Write a short note on the difference between economic

growth and economic development?

ECONOMIC GROWTH ECONOMIC DEVELOPMENT
Economic growth is increase in Economic development is increase in
production. production and betterment in
infrastructure.
One can easily achieve this Very difficult to achieve.
Short term Long term
All developed countries have goal for All underdeveloped countries have
economic growth because as they are goal for economic development.
already developed
Its quantitative Its qualitative
Possible without economic Not possible without economic growth.
development.
One can measure through GDP One can measure through HPI
Reversible process Irreversible process

Conclusion:
Economic growth and economic development is the main goal for economist, as
how economy is doing it depends on these terms if economy growth is better
means country is doing good.

b) Collect historical data of Pakistan’s key macroeconomic indicators (GDP

growth, Inflation, Unemployment) and illustrate graphically. In the light these
graph, write a short note on the economy of Pakistan.
Inflation, unemployment and GDP growth are the indicators how the economy is
doing. Pakistan is currently facing worst situation.
Inflation:
it is increase in overall price. It is also known as fall in the value of money.
Unemployment:
People willing for job and unable to get employed is called unemployment or ratio
of unemployment to labor force.
GDP growth:
It indicates how our economy is doing or it tells us that, it is shrinking or growing.

Graph:

inflation unemployment GDP growth

8

7 6.7

65.5 5.8
5.5

5
4.4
4.1 4
43.5 3.7
3.3
32.8

2
0.96
1

0
2016 2017 2018 2019

inflation unemployment GDP growth

Note:
Above graph shows that unemployment is increasing since long time and in covid-
19 it even gone at extreme position. One can clearly define why unemployment has
been upward sloping since last 5 years, because of our poverty, lack of investment
etc.
In the graph our inflation is also increasing and has been increased sharply in
covid-19 due to fall in GDP growth.
Covid-19 situation can also be said as stagflation.
GDP growth was increasing before covid-19 but in covid-19 it declined because of
lack of investment and production in this situation was not possible. As our
industries were stopped and the resources we imported were not available to do
any further production.
 (c)
Pakistan is a developing country with a population of 184.35 million (Economic
Survey of Pakistan, 2012-13). It is facing numerous problems like unemployment,
illiteracy, inflation, law and order situation, and internal & external debt.
Unemployment is considered as a major emerging socio- economic problem of
Pakistan. Non availability of job opportunity and unwillingness to work at the
prevailing wage rate is the major reason for huge unemployment in the country. It
has a crucial effect on socio economic status of a nation, and resulted in socio
presences like of poverty, corruption, criminality and depressing rates.

Unemployment is caused by a large number of causal factors. The present situation

of unemployment, particularly the educated peoples of a country has the gap of the
founding of valuable jobs and educational organization. In Pakistan, education
structure is defective and that is the reason for rising population ratio between the
youngest. In our country the youth approach in the direction of his select of a
profession are impractical and uncreative. The system lacks educational planning,
and, lack of technical and vocational institutions. Similarly, Joblessness also
increases as a result of renovation in the techniques and methods of manufacture.
Generally, it may be concluded that joblessness in a specific period which is the
mixture of economic, community and specific different elements. A person is said
to be unemployed if a person has skillfulness, ability and willing to do work but he
cannot find the job. In other words, unemployment is defined as a situation in
which citizens of a country have ability and willingly to work but they cannot get
occupations. Unemployment is a situation which a person is skillfully, actively
looking for job; however he cannot find some job. The unemployment problem in
Pakistan can be broadly classified into rural unemployment and urban
unemployment. In rural areas about 68% of the people are living. In Pakistan
unemployment is more visible the areas of rural then urban areas. It is generally
observed in rural regions there are less chances of employment as compare to
urban the rate of unemployment is more than urban regions. While in urban
regions a lot of opportunities of jobs because in results of industrial state.
Causes of inflation and Unemplyment in pakistan
• Increase in Money Supply. The major cause of increase in the price level is
an increase in money supply. ...
• Increase in Velocity of Money. ...
• More Investment. ...
• Non-productive Expenditures. ...
• Corruption & Black Money. ...
• Deficit Financing. ...
• Foreign Remittances. ...
• Foreign Aids
• lack of education,
 lack of capital
 lack of proper skill
 Poverty
 and High rate of population growth in Pakistan
Consequence
 Unemployment and inflation affect social life and causes tensions/frustration
 Unemployment and inflation affect health.
 Unemployment and inflation causes dishonor in society.
 Unemployment affects marital life.
 Unemployment and inflation cause increase in Crimes, suicides and drug
addiction

Conclusion
The major causes of unemployment and to unveil socio-economic impacts of
unemployment and inflation in Pakistan. the most important reasons for high rate
of unemployment in Pakistan are high rate of population growth, Low level
education, poverty, lack of skills, lack of capital and favoritism in selection
process. Most of the respondents, disagreed the statement that job opportunities are
increasing in the area which means that there is dire need for planning of job
opportunities and eradication of unemployment in the area.

d) write a short essay on factors that can contribute toward economic

growth of Pakistan.?
Pakistan is under developing country and his growth rate is not as good, if we
compare to our population. Our population is increasing constantly and our
economic growth rate and capita per income is falling.
There are primary, secondary and tertiary sector.
Primary sector:
Primary sector includes agriculture and mining, it contributes to 19.74 to our
growth domestic product.
Secondary sector:
Secondary sector includes industries which contributes 18.34%. this sector is also
known as manufacturing sector.
Tertiary sector:
This sector includes services sector it includes all the services it contributes 60% to
our GDP.

Conclusion:
Our economy is growing due to increases in production and the remittances we get
from overseas Pakistani. Pakistan is a country with excess of resources and we are
not as efficient as we should be.