Economic Sectors of Pakistan

Economic sectors of Pakistan
INTRODUCTION OF TITLE
Economic sectors of Pakistan The Economy indicates the management of domestic matters, the instruction and govt. of household stuffs; especially as they concern expense or disbursement; as, a careful economy. The economy of country indicates the various aspects which affect the country in several ways. An economic sector of any country refers to as a division of that country's population based upon the economic area in which that population is employed. The economy includes several sectors that evolved in successive stages.
Here this report is specifically focuses on various economic sectors of Pakistan and includes the information and overall investigation of the same. So, the detailed information of Pakistan Economic Sectors would help to know whether its a healthy country or not.Pakistan has a semi-industrialized economy which mainly encompasses capital market, chemicals, food processing, agriculture and other industries.
COUNTRY OVERVIEW
LOCATION
Home to one of the worlds cradles of evolution, Pakistan shares its eastern border with India and north-east with China, with Afghanistan running along the north-west and Iran in the south-west. Along the southern border of Pakistan runs the Arabian Sea with approximately 1,000 kilometres of coastline. Pakistan covers an area of approximately 803,940 square kilometres which is twice the size of California.
POPULATION DEMOGRAPHICS
The sixth most populous Country of the world, Pakistans current population is of approximately 164 million, with a growth rate of 1.828% (2007 estimates). The majority of southern Pakistans population lives along the Indus River; in the north, most of the people are focussed in the cities of Faisalabad, Peshawar, Islamabad and Lahore. Karachi, the capital of the Sindh province and the largest city in Pakistan, by quality of being a seaport, the financial and commercial midpoint. With a population of over 11million, Karachi is also the 5th most populous city of the World.
97% of the Countrys population is Muslim, making Pakistan the 2 nd largest Muslim country in the world and an important member of the Organization of the Islamic Conference. Hinduism and Christianity form the primary minority religions; other religious groups include Sikhs, Parsees, and also there are a small number of Buddhists.
The constitution and law defines Pakistan as an Islamic nation and Islamic Shariah is the supreme law of Pakistan.
INTERNATIONAL TIME
International time of Pakistan is GMT + 5.
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LANGUAGE
Pakistans national language is Urdu, but comparatively few people use it as their mother tongue. Punjabi is the most general language followed by Sindhi, Pashto, Saraiki, and alsoBaluchi respectively and english is extensively used by educated people and is the official language of Pakistan.
CURRENCY
The currency of this country is Rupee and the acronym used for the currency is PKR.
THE CONSTITUTION AND LEGAL SYSTEM

This country is a federal republic with four provinces, capital territory (Islamabad) and territory consisting of tribal areas.
Pakistan also administers Azad Kashmir and the Northern Areas and portions of the Jammu and Kashmir region.
The constitution of the Islamic Republic of Pakistan of 1973 provides for Parliamentarian form of Government and the Prime Minister is the head of Government and the President (collectively elected by the National Assembly and the Senate & the Provincial Assemblies) is the head of the federation. The National Assembly and Senate are the legislator institutes. The National Assembly has 342 members who are elected from all provinces and the capital territory and tribal areas on the basis of population. The Senate derives equal demonstration from all the four provinces and has a total membership of 100 member.
Economic sectors of Pakistan Pakistans legal system is based on English common law and adapted for the needs of an Islamic state. High Court & Supreme Court of Pakistan are the highest forum of judiciary at regional and national level, respectively. And also the Shariah court is responsible for ensuring that the Countrys law are as per Islamic commands.
HIGHLIGHTS OF THE ECONOMY Pakistan used to be heavily dependent on the agriculture sector but slowly & gradually the industry and service sectors have increased their shares in latest years and they collectively account for around 3/4 of the GDP.
In 2006-2007 Pakistan's real GDP at factor cost grew by 7% and inflation remained around 7.9%. During that period, there was a considerable increase in the level of FDI.
Total exports amounted to US $17 billion 2006-07, growing by about 3.40 % and crossing the $17 billion mark. Imports amounted to US$ 30.5 billion during the same period increasing by about 8.22%. Major exports are textiles (garments, cotton cloth, and yarn), leather, sports goods, and carpets & rugs. United States of America, United Arab Emirates, Germany & Hong Kong are the main export partners while major import commodities are petroleum & petroleum products, machinery, transportation equipment, edible oil, pulses, iron & steel and tea. The major import partners are Kuwait, Saudi Arabia, United Arab Emirates, United States of China andAmerica.
Wheat, Cotton, Rice and Sugarcane are Pakistans main crops while main industries of these Country are cement, power,textiles, telecommunications, commercial& investment banking, agro-based produce, surgical goods, leather & leather goods, oil & gas, sports goods, and cutlery.
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Rawalpindi,Karachi, Lahore, Islamabad, Gujranwala, Faisalabad, Hyderabad, and Sialkot are the Countrys key business centres. Gwadarand Karachi have the sea ports while Multan,Lahore, Hyderabad, Faisalabad, Rawalpindi, Sialkot, Peshawar and Quetta have the dry ports. Lahore, Islamabad, Karachi, Peshawar & Quetta have the International Airports.
GROWTH & STABILIZATION
Economic sectors of Pakistan The Gross Domestic Product (GDP) in Pakistan expanded 3.67 %in 2012 from the previous year and GDP Growth Rate in Pakistan is reported by the Pakistan Bureau of Statistics.
Historically, from 1952 until 2012, Pakistan GDP Growth Rate averaged 4.98 %reaching an all-time high of 10.2 %in June of 1954 and a record low of -1.80 %in June of 1952. The Gross Domestic Product (GDP) growth rate provides an aggregated measure of changes in value of the goods and services produced by an economy. This countrys economy has suffered in the past from decades of internal political disputes, mixed levels of foreign investment, a fast growing population,& a costly ongoing confrontation with neighboring India.
IMF-approved government policies, bolstered by foreign investment & renewed access to global markets and have generated a solid macroeconomic recovery during the last decade and this page includes a chart with historical data for Pakistan GDP Growth Rate.
Some Important Points:
Real GDP growth for 2011-12:estimated: 3.7 %for 2010-11: 3.0 % The commodity producing sector has performed quite better in outgoing fiscal year as compared to last year; the current year growth rate is 3.28%in compared with 1.47 %last year.
Agriculture growth: 3.13 %current year against 2.38 %last year. Major Crops registered an accelerating growth of 3.18 %in comparison with a negative growth of 0.23 %last year. The major crops including Cotton, Sugarcane and Rice had growth in production of 18.6 %, 4.9 %and 27.7 %respectively.
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Economic sectors of Pakistan However, Wheat having a negative growth of 6.7 %mainly due to 2.6 %decline in area under cultivation. In addition to this sowing was also delayed because of late receding rain water in lower Sindh which resulted in a decline in both the acreage as well as the yields. Minor Crops growth declined by 1.26 %, because of rains affect in Sindh.
Sector Minor crops Livestock Fisheries Forestry
Result Declined by 1.26 % Previous year : 3.97 % Current year : 4.04 % Previous year : 1.94 % Current year : 1.78 % Previous year : 0.40 % Current year : 0.95 %
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Economic sectors of Pakistan Industrial sector contains 25.4%of GDP. Sub sectors: manufacturing, mining & quarrying, construction, electricity and gas distribution. Manufacturing Sector registered growth at 3.56 %compared to the growth of 3.06%last year. Small scale manufacturing maintained its growth of last year at 7.51 %and slaughtering growth is estimated at 4.46 %against 4.38 %last year.
Large Scale Manufacturing has also witnessed a slight improvement. It has shown a growth 1.05%in July-March 2011-12 as against 0.98%last year. Construction Sector has shown 6.46%growth as compared to negative growth of 7.09%in last year.
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Economic sectors of Pakistan Factor 2010-2011 2011-2012 Increase or Decrease
Private consumption Public consumption Total consumption Real private consumption Real government consumption Per capita real income (in %) Per capita real income (in dollars) Total investment Fixed investment Private investment Public investment National savings Foreign direct investment Workers remittances (in $)
83 % 3.7 % 5.2 % 1.33 % 1258 13.1 % 11.5 % 8.6 % 2.9 % 13.2 % 1292.9 % 9046.61
88.35 % 11.6 % 8.2 % 2.33 % 1372 12.5 % 10.9 % 7.9 % 3.0 % 10.7 % 666.8 % 10,876.99
75 %increase 13 %increase 5.35 %increase 7.9 %increase 3 %increase 1 %increase 1.09 %increase 0.6 %decrease 0.6 %decrease 0.7 %decrease 0.1 %increase 2.5 %decrease 49 %decrease 20.23 %increase
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Economic sectors of Pakistan Mining and Quarrying sector recorded positive growth of 4.38 %during the year 2011-12 against the negative growth of 1.28 %last year. Electricity and gas distribution witnessed a growth of -1.62 %against the growth of 7.25 %last year. The Services sector has registered a growth rate of 4.02 %in 2011-12 against the growth of 4.45%in the last year. This performance is dominated by Finance and Insurance at 6.53%, Social and Community Services 6.77% and Wholesale and Retail Trade 3.58%. The contribution of communication,transport and storage is estimated at 1.25%.
