown

5. . Mango orchards are mostly found in Sindh and
Punjab provinces, making it the world's fourth
largest producer of mangoesPakistan is one of
the world's largest producers and suppliers of
food and crops (according to the various global
sources)The World Bank’s Board of Executive
Directors today approved $200 million in
financing to support Pakistan in transforming
the agricultural sector by adopting climate-
smart technologies to improve water-use
efficiency, build resilience to extreme weather
events and increase incomes of small farmers.

6. Challenges To Pakistan’s
Economy
 1. We import more and export less:
When exports exceed imports, the net
exports figure is positive. This indicates
that a country has a trade surplus.
When exports are less than imports,
the net exports figure is negative.
This indicates that the nation has a
trade deficit
.

7. There is a debate in the
Pakistani media about the
virtues of consumption-led
growth. The theory is that this
is good for an economy since if
people don’t consume no one
will produce. So consumption
should be in the forefront of
every government’s economic
strategy.
2. We consume more and
save less:

8. 3. Government spends more than it earns
Prime Minister of PAKISTAN on Tuesday said that his
government would impose taxes on nonproductive
sectors, particularly real estate.
Although the overall budget deficit is projected at Rs 3.8
lakh crore due to an anticipated Rs 80,000 crore
provincial cash surpluses, the federal government will
still have a Rs 4.5 lakh cr deficit, equal to 48% of the
total size of the budget, the report said.

9. 4. We face Energy and water
shortages
Pakistan is facing a serious water
crisis. The country is rapidly moving
from being classified as water
“stressed” to water “scarce”—and with
its annual water availability fall below
1,000 cubic metres per person, it may
in fact have already crossed this
threshold. For comparison, that means
that the annual water available
for each person in Pakistan would not

10. Why Pakistan Is Lagging Behind
 • The economy of Pakistan is the 26th largest in the world
in terms of purchasing power parity (PPP), and 44th
largest in terms of nominalGDP• In 1947, Pakistan had 30
million people with per capita income of 100$.
Agriculture accounted for almost 50% of economic output
with hardly any manufacturing, as all industries were
located in India.• Therefore, it was unable to feed 30
million people and was dependent on imports from the
USA.From thereon, Pakistan has come a long way. Today
with 170 million people, our per capita income in 2008
was 1000$ which is ten times more than it was in the
beginning.

11. Solutions To Improve Macroeconomic
Problems In Pakistan
 1. Pakistan needs to invest more to address the
country’s challenges.
 2. Pakistan needs to raise more revenue to
have resources for critical investments.
 3.Decentralization of services delivery will be
crucial to improve competitiveness.
 4.Improving the business environment will be
necessary to tap into foreign resources.

12. Thank You!