Pakistan Economic Problems

8/12/2019 Pakistan Economic Problems

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Presented by: SADIQ UL ISLAM

Seminar in Economic Policy


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-State of the Economy.

-Environmental Troubles

-Adverse circumstance


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1. Savings and Investments.

2. Productivity: efficient utilization of resources, services andtechnology, innovative skills and on-the-job training.

3. Good and effective governance.

4. A strong entrepreneurial class.5. Well-developed physical and social infrastructure.

6. Law and Order.

7. Political Stability.


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Growth Rate.

Monetary Policy: Inflation.

Fiscal Policy: Budget Deficit.

Balance of Payments.

National Debt.

Unemployment

Lack of good governance

Lack of Credibility.


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Growth Rate Pakistan succeeded in attaining 4.14 percent growth in the outgoing fiscal year which is the highest

level achievement since 2008-09.

The GDP growth accelerated to 4.14 percent in 2013-14, against the growth of 3.7 percent recorded inthe same period last year, which is also highest as compared to last six years.

Pakistans largest international sovereign bond which attracted significant investment. Thetransaction was closed successfully on April 08, 2014.

The agriculture sector grew at the rate of 2.12 percent against the growth of 2.88 percent in the lastyear.

The industrial sector expanded by 5.84 percent against the growth of 1.37 percent in last year

large scale manufacturing posted a growth of 5.31 percent against the growth of 4.08 percent last year.

The services sector grew at 4.29 percent as compared to 4.85 percent in last year.

Target is significantly difficult to achieve due to host of factors.

Factors include: Gas shortage. High Oil Prices, Decline in global prices of agricultural commodities.


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Growth Rate: The average CPI inflation for July April, FY14 is 8.7 percent higher than the

years target of 8 percent. The main reason for this volatility is unexpectedmovements in food prices and changes in administered price. The coreinflation, however, has remained quite stable at around 8 percent over the past12 months.

Importantly from the point of view of monetary policy, it is the outlook ofinflation that matters

Real GDP growth rate for 2013-14 has been estimated at 4.1 percent.

Encouragingly, this growth has been led by a 5.8 percent increase inthe industrial sector output

Because of the gap between imports and exports, the trade deficit remains at anelevated level of $12.2 billion during July -March, FY14


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After including the better-than-Projected inflows fromthe issuance of Euro bonds of $2 billion and otherinflows from multilateral sources in April and early

May 2014, the SBPs foreign exchange reserves haveincreased to $8.0 billion by 9th May 2014 from $5.4billion at end-March 2014.

Despite a shortfall in tax collection compared to thebudgeted target the government has been able tocontain the fiscal deficit at 3.1 percent during July-March, FY14.


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Agriculture: The Agriculture sector consists of crops,livestock,fishing and forestry

The agriculture sector accounts for 21.0 percent of GDP and absorb 43.7

percent of labour force

Agriculture sector recorded a growth of 2.1 percent against the growth of 2.9percent last year.

Important crops such as, wheat, rice, sugar posted a remarkable growth of 3.74percent as compared to 1.19 percent last year and has compensated the subduedgrowth in other crops

Crops are the significant sub-sector of Agriculture: -Major Crops include: Wheat, Cotton, Rice, Maize, Grain. -Minor Crops Include: Potatoes, Onions, Chilies, Garlic.


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Agriculture: Livestock is the most significant component of agriculture sector, which

contributes 55.91 percent of agriculture value addition

Its share in agriculture is more than combined shares of all other subsectors ofagriculture and contributes 11.8 percent in GDP.

Livestock has registered a growth of 2.88 percent against the growth of 3.99percent last year.

Growth of the forestry sub-sector is witnessed at 1.52 percent as compared tothe growth of 0.99 percent last year.

Fisheries sub-sector has 2.03 percent contribution in agriculture and registereda growth of 0.98 percent compared to the growth of 0.65 percent last year


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Crops Major crops had a growth rate of 3.18 percent

compared to negative growth of 0.23 percent last year.

Cotton: 18.6 percent growth.

Sugarcane: 4.9 percent growth.

Rice: 27.7 percent growth.

Wheat: negative 6.7 percent growth.


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Crops:

Minor Crops experienced a decline of 1.26 percent.

Heavy rains in Sindh affected cultivation.

Consequential destruction of minor crops in the

province.

Documents

Pakistan Economic Problems