Source:-http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wbdata.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wbdata.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6RFYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGU Oy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3 Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1
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Education
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According to the Pakistan Social and Living Standard Measurement (PSLM) Survey 2010-11 and last PSLM 2008-09, the literacy rate for the population (10 years and above) is 58% during 2010-11, as compared to 57% in 2008-09 . Literacy remains much higher in urban areas than in rural areas & much higher for men than for women and Province wise data suggest that Punjab leads with 60% literacy followed by Sindh with 59%, Khyber Pakhtunkhwa with 50% and Baluchistan with 41%.
In this country the Gross Enrolment Rates (GER) at the primary level excluding katchi (prep) for the age group 5-9 years at National level during 2010-11 increased slightly to 92% from 91% in 2008-09. Amongst the provinces, Punjab shows a marginal increase from 97% in 2008-09 to 98% in 2010-11. Sindh remained stable with 84%, Khyber Pakhtunkhwa improved from 87% to 89% and Baluchistan declined slightly from75% to 74% in 2010-11
Source:http://www.google.co.in/imgres?imgurl=http://2.bp.blogspot.com/_PSEkM9lXSh8/Sf43Cc98hdI/AAAAAAAADhs/RyO4mQ8n0GI/s400/ LiteracyChart.jpg&imgrefurl=http://thepathans.blogspot.com/2009/05/for-many-pakistani-childrenmadrasas.html&usg=__NVuBVzXZ7pmUQNkPuf5_UbLj88=&h=240&w=400&sz=21&hl=en&start=5&zoom=1&tbnid=uDMzjsiIJrxkiM:&tbnh=74&tbnw=124&ei=VRrIUMjYFo2yrAe a9IHQBw&prev=/search%3Fq%3Deducation%2Bin%2Bpakistan%2Bchart%26hl%3Den%26tbo%3Dd%26biw%3D1366%26bih%3 D640%26tbm%3Disch&itbs=1
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In Pakistan the Net primary level enrolment rates at the National/Provincial (excluding katchiabadies) level for the age group 5 to 9 years. The NER at the National level during 2010-11 slightly decreased to 56% from 57% in 2008-09. Punjab shows a decrease from 62% in 2008-09 to 61% in 2010-11. Sindh also shows decrease from 54% to 53% in 2010-11, Khyber Pakhtunkhwa witnessed a decrease from 52% to 51% and Baluchistan improved from 44% in 2008-9 to 47% in 2010-11.
In this
country the
overall
number
of
enrolments
during
2010-11
were
39900.30thousands as compared to 38202 thousands during the same period last year. This shows an increase of 4.4%. It is estimated to increase to 41596.50 thousands during 2011-12. The number of institutes stood at 227.80 thousand during 2010-11 as compared to 228.40 thousand during the same period from2009 to 2010. However, the number is estimated to increase to 228.30 thousand during 2011-12.
Source:http://www.google.co.in/imgres?imgurl=http://upload.wikimedia.org/wikipedia/commons/thumb/d/d3/Literacy_Fed eral_Areas_Pakistan.jpg/270pxLiteracy_Federal_Areas_Pakistan.jpg&imgrefurl=http://en.wikipedia.org/wiki/Education_in_Pakistan&usg=__UBd UPDwnzVp_DvGf_jaITt7yexU=&h=193&w=270&sz=15&hl=en&start=16&zoom=1&tbnid=u7AQIFIPjZh1BM:& tbnh=81&tbnw=113&ei=sR_IUM6wPI7QrQeGx4GoBg&prev=/search%3Fq%3Deducation%2Bin%2Bpakistan%2 Bcharts%26hl%3Den%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1
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Economic sectors of Pakistan In Pakistan the number of teachers during 2010-11 were 1409.40 thousand as compared to 1386.10 thousand during the same period 2009-10 showing an increase of 1.7%. This number is estimated to increase further to 1445 thousand during the year 2011-12.
In Pakistan the total of 134,118 youth received vocational and technical training under the Presidents FunniMaharatProgramme and Prime Ministers Hunermand Pakistan Programme.
In these country HEC is also playing its role in running different scholarship programmes to enhance the academic qualification at various levels on merit basis in line with requirement.
In Pakistan during the period 2008-12 a number of 3996 scholarships were awarded under different programmes,3572 scholars proceeded to avail these programmes on merit basis and a number of 1650 scholars completed their studies.
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MONEY
& CREDIT
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The monetary policy of Pakistan intends to a stabilizing economic growth by a series of channels. The predicted economic and inflation activities are affected by the same. A sound fiscal position is essential for attaining macroeconomic constancy and it will be caused by efficient resource allocation and the mobilization of domestic savings.Because of this, the central bank through its monetary policy and strategies plays an influential role.
The persistence of sound monetary management is to taking on the comprehensive challenges which are faced by economy since it deals with major issues of price stability, money supply control and explanation of managed interest rate. In Pakistan, monetary management has mainly focused on calculating inflation. Inflation has steadily stayed in double digits in the last few years on account of difficult domestic and external economic environment.
In difficult economic situation, the State Bank of Pakistan (SBP) followed a proactive policy which response to shave-off additional demand. Italso has contained the fiscal deficit of Pakistan economy. The SBP adopted an expansionary monetary policy during the fiscal year 2011-12.SBP lowered the discount rate by cumulative 200 bps points to 12 %during first half of fiscal year 2011-12, to support in boosting the private sector credit and investment.
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Recent Monetary & Credit Development:
Broad Money (M2) witnessed an expansion of 9.09% during July-11th May, 2011-12 as compared to 11.47% during the same period in 2010-11.
Net Domestic Assets (NDA) during July to 11thMay, 2012 stood at Rs 880.90 billion against Rs 481.60 billion during the same period last year, reflecting an increase of 14.90% over the last year.
On the other hand, Net Foreign Assets of the banking system during the period under review declined to Rs 272.20 billion as compared to an increase of Rs 181.10 billion in the same period of 2010-11.
Source: Ministry of Finance, Government of Pakistan
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Economic sectors of Pakistan The credit to private sector witnessed a net increase of Rs. 234.8 billion during July 2011-11th May, 2012 as compared to Rs 107.8 billion in the same period last year.
The weighted average lending rate (including zero mark-up) on outstanding loans stood at 12.80% while the weighted average deposit rate (including zero mark-up) stood at 6.98% in March 2012.
Government borrowing from the banking system for budgetary support and commodity operations stood at Rs 1,003.30 billion during July to 11thMay, 2011-12 as compared to Rs. 506.50 billion in the comparable period of the last year. Government has borrowed Rs.442.30 billion from the State Bank of Pakistan, while Rs 642.10 billion borrowed from the scheduled banks.
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Economic sectors of Pakistan Commodity finance a aims to provide short term advances either to the government, public sector corporations or private sector for the procurement of the commoditiessuch as cotton on, wheat, rice sugar and d fertilizer. During July 2011-11th May, 2012 loans for commodity finance registered a net retirement of Rs 81.60 billion against the retirement of Rs 101.10 billion in the same period of fiscal year from 2010 to 2011. The retirement was primarily concentrated in the second quarter of fiscal year 2011-12 as the government released Rs 78 billion to procurement agencies for the settlement of accumulated subsidies.
During July 2011-11thMay, 2012 credit to public sector enterprises registered a sharp decline from Rs 10.60 billion in 2010-11 to Rs 142.60 billion. The revival of private investment in the economy was one o of the main concerns for SBP to ease to the monetary policy stance in 2011-12. However, the desired boost in private investment demand could not take place due to energy shortages and an unfavorable law and order situation.
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Moreover, substantial government borrowing has packed out the private sector from receiving credit. This has limited the availability of credit. Similarly, due to rising NPAs, banks preferred to investin liquid assets rather than extending credit to private sector.
