DEVELOPMENT ECONOMICS

PAKISTAN
Islamic and federal parliamentary republic
with Islam being its state religion
 OVERVIEW OF ECONOMY

 AGRICULTURAL SECTOR
 INDUSTRIAL SECTOR
 SERVICES SECTOR
 NATURE OF EXPORTS, IMPORTS BY DESTINATION
 Share of each Sector to GDP

21%

Agriculture
Manufacturing
Services
59%
20%

31m people labor force

6.8 % unemployment
 AGRICULTURE SECTOR

The agriculture sector accounts for 20.9 percent of GDP

and 43.7 percent of employment.
SUB SECTORS:
 Crops
2.9% Growth Rate
 Livestock
 Fisheries as of march 2014-15
 forestry
 INDUSTRIAL SECTOR

Main Industries in Pakistan

Textile Industry
Sports Industry
3.62 percent
Sugar Industry growth rate
Cement Industry
Fertilizer Industry

22.4% of the employed labor force

 SERVICES SECTOR

SUB-SECTORS
 Transport
4.95 percent
 Storage and Communication growth rate
 Wholesale and Retail Trade
 Finance and Insurance
 Housing Services
 General Government Services (Public Administration and Defense);
 Other Private Services (Social Services).
 EXPORTS AND IMPORTS

Exports Total $29.872 billion (2014-15 est.), Goods $24.131

[8]
billion, Services $5.741 billion
Export goods Textiles ($13,653 million)
Vegetable Products ($3,094 million)
Mineral ($1,698 million)
Leather ($1,237 million)
Food and Beverages ($956 million)
Animal Farming ($756 million)
Manufactured Items ($571 million)
Metals ($531 million)
Plastic ($505 million)
Chemical ($489 million)
[8]

Main export partners United States 13.3%

China 10.9%
United Arab Emirates8.6%
 MAGNITUDE AND TRENDS OF
ECONOMIC AND SOCIAL INDICATORS
ECONOMIC INDICATORS
PAKISTAN GDP
GROSS NATIONAL PRODUCT
GDP GROWTH RATE
 TAX-TO-GDP RATIO

Ratio one of the lowest in the world

According to the PES 2014-2015, Pakistan's tax
revenue as a percentage of GDP has declined
significantly in the past year, from 10.2% in FY13-14
to 7.5% in FY14-15.
Government of Pakistan is currently spending 2.1 percent
of its GDP on education sector
For the current year a total outlay for health sector is
budgeted at Rs.114.2 billion which included Rs.31.9 billion
for development and Rs.82.3 billion for current
expenditure which is equivalent to 0.42 percent of GDP
during 2014-15.
GROSS CAPITAL FORMATION

• 13.99%
IN 2014

• 15.1% in
2015
 SAVINGS RATE

2012-13 : 14%
2013-14: 13.7%
2014-15: 14.5%
OF GDP
 INFLATION RATE
[3
Inflation (CPI) 1.8% (July 2015)
POPULATION

Pakistan’s estimated population is 191.71 million in 2015

however; population was 188.0 million in 2014.
 Population Growth Rate has shown improvement and it
decreased from 1.95 percent in 2014 to 1.92 percent in
2015.
 EDUCATION

EDUCATION
HEALTH

 Total Fertility Rate (TFR) is 3.2 children per women in 2015.

Life expectancy for female has improved from 66.9 year
to 67.3 years in 2015 and life expectancy for male has
increased from 64.9 years to 65.2 years in 2015.
 Crude Birth Rate has improved from 26.4 per thousand
to 26.1 per thousand and Crude Death Rate has
decreased from 6.90 per thousand to 6.80 per thousand in
2015.
 INFANT MORTALITY RATE

MORTALITY RATE;INFANT (PER 1;000 LIVE BIRTHS) IN PAKISTAN

WAS LAST MEASURED AT 67.40 IN 2014, ACCORDING TO THE
WORLD BANK.

2011 2012 2013 2014 2015

Pakistan 72 71 69 67 66
 HDI

 Pakistan, in 2014-15 which is on 146 out of total 187 countries, scored

0.537 points on HDI
 POVERTY - GINI COEFFIECIENT
 GINI INDEX IN PAKISTAN WAS REPORTED AT 30.02 IN 2008, ACCORDING TO
THE WORLD BANK.

