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UNIVERSITY OF CENTRAL PUNJAB

Topic: GDP

Assignment #

2nd

Due Date:

22/10/2011

To:

Kanwal Zahra

By: Bilal Qasim L1F10MBAM2262

Bilal Tariq

L1F10MBAM0200

Naveed Akhtar

L1S10MBAM2057

Section:

Group #:

Major reasons in Flactuation of GDP growth: 2005-06

First, the main reason due to which GDP growth declined in 2005-06 was the earthquake in October. The consequences of this earth quack were so bad, it destroyed NWFP, and Azad Kishmer completely and also destabilized the capital badly. Agriculture and industrial sector go to downward due to the earthquake. Farmers cant take the reward of their cultivation. Standing crop of apple was affected completely. Consumption reduced due to the earthquake so it was also resulting in low growth rate. Investment moved toward nation in shape of relief or aid.

2006-07

In this session Pakistan rehabilitated itself with the help of foreign aid and investment. Due to this investment and aid Pakistani economy rapidly move to upward. There was also boom in stock exchange in this season. There was record level in stock exchange in the end of this fiscal year. World economical condition was good. Our neighbor India, Chinas and Iran economy was in good position and in which China was leading them. Because China and Pakistan has good relations so china also helped Pakistan with investments.

Agriculture sector help the economy to stand on feet. Sialkot and Gujranwala industry was growing impressively.

2007-08

In the starting of this financial year terrorism activities were the cause of decline in growth. People destroyed the public and private property on large scale in rage due to the murder of Benazir Bhutto. World crisis were also responsible to affect the GDP growth. There was also problem of energy crisis which affect the industry badly. Imports were also increase in this session. Monetary and fiscal policy also disturbed the economy. There were rapidly changing in trade cycle and polices of government. Ordinances were being issued and clashes were in parliament.

2008-09

In start of 2008 energy crisis were there. Political and economic events were not expected. Law and order situation, rise in oil prices, instability in world financial markets were the major issues which reduce the growth rate of our country. World trade cycle also reach on recovery stage. IMF support Pakistan to stable its economy in this session. Flood tried to instable the economy.

2009-10
Though in this fiscal year investments was less than the previous year yet there was also increase in exports. Government was somehow able to control the energy crisis.

Political condition was better. Imports ratio was comparatively low.