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Transportation & Communication
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Economic sectors of Pakistan In Pakistan there are 96% roads of inland merchandise and 92% of passenger traffic and definitely the backbone of Pakistans economy.
In Pakistan heavy rains & floods severely damaged the transport and communication system during last 2 years and initial estimates indicate that road approximately 8,385 km and 190 km railway lines were damaged including bridges and allied structures.
Current road network of Pakistan is about 2,60,000 km which caters services to 11 million automobiles of all type and also NHA roads network is around 12,000 km, which is merely 4% of the overall road network but takes 80% of Pakistans commercial traffic.
There are 52 new design passenger coaches were imported from China at a cost of Rs. 4.1 billion. Remaining 150 passengers coaches will be manufactured at Pakistan railways carriage factory Islamabad by 30th June 2013.
All the 46 development projects include construction of roads, river Bridger, tunnels, flyovers, interchanges.
In Pakistan during the current financial year, NHA has launched/awarded 16 new growth projects covering a length of above 500 km inclusive construction of a number of flyovers, bridges & interchanges costing ofRs. 70,951 million.
At present, 46 development projects having length of approximately 2000 km are ongoing approximately at a cost Rs. 245 billion in different sections.
In Pakistan NHA has completed 12 projects of bridges,flyovers, interchanges& road up gradation during the last one year at a cost of Rs. 19.60 billion.
NHA is simultaneously constructing 12 Bridges across the rivers. These are: on rivers Sutlej 2, on rivers Chenab 4, on river swan 1 and 5 on river Indus.
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In Pakistan Telecommunication arrangement includes damages to cellular sites, exchange centers, equipment, power system and supporting civil works is amounting to $1.90 million.
There are six factories including Locomotive Factory Risalpur, Carriage Factory Islamabad, and four concrete Sleeper Factories in Kohat, khanewal, sukkur, are Kotri, are being corporatized for eventual privatization subject to approval of the government.
Pakistan cabinet committee of restructuring has approved a restructuring framework for their Railways and also during the last financial year, 16 kms of track was rehabilitated on Pakistan Railways network besides doubling more than 15 kms of track.
In Pakistan ministry of Railway has also adopted a Track Access Policy (TAP) for private sector participation to operate freight and passenger trains on Pakistan infrastructure and they also created a Real Estate Development and Marketing Company as subsidiary of Ministry of Railways.
There is a new dry port was set up at Prem Nagar near Raiwind industrial area and Lahore through public private partnership approximately at a cost of Rs. 490 million.
In Pakistan consolidated revenues of PNSC group during July-March 2011 to 2012 were Rs. 6640 million as compared to Rs. 6772 million last year and also the corporation intends to acquire four vessels through commercial loan/joint venture basis.
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Economic sectors of Pakistan Following chart shows the growth of countries economic growth,
In Pakistan two new destinations have been introduced during the year 2011: Karachi Madina and Quetta Zahedan and also there are three new routes were introduced during the year 2011: Peshawar Kaula Lumpur, Sialkot-Riyadh and Sialkot-Dammam.
International Airlines Corporation of Pakistan earned increased revenue amounting to Rs. 116 billion in year 2011 as compared to 107 billion last year. A purchase agreement of 5 Boeings 777 has been signed.
In Pakistan Karachi port trust handled cargo 27.8 million tonnes during the first 9 months current fiscal year.
In Pakistan acquisition of two vessels in process, while two more vessels will be acquired in next financial year.
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22 passengers coaches have been rehabilitated at Pakistan Railway Carriage Factory Islamabad during last year.
The volume of cargo import during July-March 2011-12 stood at 14.7 million tones, and also exports handled 4.90 million tones during July-March 2011-12.
Pakistan Ministry of Communications has prepared a draft National Transport Policy which covers all modes of transport sectors i.e. (i) Roads, (ii) Railways, (iii) Ports & Shipping and this policy also includes the National Transport Corridor Improvement Program. This programme has been launched in this country to revamp the whole transport sector including ports, roads, railway etc. and provides a frame work to develop and improve the North South corridor.
In Pakistan the Total cargo handled on Gawadar port up till now is 4.10 million tones while Gawadar Port earned total revenue since its start of operation amounting to Rs. 53.40 million and also in the Port Qasim Authority handled a cargo volume 19.70 million tones during July-March 2011-12.
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There is the total mobile subscribers reached 118.30 million by the end of March 2012 as compared to 108.90 million last year in Pakistan and subscribers of Local Loop (FLL + WLL) reached at approximately 6 million, out of which 3.1 million belong to FLL and 2.8 million belong to WLL in these nation.
So due to mobile substitution in Pakistan, Fixed Local Loop teledensity has been declining over the years and it stands now at 1.93% compared to 2.10% last year showing a0.17% decrease.
The broadband subscribers reached 1.9 million at the end of February 2012 in Pakistan because of that the revenues of the telecom sector during the 2011-12, status at Rs. 363 billion compare to the last year 344.20 billion show an increase of 5.40%.
In Pakistan mobile perception rose 64.90% in 2011-12 next to 60.4% in 2010-11 which shows an increase of 4.30% points in total teledensity.
In Pakistan the Auction of 3G licenses is probable which will bring more FDI in the country.
Telecommunication power and the State Bank of Pakistan have signed a memorandum of Understanding (MOU) both the institutions have shown their interest and promise in interesting mobile banking services in the country.
In Pakistan cumulative investment of just about US $ 2.5 billion in the electronic media industry.
Because of increasing investment new jobs to more than 2 lakh people of diversified skills and qualifications have been provided. In addition, over 7 million people have been accommodate through circuitous employment.
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Economic sectors of Pakistan In Pakistan with the current growth rate of more than 7% per annum, it is estimated that the cumulative investment in the electronic media industry will reach above $ 3 billion by the end of the current financial year.
In the last year 2011, telecom sector invested US$ 495.80 million with cellular mobile sector being the major supplier And also telecom sector involved over US$ 79 million Foreign Direct Investment (FDI) in the country which is about 5% of the total FDI land in Pakistan in 2011.
There is also a PBC outdoor Services, broadcast programmes for 08 hrs daily in 11 foreign languages covering Afghanistan, Iran, China, India, Bangladesh, Nepal and Sri Lanka in Pakistan.
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Economic sectors of Pakistan The total Central Production Units (CPU) manufacture music, drama, features, documentaries and programmers for special occasions and CPU has over 2 million minutes recording in its archives which are being digitized in the country.
In these country the PBC News is putting on air 117 News bulletins daily.it includes External,National, Regional and Local News bulletins besides resume of National Assembly and Senate.
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Large Scale Manufacturing
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Economic sectors of Pakistan The industrialized sector grew at an average rate of 8% from the sixties to the eighties, but fell to 3.9% during the nineties. This was largely caused by lessening in investment levels due to lack of permanence and consistency in policies. Political shakiness law and order position in the major industrial centers, transport bottlenecks, as well as changeableness and inadequate ease of use of power supply at reasonably priced rates were additional factors pulling down the sector.
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Economic sectors of Pakistan Some Important Points:
During the first 9 months of the current fiscal year 2011-12, Large Scale industrialized posted a growth of 1.05% as compare to growth of 0.98% during the same period last year.
The groups wise showing increase included: Pharmaceutical (10.9%), Paper and Board (8.4%), Wood Product (7.4%), Food Beverages and Tobacco (6.5%), Nonmetallic mineral Products (2.9%), Leather Product (1.8%) and Textile (0.8%).
Items wise contribution in Large Scale Manufacturing indicates growth in Generating Sets (143.9%), Blankets (109.9%), Electric Transformer (31.2%), Heavy Machinery &equipments (21.0%), Sugarcane Machine (19.2%), Sugar (15.3%), Liquids/Syrups (14.1%), Tea blended (13.3%), Tablets (10.7%), Jeeps & Cars (8.8%), Footwear (6.2%), LPG (3.4%), Cement (2.9%) and Sugar (15.3%).
Automotive Industry such as Buses, Cars, LCVs and 2/3 wheelers managed significant growth at 23%, 9.1%, 5.7%and 3.1% respectively as compared to 24.7%, 16.4%, 23.3% and 12.6% during the same period last year.
Mining and quarrying sector 4.4% in 2011-12 as against -1.3% last year. The main contribution to this modest performance came from Flourite, Bauxite, Chromite, Chalk and Natural gas which posted a positive growth of 591.5%, 111.3%, 82.2%, 82.2% and 4.0% respectively during the current financial year.
