Introduction to Different Sectors of Pakistan

ASSIGNMENT Subject Economy of Pakistan

Submitted to: Ms. Sana Mughal

Submitted by: Osama Hafeez (07-0444)

September 10, 2011

BACHELORS OF BUSINESS ADMINISTRATION (BBA) SPRING 2011 National University of Computer & Emerging Science Management Science Department, Karachi

LETTER OF TRANSMITTAL

Respected Madam! Here is the report which you authorized and endorsed us to prepare as a major Assignment for the course Economy of Pakistan. As analyzing the environment for the reason of providing with a detailed and complete analysis on the topic, secondary data was employed. This mostly included data from the organization sources, the internet, and books mentioned in references. I would like to thank all those people who provided us with their valuable help. I hope that the hard work will help you to look both positive and negative aspects of the assigned topic.

Sincerely, Osama Hafeez 07-0444

AGRICULTURE MAJOR CROPS OF PAKISTAN

The main crops of Pakistan are classified into food crops and non-food crops.

FOODS CROPS
Wheat: Wheat is the principal food crop of the people. It occupies an important position i farming policies. The share of wheat is 3% to GDP. The area under wheat crop was 8494 thousand hectares and wheat output stood at 23.52 million tons and it contributed 14.4% to value added in agriculture. Rice: Rice is the 2nd largest food crop in Pakistan. It is now a major export item accounting for 6.1% of total export earnings over the last five years and contributes 1.2% to GDP. Maize: Maize is an important food grain as well raw material for edible oil production. It is also used to produce starch and poultry food mixes. The total area under maize was 1026 thousand hectares. Barley: Barley is an important coarse grain crop. It is grown in dry, arid conditions. The total area under course grains in the year 2006-07 was 93 thousand hectares. Gram: Gram is an important source of vegetable protein and plays an important role in the diet. It is grown both as rabi and kharif crops. The total area under gram was 1073 thousand hectares in 2006-07. The total production is 900 thousand tones.

CASH CROPS
Cotton: Cotton is the most important cash crop of Pakistan in terms of area and value addition. It is the main foreign exchange earnings for the country with the production of 13.0 million cash return to the farmers. Sugarcane: Sugarcane crop serves as a major raw material for production of white sugar and gur. Its share in value added in agriculture is 3.5% and in GDP 0.7%. Tabacco:best tobacco growing areas are in Mardan and Peshawer and it also contributes to
the GDP.

Oil Seed and Vegetable Oils: The main crops grown for oil are rape and mustard seeds sunflowers, safflower soybeans. Total requirement of edible oil was 1.9 million tones. which32% was met through domestic production and remaining 68% was imported. Live Stock: It is also considered as cash crop and the end products like meat, packed food items fulfills the internal demand plus contributes to exports also.

Agricultural land utilization:

Total Irrigated and Non Irrigated Area

The total geographical area of Pakistan is 79.61 Mha, of which 59.32 Mha falls under total reported area which is a sum of forest area, cultivated waste lands, uncultivable area and the area under cultivation but not available. Punjab and Sind are the two provinces in which the real agricultural wealth of Pakistan lies. These areas fall in the Indus Basin. Pakistan has agricultural land potential of about 28.39 Mha which constitutes about 40% of the total reported area. The total cropped area, whether irrigated or rainfed, constitutes 23.04 Mha. Forests occupy 3.59 Mha and culturable waste area is 22.04 Mha.

