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Economy of pakistan-1


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Economy of pakistan-1

  1. 1. Macroeconomic Development Objectives <ul><li>To increase the availability and widen the distribution of basic life sustaining goods e.g. food, shelter, clothing. </li></ul><ul><li>To raise levels of living :more jobs, higher incomes, better education ,greater attention to cultural and human values and enhance the national self esteem. </li></ul><ul><li>Freedom from servitude: to be able to choose. </li></ul>
  2. 2. Assessing Pakistan’s Development <ul><li>Basic Indicators </li></ul><ul><li>Structural change </li></ul><ul><li>Decades wise Performance </li></ul><ul><li>Indicators of failure </li></ul><ul><li>Effects of Nuclear Blast on the Economy </li></ul><ul><li>September11,2001:The day the world changed. </li></ul><ul><li>Recent trends </li></ul><ul><li>Policy implications </li></ul><ul><li>Conclusion </li></ul>
  3. 3. Basic Indicators <ul><li>Population:166.5 Million </li></ul><ul><li>GDP growth rate :4.1% </li></ul><ul><li>Contribution to GDP Agriculture:2.% </li></ul><ul><li>Manufacturing:5.2% </li></ul><ul><li>Services :4.6% </li></ul><ul><li>Exports:9.2% </li></ul><ul><li>Imports:14.4% </li></ul><ul><li>Trade deficits:5.2% </li></ul>
  4. 4. Basic Indicators <ul><li>Life Expectancy (years) :66.2years </li></ul><ul><li>Infant mortality rate (per 1000 person):73.5 </li></ul><ul><li>Literacy rate:57%(2008-09) </li></ul><ul><li>Human Development Index:0.572141 out of 182 countries. </li></ul>
  5. 5. Structural change <ul><li>The most striking factor is that Pakistan’s economic structure has changed from 1947 to 2009-10. </li></ul><ul><li>Agricultural contribution </li></ul><ul><li>Manufacturing contribution </li></ul><ul><li>Services sector </li></ul><ul><li>Labor participation </li></ul><ul><li>Rural urban demography </li></ul><ul><li>Composition of exports and imports </li></ul>
  6. 6. Structural change 55% 70% lived in rural Rural residential 45% 65% in agriculture Labor participation(sectoral) 12.4 99.2 Exports (Primary products) 21% 53% Agricultural sector In 2009-10 18.5% In 1947 7.6% Manufacturing sector
  7. 7. Performance in different decades <ul><li>Laying the foundation (1947-58): </li></ul><ul><li>dominant agrarian sector </li></ul><ul><li>Little industry </li></ul><ul><li>Few services </li></ul><ul><li>No infrastructure </li></ul>
  8. 8. Laying the foundation <ul><li>Primary task : </li></ul><ul><li>Survival </li></ul><ul><li>Millions of refugees </li></ul><ul><li>Restructuring of economy on strong footings </li></ul><ul><li>Policy & planning: </li></ul><ul><li>State sector build the economic base </li></ul><ul><li>Foundation of industrial sector </li></ul>
  9. 9. Decades of development <ul><li>Growth rates in pakistan </li></ul><ul><li>60’s 70’s 80’s 90’s 04 </li></ul><ul><li>GDP 6.7 4.8 6.4 4.6 4.3 </li></ul><ul><li>Agriculture 5.1 2.4 5.4 4.4 3.7 </li></ul><ul><li>Manufacturing 9.9 5.5 8.2 4.8 4.8 </li></ul><ul><li>Cmm.producing 6.8 3.8 6.5 4.6 4.2 </li></ul><ul><li>Services 6.7 6.3 6.6 4.6 4.5 </li></ul>
  10. 10. Indicators of failures <ul><li>Illiterate adults </li></ul><ul><li>Population below poverty line </li></ul><ul><li>Without access to health services </li></ul><ul><li>Without access to safe water </li></ul><ul><li>Malnourished children </li></ul><ul><li>Without access to sanitation </li></ul>
  11. 11. Indicators of failure <ul><li>Human Poverty Index : 101. Pakistan (33.4 </li></ul><ul><li>Probability of not surviving to age 40 : 97. Pakistan (12.6 </li></ul><ul><li>(%)Adult illiteracy rate : 134.pakistan(45.8) (%ages 15 and above) </li></ul><ul><li>People not using an improved water source : 70.pakistan(10) </li></ul><ul><li>(%)Children underweight for age (% aged under 5) :125. Pakistan (38) </li></ul>
  12. 12. ASSIGNMENT NO;1 <ul><li>Effects of nuclear blasts on Pakistan Economy. </li></ul><ul><li>September 11,2001. </li></ul><ul><li>The day world changed </li></ul><ul><li>Submission and discussion in the next class. </li></ul>
  13. 13. Recent trends <ul><li>Inflation ;threat for survival </li></ul><ul><li>Risk to growth and stabilization: tax reforms (GST leading to VAT) ,Corruption </li></ul><ul><li>Inadequate targeting of subsidies </li></ul><ul><li>Larger security related expenditures </li></ul><ul><li>Energy circular debt issue </li></ul><ul><li>Disasters: increasing burdens with low productivity, lesser job creating investments in the markets. </li></ul><ul><li>Lessr capital formation </li></ul>
  14. 14. Policy Implications <ul><li>Improving competitiveness. </li></ul><ul><li>Reduce policy lags </li></ul><ul><li>Systematic integrity needs to be promoted. Transparency of process and ensuring sanctity of contract. </li></ul><ul><li>Pro-active role by business community instead of politicized self-defeating decisions. </li></ul><ul><li>The whole framework needs transformation from </li></ul><ul><li>Fiscal policies to tax administration, </li></ul><ul><li>To deregulation to privatization, </li></ul><ul><li>Reform of public sector entities </li></ul><ul><li>Reduction of non productive expenditures. </li></ul><ul><li>Ensuring least deterioration of any macroeconomic integral. </li></ul>