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Economic sectors of Pakistan TEXTILE: AN IMPORTANT PART OF LARGE SCALE MANUFACTURING
Pakistan's textile industry broadly comprises a large-scale organized sector, and a smallscale cottage sector and its integrated industry consists of subsectors including processes such as spinning, weaving, knitting, ginning, finishing, and apparel & textile product making-up; fibers such asman-made fibers, artificial silk, cotton, wool & jute; and endproducts such as home textiles, towels, tents, hosiery, carpets, rugs, apparel and knitwear.
The textile industry of Pakistan has a total conventional spinning capacity of 1550 million kgs of yarn, weave capacity of 4368 million square meters of fabric and concluding capacity of 4000 million square meters. The industry has a manufacture capacity of 670 million units of garments 400 million units of knitwear and 53 million kgs of towels.
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Economic sectors of Pakistan Auto mobile industry:
KARACHI: The Pakistans auto industry has become a most important industrial sector that has attain development in the large-scale industrialized sector.
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Economic sectors of Pakistan Pakistan Automotive Manufacturers Association (PAMA):
In Pakistan licensed by the Ministry of Commerce, Government of Pakistan under the Trade Organizations Ordinance 2007 and registered under the Companies Ordinance 1984 as a company with limited legal responsibility.
Objective:

To look after interest of Members It helps to play central role in all policy making process of the Government for the automotive industry of country
To enable Pakistani Auto Industry attractive Global Player To provide the members high quality specialized service & create excellent communication amongst members
To be the principal source of statistical data on the entire automotive industry of the country
It helps to play its role to foster harmony and accord amongst all stakeholders
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FISCAL DEVELOPMENT
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Economic sectors of Pakistan There are mainly four types in fiscal expansion as follows: A. Fiscal Policy Developments B. Revenue Measures C. FBR Tax Collection D. Fiscal Performance: July-March, 2011-12
The significance of a prudent fiscal policy cannot be refused as it supports economic activity through sustainable growth and poverty alleviation.
The effective accomplishment of the policy endeavors to mobilize resources through taxes and public savings, which can fund much desirable public goods and services.
It also helps to correct fiscal imbalance as well as promote investment and growth by optimal allocation of possessions and through improving the tax system.
Consequently, a well-structured fiscal policy ensure rapid economic growth and expansion in the country.
Pakistans economy, which largely remained impervious to the global financial crisis due to its lower experience to international finance, faced comprehensive challenges on external and internal fronts mainly campaign against fanaticism, unbalanced law and order situation, persistent energy shortages and non-materialization of external inflows. Additionally the extraordinary calamity of floods in 2010 and thrashing rain in Sindh in 2011 contribute further stress on the economy. However, the fiscal situation was well contained.
Efforts to manage the fiscal deficit within good enough level through an disbursement management strategy, austerity procedures and reforms in public sector enterprise have yielded results.
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Economic sectors of Pakistan A. Fiscal Policy Developments
Tax as a major source of proceeds and growth plays a vital role in construction up institutions and markets. A good tax system not only helps in equitable giving out of economic benefits for social justice but also attracts speculation at all levels of business activities. The nonappearance of an efficient tax system discourage well predictable investment and compels the country to rely on permanent borrowing from interior and external sources to finance the budgetary deficit, which may crowd out private speculation.
Pakistans fiscal deficit for the financial year 2011-12 is report 4.0% as compare to 5.9% in fiscal year 2010-11.
Further details can be shown from the following table of Fiscal Indicators as% of GDP.
The sooner Pakistan improve its fiscal position by making sharp fiscal adjustment, the lesser the price it is likely to pay for its fiscal unruliness A sharp fiscal modification can reduce large external current explanation imbalances, restore the self-confidence of global investors, ease financing constraints, prop up growth and contain price rises.
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Economic sectors of Pakistan B. Revenue Measures
The government introduce reform initiative through presidential ordinance and withdrawal of SRO based exemption; amendments were made in Income Tax Ordinance 2001, the Sales Tax Act 1990and Federal Excise Act 2005. These measures were effective from 15th and 16th March, 2011 to meet the growing need of flood affected people and to reach the assigned target. These reforms include:
15% surcharge on income and move forward taxes Increase in the rate of special excise duty from 1% to 2.5% , however special excise duty was abolished in 2011-12 extraction of special regime of assessable price for levy of GST at 8% on actual value of sugar Removal of SRO based exemption from fertilizer, pesticides, tractor and removal of zero rating from machinery, plants and equipment Constraint of zero rating to register person for export of textile, leather, carpets, sports goods and surgical goods. The withdrawal of exemption and the left over amount of 15% flood relief surcharge contribute a supplementary amount of around Rs 50 billion during July-March, 2011-12.
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Economic sectors of Pakistan C. FBR Tax Collection
Tax collection by the FBR was targeted at Rs 1952.30 billion for fiscal year 2011-12. Revenue collections of FBR stood at Rs 1426 billion during July-April 2011-12, thereby shimmering 24.0% growth over Rs 1149.8 billion self-possessed during the analogous period last year. Among the four federal taxes, the maximum growth 33.7% has been recorded in sales tax receipts, followed by civilization 17.7%, and direct tax 22.6%. It does not include Rs. 19 billion together by Sindh province on GST on Services.
For July-April, 2012, direct taxes have been a major source of FBR tax revenue collected works, contributing 37% of total receipts. Net collected works was estimated at Rs. 528.90 billion.
Indirect taxes grew by 24.9% during July-April, 2012 and accounted for 62.9% of the total FBR tax revenue. Net compilation was estimated at Rs.897.20 billion.
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D. Fiscal Performance: July-March, 2011-12
Total spending of Rs. 3721.2 billion was predictable for the full year, comprise of Rs.2976.3 billion of current disbursement (80% of total), and Rs. 744.9 billion of expansion disbursement and net lending (20% of total).
During July-March, 2011-12 total expenditures amounted to Rs 2641.90 billion against Rs 2262.60 billion in the same period last year. Current expenditures stood at Rs 2154.10 billion and enlargement expenditures and net lending recorded at Rs 428 billion during July to March, 2011-12.
Total revenues reached to Rs 1747 billion during July to March, 2011-12 against Rs 1495.30 billion in the same period of last year and within Revenues tax revenues stood at Rs 1379.20 billion including Rs. 1,321.50 billion of Federal and Rs 57.60 billion of provinces, and non-tax revenues remained at Rs. 367.90 billion during the same period of fiscal year 2011-12.
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Energy
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The total consumption of petroleum foodstuffs in the power sector was 8,139 million tons compared to 8,814 million tones last year which in a weak position the growth in this sector, thus redeployment negative growth of 5.20% in this sector in this country.
In the gas sector of Pakistan provide increased by 4.9% in July-March 2011-12 as the average manufacture of natural gas was 4236.06 million cubic feet per day during this period while it was 4,050.83 million cubic feet per day in analogous period last year.
Source:http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogsp ot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhrbpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zG UPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa% 3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1
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In these country of Pakistan the most important energy supply during current year is 64.52 million TOE compared to 63.09 million TOE last year thus performance an increase of 2.3%. The ease of use of energy per capita in 2011 remained 0.372 Tone Oil Equivalent TOE matched to 0.371 Tone Oil Equivalent (TOE) in 2010 posting a positive growth rate of 0.16%.
In Pakistan the average crude oil manufacture during July-March 2011-12 remained 66,032 barrels/day as against 65997 barrels per day during the analogous period of last year showing an increase of 0.05%.
In Pakistan the natural gas in the form of CNG posted a constructive growth 10.8% during July-March 2011-12.
In Pakistan the industrial sector had shown positive growth of 24.2% in the expenditure of petroleum products during July-March 2011-12 when compared with last year.
The transfer sector in this country surprisingly showed a family member small growth of 3.5% in the utilization of petroleum products as expenditure of petroleum product in transport sector remained 6,832.9 million tones during July-March 2011-12 compare to 6,599.1 million tones during equivalent period last year in Pakistan.
There is a total contribution of Hydel in electricity generation increased to 33.6% in 2010-11 in this country.
In Pakistan Water and Power expansion Authority (WAPDA) remain the main contributor to electricity generation with 48.7% coming from this source.
There is almost 96% work on the main dam at Mangla, spillway and allied amenities had been completed and immigration work is in advancement Likewise 99.7% work on Satpara and 72.1% on GomalZam dam has been completed.
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In this country there is one of the beneficiary of Tetra-collaborator power import project under the head of Central Asia-South Asia (CASA-1000) electricity trade.
