Economy Of Pakistan

1. Economy Of
Pakistan. And
How to
Improve It?
Change Pakistan for a better Future

2. Our Members
Muhammad Huzaifa Ali 22- ARID - 833
Zohaib Ejaz 22- ARID - 878
Muhammad Luqman Khan 22- ARID - 835
Saad Amjad 22- ARID - 868
Laiba Laraib 22- ARID - 794

3. Table of contents
How import and export
affects the economy
Introduction to Pakistan’s
Economy.
Industries in Pakistan and
their role
Factors on which the
economy depends
01
05
04
02
How Allah has bless this
country with its natural
resources
How Agriculture helps
Pakistan’s economy
06
03
Introduction
Industries Import and
Exports
Dependence And
Factors
Natural
Resources
Agriculture
07
Challenges
08

4. Introduction
01
Introductions to Pakistan’s Economy

5. Introduction
Pakistan is a low income developing country. Its economy is
the 23rd-largest worldwide in terms of GDP based
on purchasing power parity (PPP). According to a 2021
estimate, the Country has a population of 227 million people (5th-
largest worldwide).
As of FY22, the nominal GDP of Pakistan stands at US$376
billion with a nominal GDP per capita of US$1,658 (177th
worldwide); its GDP based on PPP stands at US$1.512 trillion
with a GDP (PPP) per capita of US$6,662 (168th worldwide).
State Of Economy in 2023
Gross Domestic Product
Karachi the financial hub of Pakistan

6. “If You Will Work In Co-
Operation, Forgetting
the Past, Burying the
Hatchet, You are
Bound to Succeed.”
—Mohammad Ali Jinnah

7. GPD/Inflation Graph

8. Concerns Of the People
● The rising level of security concerns has furthered the economy near
to a collapse. Pakistan is considered to be in a state of war and is a
victim of terrorism for the past few years.
● This has caused economic and political instability in the country
resulting in a fall in foreign investments. Many of the people do not feel
safe in the country due to which skilled labor from Pakistan is migrating
to other developed nations.
● They do not want to risk their time and resources in an uncertain
economy where they feel they would not be paid a price according to
their skills. Foreign investors do not feel comfortable in investing in
Pakistan’s economy because the returns are not enough to match the
risk in investing in a weakened economy like Pakistan.
● Other than this they do feel that their lives are not safe as they could
also become victims of terrorist groups operating in the country.

9. Dependence
And Factors
Of the
Economy
02
How Economy Of Pakistan Depends on
Multiple Factors

10. Factors
Pakistan's industrial sector accounts
for 28.11% of the GDP. Of this,
manufacturing makes up 12.52%,
mining constitutes 2.18%, construction
makes up 2.05%, and electricity and
gas 1.36%. The majority of industry is
made up of textile units, with textiles
contributing $15.4b to exports, making
up 56% of total exports. Other units
include surgical instruments,
chemicals, and a budding automotive
industry.
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. Mango orchards are
mostly found in Sindh and Punjab
provinces, making it the world's fourth
largest producer of mangoes
Industry
Agriculture

11. Factors
Pakistan witnessed the highest export
of US$25.4 billion in the FY 2010–11.
However, in subsequent years exports
have declined considerably. This
declined started from financial year
2014–15 when an international
commodity slump set in. This was
compounded by structural supply side
constraints including energy shortages,
high input costs and an overvalued
exchange rate.. But still Pakistan's
merchandise trade exports grew by 0.1
percent during the fiscal year 2016–17.
The imports continued to grow at a
much faster rate and grew by a large
percentage of 18.0 during the FY 2017
as compared to the previous year
Pakistan's service
sector accounts for about 61.7% of
GDP.[81] Transport, storage, communi
cations, finance, and insurance
account for 24% of this sector, and
wholesale and retail trade about 30%.
Some Important Service Sectors are
Foreign trade
Services
• Telecommunication
• Transportation
• Air Linkage
• Railway Linkage
• Finance
• Housing
• Tourism