Agricultural Inputs in Pakistan

Following are the agricultural inputs mentioned in the research report of Pakistan agricultural council. Availability of seeds: - here in Pakistan 90% of all seeds are exported from different countries. Net Water availability: - Water is the natural resource we have but still we have issues related to storage Use Of energy: - Energy is also required both in human form and technical. Fertilizer use in agriculture:- fertilizers and pesticides are common in every agricultural setup

PAKISTAN INDUSTRY Small and Medium Industries of Pakistan

In Pakistan cottage or household industries hold an important position in rural set-up.
Carpets Textiles Embroidery Jewelry Ceramics Cutlery Woodwork Sports Goods Surgical Instruments Other small-scale industries

Large scale or major Industries of Pakistan

Pakistan rank forty-first in the world and fifty-fifth worldwide in factory output.
Mining and quarrying Fuel extraction industry or Petroleum Manufacturing Construction and cement Electricity, gas and water supply Textile and tourism

Employment in Industry
On the basis of the existing population of 142.87 millions with Labour force participation rate of 27.46 percent, the total labour force comes to 39.24 million. According to this about 2.4 million persons of labour force were estimated as unemployed in 1999, as construction and transport sectors have absorbed 11.2 percent, 6.8 percent and 5.7 percent, compared to 10.5 percent, 7.2 percent and 5.0 percent respectively in 1994-95.

Capital output ratio

COR also dependents upon the availability of natural resources in the country. A country which is abundant in natural resources has a low COR because it can substitute the natural resources of capital. In other words, the resources rich country in order to boost output cans utilize the resources rather capital. Pakistan currently shown an output ratio of 2.8 although it have changed in respective years and the decline in the capital output ratio after 1976-77 was so steep, from 3.57 between 1970-71 and 1975-76 to 2.5 between 1976-77 and 1985-86.

Industrial Policy and Prospects

The Government of Pakistan is in the process of developing and releasing Industrial Policy.. Following are the prospects motioned by government of Pakistan in different sectors. Industrial Sectors: The recommended package of sectors in which industrial units should be set up is suggested below: a. Light Engineering b. Fisheries c. Leather goods d. Garments e. Meat Processing f. Dairy Industries

g. Marble Processing h. Fruits and Vegetables Foreign Investment: Direct Foreign Investment (DFI) has served as an important driver for growth of economic development all over the world and especially in East Asia. The scope of the project of setting up a fully integrated venture is expected to include the following: a) Establishing a modern dairy farm with a large capacity to house livestock. b) A strong bio-engineering team to carry out genetic research, breeding and herd management of superior livestock. c) Development of farming systems through agro-engineering and the genetic propagation of superior livestock and its ancillary products to assist other farms. d) Introducing the most advanced technologies in dairy processing, packaging, storage and distribution facilities by acting as consultants in setting up dairy processing plants to convert the raw products into higher-value-added products including high quality milk powder, milk, cheese and cream. e) Modern facilities and technologies which will enable the processors to handle large processors to handle large volumes of dairy products in modern and highly automated factories. f) With the local governments constructing dairy facilities in the international airport and harbor to ensure the proper storage and timely distribution of the dairy products. g) The infrastructure projects may also include the construction of toll roads and domestic airports, which will link cities, major towns, international airports and harbors within Pakistan. Small & Medium Enterprises (SMEs): SMEs have played a productive role in promoting employment, accelerating exports, ensuring sustainability in growth, adding variety to industrial goods composition and paving the way for social stability. These must be given proper attention and credit allocation must be done on mandatory basis. This will ensure poverty alleviation and will narrow the gap between haves and have-nots. Micro Credit: Micro enterprises growth has been considered as vital for accelerated economic development in the world. These have made productive contributions and deserve full support for their development. It is high time that due and appropriate attention is given to this crucial area and banks and development finance institutions should play their positive and constructive role of extending micro credit. Several countries have replicated this experiment and we need to share this successful experience in Pakistan.

Sick Industrial Units: The Government has taken the right step to establish an institution to carefully study and then tackle the sick industrial units numbering over 4500 in Pakistan. As against casual and personalized approach of the past, this is the right direction for a confident and practical solution to the problems facing sick units. A proper Chairman with credible experience and excellent insight into sick units has been nominated and steps may now be initiated in the following directions: a) Injection of proper funds for working capita needs. b) Change of management. c) Liquidations. d) Association of management consultants for remedial measures to ensure turnaround. Privatization: The process of privatization should be transparently undertaken to off-load public enterprises and transfer these to private sector. Priority list should be prepared and Privatization Commission should be encouraged to initiate accelerated efforts to privatize the state owned enterprises. The Government must redefine their role and concentrate on strengthening law and order and become facilitator for business growth.