Karachi Electricity bring in Corporation (KESC), Pakistan Atomic Energy Commission (PAEC), KotAddu Power Company (KAPCO) and the Hub Power Company (HUBCO) have 8.3, 3.6, 6.2 and 9.1% , respectively.
In Pakistan the Independent Power Producers (IPPs) have contributed almost 25% .
Water and Power Development Authority is executing, on priority basis, the projects such as 969 MW-Neelum Jhelum, 1410 MW-Tarbela 4th Extension, 7100 MW-Bunji, 4320 MW-Dasu, 740-MW Munda Dam and most mentionable 4500 MW-DiamerBhasha Dam projects, to cope with the increasing demand of power in this country.
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Economic sectors of Pakistan In Pakistan the household sector consumed 44% of the total electricity generated followed by industrial (26%), government (12.3%), agriculture (10.4%) and commercial (6.8%) during July-March 2011-12.
In Pakistan the major users of coal are the cement sector and brick kilns; about 60% of total coal is consumed by cement while 39% is consumed by the brick kiln industry during current year as compared to 62% consumption of coal in cement industry and 37% in brick kiln industry last year.
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Agriculture
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Economic sectors of Pakistan An Introduction:-
Pakistan is one of the world's largest producer of the following merchandise according to FAOSTAT the arithmetical arm of the Food & Agriculture Organization of The United Nations given here with the 2008 ranking:

Apricot (3rd) Buffalo Milk (2nd) Chickpea (3rd) Cotton, lint (4th) Cotton, Seed (3rd) Dates (5th) Mango (6th) Onion, dry (4th) Oranges (11th) Rice, paddy (11th) Sugarcane (5th) Tangerines, Mandarin Orange, Clementine (9th) Wheat (10th)
Pakistan's most important natural resources are Arable land and water. About 25% of Pakistan's total land area is under cultivation and is watered by one of the principal irrigation systems in the world and Pakistan irrigates three times more acres than Russia. crop growing accounts for about 23% of GDP and employs about 44% of the labor force. ZaraiTaraquityBank Ltd. is the largest economic institution geared towards the enlargement of agriculture sector through provision of economic services and mechanical expertise
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Economic sectors of Pakistan Modernization should be adopted in Agriculture..
PESHAWAR - More than 80% of Khyber Pakhtunkhwa populace is directly or in a roundabout way dependent on the cultivation sector and as a result on industries in the province Khyber Pakhtunkhwa Agriculture Minister ArbabAyub Jan said on Monday and If we have to rely on the agriculture sector and we should adopt modern irrigation system and latest technology for the enlargement of this sector he said.
In Pakistan addressing the inaugural ceremony of a three-day international seminar on Dairy Science Park held at Agriculture University Peshawar, he said the sector was on top of all sectors in developed countries purely because they had entirely concentrated on the research wing.
Large number of agriculture scientists and specialist were present in Khyber Pakhtunkhwa and there was a great demand for them in the entire world and he said the past governments did not pay heed to the fundamental sector adding together that the government had started an assortment of projects in the agriculture sector which would have constructive effects on it in future.
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Pakistan has a rich and vast natural resource base, covering various ecological and climatic zones; hence the country has great potential for producing all types of food commodities.
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Economic sectors of Pakistan Agriculture has an important direct and indirect role in generating economic growth and the importance of agriculture to the economy is seen in 3 ways: first: - it provides food to consumers and fibers for domestic industry; second: - it is a source of scarce foreign exchange earnings; and third: - it provides a market for industrial goods.
The total geographical area of Pakistan is 79.6 million hectares. About 27% of the area is currently under cultivation. Of this area, 80% is irrigated and in this regard, Pakistan has one of the highest proportions of irrigated cropped area in the world and also the cultivable waste lands offering good possibilities of crop production amount to 8.90 million hectares. Growth in cropped area is very impressive: from 11.60 million hectares in 1947 to 22.60 million hectares in 1997.
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Economic sectors of Pakistan Agriculture:
Factor Overall Growth Cotton ( in bales ) Wheat ( in thousand tons ) Rice ( in thousand tons ) Sugarcane ( in million tons )
2010-2011 2.4% 11,460 25,214 4,823 55.3
2011-2012 3.1% 13,595 23,517 6,160 58.0
Increase/Decrease in% age 0.7% 18.6% -6.7% 27.7% 4.9%
Interpretation: Here it can be seen that there is an increase in the production of Cotton, Rice & Sugarcane while there is a decrease in the production of Wheat. The overall growth of the Agriculture is 3.1% in 2011-2012 as compared to 2.4% in 2010-2011 which shows an increase of 0.7% .
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Factor Gram Maize Minor crops 1. Mung 2. Potatoes 3. Chilies 4. Onions 5. Masoor
2010-2011 496 thousand tons 3707 thousand tons
2011-2012 291 thousand tons 4271 thousand tons
Increase or Decrease 41.3% 15.2%
22.0% increase 17.5% increase 78.3% decrease 15.4% decrease 12.8% decrease
Credit disbursement
168.7%
197.4%
17%
Agriculture credit disbursement of Rs. 197.4 in (July-March) 2011-12. It is higher by 17.0%, as compared to Rs. 168.70 billion over the same period last year.
The total availability of urea during Rabi 2011 to 12 was 3,526 thousand tones comprising of domestic production 2,160 thousand tones. Imported supplies of 1,202 thousand tones. Besides this the total off take was 2,710 thousand tones. Leaving a stock of 800 thousand tones for next season.
The total estimated availability of urea during Kharif 2012 around 3487 thousand tones comprising 800 thousand tones of opening stock, 2280 thousand tones of domestic production & 407 thousand tones of imported supplies. The total off take is estimated around 3200 thousand tones during Kharif 2012 which leaves a stock around 287 thousand tones.
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The Rabi 2011-12 started with 224 thousand tones of DAP as opening stock. The total availability of DAP was approximately 760 thousand tones including 271 thousand tones of imported supplies and approximately 260 thousand tones of domestic production.
The off take of DAP during Rabi 2011-12 was about 572 thousand tones leaving behind 177 thousand tones of opening stock for Kharif 2012 and also estimated DAP availability during Kharif 2012 will be around 838 thousand tones comprising 177 thousand tones of opening stock.
361 thousand tones of domestic production and 300 thousand tones of imported supplies and the estimated demand is around 620 thousand tones during Kharif 2012, which reflects comfortable situation.
Source:-http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculturevalue-added-percent-of-gdp-wb-data.png% 3Fs% 3D% 252Fpakistan% 252Fagriculture-value-added-percent-ofgdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdpwb-data.html&usg=__GQg6RFYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbn h=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search% 3Fq% 3Dagriculture% 2Bin% 2Bpakistan% 2Bcharts% 26um% 3D1% 26hl% 3Den% 26sa% 3DN% 26tbo% 3Dd% 26biw% 3D1366% 26bih% 3D640% 26tbm% 3Disch&um=1&itbs=1
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INFLATION OF PAKISTAN
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Economic sectors of Pakistan Inflation is a rise in the general level of prices of goods and services in an economy over a period of time and when the general price level rises each unit of currency buys fewer goods & services. Consequently, the inflation also reflects an erosion in the purchasing power of money a loss of real value in the internal medium of exchange and unit of account in the economy and a chief measure of price inflation is the inflation rate and the annualized percentage change in a general price index (normally the Consumer Price Index) over time.
Inflation's effects on an economy are various and can be simultaneously positive & negative and Negative effects of inflation include an increase in the opportunity cost of holding money uncertainty over future inflation which may discourage investment and savings and also if inflation is rapid enough, shortages of goods as consumers begin billboard out of concern that prices will increase in the future and also positive effects include ensuring that central banks can adjust real interest rates intended to mitigate recessions and encouraging investment in nonmonetary capital projects.
Economists generally agree that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply Views on which factors determine low to moderate rates of inflation are more varied and low inflation may be attributed to fluctuations in real demand for goods & services, or changes in available supplies such as during scarcities as well as to growth in the money supply. So, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth.
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Economic sectors of Pakistan Inflation is an inevitable property of any economy in the world or we can say in simple words, inflation is the rise of general level of prices. Though, inflation is a much more complex phenomenon than simply the increase of prices. Inflation is also identified with the fall of market value of money within a particular economic system. Though, some economists prefer to use the term inflation to describe a rapid increase in money supply in a single economy. Commonly, this is the main cause of the increase of prices.