12. Economic Issues
As per the CIA World Factbook, in
2017, Pakistan ranked 57th in the
world, with respect to the public
external debt to various international
monetary authorities (owing ~$107.527
billion in 2019), with a total of 67.1%
of GDP (in 2017).
As of January 2023, Public Debt of
Pakistan is around PKR 62.46 trillion
(USD 274 billion) which is nearly 79
percent of gross domestic
product (GDP) of Pakistan. Currently
Pakistan has $5.82 billion in its foreign
exchange amid debt repayment
obligations of more than $8 billion in the
first quarter of 2023
The corruption is on-going issue in the
government, claiming to take initiatives
against it, particularly in the
government and lower levels of police
forces.In 2011, the country has had a
consistently poor ranking at
the Transparency
International's Corruption Perceptions
Index with scores of 2.5,2.3 in
2010, and 2.5 in 2009 out of 10. In
2011, Pakistan ranked 134 on the index
with 42 countries ranking worse.In
2012, Pakistan's ranking dropped even
further from 134 to 139, making
Pakistan the 34th most corrupt country
in the world, tied
with Azerbaijan, Kenya, Nepal,
and Nigeria.
Debt
Corruption

13. Agriculture
03
Introductions to Pakistan’s Agriculture
Sector and How it affects the economy.

14. Agriculture
● “ The science of farming ,including
the cultivation of soil for growing of
crops and rearing of animals to
provide food , wool and other
products ”.
● The word agriculture came from two
latin words:
● “agri” means field.
● “cultura” means growing
,cultivation.
● So the literal meaning is the
cultivation of different crops is
Agriculture.
Meaning Of Agriculture Definition Of Agriculture
01 02

15. Agriculture
Pakistan is one of the world’s largest
producer and supplier of foods & Crops.
Approximately 60 % of population of
Pakistan directly or in directly linked with
Agriculture sector.
• GDP ( Gross Domestic Product) :
Measure the value of final goods and
services that is, those that are bought
by final user , produced in a given
period of time.
• 24% GDP of Pakistan depend upon
the this sector
Role Of Agriculture
Importance
Agriculture sector plays an
important role in the
economy of a country that
has fertile soil.
• Increase in per capita
income.
• Major source of
employment.
• Reduction in Poverty.
• Supply of Food and
Raw material.
• Development of
Industrial Sector
03 04

16. Important Crops And Their Role
Crops
Wheat
The Second Major
Crop is Wheat
Cotton
Cotton is main cash
crop of pakistan
Grains And Pulses
Grains and pulses play an important
role in the agriculture sector
Rice
3rd Major Crop is Rice.
Sugarcane
wheat, sugarcane, cotton, and rice,
which together account for more than
75% of the value of total crop output.
Fruits And Vegetables
Pakistan is the 6th largest exporter of
fruits such as oranges.
05

17. Steps The Government has To Take
The government needs
to import modern
beans and seeds
The level of biotech
needs to be improved
The government needs
to focus on modern
technology and
equipment
The Government
needs to properly plan
the agriculture areas
and how to increase
output.
Import
Beans Biotechnology
Modern
Technology
Proper
Planning
01 02 03 04

18. Industry
04
Industry is the most important sector of
Pakistan’s Economy

19. Importance Of Industries
Industries
hold various
advantages
for the
country.
Industrial
development
plays an
important role
in improving
economy.
Helps
removes
poverty
from the
country

20. Advantages Of Industries
Living Standard
Improved industrial
economy increases
the employment
opportunities.
It increases national
income of the
country.
It boosts the standard
of living for the
industrial worker.
Employement GDP
It promotes the
specialization of various
product.
It also plays an important
role in the defence
sector.
It also plays an important
role in the defence
sector.
Specialization Defence Agriculture
Development
01 02 03
04 05 06

21. Industry
Suggestions
• Flow of power:
• Government should
make sure steady flow of
power to the industries
• Trade deficit:
• Meaningful steps should
be taken to overcome
trade deficit such as
exports.
• Technical capability:
• It can be improved by
collaboration with
develop country’s
industries.
.
Challenges Of Industrial Sector
Power
Shortfall
•Power is like blood
for the industrial
sector
•But unfortunately,
Pakistan faces
energy crisis which
adversly affects the
industrial sector
Industrial
labor
•Industrial labor
faces many
problems in
Pakistan
•It barely holds any
basic rights
•Major reasons for
downfall of
industrial world
Corruption
Corruption is
another huge
issues faced by this
industry
01 02 03

22. Imports And
Exports
05
In 2021, the country’s import’s totaled
around $56 billion. A large chunk of this
number went towards plastic and iron
imports, while the rest was divided between
electronics, machinery, and other finished
goods