POPULATION Population trend

Population trend can be easily understood by the following graph.

Population: 172,800,000 (July 2008 best estimation) Growth rate: 2.2% (2008 estimation)

Birth rate: 31 births/1,000 population (2008 est.) Death rate: 8 deaths/1,000 population (2008 est.) Net migration rate: -1.0 migrant(s)/1,000 population (2008 est.) Sex ratio at birth: 1.10 male(s)/female under 15 years: 1.06 male(s)/female 1564 years: 1.05 male(s)/female 65 years and over: 0.82 male(s)/female total population: 0.98 male(s)/female (2006 est.)

Population pyramid

EDUCATION Educational institutions

There are 256,088 educational institutions of all categories in Pakistan,

Students enrolled
Total enrollment of 37,462,884 students.

Gender-wise Enrollment and Teachers

The total male enrolment is 21.133 million (56%), whereas the total female enrolment is 16.329 million (44%). Out of the total 1,363 million teachers, 0.617 million (47%) are male and 0.695 million (53%) are female teachers. The total teaching staff is 1,363,501, out of which 0.756 million (56%) is in the public sector and 0.606 million (44%) in the private sector.

Literacy ratio of Pakistan :

Pakistan has a literacy ratio of 57%. Pakistanis in the age group 55-64 has the literacy rate of almost 30% aged 45-54 with the literacy rate of about 40% and of those between 25-34 were literate 50% while those aged 15-24 were literate more than 60%. These data show that with each generation, literacy rate in Pakistan has increased by about 10%. In 1961, fourteen years after independence, literacy rate in Pakistan was 16.3%. For female, it was even lower, only 8.2%. This shows us that we had to start from a very weak literacy base. This shows a tremendous increase of 40.7%. When it comes to women, their literacy rate in 2009 reached 45%. Women had overall increase of 36.8%.

Education policy 1998-2010

Aims and objectives of Education and Islamic Education Education and training should enable the citizens of Pakistan to lead their lives according to the teachings of Islam as laid down in the Qur'an and Sunnah and to educate and train them as a true practicing Muslim. Literacy and Non-Formal Education Eradication of illiteracy through formal and informal means for expansion of basic education through involvement of community. The current literacy rate of about 39% will be raised to 55% during the first five years of the policy and 70% by the year 2010. Elementary Education About 90% of the children in the age group (5-9) will be enrolled in schools by year 200203. Gross enrolment ratio at primary level will be increased to 105% by year 2010 Secondary Education One model secondary school will be set up at each district level. A definite vocation or a career will be introduced at secondary level. It would be ensured that all the boys and girls, desirous of entering secondary education, become enrolled in secondary schools. Curriculum for secondary and higher secondary will be revised and multiple textbooks will be introduced. Teacher Education To increase the effectiveness of the system by institutionalizing in-service training of teachers, teacher trainers and educational administrators through school clustering and other techniques. Technical and Vocational Education

To develop opportunities for technical and vocational education in the country for producing trained manpower, commensurate with the needs of industry and economic development goals. Higher Education Access to higher education shall be expanded to at least 5% of the age group 17-23 by the year 2010 Information Technology Computers shall be introduced in secondary schools in a phased manner. Library and Documentation Services School, college and university libraries shall be equipped with the latest reading materials/services.