The first reaction to the term inflation is in most cases negative; however inflation is an indicator of a healthy economy. Commonly, mild inflation is a natural phenomenon of any economy no matter how strong and stable it may be andsome economists say that small steady inflation is greasing the wheels of commerce and one of positive effects of mild inflation in a separate economy is that it is easier to adjust some relative prices. Renegotiating these prices downward is much more difficult. Furthermore, some sectors might suffer immensely from constant price level because of so-called sticky downward prices that effect those sectors andso in an attempt to acquire 0 inflation, employment & profits in such sectors would drop. In addition, stable prices and zero inflation rate might trigger deflation, which in turn would entail recession, bankruptcy and can even entail depression.
Whereas moderate and mild inflation is consider as a sign of healthy economy and inflation above these mild levels is considered to have a negative impact and when government increases the money supply, and therefore the taxes, people are eager to spend more money. With the growth of inflation, rate of taxes also increases and so people are even more willing to spend money for 2 core reasons: to avoid paying taxes on holding currency and to buy products before they increase in price. So, in such economic conditions the demand for various goods is rapidly growing which naturally causes the rise of prices and this collection of phenomena reinforces inflation, increases the velocity of money and it is referred to as the vicious circle. This process is very difficult to harness and in vast majority of cases it leads to hyperinflation.
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Economic sectors of Pakistan The time value of money market expression is inseparable from inflation and from a particular point of view inflation can be understood as a valid reason to invest money rather than save it and the value of accumulated wealth would gradually decrease because of inflation, which explains the expression above. Furthermore, there is a degree of uncertainty regarding what the actual value of a particular currency would be in several years but because of this uncertainty, investing is a correct activity.
The inflation rate as measured by the changes in Consumer Price Index (CPI) stood at 10.8% during (July-April) during current fiscal year 2011-12, against 13.8% in the comparable period of last year.
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Economic sectors of Pakistan The food inflation on average basis is estimated at 11.1% and non-food 10.7%, against 18.8% and 10.8% in the corresponding period of last year.
In these country the rise in non-food inflation has resulted from the upward adjustment in energy, gas, electricity and fuel prices.
Core inflation is estimated at 10.4% during July-April 2011-12.
The Wholesale Price Index (WPI) during July to April, 2011 to 12 on annual average basis has recorded at 11.2% against 21.0% last year.
The Sensitive Price Indicator (SPI) recorded at 8.5% during July-April, 2011-12 against 18.1% of last year.
In Pakistan the increase in overall inflation has driven by rise in world commodity and fuel prices, disruption in domestic supply chain by the floods.
Though, inflation has been contained during current fiscal year as compared to last year due to tight monetary policy better supply management & regular monitoring of prices and supply chain by the Cabinet & National Price Monitoring Committee.
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MONETARY POLICY
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The economy seems to have settled at an unenviable equilibrium of high inflation and low growth and the protracted energy crisis and weak fiscal fundamentals are the main reasons behind this outcome. Similarly, the declining trend in private investment
expenditures is continuing while strength of the balance of payment position remains contingent upon foreign financial inflows. The pace of increase in domestic debt is also considerable and uncertain global economic conditions do not inspire much confidence either.
Environment the impact of monetary policy has become limited; whether it is in terms of direct effects of interest rate changes or broad influence on expectations in the economy. However, the State Bank of Pakistan will continue to play its required role in nudging the macroeconomic outcomes whenever there is relative ease in some of its core concerns. For instance, there has been some deceleration in inflation which has improved its outlook and similarly the receipt of much delayed Coalition Support Funds has eased on the margin, the fiscal and external sector constraints.
The average CPI inflation for FY12, 11%, was well within the target of 12% for the year and on the lower side of SBPs earlier projections and the main reason for this moderation in inflation is a collapse in real private investment indicating a structurally weak economy. Though, it continues to persist in double digits for the 5th consecutive year and this persistence is primarily due to entrenched expectations of inflation remaining high. It seems that key drivers for this expectation are continued fiscal
borrowings from the SBP despite legal restrictions and feared depreciation of exchange rate even with a modest external current account deficit.
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Economic sectors of Pakistan More recently, the year-on-year inflation has declined to 9.60% in July 2012 from 12.30% in May 2012. An unanticipated fall in international oil prices in May and June and a huge reduction of 50 % in the administered prices of gas in early July 2012 are mainly responsible for this deceleration. The former has already proved to be temporary as the international oil prices have increased since then, and the effects of the latter may also only have transitory effects for a few months. However, the decline in inflation in July 2012 has created strong market expectations for a downward revision in SBPs policy rate. There has been a Monetary Policy Statement, August 2012 2 State Bank of Pakistan noticeable reduction in yields on the government securities in secondary market and KIBOR.
In any case, it would be too early to call it an emerging trend as there are still deep-rooted factors driving inflation and stickiness in both the core inflation measures points towards the persistence of inflation in low double digits. SBP projects average CPI inflation for FY13 to remain in the range of 10% to 11%, which is higher than the announced target of 9.50% for FY13. However, much would depend on fiscal restraint on borrowings from SBP realization of estimated foreign financial inflows and progress in energy shortages to increase the utilization of installed capacity.
The provisional National Income Accounts estimates show that real GDP growth of 3.7% in FY12 was primarily driven by consumption expenditures and total investment & exports of goods and non-factor services show a significant contraction and the contraction in private investment, for the 4th consecutive year, at 13% is particularly of concern and the total investment as a percentage of GDP, has fallen to 12.50% in FY12, which does not bode well for the future productive capacity of the economy.
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Economic sectors of Pakistan For generating sustainable economic growth in the medium term it is important to stem further decline in investment. Also, given the fragile global economic conditions an export-led growth also looks less likely to take place and incorporating these considerations, SBP projects growth in real GDP for FY13 to remain between 3 to 4 percent; well below the target for the year and the countrys economic potential and to revive economic growth the focus must be on an endogenous reform process that focuses on improving infrastructure, productivity and governance.
The utilization of credit by private businesses is one of the important ingredients of investment. Though, the net flow of credit to Private Sector Businesses (PSB) was a meager Rs18.30 billion in FY12, which is a drastic decline compared to a net flow of Rs173.20 billion in FY11 and not only the amount disbursed to PSBs was small but the retirements from them were also unusually high and in addition a disaggregated assessment shows that a large part of total credit extended to the private sector was in fact availed by the Non-bank Finance Companies (NBFCs).
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The main factors that have significantly dampened the demand for credit by private sector businesses are persistent electricity and gas shortages, security conditions, and a challenging political environment and in these circumstances businesses are avoiding significant commitments in terms of expansion and long-term investments. At the same time, scheduled banks continue to prefer government over the private sector and this is despite an improvement in the currency to deposit ratio and a considerable deceleration in growth of Non-Performing Loans (NPLs).Given the desired expansion in the private sector credit and the growing need of the public sector to borrow from the banking system, a consistent increase in deposits and improvement in overall financial depth is imperative.
Among all these developments, two factors are particularly important inflation outlook has improved with a projection of 10.5% and loans to private sector businesses have sharply decreased. This has led to an increase in real interest rates and in taking the monetary policy decision the Central Board of Directors of SBP has decided to give a relatively higher weight to the state of private sector credit and investment in the economy knowing that the projected inflation could remain slightly higher than the target. Thus, the policy rate is being lowered by 150 basis points to 10.50% with effect from 13th August 2012.
In conclusion, improvement in key economic indicators would require comprehensive and credible reforms in the energy and fiscal sectors. Adherence to the legal framework of economic policy making The State Bank of Pakistan Act (1956) and The Fiscal Responsibility and Debt Limitation (FRDL) Act (2005) is important as well. A drive for economic reform and adherence to laws can go a long way in moving the economy towards a better equilibrium with low and stable inflation and high and sustainable growth.
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EMPLOYEMENT REGULATIONS
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Economic sectors of Pakistan Labour Policy
The labour policy issued by the Government of Pakistan lays down the parameters for the growth of trade unionism the protection of workers rights also, the settlement of industrial disputes, and also the redress of workers grievances and also the policy also provides for the compliance with international labour standards ratified by Pakistan and at present, the labour policy as approved in year 2002 is in force.
With the efforts of Government and progressive elements within labour % employers a forum i.e. Workers Employers Bilateral Council of Pakistan (WEBCOP) has been reputable which facilitates the resolution of issues relating to bilateral rights.
Child Labour In Pakistan awareness of the problem provided the basis for enactment of the Employment of Children Act, 1991 which has been followed by a number of administrative and other initiatives to address the issue of child labour effectively.
