Pakistan Development Update

BBA 5E

O South Asia is the fastest growing region

O Pakistan is in a catching up state to its neighbours (4.7% increase in GDP)

O Growth is by strong demand domestically (92% of GDP)

O Capital Deepening is not achievable ( H.D Model)

O The saving investment gap is growing as slowly as one can imagine by 0.1% since last year so just at 9.8%.

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O Require a Big Push Model approach investment package needed

O CPEC could prove to be one in long run

O FBR Tax rates have grown 20% exceeding its target of 3104 billion

O Government spending increases slightly to 0.2% tax money mostly goes to interest payment

O Stagnant allocation at 6.5 percent of GDP to social services

3 O According to Rostow model we are some where in preconditions to take off

O our industrial performed has surpassed target of 6.4% and increased by 6.8%

O Service sector grew by 5.7% highest since last decade accounts for 59 percent share in GDP

4 O New taxes introduced, were unpopular [Withholding tax]

O Currency in circulation at an all time high

O Several out of bank settlementsO Investment in the private sector,

despite low interest rates, is low O Provincial and federal government

disagreement [Coordination Failure]

5O New poverty line established O Shows that there is a staggering fall in

poverty [from 64.3% to 29.5%]O Did not affect the levels of well-being

[Low enrolment for schools, high stunting levels, and poor sanitation]

O Millennium development goals of malnutrition is chronic and acute problem to be addressed

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O Thank You