The economy of Pakistan has the 27th largest GDP by purchasing power and 45th by nominal GDP. Pakistan has a semi-industrialized economy focused on textiles, chemicals, food processing, agriculture and other industries. In its early decades, Pakistan experienced average annual GDP growth of 6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in the 1980s. More recent decades have seen lower growth rates and challenges including high fiscal deficits, inflation, energy shortages, and security issues. Major industries include textiles, mining, cement, telecom, sports goods, sugar, and fertilizer.

2. PRESENETED BY:
Ahsan Arain

3.  The economy of Pakistan is the 27th largest economy in
the world in terms of purchasing power, and the 45th
largest in absolute dollar terms.
 Pakistan has a semi-industrialized economy, which
mainly encompasses textiles, chemicals, food
processing, agriculture and other industries.

4.  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
 This is a chart of trend of gross domestic product of Pakistan at
market prices estimated by the International Monetary Fund
Economic History

5.  We Consume More & Save less
 Import More & Export less
 High Fiscal Deficit & Inflation
 Share in World trade is Shrinking
 Badly lag in Social Indicators
 Energy & Water Shortage
 Governance & implementation Crisis
 Law & Order Situation

6. Year
Gross Domestic
Product
US Dollar Exchange
Inflation Index
(2000=100)
Per Capita Income
(as % of US)
1960 20,058 4.76 Pakistani Rupees 3.37
1965 31,740 4.76 Pakistani Rupees 3.40
1970 51,355 4.76 Pakistani Rupees 3.26
1975 131,330 9.91 Pakistani Rupees 2.36
1978 283,460 9.97 Pakistani Rupees 21 2.83
1985 569,114 16.28 Pakistani Rupees 30 2.07
1990 1,029,093 21.41 Pakistani Rupees 41 1.92
1995 2,268,461 30.62 Pakistani Rupees 68 2.16
2000 3,826,111 51.64 Pakistani Rupees 100 1.54
2005 6,581,103 59.86 Pakistani Rupees 126 1.71
2014 22,032,565 105.95 Pakistani Rupees 260
2016 45,680,351 104.55 Pakistani Rupees 370 2.71

9. “industry refers to that sector of economy
which is related with manufacturing and
production of products.
Major Industries in Pakistan
Textile IT industry
Mining and
extraction
Cement
Telecom Sports
Surgical
Suger fertalizer

10. Textile Industry
 3rd largest exporter of the world
 8.5% contribution to GDP
Suger industry
 It is 2nd largest industry after textile
 At present 106 suger mills are opreating in pakistan
 15th rank in the world in suger production
 GDP contribution is 0.7%

11. Cement Industry
 Exported last year 700 million USD (47% increaed)
 Cement contribution in GDP is 3.5%
 Pakistan has ranked 5th position in world exporter of
cement
Sports Industry
 Sialkot export 70% of world demand
 Employement more than 200,000
 Exporting goods worth $450 million
Fertalizer industry
 Contribution of fertalizers are 14% in GDP
 Emlpoyment are 4.7 million

12. Power shortage
Lack of trained manpower
Diffeculty in export
Lack of new technology
Changing political and economic
policies
Bad law and order situation resulting in
lower investment
Higher interest rate
Terorisum which reflects forigen inveters
Following are main problems to industrial which make obsticle in the way of growth
in their producton, result in transforing industries to other countries.

13. Forigen investment
Attract foringen cargo
airlines
Micro cridit
Innovative
technology
Substitute of powers
(oil, gas, wind mills)
Decrease interest rate privitization
Traning of labour Research development

14. 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. Food & Fuel Crisis (Common Challenges faced by
every economy)
Intensification of War on Terror
Political Instability
Less than satisfactory security environment
Energy Crisis
Economy Remained out of Radar of the Government
Instability in economic team
Weak economic team
Fiscal Indiscipline
Weak governance
Break down of public–private sector relations

16.  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