trend behaviors of macro-economics variables

2. ACKNOWLEDGEMENT
‘‘In the name of ALLAH, the most merciful and the beneficent’’ The Almighty who bestowed knowledge, health,
vigor, to complete this report.
We want to pay tribute to our worthy teachers who are the main source of enlightenment for our minds. We all
students are thankful to them as they prepared us for looking at the matters of life widely with open minds.
We are especially thankful to our honorable teacher Sir.Badar-udin-Chishtiprovided us guidance, inspiration,
suggestions and encouragement that helped us in all the time of research for and writing of this project.
We are also thankful to the all that person whose cooperation makes us unable to complete the project. Who
helped us in giving information to us for completing this project the end we would like to thank UCP for allowing
us the course which helped us in building our minds to the right track towards professionalism.

3. GROUP MEMBERS
MUNTAHA MAQBOOL (0001)
NOOR-E-AMINA (0082)
AQSA KHALID (0085)

4. PRESENTED
TO
SIR.BADARUDIN

5. Trend Behavior
Of
Macro Economics Variables

6. PAKISTAN
o Islamic Republic of Pakistan
o World’s 6th largest nation-162 million people
o Bigger than France+ Germany (803940 sq - Area)
o 1046 Kilometer Coastline
o World’s third largest English speaking nation
o Five provinces (including Kashmir) + 3 territories
o 5th largest democracy & 15th largest economy
o GDP $347.3 billion (GDP rate :- 7%)
o Foreign exchange reserves stand at all time high of $120 billion

7. AUSTRIA
o Republic of Austria
o Bordered by the Czech Republic and Germany to the
north, Hungary and Slovakia to the east, Slovenia and Italy to the south,
and Switzerland and Liechtenstein to the west.
o Covers 83,879 km2 (32,386 sq. mi).
o Parliamentary representative democracy comprising nine states
o GDP = $43,724
o Ranked 21st in the world for its Human Development Index
o Adopted the euro currency in 1999.
o Member of the United Nations since 1955, joined the European Union in 1995

8. INFLATION
• Inflation is a sustained increase in the general price level of goods and services in
an economy over a period of time resulting in a loss of value of currency.
• When the price level rises, each unit of currency buys fewer goods and services. Consequently,
inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in
the medium of exchange and unit of account within the economy

9. INFLATIONOF PAKISTAN& AUSTRIA

10. Causes of Inflation in Austria in 1970s And 2000s
• Arise from internal and external events.
• Some inflationary pressures direct from the domestic economy
• It increases a firm's production costs.
• Fluctuations in the exchange rate can also affect inflation

11. Inflation is 25%in 1970s and 2000s in Pakistan
• More Investment
• Non-Productive Expenditures
• Corruption & Black money
• Slow Industrial Growth
• Increase in wages & salaries
• Increase in prices of imports

12. Government Stable these Shocks of Inflation
• Increase in the growth rate of output.
• Government should control the supply of money through effective monetary policy.
• Highly increasing unproductive expenditures must be control.
• Government should check the corruption first to eliminate the inflation.
• Control on population is also necessary to control inflation.
• Reduction in budget surplus.
• Reduction in monetary expansion.
• Effective tax system will be helpful to control the inflation.
• Improvement in balance of payment.
• Developments of agricultural and industrial sector will helps to control the inflation.

13. GROSS NATIONAL INCOME
• The gross national income (GNI) is the total domestic and foreign output claimed by residents of a
country, consisting of gross domestic product (GDP) plus factor incomes earned by foreign
residents, minus income earned in the domestic economy
• The gross national income has gradually replaced the gross national product (GNP) in
international statistics.

14. GROSS NATIONAL INCOME OF PAKISTAN
&
AUSTRIA

15. GNI is Negative In 2008 In Austria
• Increase program aid while decreasing the funding of small projects
• Increase budget support in main partner countries
• Enhance partner country leadership and ownership capacity
• Decentralize ADA authority Federal Development Cooperation Act (2002) and Amendment (2003)
(Government of Austria, 2003) this document sets out the legal framework, terms, and principles of
Austrian development cooperation. The amendment to the Development Cooperation Act in 2003
established the Austrian Development Agency (ADA).

16. Causes of more GNI in Pakistan in 1960’s
• New loans will only add to our individual and collective debt burden.
• There are three components of foreign aid, which is generally known as Overseas Development Assistance
(ODA)
• Pakistan has received somewhere between one per cent and two per cent of ODA disbursed to all the
recipient countries between 2001 and 2013.
• To measure a country’s reliance on foreign aid, it is important to know how much ODA contributes to its
Gross National Income (GNI) every year — the higher the contribution, the higher the dependency.

17. GDP GROWTH RATE
• A monetary measure of the market value of all final goods and services produced in a period
(quarterly or yearly).
• The rate at which a nation's Gross Domestic product (GDP) changes/grows from one year to
another. GDP is the market value of all the goods and services produced in a country in a
particular time period.

18. GDP GROWTH RATE OF PAKISTAN & AUSTRIA

19. GDP Growth Rate is Negative In 2008 In Austria
• Consumer spending reduction
• Government spending reduction
• Capital investment reduction
• Trade balance changes
• Rising Inflation

20. Causes of more GDP Growth Rate in Pakistan in 1960s
• Increase in aggregate demand (AD)
• Increase in aggregate supply (productive capacity)

21. Government Stable Negative GDP
• Government increases share prices
• Give more jobs to the people to increase GDP of the country