HEALTH No of Hospitals
Islamabad capital territory Hospitals 11 Dispensaries 75 Maternity & Child welfare centers8 Beds in hospitals & dispensaries etc. 4237

Khyber Pakhtunkhwa Hospitals 88 Dispensaries 647 Maternity & Child welfare centers 88 Beds in hospitals & dispensaries etc. 5421

Punjab Hospitals 301 Dispensaries 1446 Maternity & Child welfare centers 515 Beds in hospitals & dispensaries etc. 45396

Sindh Hospitals 183 Dispensaries 531

Maternity & Child welfare centers 118 Beds in hospitals & dispensaries etc. 15580

No of Doctors and Paramedical Staff In Pakistan

Doctors Dentists Lady Health Visitors Midwives Nurses 123947 10433 10002 25534 65387

No of Medical Colleges
Medical colleges Dental colleges 23 9

Private sector Medical colleges Dental colleges 24 12

Major dieses in Pakistan

Food or waterborne diseases: Hepatitis A Hepatitis E Typhoid fever Malaria Dengue fever Yellow fever Japanese Encephalitis African Trypanosomiasis Cutaneous Leishmaniasis Plague

Vector borne diseases

Crimean-Congo hemorrhagic fever Rift Valley fever Rabies

Animal contact disease

Access to water and sanitation in Pakistan

Urban 34% of population House connection of water 49% Sewerage connections 40% House connection of water 15% Sewerage connections 6%

Rural 66%of the population

SERVICES INDUSTRY
Pakistan's service sector accounts for about 53.3% of GDP. Transport, storage, communications, finance, and insurance account for 24% of this sector, and wholesale and retail trade about 30%. Pakistan is trying to promote the information industry and other modern service industries through incentives such as long-term tax holidays.

Major services
Finance Insurance Transport Storage wholesale retail trade Public Administration Defense communications Government Research Education Food Hotels Construction Computer Information Technology Engineering Legal Accounts

Hotels and Motels in Pakistan

Bhurban Hotels -Pearl Continental Hotel Bhurban Chitral Hotels -Hindukush Heights Hotel - PTDC Chitral Motel Faisalabad Hotels -Faisalabad Serrena Hotel

- Prime Hotel and Restaurant - Hotel One Faisalabad Gilgit Hotels -Gilgit Serena Hotel - Mirs Lodge - Riviera Hotel Gwadar Hotels -Pearl Continental Hotel Gwadar

-Hillview Hotel - Holiday Inn Islamabad -Hotel de Papae and Tabaq Restaurant - Hotel Marina International -Islamabad Marriott Hotel -New Cape Grace Gueasthouse - Pearl Continental Hotel Islamabad -Riviera Guest House -Rooms Islamabad - Royal Manor - Shalimar Hotel Karachi Hotels -Pearl Continental Hotel Karachi - Airport Hotel - Avari Towers Karachi - Beach Luxury Hotel (no beach?) - Carlton Hotel - Country Inn Hotel - Embassy Inn - Gulf Hotel - Hotel Crown Inn - Hotel Faran - Hotel Mehran Karachi - Hotel Sarawan - Legacy Homes - Marriott Karachi - Ramada Plaza Karachi Airport - Regent Plaza Hotel - Sheraton Karachi Hotel

Lahore Hotels -Pearl Continental Hotel Lahore - Avari Hotel Lahore - Herfa Inn - Holiday Inn Lahore - Hotel Elites - Hotel Melrose Inn - Hotel One MM Alam Road - Lahore Country Club - Mirage Hotel - National Hotel Lahore - Park Plaza Lahore - Parkway Hotel - Quick Continental Hotel - Regency Inn Hotels - Residency Hotel - Sunfort Hotel - Windmills Hotel Larkana Hotels - Paris Inn Multan Hotels - Ramada Multan - Mid City Hotel - Fortalice Multan Hotel Murree Hotels -Shangrila Resort Hotel Murree Hills - 34 Morning Side - Jawa Hotel Murree -More Hotels In and Near Muree Muzaffarabad Hotels

- Pearl Continental Hotel Muzaff Nathia Gali Hotels - Summer Retreat Hotel - Greens Retreat Hotel - Hotel Elites Peshawar Hotels -Pearl Continental Hotel Peshawar - Green's Hotel and Restaurant - Hidayat Hotel - Khan Club Hotel - Rose Hotel - Shiraz Inn - Tourist Inn Motel