The Constitution of the Country also protects the rights of children and states:No child below the age of fourteen shall be engaged in any factory or mine or in any other dangerous employment and all forms of forced labour and traffic in human beings are prohibited.
Minimum wages The Government has arranged the Rs. 4,600 per/ month the minimum wage to be paid.
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Economic sectors of Pakistan Employees Social Security Ordinance (ESSO), 1965
An Employees Social Security scheme was introduced in Pakistan under the provisions of the Provincial Employees Social Security Ordinance (ESSO), 1965. The main objective is to provide comprehensive medical cover to the protected workers and their family members including parents and to provide financial assistance in case of sickness and employment injuries and the Social Security scheme is fulfilled on the basis of the contributory principle and also the main source of income is the Social Security Contribution which is collected under Section 70 of the Regulation from the employers of the notified industrial and commercial establishment at a rate of 7% of the wages paid to their workers who are drawing wages up to Rs. 5,000 p.m. or Rs. 200 per day and the workers once covered under this scheme remain secured even if their wages exceed Rs. 5,000 per month.
Workers Welfare Fund Ordinance, 1971
Through the Ordinance, the government has constituted a fund called Workers Welfare Fund for the welfare of workers and the Fund consists of:
a. An preliminary contribution of Rupees 100 million by the Federal Government, b. Such moneys as May from time to time be paid by industrial establishments under
the Regulation. An industrial establishment, the total income of which in any year is not less than one hundred thousand rupees shall pay to the Fund in respect of that year a sum equal to two percent of so much of its total income as is assessable under the Income Tax Ordinance, 2001.
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Economic sectors of Pakistan The Fund is applied to: The financing of projects are concerned with the establishment of housing estates or construction of houses for workers; and The financing of other welfare is measures including education training, reskilling and apprenticeship for the welfare of workers. Companies Profit (Workers Participation)Act, 1968
The Companies Profits (Workers Participation) Act, 1968 provides for participation of workers in the profits of the companies and the Act applies to Companies engaged in as industrial undertaking that fulfils the prescribed criteria and such companies are required to:
a. Establish a workers participation fund in accordance with the scheme as soon as
the accounts for the year in which the scheme becomes applicable to it is finalized but not later than 9 months after close of the year;
b. Subject to adjustments, if any pay every year to the Fund not later than nine
months after the close of that year five percent of its profits during such year which shall, where the accounts have been audited by an auditor appointed under section 23-B of the Industrial Relations Ordinance, 1969, be assessed on the basis of such audit; and
c. Furnish to the Federal government and the Board, not later than 9 months after the
close of every year of account and its audited accounts for that year duly signed by its auditors.
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Economic sectors of Pakistan Employees Old Age Benefits Act, 1976 The Employees Old Age Benefits Act, 1976is applicable to every industry or establishment where ten or more persons are employed directly or indirectly and this statute intends to provide security and benefit for old age to employees of industrial and commercial or other organizations covered by it. Therefore, the Employee Old Age Benefits Institute formed under it collects and receives contributions, bequests,donations and all other payments. It deals with pensions, invalidity pension widows pensions, old age grants and other benefits and out of contribution payable to the Institute by every employer of industry and contribution shall be payable monthly by the employer to the Institute in respect of every person in his insurable employment at the rate of 5% of his wages.
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Economic sectors of Pakistan List of other important labour laws Name of law Factories Act, 1934 Applications Regulates the working conditions in factories, employing 10 or more workers Payment of Wages Act, 1936 Determines the mode of payment of salaries and wages to the industrial workers Minimum Wages Ordinance, 1961 Specifies the minimum wage to be paid to different categories of workers West Pakistan Industrial & Commercial Provides the framework and guidelines for the Employment (S.O.) Ordinance, 1968 service rules of industrial and commercial workforce Punjab Fair Price Shops Ordinance, Provides criteria for the establishment of fair 1971 price shops at industrial units where 100 or more workers are employed Employment Record of Service Act, Provides guidelines for the 1951 Canteen Rules, 1959 maintenance of
service records of workers in industries It envisages provision of a canteen facility, where 250 or more workers are employed
Industrial Relations Ordinance, 2002
It provides framework for the industrial relations between management and the workers. It regulates trade union activities
Hazardous Occupations Rules, 1978
Gives guidelines for protection of workers against certain hazardous occupations in the factories
Employment of Children Act, 1991
Regulates the employment of children

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Economic sectors of Pakistan Maternity Benefit Ordinance, 1959 Provides certain facilities to those female employees, who are expectant Shops & Commercial Establishments Regulates Ordinance, 1969 the employment and working
conditions of workers in shops as well as commercial establishments (such as banks, offices etc.)
Road Transport Workers Ordinance, Provides guidelines for welfare of transport 1961 workers
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Trade & Payments
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In absolute terms, exports have increased from $20460 million in July-April 2010-11 to $ 20474 million in the period thereby witnessing a growth of 0.1% during the first ten months (July-April) of the fiscal year 2011-12.
Imports during the first ten months (July-April) of the fiscal year 2011-12 increased by 14.5% compared with the same period of last year, reaching to $33.15 billion.
Workers Remittances reached to $ 10877 million during July-April 2011-12 as against $ 9046 million in the comparable period of last year, depicting an increase of 20%.
Current Account Deficit stood to approximately $ 3400 million in July to April 2011-12.
Services account deficit reached to approximately$ 2,400 million during July-April 201112 as compared to $ 1,225 million during the same period last year.
Imports are more dispersed, as is typical in most countries although inputs for the textile and apparel sectors (machinery, fibers, dyes & chemicals etc.) and petroleum products make up sizeable shares of total imports.
The bulk of Pakistans trade is with countries outside of South Asia and this reflects in part Pakistans specialization in products that are also exported by its neighbors, and also this low level of trade also stems from a half-century of protectionist policies and political-military tensions in the region and recent analysis commissioned by the World Bank indicates the potential for greater trade with India notably in light manufactured products (e.g., bicycle components and fans).
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Economic sectors of Pakistan Pakistans exports are highly concentrated: currently the majority of exports originate in the textiles and apparels sectors and also early evidence indicates that Pakistan has so far been able to expand exports in the wake of the abolition of OECD countries quotas on textiles and apparel in 2005.
In Pakistan financial Account surplus during July-April 2011-12 stood at $ 1200 million as compared to $ 690 million in corresponding period last year.
Exchange rate of Pak Rupee depreciated by 3.4% during July-April 2011-12.
Foreign Exchange Reserves stood at $ 16.5 billion at the end of April, 2012,of which, reserves held with the State Bank of Pakistan stood at $ 12 billion and by banks $ 4.5 billion.
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CAPITAL MARKETS
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Economic sectors of Pakistan There mainly two criterias in capital market as follows:
A. Pakistan Equity Markets B. Capital Market Developments
The capital market like the money market plays a significant role in the national economy.
A developed, dynamic and vibrant capital market can contribute significantly in the speedy economic growth & development. It mobilizes funds from people for further investments in the productive channels of an economystarting idle monetary resources and puts them in proper investments.
Capital formation is net addition to the existing stock of capital in the economy. The capital market enhances production and productivity in the national economy and also as it makes funds available for long periods of time the financial requirements of business houses are met by the capital market.
The lack of an advanced and vibrant capital market can lead to underutilization of financial resources and the developed capital market also provides access to foreign capital for domestic industry. Therefore the capital market definitely plays a constructive role in the overall development of an economy.
Capital markets consist mainly of Stock (equity) and Debt markets and the capital market provides an avenue for raising the long-term financing needs of business through equity and long term debt by attracting investors with a long term investment horizon.
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Economic sectors of Pakistan A. Pakistan Equity Markets
The Pakistan Stock Markets remained range bound during first half with predominately declining trend (9.2%). However, the KSE -100 index resumed momentum during the 3rd and 4th quarters of the FY 12.
The Karachi Stock Exchange (KSE) is the biggest and most liquid exchange in Pakistan with an average daily turnover of 254 million shares and market capitalization of US $ 41 billion as of the 1st week of May, 2012. The international magazine 'Business Week' declared the KSE as the best performing world stock market in 2002.
In Pakistan international investors have given due considerations to the KSE in making decisions regarding foreign investment in equity markets.
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Economic sectors of Pakistan B. Capital Market Developments
The robust performance of Pakistani stock markets during 2nd half of 2011-12 was due to certain encouraging measures like considerable reduction in discount rate by the central bank during later period of the first half of CFY and increase in foreign exchange reserves and further, the market sentiment was boosted by the promulgation of the Capital Gain Tax Ordinance.