 Population below poverty line: 22.3%

 INCOME INEQUALITY

Household income or consumption by

percentage share:

lowest 10%: 4.2%

highest 10%: 25.6% (FY2011)
Distribution of family income - Gini index:

29.6 (FY2011)
31.4 (FY2008)
MPI- MULTI DIMENSIONAL POVERTY INDEX
APPLICATION OF GROWTH AND
DEVELOPMENT THEORIES
ROSTOW STAGES OF ECONOMIC GROWTH

TAKE OFF STAGE

INCREASING INDUSTRIALIZATION
FURTHER GROWTH OF SAVINGS AND INVESTMENT
INVESTMENT REACHES 10 % OF GDP
SOME REGIONAL GROWTH
NUMBER EMPLOYED IN AGRICULTURE SECTOR DECLINES
 National savings are 14.5 percent of GDP in 2014-15 compared to
13.7 percent in 2013-14
 Total investment is recorded at 15.12 percent of GDP
 Total investment witnessed a growth of 10.21 percent in 2014-15 as
compared to 8.4 percent in 2013-14
 The share of employment in agriculture sector has decreased to
40.5 % in 2014-15 as compared to 43.5 percent in 2013-14
 HARROD DOMAR MODEL

ECONOMY’S RATE OF GROWTH DEPENDS ON LEVEL OF

SAVING AND PRODUCTIVITY OF INVESTMENT
APPLICABLE: YES
 National savings are 14.5 percent of GDP in 2014-15
compared to 13.7 percent in 2013-14. Domestic savings is
witnessed at 8.4 percent of GDP in 2014-15 as compared
to 8 percent of GDP in 2013-14. Net foreign resource
inflows are financing the saving investment gap.
 W. ARTHUR LEWIS THEORY

 APPLICABLE: YES
 ECONOMY HAS BACKWARD AGRICULTURAL SECTOR AND
ADVANCED INDUSTRIAL SECTOR
 The industrial sector contributes 20.30 percent in GDP
 Industrial sector continued growth process and recorded growth at
3.62 percent
 SIGNIFICANT WAGE DIFFERENTIAL IN RURAL AND URBAN SECTOR
 SURPLUS LABOR
 SUPPLY OF LABOR IS PERFECT ELASTIC
 SOLOW GROWTH MODEL

IT ILLUSTRATES HOW SAVINGS, POPULATION GROWTH RATE

AND TECHNOLOGICAL PROGRESS AFFECT THE LEVEL OF
AN ECONOMY’S OUTPUT OVER TIME.
Population Growth Rate has shown improvement and it
decreased from 1.95 percent in 2014 to 1.92 percent in
2015.
National savings are 14.5 percent of GDP in 2014-15
compared to 13.7 percent in 2013-14
Factor input efficiency and technological advances can
increase the country’s economy overtime
INTERNATIONAL DEPENDENCE REVOLUTION (IDR)
 Pakistan inherited poverty and underdevelopment at the end of British
colonial rule. Pakistan was enforced into a neo-colonial capitalist
model in which authoritarianism and economic growth were blended
together.
 In Pakistan the alliance of bureaucracy, army and feudal elite
centralized the authority in their hands by cooperating with the forces
of capitalist world system under the influence of US.
 The economic planning of Pakistan is under the influence of world
capitalist system and US not according to the needs of the people
which is hindering the growth and promoting the phenomena of
underdevelopment in Pakistan.
 FALSE PARADIGM MODEL

IMPLEMENTATION : YES
According to this model underdevelopment of third world
countries is the result of wrong and irrelevant advice given
by international “Expert” advisers from developed
countries and also from multi-lateral donor organizations
such as IMF, World Bank, UNDP etc.
CONCLUSIONS AND IMPLICATIONS
 REFERENCES

 http://data.worldbank.org/country/pakistan
 https://en.wikipedia.org/wiki/Politics_of_Pakistan
 https://en.wikipedia.org/wiki/Economy_of_Pakistan
 http://www.pbs.gov.pk/
 http://www.finance.gov.pk/survey/chapters_15/Highlights.pdf
 https://en.wikipedia.org/wiki/Gini_coefficient
 http://defence.pk/threads/top-10-pakistan-exports-and-imports-to-and-from-other-
countries.364652/
 https://en.wikipedia.org/wiki/Foreign_trade_of_Pakistan