Hunza Hotels Serena Hunza Baltit Inn - Darbar Hotel Hotel - Eagles Nest Hotel - Hunza Embassy Hotel - Hunza Rakaposhi View Hotel - Hunza View Hotel Hyderabad Hotels - SF Hotel (Saddar, Hyderabad) Islamabad Hotels -Islamabad Serena Hotel - Ambassador Hotel - Avari Xpress Islamabad -Best Western Regency Hotel -Centaurus Residences -Crown Plaza Hotel Islamabad -Casa Bonita - GuestHouse

Quetta Hotels -

Quetta Serena Hotel - Qasr-e-Gul Hotel - Lourdes Hotel - Hotel Maryton Rawalpindi Hotels -Pearl Continental Hotel Rawalpindi - Flashman's Hotel - Shalimar Hotel - Paradise Inn Hotel Saidu Hotels -Swat Serena Hotel

Skardu Hotels -Shigar Fort

Residence Hotel

-Shangrila Resort Hotel

Wah Cantt Hotels P.O.F Hotel

Tourism
Pakistan with its diverse cultures, people and landscapes has attracted 0.7 million tourists to the country, almost double to that of a decade ago. The country's attraction range from the ruin of civilization such as Mohenjo-daro, Harappa and Taxila, to the Himalayan hill stations, which attract those interested in winter sports. Pakistan is home to several mountain peaks over 7000 m, which attracts adventurers and mountaineers from around the world, especially K2. The north part of Pakistan has many old fortresses, ancient architecture and the Hunza and Chitral valley, home to small pre-Islamic Animist Kalasha community claiming descent from Alexander the Great. The romance of the historic Khyber Pakhtunkhwa province is timeless and legendary, Punjab province has the site of Alexander's battle on the Jhelum River and the historic city Lahore, Pakistan's cultural capital, with many examples of Mughal architecture such as Badshahi Masjid, Shalimar Gardens, Tomb of Jahangir and the Lahore Fort. Before the Global economic crisis Pakistan received more than 500,000 tourists annually. However, this number has now come down to near zero figures since 2008 due to instability in the country and many countries declaring Pakistan as unsafe and dangerous to visit. In 2009, The World Economic Forums Travel & Tourism Competitiveness Report ranked Pakistan as one of the top 25% tourist destinations for its World Heritage sites. Ranging from mangroves in the South, to the 5,000-year-old cities of the Indus Valley Civilization which included Mohenjo-daro and Harappa. July 2010 floods that made around 22 million people homeless in Pakistan also collapsed Tourism Industry in the country that was already becoming fragile due to bad law and order situation in the country. Swat Valley that geared up domestic tourism after a lull 2 years due to terrorism again faced total disaster due to heavy rainfalls and floods. Around 101 hotels on the bank of Swat River flushed out in floods because these hotels were constructed on the bank of the river against the law of nature and law of land. Around 277 people including 6 domestic tourist lost their lives in Swat valley. Thousands of tourists were stranded in Kalam and Bahrain areas affected by the devastating rain-triggered floods. There was no electricity in the entire district for 14 days and no road network left to evacuate tourists therefore Pakistan Army provided helicopters to airlift them to Islamabad. . All business activities and factories are lying closed in Swat.

Transportation
Pakistan, with 155 million people, has a reasonably developed transport infrastructure. Road transport is the backbone of Pakistan's transport system. The 9,574 km long National Highway and Motorway network - which is 3.65 percent of the total road network - carries 80 percent of Pakistan's total traffic. Over the past ten years, road traffic both passenger and freight - has grown significantly faster

