This document summarizes Pakistan's economic situation over the past few years. It notes that economic growth has slowed to an average of 2.6% in the last 3 years compared to 5.3% in the prior 8 years, due to factors like the global financial crisis. The world economy is recovering slowly while emerging economies are now the main drivers of growth. Pakistan's commodity producing sector, especially agriculture, has underperformed. The services sector has become the main driver of growth but investment levels have declined significantly. Problems facing the economy include high poverty, illiteracy, unemployment, and energy shortages. Solutions proposed include better management, investment in productivity, and developing alternative energy sources.

1. Presented By:
Danish javed (006)
Qasim Ali khan (004)
Presented To:
Mam Nadia

2. Introduction
 The economy has considerably lost significant
growth momentum during last three years as the
economic growth averaged just 2.6 percent as
against 5.3 percent in the preceding eight years.
There are many reasons for deceleration of growth
momentum like massive terms of trade shock of
2008, global financial crisis, and intensification of
war on terror, security hazards and high profile
killings.

3. Current Situation
 Global Development
The world economy is
moving from crisis and it recovers slowly. The
growth powerhouse is shifting more towards
emerging economies rather than developed
economies. The World Economic Outlook
estimates that global GDP, after expanding by 5.0
percent in 2010, will slow to 4.4 percent in 2011,
before it reaches 4.5 percent in 2012.

4. Current Situation (continued…..)
 Commodity producing sector (CPS)
The Commodity
Producing Sector (CPS) has performed below par
during the last two decades mainly due to slow down
in the growth of agricultural sector. Its share in the
GDP has declined from 49.3 percent in 1999-2000 to
46.7 percent. In industrial sector, the massive negative
contribution from electricity and gas distribution
sector to the GDP growth is neutralized by positive
contributions from manufacturing sector.

5. Current Situation (continued…..)
 Agriculture
The share of agriculture in GDP
gradually shrink to 20.9 percent in 2010-11 from
25.9 percent of GDP in 1999-2000. . The
agriculture sector remained the dominant sector
with its job absorption ability and it still absorbs
44 percent of the country’s labor force. It gives a
kick-start to aggregate demand for industrial
goods and services as well.

6. Current Situation (continued…..)
 Manufacturing
The manufacturing sector has
been hardly hit by international and domestic
factors. Law and order societies, loss in working
hours, this sector is fallen down and caused a slow
down in output.

7. Current Situation (continued…..)
 Mining and Quarrying
This sector is witnessed by
the second lowest growth and grew by 0.4 percent
in 2010-11 as compared to 2.2 percent growth last
year and a target of 2.1 percent. the percentage of
crude oil , natural gas and coal is 0.7%, 1.1% and
10.6% respectively.

8. Current Situation (continued…..)
 Services Sector
The services sector has emerged as
the main driver of economic growth in recent
years. In Pakistan the services sector has risen to
53.3 percent in 2010-11 which is highest share in last
two decades. The services sector grew by 4.1
percent against the target of 4.7 percent and actual
outcome of 2.9 percent.

9. Current Situation (continued…..)
 Contribution to economic growth
Pakistan’s economic
growth like many other developing countries is
historically characterized as consumption-led
growth. The consumption remained the major
driver of growth as it accounts for 85 percent share
in overall GDP and with real growth of 7 percent in
private consumption and 7.5 percent in
government consumption in 2010-2011.

10. Current Situation (continued…..)
 Composition of the GDP
The share of CPS in GDP
is almost 62% and it is decline to 46.7% from 1970
to 2011. this is due to equal rise in share of services
sector. In 1970 agriculture sector accounted
percent of GDP but it is fall to 20.9 percent in
2010-11. while the share of the manufacturing
sector has increased by 4 percentage points in the
same period.

11. Current Situation (continued…..)
 Per capita income
Per capita income grew by 0.7
percent in 2010-11 as compared to 2.9 percent
growth last year. This reflects the impact of slower
economic growth. The per capita income in
nominal terms grew by 19.9 percent.

12. Current Situation (continued…..)
 Investment and saving
The total investment has
declined from 22.5 percent of GDP in 2006-07 to
13.4 percent of GDP in 2010-11. Fixed investment
has decreased to 18.1 percent of GDP from 20.4
percent last year.

13. Role In Economy
Growth and Investment are Interdependent.
Investment Plays a Vital Role.
Developed Nations are Independent.
Industrial and Agricultural Output.
Value of Money.
 Standard of Living.

14. PROBLEMS
Socioeconomic problems:-
Poverty is a continued problem.
High Illiteracy rate.
 Poor Healthcare Facilities.
Widespread Child Labor.
Increasing Unemployment Rate.
Corruption in Government.

15. PROBLEMS ( continued . . . .)
Lack of Organizational
Abilities:-
Poor Management.
Lack of Resource Allocation.
Lack of Precautionary Measures.
Instability in Government and Political
Structure.
Inefficient Law and Order.

16. PROBLEMS ( continued . . . .)
Agriculture:-
Salinity and Fertility of Soil.
Lack of Research and Development.
Lack of New Technology.
Lack of Facilities.
Small farmers are increasing in our country.

17. PROBLEMS ( continued . . . .)
Manufacturing Sector:-
Inadequate Investment.
Power Shortage.
High Production Cost.
High Competition.

18. PROBLEMS ( continued . . . .)
Energy Crisis:-
Shortage of Natural Gas, Fuel and Electricity.
Prices are rising.
Increase in Poverty and Unemployment Rate.
High Alternative Costs.

19. SOLUTIONS
Role of Government :-
Proper Management.
Eliminate Corruption.
Focus on Basic Needs.
Investment in Productivity.
Attention on Precautionary Measures.
Protection to All.

20. SOLUTIONS (continued . . . .)
Agricultural Growth:-
Abolishing the Feudalism.
Providing certain Incentives .
Facilitating the Farmers.
Proper Irrigation System.
Promoting the R&D departments.

21. SOLUTIONS (continued . . . .)
Industries and Power Crises:-
Investment is needed.
Expensive import-based, oil-run power generation
is not the answer.
Government Actions.
Control on Prices.
Wind Energy.

22. ANY QUESTION?