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ECONOMY OF PAK

INTRODUCTION

Economy is the blood in the veins of a nation. A


backbone for any country.
The world divides itself in rich and poor countries.

FACTS & FIGURES

GDP growth rate is 2.7% vs China 8 % india 7%


Total gdp in dollars $223bn
Agriculture 21 %, services 57 % industries 21%

Imports 34$bn and exports $20 bn trade deficit is $14bn


Tax to gdp ratio 9% india turkey and china beyond 20%
Major exports wheat rice cotton leather
Major imports edible oil heavy machinery fuel 92% of
import

History
Large

migration
Indians were more organized
Economy was depended on
agriculture.70% gdp from agriculture.
The educated class was that of muhajirs
who cam efrom urban area and had
therefore had little of an agrarian country
Resultantly economy suffered. India was
under the influence of ussr. Being
communist in mind he put the economy
in the hand of the pulic.

Problems in economy
Power/energy

crises
Flawed policies

Subsidies
Tax waivers rs. 650bn
No policy for service sector
No attention towards live stocks and agriculture.
Failure to collect taxes only 1% people pay taxes in pakistan
Increase in indirect taxes rather than direct taxes like wealth tax
property tax
Inconsistency in policies
Artificial adjustments and make shift arrangements,currency
devaluation, lower revenues and UNPREDICTABILITY
PROTECTIONIST POLICIES
WEAK INTELLECTUAL PROPERTY RIGHTS

Strcuture

of economy is weak

No documentation
Internal boroowings rs 11 bn
Fiscal deficit 7.6%
Command

economy & laissez-faire economy

Ex textitle yan quota is fixed manufactures are not allowed to selll


their products to the higest bidder rest is to be sold to the local buyer

Failure

to capitalize on strong areas

Human capital? Because of low level of skilled workforce


pakistani labours are not encouraged in the foreign countries?
Neither local industry has potantial to do so
Failure

to establish new markets

GSP plus status?


Through single delegated act
Access to 27 nation bloc
Financial benefits
2% of total exports and 3500 items concessional rates
Bangldes earns $25bn ?year

Issues
Administrative
Cost of doing business is high compare it with dubai and bangladesh
Bangldesh capitalize on gsp plus status by attracting FDI
Technical
Power gas shortage
Value added service?
Will banks be able to provide loans?
Human rights and labour rights issues. Since the grant of access is linked with
fulfillment of these international obligations

Can it be done?
Yes if china is attracted, china is facing problems of
Appreciation of yuan
Labour cost
Pakistan is 4th largest producer of cotton yet pakistan earns $6000 for each ton of

Social

causes

Teroorism
Illiteracy
Corruption
Political

Political instability
Law and order situation
High military budget
International

causes

Regional conflicts
Diplomacy failure, soft image of pakistan
Foreign debts, imf world bank