than the national economy. Currently, it is accounting for 91 percent of national passenger traffic and 96 percent of freight. Port traffic in Pakistan grows at 8 percent annually in recent years. Two major ports, Port Karachi and Port Qasim, handle 95 percent of all international trade. Port Gwadar, which was inaugurated in March 2007 and is being operated by Singapore Port Authority, is aiming to develop into a central energy port in the region. 14 dry ports cater to high value external trade. Pakistan Railways (PR) has a broad gauge system (with a small network of meter gauge in the South East). The network consists of the main North South corridor, connecting the Karachi ports to the primary production and population centers in Pakistan. The track is in good condition with an axle-load of 23 tons and maximum permitted speeds of 100/110 kph. There are 36 operational airports. Karachi is Pakistan's main airport but significant levels of both domestic and international cargo are also handled at Islamabad and Lahore. Pakistan International Airlines (PIA), the major public sector airline, though facing the competition from a few private airlines, carries approximately 70 percent of domestic passengers and almost all domestic freight traffic. The transportation sector accounts for about 10.5 percent of the countrys GDP and 27.4 percent of Gross Fixed Capital Formation (GFCF) in FY06. It provides over 6 percent of employment in the country and receives 12 to 16 percent of the annual Federal Public Sector Development Program (PSDP). Government agencies dominate the sector.

FOREIGN TRADE Exports of Pakistan

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 (Especially Shrimp/Prawns) Vegetables

Processed Food Items Pakistani-Assembled Suzukis (To Afghanistan And Other Countries)

Defense Equipment (Submarines, Tanks, Radars) Salt Engineering Goods

Imports of Pakistan
Machinery. Petroleum. Chemicals. Vehicles and spare parts. Edible Oil. Wheat. Tea. Fertilizers. Plastic material. Paper Board Iron ore and steel. Pharmaceutical products.

Pakistans imports are also highly concentrated in few items namely, machinery, petroleum and petroleum products, chemicals, transport equipment, edible oil, iron and steel, fertilizer and tea. These imports accounted for 73% of total imports during 2006-07. Among these categories machinery, petroleum/petroleum products and chemicals accounted for 53.4% of total imports. Commercial policy:

Infrastructure Roads
Registered Motor Vehicles Total area carpeted in length 9,872,364 (2007-2008) 259,7500kilometers.

Railway
Railway lines are on Total Stations Annual Revenue Rs. 20 Billion 7,791 route km 559 stations (2007-2008)

Aviation
Airlines of Pakistan Airblue Pakistan International Airlines Shaheen Air International Pakistan has 13 Charter airlines and four aircraft manufacturers. There are an estimated 139 airfields in Pakistan. The largest airport in Pakistan is Jinnah International Airport, Karachi,

which can handle 30 aircraft at a time and has 16 passenger gates.

Television
The first television station began broadcasting from Lahore in November 1963. The government-owned Pakistan Television Corporation (PTV) has been the dominant media player in Pakistan. The past decade has seen the emergence of several private TV channels showing news and entertainment, such as GEO TV, AAJ TV, ARY Digital, HUM, MTV Pakistan, and others. Television accounted for almost half of the advertising expenditure in Pakistan in 2002. The Pakistan Broadcasting Corporation (PBC) was formed on 14 August 1947

Radio
In October 1998, Radio Pakistan started its first FM transmission. Now there are over a hundred public and private radio stations FM broadcast licenses are awarded to parties that commit to open FM broadcasting stations in at least one rural city along with the major city of their choice. By the early 2000s, 1,500 newspapers and journals existed in Pakistan.

Telecommunications
In 2003, the Pakistani government deregulated the telecommunications sector in an effort to comply with its WTO commitments and encourage growth in the sector. The Pakistan government issued 14 licenses to long distance telephone companies (13 of which are currently in use). Issued 92 licenses to wireless local loop companies (of which 5 are operational). The ability of telecommunications companies to operate in Pakistan will continue to depend on access to PTCL infrastructure. In 2005-2006, the government combined 15 value added services including Internet service provision, vehicle tracking systems, and data network operations into one license, the Class Value Added (CVA) license.

Use if Internet
Usage and Population Statistics: Year 2000 2006 2009 2010 Note: Per User 133900 12000000 18500000 18500000 Capita GDP Population 163985373 167806831 174578558 177276594 in US GDP p.c N/A US$821 US$1017 US$1068 source: Usage source ITU ITU ITU ITU International Monetary Fund.

dollars,