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THE ECONOMY OF PAKISTAN
Welcome to the ultimate guide on the economy of Pakistan! From its rich cultural heritage to its vibrant markets and bustling cities, this South Asian nation has long been a hub of economic growth and innovation. However, in recent years, Pakistan's economy has undergone significant changes that have left many wondering about its future trajectory. In this blog post, we will explore the complex factors at play in Pakistan's economy and shed light on some of the challenges and opportunities facing this dynamic country today. So sit back, relax, and join us as we take an in-depth look at the fascinating world of economics in Pakistan!
PAST PRESENT AND FUTURE ACHIVEMENTS & FAILURES OF ECONOMY
The economy of Pakistan is the 24th largest in the world in terms of purchasing power parity (PPP), and 43rd largest in terms of nominal gross domestic product. Pakistan has a population of over 207 million (the world's 6th-largest), giving it a nominal GDP per capita of $1,429, which ranks 147th in the world and making it one of the lower-middle-income economies. However, Pakistan's Gross National Income (GNI) per capita is about $2,170 which ranks 133rd in the world. Between fiscal years 2013 and 2018, Pakistan's GDP grew at an annual average rate of 5.8%, reaching a size of $304 billion by 2018.
Pakistan's economy is expected to grow by 3.6% in 2019 and 5.5% in 2020 – making it one of the fastest-growing economies in Asia. The country is also projected to be among the emerging market economies with highest growth potential during 2020–2025 period according to World Bank report released in January 2020 titled ‘Global Economic Prospects’. The government has embarked on large public sector development projects such as the China–Pakistan Economic Corridor (CPEC) – worth $62 billion – and approved an ambitious reform program aimed at improving tax collection, privatizing state-owned enterprises, deregulating businesses, and investing in education and health care. The country faces several structural problems including: energy shortages; low investment because of insecurity;
CRITERIA OF PAKISTAN ECONOMY
The economy of Pakistan is the 25th largest in the world in terms of purchasing power parity (PPP), and 42nd largest in terms of nominal gross domestic product. Pakistan has a population of over 207 million (the world's 5th-largest), giving it a nominal GDP per capita of $1,357 in 2019, which ranks 147th in the world and making it one of the lowest-income countries. The service sector contributes to 61.5% of GDP, while agriculture and industry contribute 23% and 15.5% respectively. Major industries include textiles, fertiliser, cement, oil refineries, petrochemicals, steel production, automobiles, food processing and shipping. Pakistan's economy is currently going through a tough time due to high inflation rate, rising fiscal deficit and current account deficit. The government is taking steps to revive the economy by increasing exports and attracting foreign investment.Pakistan is a developing country and its economy is considered as emerging or newly industrialized economy by various economic analysts.Pakistan has an agricultural based economy with contribution from other sectors as well. The sectoral composition of Pakistani economy has changed over time; currently services sector dominates followed by agriculture & industry sector . share in GDP (Gross Domestic Product) was 50%, 24% & 7% respectively in FY 2017 . This domination of services sector is result of structural changes occurred since independence . There has been significant increase in non-agricultural employment opportunities , development needs such as education
SUGGESTION
Pakistan's economy is in a state of flux. The country is currently facing numerous economic challenges, including high inflation, rising unemployment, and dwindling foreign exchange reserves. While the government has taken some steps to address these issues, Pakistan's economy continues to struggle.
One way to boost Pakistan's economy would be to increase exports. Exports account for around 25% of Pakistan's GDP, and the country relies heavily on imported goods. By increasing exports, Pakistan could earn more foreign currency and reduce its trade deficit. To do this, the government could provide incentives for businesses to export more products and services.
Another suggestion is for the government to invest more in infrastructure development. Poor infrastructure is one of the main constraints on Pakistan's economic growth. By investing in roads, railways, and energy projects, the government could help spur economic activity and create jobs.
Finally, it is important for the government to implement reforms that will improve the business environment and attract foreign investment. These reforms could include simplifying regulations, streamlining tax procedures, and improving access to financing. By making it easier for businesses to operate in Pakistan, the government could encourage more investment and job creation.
