Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Economy of pakistan-1

12,880 views

Published on

  • Be the first to comment

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>

×