Economy overview

1. Economic Outlook of Pakistan
“TremendousGrowthandInvestmentOpportunities
onaFertileLand”
Muhammad Adnan Ejaz

2. Content
• Introduction
• Statistics
• Economic History
• GDP Growth by FY
• Role of Industry
• Industrial Sector Problems
• Suggested Solution
• Challenges & Solution
• What need to be Done

3. Introduction
• The economy of Pakistan is the 24th largest economy in the
world in terms of purchasing power, and the 42th largest in
absolute dollar terms.
• Pakistan has a semi-industrialized economy, which
mainly encompasses textiles, chemicals, food
processing, agriculture and other industries.

4. Intro…
Currency Pakistani Rupee (₨) (PKR)
Fiscal Year 1 July – 30 June
Trade organisations WTO, SAARC, ECO, OIC, SAFTA,
AIIB, SCO, IMF, Commonwealth of
Nations, World Bank,
Developing-8
Country group •Developing/Emerging
•Lower-middle income economy

5. Statistics
Population 212,215,030 (2018)
GDP $284.2 billion (nominal; 2019 est.)
$1.202 trillion (PPP; 2019 est.)
GDP Growth 3.29% (FY 2019)
5.5% (2016) 5.6% (2017)
5.8% (2018) 3.3% (Est. end of 2019)
GDP Per Capita $1,388 (nominal; 2019 est.)
$5,872 (PPP; 2019 est.)
GDP per capita rank 147th (nominal; 2018)
133rd (PPP; 2018)
GDP by sector Agriculture: 18.5%
Industry: 20.3%
Services: 61.2% (2019 est.)
Inflation (CPI) 10.3% (July 2019)
3.925% (2018)
Human Development Index 0.562 medium (2017) (150th)
0.387 IHDI (2017)

6. Statistics
Population below poverty line 34.7% on less than $3.20/day (2015)
1.0% in extreme poverty (September 2019)
(World Poverty Clock estimate)
Unemployment 5.7% (2017–18)
Labour force 73,917,020 (2018)
48.9% employment rate (2018)
Labour force by occupation Agriculture: 37.4%
Industry: 24.0%
Services: 38.6%
(2017–18)
Exports $24.217 billion (FY 2019)
Export goods Textiles: $13,553.2 million, Food: $4,627.8 million
Petroleum: $675.8 million, All Other: $1,303.8 million
Other Exports: $3,812.3 million
Imports $52.436 billion (FY 2019)
Import goods Food: $4,749.7 million, Machinery: $6,766.2 million
Transport: $2,314.7 million, Textile: $3,841.4 million
Agriculture and other Chemicals: $8,390.3 million
Metal: $3,903.5 million, Miscellaneous: $1,027.4 million
All Other: $5,345.4 million, Other Imports: $3,533.2 million

7. Statistics

8. Economic History
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
The trend of gross domestic product of Pakistan at market prices estimated
by the International Monetary Fund is shown in the given chart.

9. Economic History

10. GDP Growth by FY

11. Role of Industry
industry refers to that sector of economy which is related with the
manufacturing and production of products.
Major Industries in Pakistan
Textile IT
Telecom Sports
Sugar
Surgical Mining &
Extraction
Cement Fertilizer
Leather

12. Industrial Sector Problems
• Lack of trained man-power
• Changing Political & Economic Policies
• Higher Interest Rate
• Difficulties in Export
• Lack of New Technology
• Corruption
• Power Shortage

13. Suggested Solution
Micro
Credit
Foreign
Investment
Decrease
Interest
Rate
Innovative
Technology
Skilled
Labour
R & D

14. Challenges & Solutions
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. What needs to be Done?
• 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