Economics Problems

in Pakistan
WHY PAKISTAN IS NOT GROWING ?
What are the current issues in
Pakistan
 POVERTY
 ILLITERACY
 Energy Crisis
 Corruption and Political Instability
 INTERNATIONAL INTERFERENCE
 Terrorism
 Overpopulation, Inflation, Unemployment.
 Economy Crisis
FACTS About Pakistan Economy:

 Pakistan operates on a mixed economy. A "mixed" economy is a mix

between socialism and capitalism. It is a hodgepodge of freedoms
and regulations, constantly changing because of the lack of
principles involved. A mixed-economy is a sign of intellectual chaos.
 Pakistan is the 41st-largest economy in the world by GDP (303,993
million US$). The top 10 countries by GDP (nominal) are: World,
United States, European Union, China, Japan, Germany, United
Kingdom, France, India, Italy, Brazil, Canada.
 Pakistan exports rice, kinnows, mangoes, furniture, cotton fiber,
cement, tiles, marble, textiles, clothing, leather goods, sports goods
(renowned for footballs/soccer balls), cutlery, surgical instruments,
electrical appliances, software, carpets, rugs, ice cream, livestock
meat, chicken, powdered milk, wheat, seafood
Is Pakistan a developed country?

 A developing country (or a low and middle income country (LMIC), less
developed country, less economically developed country (LEDC),
underdeveloped country, or poor country) is a country with a
less developed industrial base and a low Human Development Index
(HDI) relative to other countries.
 Pakistan is facing a health crisis with rising rates of heart disease,
diabetes, obesity, and other non-communicable diseases (NCDs),
which disproportionately affect poor families, with possible side effects
of disability and premature death, and worsening poverty as people
pay for medical treatment out of their own.
 There are lots of big problems in Pakistan which need serious
government attention and due to lack of focus, Planning these
problems become bigger. The major problems of the Pakistan are
hunger, poverty, illiteracy, poor health condition, unemployment, clean
drinking water, corruption and inefficient leadership.
PAKISTAN ECONOMIC DATA
Current Economic Situation of
Pakistan:
 The World Bank states that Pakistan’s inflation is expected to rise in fiscal year 2018-
2019 and will remain high till fiscal year 2020. The outcome of the devaluation of
Pakistan rupee against US dollar in the domestic market incidentally coincided with a
rise in the crude oil prices in the global market resulting in an upward trend in oil
prices from January 2018. The trend will cause an increase in the manufacturing and
transportation cost resulting in price hike of all the commodities produced locally.
 the country’s economy is facing a sizable increase in current account deficit and
fiscal deficit.
 Pakistan is also facing low levels of foreign direct investment which increased just by
5pc to $2.41 billion in the fiscal year ended on 30 June 2017 as compared to $2.30
billion in the previous year 2016.
 The supply of power to industrial and residential consumers is expected to improve
considerably with new power plants likely to become operational in 2018 and
beyond. Moreover, developments like import of liquefied natural gas (LNG) to
improve the shortage of gas for industrial sector and the addition of a second LNG
terminal at Port Qasim would go a long way in boosting the economy.
Furthermore, recent economic developments have helped country’s GDP growth by
0.8 percentage points over the previous year, touching 5.4pc in fiscal year 2017.
Steps to be taken by Imran Khan to
improve current situation:
 That $62 billion plan, known as the China-Pakistan Economic Corridor, has been
celebrated by both countries as a long-term investment that will increase trade. It is a
cornerstone of a global infrastructure initiative that China calls Belt and Road.
 Economists agree that for Pakistan’s economy to develop beyond rice and textiles, its
main exports, it needs new infrastructure.
 Pakistan has sandwiched itself between two financial powers: China, from which it
has borrowed heavily, and the Western-dominated International Monetary Fund,
which might be its short-term savior.
 Pakistan has taken out billions in Chinese loans and run up a huge import tab bringing
in bulldozers, train carriages and building materials as part of a Chinese-funded
master plan to revamp its ports, roads and railways.
 Chinese plan is pushing Pakistan’s deficits to unsustainable levels. The country’s debt
is rising rapidly and it is running out of hard currency to pay its bills. Pakistani
economists say that Mr. Khan’s team will have no choice but to beg the monetary
fund for a multibillion-dollar bailout, one of more than a dozen that Pakistan has
received since the late 1980s.
Thank You