Issues of Pakistani Economy, Quickie guide (Social problems & Economic Crisis) - Fizah Mughees

 Highlights:

•Major issues of Pakistani Economy

•Economic Growth in Pakistan 2015 to 2020

•Is Pakistan a poor country?

•Biggest Social issues

                Abstract:

Pakistan held its most recent elections in July 2018. The Pakistan Tehreek-e-Insaf party obtained over 100 seats in the parliament &  its founder Imran Khan, a famous cricket team captain, was installed as prime minister. Prime Minister  has become heir to a balance of payments crisis, the third one in the last 10 years. At the end of June 2018, Pakistan had a current account deficit of $18 billion, nearly a 45 percent increase from an account deficit of $12.4 billion in 2017. Over the top imports (including those related to the China-Pakistan Economic Corridor (CPEC)) and less-than-projected inflows (export revenues and remittances) have led to a current account deficit widening, with foreign currency earmark levels covering less than two months of imports—pushing Pakistan towards a difficult economic situation.

Pakistan financial crisis trunk from the fact that 2018 was a poor year for emerging markets. Global monetary hard, increased oil prices, and reduced investor confidence have negatively impacted the country’s already precarious economic situation. But the country intimate constitutional problems and weak macroeconomic policies have further exposed the economy to an array of debt vulnerabilities.

Pakistan has had the highest exchange rate, low interest rates, and subdued inflation over the last few years. This unfit monetary policy has led to high domestic demand, with two-thirds of Pakistan’s economic growth stemming from domestic consumption. The highest exchange rate has led to a very high level of imports and low level of exports. Pakistan high revenue deficit was accelerated even further in 2017 and 2018 because elections have historically caused spending to rise (both of the most recent fiscal crises followed elections). Probably the greatest financial issues facing Pakistan are its pervasive tax evasion and chronically low level of domestic resource mobilization. Taxes in Pakistan comprise less than 10 percent of GDP, a far cry from the 35 percent of countries that are part of the Organization for Economic Co-operation and Development (OECD). Pakistan also received from impediments in the energy sector through frequent and widespread power outages that hurt its competitiveness.

In Western media, Chinese value is often cited as the main driver of Pakistan’s debt crisis. This is somewhat true as China’s BRI makes Pakistan a key partner through the shared CPEC. CPEC infrastructure costs have certainly placed a greater debt burden on Pakistan, but the current structural problems are homegrown; the root cause of the energy shortages is now less a business of power generation & more of fiscal mismanagement of the power sector.

In 2019, Pakistan facing a dire macroeconomic crisis. It is spending further on imports than it receives on exports, with its current account deficit having risen from $2.7 billion in 2015 to $18.2 billion in 2018. The major motorist of this rising current account deficit is an expanding trade deficit, which is mostly due to the rising imports under new China-Pakistan Economic Corridor (CPEC) projects and low exports in general. The earlier government focused more on import-led growth strategy to finance large scale projects under CPEC. End of June 2018, the gross public debt of Pakistan reached USD $179.8 billion, showing an increase of $25.2 billion within a year. In the half year  of this increase in gross public debt was due to an increase in public external debt, which grew by 30.1 percent. In 2018, the devaluation of the Pakistani rupee against the U.S. dollar alone was accountable for an excessive USD $7.9 billion increase in public external debt.

Despite the massive depreciation in the rupee, Pakistani exports have remained almost the same. Fir the moment, the government’s external debt has also increased from $64.1 billion in June 2018 to $65.8 billion in January 2019. The inflation rate is now touching 9.4 percent, which is a record level high over the last five years mostly due to rupee depreciation and rising energy prices. In addition, increased defense spending and its ongoing fight against extremism only further burden the economy. Along with a derogate rupee that has made imports costlier, low foreign investment due to Pakistan’s security and political challenges has also severely hit its foreign exchange reserves. Pakistani Currency Is rupee (Rs) (PKR)& the pupolation of Pakistan is 220,829,000 in 2020.GDP Growth 5.5%, Sales overseas 22.505 billions dollars & import 42.419 billions dollars.

Growing piller of Pakistan's economy are set along the Indus River; the diversified economies of Karachi and great urban middle in the Punjab, coexisting with small developed sector in other parts of the country.

The World Bank and International Finance company flagship report assuage of Doing Business Index 2020 classify Pakistan 108 among 190 countries all over the place in circle. desirable a continual developement and taking a jump from 136 last year. very important a cargo of cotton & wheat, sugarcane and rice, which together account for more than 75% of the worth of total crop output.

While state economic activity is expected to get better, as lockdown estimate are uplift and base effects come to pass, Pakistan’s near term him economic description are downcast. 

The system of communication in Pakistan has all recently ways of technology such as: 15 telephones per 1,000 Householder; T.V.; radio; fax; and, email. Pakistan has square motion a contract with MCI to gather E-mail in Pakistan by the end of 1997. Pakistan is a advanced  country, but trying to build their communication system better. 

    Major issues in Pakistani Economy:

The core economic issues with reference to Pakistan's economy  are Development Planning, unemployment, poverty, income distribution, economic growth, inflation, trade and deficits, public debt and sectoral imbalances.

Economy Growth in Pakistan 2015 to 2020:

Year GDP Growth (%) Annual Change

2019      0.99%.                   -4.85%

2018     5.84%                    0.28%

2017     5.55%                    0.03%

2016     5.53%                    0.80%

2015    4.73%                           0.06%

2014      4.67%                     0.28%

Pakistan actual GDP growth is estimated to have declined from 1.9 percent in FY19 to -1.5 percent in FY20.

Pakistan gdp growth rate for 2019 was 0.99%, a 4.85% decline from 2018.

Pakistan gdp growth rate for 2018 was 5.84%, a 0.28% increase from 2017.

Pakistan gdp growth rate for 2017 was 5.55%, a 0.03% increase from 2016.

Pakistan gdp growth rate for 2016 was 5.53%, a 0.8% increase from 2015.

GDP growth

Is Pakistan is a poor country?

According to the world bank poverty of Pakistan fell from 64.3% in 2001, 62%2013, 4% in 2015 & 29.5% in 2020. Pakistan is an underdeveloped country. 

Biggest Social issues:

Gun Violence – 85% ...

Bullying and Cyberbullying – 73% ...

Poverty – 70% ...

Racial Disparities in Health – 68% ...

Racism and Discrimination – 67% ...

Social Media – 66% ...

 Supervisions and Involvement – 64% ...

Hunger – 62%

Job Opportunities -70%

Violence at school-60%

Social issues of Pakistan