Under the CGT Ordinance the National Clearing Company of Pakistan Limited (NCCPL) has been appointed as an intermediary entity to compute, determine, collect & deposit the CGT on listed securities and in addition, no question relating to the source/nature of money will be asked by the tax authorities if the money remain invested in the stock market for a period of 45 days (till 30thJune, 2012) and 120 days (till 30thJune, 2014) before and after the promulgation of CGT Ordinance.
The investment by foreign investors in the capital markets during the period from July, 2011 to March 2012 depicted a net outflow of US$ 176.3 million. This reflects that present bullish sentiments in the equity markets are due to restoration of the confidence of the local investors.
The Pakistani Stock markets performed well during the current fiscal year as compared with the other world indices and this was mainly due to the steps taken by the current government to boost the confidence of the equity market investors which includes reforms in the Capital gains tax.
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The Stock Exchanges (Demutualization, Corporatization and Integration) Act, 2012, was broadcast with the signing of the bill by the President of Pakistan on 7 thMay, 2012. The demutualization bill was approved on 27thMarch 2012, in a joint session of the Parliament.
The demutualization law provides a framework for thedemutualization, corporatization& integration of the stock exchanges and the law requires the stock exchanges to be demutualized within 119 days of its promulgation in line with pre-defined timelines specified for completion of various milestones involved in the demutualization exercise.
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Economic sectors of Pakistan Pakistan Investment Bonds (PIBs) are long term bonds issued by the Government of Pakistan and sold through the State Bank of Pakistan via periodic auctions. These are long term Bonds issued by the Government of this country, offering a risk free investment to the bond holders at premium interest rates depending on the maturity of the bond. PIBs are issued with tenors of 3, 5, 7, 10, 15, 20 & 30 Years. The government conducted seven auctions of PIBs during 2011-12 (Jul to Mar) raising Rs. 159.25 billion.
During the period July to March, 2012 a total of six debt securities were issued through private placement including 2 Sukuk Issues of Rs.108.40 billion by Pakistan Domestic Sukuk Company Ltd.
In one of the major moves towards the development of a vibrant debt market in this country, the Securities and Exchange Commission of Pakistan has recently approved notification of the Debt Securities Trustee (DST) Regulations. The main objective of the DST Regulations is to protect the interests of debenture holders.
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CONCLUSIONS
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INFLATION
Inflation in Pakistan has been seen in an increasing trend in past few years but this year it has been decreased compared to last year. Food inflation percent has been decreased but nonfood inflation percent has raised marginally. The increase in overall inflation has driven by rise in world commodity and fuel prices, disruption in domestic supply chain by the floods. But inflation has been contained during current fiscal year as compared to last year due to tight monetary policy, better supply management and regular monitoring of prices and supply chain by the Cabinet and National Price Monitoring Committee.
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TRADE AND PAYMENT
If we see overall, we can say that exports have been increased 0.1% in past 10 months and imports have been increased 14.5% in the same period of time. Worst thing is that exchange rate of Pakistan rupee depreciated by 3.4% during July-April 2011-12. In other sectors,Pakistans condition is not sound say whether it is workers remittances or current account deficit or foreign exchange reserves. At no place Pakistan stood in the right position.
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EDUCATION
The literacy rate for the population (10 years and above) is 58% during 2010-11, as compared to 57% in 2008-09. Literacy remains much higher in urban areas than in rural areas and much higher for men than for women. The Gross Enrolment Rates (GER) at the primary level excluding katchi (prep) for the age group 5-9 years at National level during 2010-11 increased slightly to 92% from 91% in 2008-09. In Pakistan during the period 2008-12 a number of 3996 scholarships were awarded under different programmes,3572 scholars proceeded to avail these programmes on merit basis and a number of 1650 scholars completed their studies.
A continuous process is going on to improve education level in Pakistan.
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MONEY AND CREDIT

A sound fiscal position is essential for attaining macroeconomic constancy and it will be caused by efficient resource allocation and the mobilization of domestic savings.
The persistence of sound monetary management is to taking on the comprehensive challenges which are faced by economy since it deals with major issues of price stability, money supply control and explanation of managed interest rate.
TRANSPORTATION AND COMMUNICATION

There are 96% roads of inland merchandise and 92% of passenger traffic and definitely the backbone of Pakistans economy. Current road network of Pakistan is about 2,60,000 km which caters services to 11 million automobiles of all type and also NHA roads network is around 12,000 km, which is merely 4% of the overall road network but takes 80% of Pakistans commercial traffic. New designs are imported from various countries to improve the condition of the country.
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LARGE SCALE MANUFACTURING

The groups wise showing increase included: Pharmaceutical (10.9%), Paper and Board (8.4%), Wood Product (7.4%), Food Beverages and Tobacco (6.5%), Nonmetallic mineral Products (2.9%), Leather Product (1.8%) and Textile (0.8%)
Mining and quarrying sector 4.4% in 2011-12 as against -1.3% last year. The main contribution to this modest performance came from Chromite, Fluorite, Bauxite, Chalk and Natural gas which posted a positive growth of 591.5%, 111.3%, 82.2%, 82.2% and 4.0% respectively during the current financial year
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FISCAL DEVELOPMENT
The importance of a prudent fiscal policy cannot be refused as it supports economic activity through sustainable growth and poverty alleviation. The effective implementation of the policy endeavors to mobilize resources through taxes and public savings, which can fund much needed public goods and services. Pakistans economy, which largely remained impervious to the global financial crisis due to its lower exposure to international finance, faced multifaceted challenges on external and internal fronts mainly campaign against extremism, unstable law and order situation, lingering energy shortages and non-materialization of external inflows.
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ENERGY
The total consumption of petroleum products in the power sector was 8,139 million tons.
In the gas sector of Pakistan supply increased by 4.9% in July-March 2011-12 as the average production of natural gas was 4236.06 million cubic feet per day during this period while it was 4,050.83 million cubic feet per day in corresponding period last year.
There is a total contribution of Hydel in electricity generation increased to 33.6% in 2010in this country.
11
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AGRICULTURE
Pakistan is one of the world's largest producers of the following commodities according to FAOSTAT the statistical arm of the Food & Agriculture Organization of The United Nations.
Large number of agriculture scientists and specialists were present in Khyber Pakhtunkhwa and there was a great demand for them in the entire world.
Being an upper hand in the agriculture sector, Pakistan can improve in other sectors by considering this topic seriously.
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MONETARY POLICY
The declining trend in private investment expenditures is continuing while strength of the balance of payment position remains contingent upon foreign financial inflows. There has been some deceleration in inflation, which has improved its outlook. Also, the receipt of much delayed Coalition Support Funds has eased on the margin, the fiscal & external sector constraints. More recently, the year-on-year inflation has declined to 9.60 percent in July 2012 from 12.30 percent in May 2012.
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EMPLOYMENT REGULATIONS
With the efforts of Government and enlightened elements within labour and employers, a forum i.e. Workers Employers Bilateral Council of Pakistan (WEBCOP) has been established which facilitates the resolution of issues relating to bilateral rights
Awareness of the problem provided the basis for enactment of the Employment of Children Act, 1991 in Pakistan.
The Social Security scheme is implemented on the basis of the contributory principle. The main source of income is the Social Security Contribution, which is collected under Section 70 of the Ordinance from the employers of the notified industrial and commercial establishment at a rate of 7% of the wages paid to their workers who are drawing wages up to Rs. 5,000/- p.m. or Rs. 200/- per day.
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TRADE AND EMPLOYMENT
Imports during the first ten months (July-April) of the fiscal year 2011-12 increased by
14.5%
compared with the same period of last year, reaching to $33.15 billion. Current Account Deficit stood to $ 3394 million in July-April 2011-12.Financial Account surplus during July-April 201112 stood at $ 1200 million as compared to $ 690 million in corresponding period last year
CAPITAL MARKET
Capital formation is net addition to the existing stock of capital in the economy. The lack of an advanced and vibrant capital market can lead to underutilization of financial resources. The developed capital market also provides access to foreign capital for domestic industry. Thus the capital market definitely plays a constructive role in the overall development of an economy.
The government conducted seven auctions of PIBs during 2011-12 (Jul-Mar) raising Rs. 159.246 billion.
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BIBLIOGRAPHY
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3. http://upload.wikimedia.org/wikipedia/commons/2/2b/Pakistan_gdp_growth_rate.svg
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