23. Imports Of Pakistan
Despite being a major contributor to
pollution and climate change,
countries still tend to rely on plastics.
In 2021, plastics made up almost 4.1
percent of the country’s total imports,
valued at approximately $3.01B.
Animal and vegetable oils are essential elements
in food consumption, making them one of the
major imports of Pakistan. In the previous fiscal
year, animal and vegetable oil imports made up
4.9 percent of the country’s overall imports, with
an approximate valuation of $3.60 billion.
The pharmaceutical market in
Pakistan is one of the largest in the
world, mostly owing to the country’s
massive population . Currently,
pharmaceuticals make up almost
5.2 percent of total imports, valued
at around $3.78 billion in the year
2021.
Iron and steel are other major import of
Pakistan that are linked to the construction
industry. Being the backbone of all
infrastructure, these imports are essential
for the development of the country.
Therefore, almost 6.3 percent of the
country’s total imports comprise iron and
steel.
Plastic
Animal and
Vegetable Oils
Pharmaceutical
Products Iron and Steel

24. Imports Of Pakistan
With more industries cropping up all over
Pakistan, there has been a steep
increase in machinery imports.
Machinery imports have an
approximate value of $5.88 billion, a
considerable amount out of the total
imports. Pakistan’s major import
partners for these goods are two
machinery hubs in Asia – Japan and
China.
Machinery

25. Exports Of Pakistan
Pakistan is regarded among the best
producers of high-quality basmati
rice, which is then exported to
several countries, including Oman,
the UAE, Kenya, Thailand, and
Jordan, to name a few.
Among the top cash-crop exports of Pakistan,
33,683 metric tons of cotton fiber, spun, and raw
cotton was exported, worth an estimated
$55.551 million. Pakistan globally exports cotton
to China, Germany, the US, the UK.
While Pakistan is renowned as the fifth-
largest mango producer in the world,
the fruit is the country’s second-
largest export. Pakistan annually
grows 110 diverse kinds of mangoes,
among which the most notable are
Chaunsa, Sindhri, Langra, Dasehri,
Anwar Ratool, Saroli, Toota Pari,
Fajri, Neelum, Almas, Sanwal, and
Desi.
Bags, jackets, pants, shoes, and
other daily wear products
manufactured from Leather are
also among the highest
revenue-generating export
products of Pakistan. During
2018, Pakistan shipped close
to $478.85 million worth of
leather goods.
Rice
Cotton
Mangoes
Leather Goods

26. Natural
Resources
06
Natural resources of a country are the
backbone for it's industrial and economical
development which play a very dominant in
accelerating the pace of progress and
prosperity of a country.

27. Natural Resources Of Pakistan
Coal which is also named as black gold is
found into huge quantities in Thar,
Quetta and other sites. Thar reserves
are estimated 850 Trillion Cubic
Feet. About 80% of coal is produced
by government and 20% is produced
by private sector.
Pakistan has a long history of exporting small
amounts of uranium to the west.Pakistan
has recently used some in its own nuclear
power and weapons programs. Pakistan
produced about 45 tonnes of
Uranium in 2006.
Natural gas production is at a high
level in Pakistan. Estimated
reserves are 885.3 billion
cubic meters . The Sui gas
field is the largest, accounting
for 26% of Pakistan’s gas
production.
Coal Uranium Production
Natural Gas
Minerals

28. Power Resources Of Pakistan
Nature has provided suitable
environment in Pakistan. To
produce hydroelectricity
environment is better for it. The
northern and north western area of
Pakistan is suitable for building of
dams. Pakistan's total
hydroelectricity production is 4963
Megawatt. Pakistan has the
capacity of production of 30000 MW
from its river Indus, Jehlum and
Chenab
The Thermal power stations are
generating electricity by gas, oil
and coal in Pakistan. The 49.8%
of the total electricity is produced
by the thermal power. The
thermal power production is 4921
MW in Pakistan. There are 13
thermal power stations working in
Pakistan. The biggest station is
working in Karachi this station
generates 1756 MW. The second
biggest station is working in
Multan. It generates 260 MW.
Hydro Electricity Thermal Electricity

29. Natural Resources Of Pakistan
Forests are limited to 4% of
Pakistan’s land. The forests are
a main source of food, lumber,
paper, fuel wood and medicine.
The forests are also used for
wildlife conversation. During
the year 2010-11 forests have
contributed 91 thousand cubic
meters of timber and 261
thousand cubic meters of
firewood as compared to 93
thousand cubic meters timber
and 263 thousand cubic meters
firewood in 2009-10.
Water is the basic human need and as we
know a human can live up to 80 days
without food, but only a few days without
water. Water is the basic need of every
living thing on earth as we know no living
thing can live without water. However, its
use in unbalanced and unmanaged way
has made it reduced its quantity to a great
extent. Pakistan is now facing a big
challenge to meet the requirements for its
population and water is becoming scarce
in Pakistan. In Pakistan, about 96% of its
available water is being utilized for
agriculture and the remaining 4% for
domestic, industrial and other purposes.
Per capita water availability has decreased
from 5300 m3 in 1951 to 850 m3 by the
year 2013.
Forest resources Water Resources

