Presentation

Economic challenge and growth prospects

in pakistan

Presenting To:
Sir Akhtar Abbas
Topic:
Economic challenges and growth prospects in Pakistan

Group members:
Mlaika Aman (89)
Fiza Khalid (122)
Rana Abdul- Rehman (133)
Sulman Nawaz (120)
 WHAT IS ECONOMY ?

• An economy consists of the economic system of the

country or the area, the labour, capital and land
resources and the manufacturing, production, trade,
distribution and consumption of goods and service of
that area.
 Economic challenges After the formation!
Formation of weak Pakistan by British Government
Totally Dependance of Economy on Agriculture
Failure of each five year Plan
Successive Martial Laws
 Economic challenges in present!
• Electricity Shortfall
• Excess off imports than exports
• Dependance on Loans and Economic Aids
• Weak Revenue system
• Foreign Exchange Rate
 Few More Challenges to Economy in Present!
• Government issues
• Less Education
• Civil War
• Poverty etc.
Economic History
 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 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
decades.
 Recent decades
 This is a chart of trend of gross domestic product of pakistan at market prices estimated by the
International Monetary Fund.
Problem of Pakistan’s Economy
 We consume More & Save less
 Import More &Export less
 High Fiscal Deficit & Inflation
 Share in world trade in shrinking
 Energy and water shortage
 Governance & implementation crisis
 Law and order situation
YEAR Gross Domestic product US Dollar Exchange Inflaction Index (2000=100) Per capita income as (% of USA)
1960 20,058 4.76 Pakistai Rupees 3.37
1965 31,740 4.76 Pakistai Rupees 3.4
1970 51,355 4.76 Pakistai Rupees 3.26
1975 131,330 9.91 Pakistai Rupees 2.36
1978 283,460 9.97 Pakistai Rupees 21 2.83
1985 569,114 16.28 Pakistai Rupees 30 2.07
1990 1,029,093 21.41 Pakistai Rupees 41 1.92
1995 2,268,461 30.62 Pakistai Rupees 68 2.16
2000 3,826,111 51.64 Pakistai Rupees 100 1.54
2005 6,581,103 59.86 Pakistai Rupees 126 1.71
2014 22,032,565 105.95 Pakistai Rupees 260
2016 46,680,351 104.55Pakistai Rupees 370 2.71
Socio_Economic Status of pakistanis!
rich 15
upper middle 25
lower middle Socio_Economic
65
de sperately 65

65 65

25

15

rich upper middle lower middle de sperately

ROLE OF INDUSTRIES
 INDUSTRY:-
 “Industry refer to that sector of economy
which is related with manufacturing and
production of products.

 Major industries in pakistan

TEXTILE SPORTS

IT INDUSTRY TELECOM

SURGICAL CEMENT

SUGAR FERTILIZER
 Textile Industry
 3rd largest exporter of the world
 8.5% contribution of GDP

Suger industry
 It is 2nd largest industry after textile
 At present 106 suger mills are operating in pakistan
 15th rank in world in sugar production
 GDP contribution is 0.7%
Cement Industry
 Exported last year 700 million USD (47% increased)
 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
 Employment more than 200,000
 Exporting goods worth $450million

Fertalizer industry
 Contribution of fertalizers are 14% in GDP
 Employment are 4.7 million
Problems to the industrial Sector of pakistan;
Following are the main problems to industrial which make obsticle in the way of growth in their
production , result in transforing industries to other countries.

Lack of trained manpower Changing political and economic policies

Difficulty in export Higher interest rate

Lack of new technology Power shortage

Bad law and order situation

Terrorism which reflects foreign inveters
resulting in lower investment
Suggested solution
Attract foreign cargo
Foreign investment Micro cridit
airlines

Substitute of powers
Decrease interest rate Privatization
(oil,gas,wind mills)

Innovative Research development

Training of labour
technology
 “Pakistan’s Economy: challenge &solutions”

Why economy matters?

 Economy affect the lives if the people of pakistan
 Two pillar 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.
Remedies / solutions

 Interest free loans for young generation.

 Create ease for business environment.
 Proper budget distribution.
 Invest on IT.
 Energy crises should be controlled.
 Agriculture side should be strengthened.
 Proper planning and manage control system.
Cont…….

more industry.
More export less import.
Internationalization of industry.
Introducing tourism.
Proper budget allocation.
Value of rupee.
Recent Developments :-
 Food & Fuel crisis
 Intensification of war on terror
 Political Instability
 Less than satisfactory security environment
 Energy Crisis
 Economy Remainder out of radar of the government
 Weak economic team
 Fiscal Indiscipline
 Weak governance
 Break down of public_private sector relations
 Instability in economic team
What Need 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 Measures

 Financial Disciplines is the key to success

 Bring budget deficit down to 3.0_3.5 percent of GDP in the next 3-5
years