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PRESENETED BY:Ahsan ArainTHE ECONOMIC GROWTH OF PAKISTAN

Economy of PakistanTheeconomy of Pakistanis the27th largesteconomy in the world in terms of purchasing power, and the45th largestin absolute dollar terms. Pakistan has a semi-industrialized economy, which mainly encompassestextiles,chemicals,food processing,agricultureand other industries.

First five decadesPakistan was a very poor and predominantly agricultural country when it gained independence in 1947. In the first five decades (19471997) 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 decadesThis is a chart of trend of gross domestic product of Pakistan at market prices estimated by the International Monetary FundEconomic History

Problems of Pakistans EconomyWe Consume More & Save lessImport More & Export lessHigh Fiscal Deficit & InflationShare in World trade is ShrinkingBadly lag in Social IndicatorsEnergy & Water ShortageGovernance & implementation CrisisLaw & Order Situation

YearGross Domestic ProductUS Dollar ExchangeInflation Index(2000=100)Per Capita Income(as% of US)196020,0584.76 Pakistani Rupees3.37196531,7404.76 Pakistani Rupees3.40197051,3554.76 Pakistani Rupees3.261975131,3309.91 Pakistani Rupees2.361978283,4609.97 Pakistani Rupees212.831985569,11416.28 Pakistani Rupees302.0719901,029,09321.41 Pakistani Rupees411.9219952,268,46130.62 Pakistani Rupees682.1620003,826,11151.64 Pakistani Rupees1001.5420056,581,10359.86 Pakistani Rupees1261.71201422,032,565105.95 Pakistani Rupees260201645,680,351104.55 Pakistani Rupees3702.71

Role Of Industries In The Economy Of Pakistan And Problems To The Industries In Pakistan

Industryindustry refers to that sector of economy which is related with manufacturing and production of products.Major Industries in Pakistan

Textile IT industryMining and extractionCementTelecomSportsSurgicalSugerfertalizer

Textile Industry3rd largest exporter of the world8.5% 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%

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 IndustrySialkot export 70% of world demand Employement more than 200,000Exporting goods worth $450 million

Fertalizer industryContribution of fertalizers are 14% in GDP Emlpoyment are 4.7 million

Problems to the industrial Sector of Pakistan

Power shortage Lack of trained manpowerDiffeculty in exportLack of new technologyChanging political and economic policiesBad law and order situation resulting in lower investmentHigher interest rateTerorisum 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.

Suggested solution Forigen investmentAttract foringen cargo airlines Micro criditInnovative technologySubstitute of powers (oil, gas, wind mills)Decrease interest rateprivitizationTraning of labourResearch development

Pakistan's Economy: challenges & solutions Why economy matters?

Economy affects the lives of the people of Pakistan Two Pillars of the StateStrong Economy Strong Defense A strong economy can ensure strong defense; it will enhance countrys power and hence make the countrys defense even more strongerEconomic Backwardness generates violence, social conflicts and political turmoil.

Recent DevelopmentsFood & 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 governanceBreak down of publicprivate sector relations

What Needs to be Done?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 MeasuresFinancial Discipline is the key to successBring Budget Deficit down to 3.0 3.5 percent of GDP in the next 3-5 years