30. Influence Of Resources On Economic
Development
More
Production
Agriculture
Development
Industrial
Development
Increase in
Forex
01 02 03 04
05
Infrastructure Development

31. Challenges
Faced By
Economy
07
If we can overcome our challenges we can
become a prosperous nation.

32. Challenges Faced By Economy
Corruption
Pakistan has been facing an
energy crisis for several
years, with a significant
shortfall in electricity and gas
supply. This crisis has been
caused by a combination of
factors, including a lack of
investment in new power
generation, inadequate
maintenance of existing
infrastructure, and a growing
population and economy that
are putting increased strain
on the energy system.
Terrorism has been a
major problem in
Pakistan for several
decades, with various
militant groups and
terrorist organizations
operating in the
country. These
groups have carried
out a wide range of
attacks, including
bombings,
kidnappings, and
assassinations.
Corruption is a major issue in
Pakistan. It affects many aspects
of life in the country, including
government, business, and
society as a whole. Some of the
most common forms of corruption
in Pakistan include bribery,
embezzlement, and nepotism. The
government has taken steps to
address corruption, such as
enacting anti-corruption laws and
establishing institutions to
investigate and prosecute corrupt
officials.
Energy Crisis Terrorism
01 02 03

33. Challenges Faced By Economy
Tax Evasion
Unemployment is a
significant problem in
Pakistan. The unemployment
rate in the country has been
consistently high in recent
years, and it varies depending
on the region and
demographic. Factors that
contribute to high
unemployment in Pakistan
include a rapidly growing
population, lack of job
opportunities, and a lack of
education and skills among
the workforce.
Literacy rate in
Pakistan has been
increasing over the
years, but it remains
relatively low
compared to other
countries. In 2021,
the literacy rate in
Pakistan is around
60%, which is
considered low
compared to other
countries in the
region.
Tax evasion is a significant
problem in Pakistan. The country
has a relatively low tax-to-GDP
ratio, which means that a large
portion of the population is not
paying taxes. This is partly due to
the fact that a large segment of the
economy is informal and not
subject to taxation, and also due to
widespread corruption among tax
officials. The government of
Pakistan has taken steps to
address tax evasion, such as
increasing enforcement efforts and
implementing new technology to
Youth
Unemployment illiteracy
04 05 06

34. Conclusion
08
The economy of Pakistan has faced many
challenges in recent years, such as high inflation, a
large trade deficit, and a shortage of foreign
currency. The government of Pakistan has
implemented a number of economic reforms in an
effort to address these issues and improve the
economy. For example, it has sought financial
assistance from international organizations such
as the International Monetary Fund (IMF) and has
taken steps to increase exports and reduce

35. How To Improve The Economy
Pakistan has a
relatively low tax-to-
GDP ratio, which
means that a large
portion of the
population is not
paying taxes.
Pakistan ranks poorly
in global corruption
indices, which hinders
foreign investment,
tourism and
development in
general.
Pakistan has a large
trade deficit, which
means that it imports
more goods than it
exports. Increasing
exports and reducing
imports would help.
Improving
infrastructure, such as
roads, power plants,
and ports, would help
increase economic
growth by making it
easier for businesses
to operate and for
goods to be
transported.
Increase Tax
Collection
Reduce
Corruption
Increase
exports and
reduce
import
Develop
infrastructure
01 02 03 04

36. How To Improve The Economy
A well-educated and
skilled workforce is a
key ingredient for
economic growth.
Improving education,
healthcare, and training
programs would help
increase productivity
and competitiveness.
Pakistan's economy is heavily
dependent on energy imports,
and the high cost of energy is
one of the factors holding back
economic growth. Investing in
renewable energy and
increasing energy efficiency
would help reduce energy costs
and boost growth.
making it easier to start, run
and close a business, by
reducing red tape and
providing better access to
finance and technology
could also have a positive
impact on the economy.
Boosting human
capital
Reduce energy
cost Improve the
ease of doing
business
05 06 07

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