Developmental Economics

PAKISTAN’S ECONOMIC GROWTH, ECONOMIC

STRUCTURE, GOVERNANCE & SOLUTION OF

PROBLEM

ABSTRACT:

For development nation must focus on its education because no nation can develop without

proper investing in education sector, as in case of Pakistan most of population is living

under poverty line and trend in showing increase in it instead of decline, decline in

production is also there, this article will focus on Pakistan’s economy from the time of

independence till to present date policies their effect and Pakistan’s economy as whole and

its solution.

INTRODUCTION:

An economy is the system of human activities related to the production, distribution,

exchange, and consumption of goods and services of a country or other area.

The composition of a given economy is inseparable from technological evolution,

civilization's history and social organization, as well as from Earth's geography and ecology,

e.g. eco-regions which represent different agricultural and resource extraction opportunities,

among other factors. Economy refers also to the measure of how a country or region is

progressing in terms of product.

Pakistan has total population of around 182.1 million making it 6th largest populated

country. Pakistan was a poor and predominantly agricultural country when it gained

independence in 1947. Pakistan's average economic growth rate since independence has

been higher than the average growth rate of the world economy during the period. Average

annual real GDP growth rates were 6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in the

1980s. Average annual growth fell to 4.6% in the 1990s with significantly lower growth in

the second half of that decade Industrial-sector growth, including manufacturing, was also

above average.

The economy proved to be unexpectedly resilient in the face of multiple adverse events

concentrated into a four-year (1998–2002) period which mainly includes;

The Asian financial crisis

Economic sanctions – according to Colin Powell, Pakistan was "sanctioned to the

eyeballs"

The global recession of 2001–2002

a severe drought – the worst in Pakistan's history, lasting about four years

Heightened perceptions of risk as a result of military tensions with India – with as

many as 1 million troops on the border, and predictions of impending (potentially

nuclear) war

The post-9/11 military action in neighboring Afghanistan, with a massive influx of

refugees from that country

Despite these adverse events, Pakistan's economy kept growing, and economic growth

accelerated towards the end of this period. This resilience has led to a change in perceptions

of the economy, with leading international institutions such as the IMF, World Bank, and the

ADB praising Pakistan's performance in the face of adversity.

In the late 1960s Pakistan was seen as a model of economic development around the world,

and there was much praise for its economic progression. Later, economic mismanagement

in general, and fiscally imprudent economic policies in particular, caused a large increase in

the country's public debt and led to slower growth in the 1990s.However condition improved

gradually after 2000.

STRUCTURE OF PAKISTAN'S ECONOMY:

From modest beginnings, Pakistani economy has moved successfully to a low-inflation high-

growth trajectory since 2000. The central bank has controlled inflation at around 3% per

annum in recent years - a record since 1980.Over 1,081 patent applications were filed by

non-resident Pakistanis in 2004 revealing a new-found confidence. Agriculture accounted for

about 53% of GDP in 1947. While per-capita agricultural output has grown since then, it has

been outpaced by the growth of the non-agricultural sectors, and the share of agriculture

has dropped to roughly 25% of Pakistan's economy. In recent years, the country has seen

rapid growth in industries (such as apparel, textiles, and cement) and services (such as

telecommunications, transportation, advertising, and finance Commodity producing sector)

Major Sector of Pakistan’s Economy:

Pakistan’s economy is divided into two divisions

Primary

Secondary

PRIMARY SECTOR:

Primary Sector includes Agriculture and mining. The most important crops are wheat,

sugarcane, cotton, and rice, which together account for more than 75% of the value of total

crop output. Pakistan's largest food crop is wheat. In 2005, Pakistan produced 21,591,400

metric tons of wheat, more than all of Africa (20,304,585 metric tons) and nearly as much

as all of South America (24,557,784 metric tons), according to the FAO. The country is

expected to harvest 47 to 64 million tons of wheat in 2015. Pakistan has also cut the use of

dangerous pesticides dramatically.

Pakistan is a net food exporter, except in occasional years when its harvest is adversely

affected by droughts. Pakistan exports rice, cotton, fish, fruits (especially Oranges and

Mangoes), and vegetables and imports vegetable oil, wheat, pulses and consumer foods.

The country is Asia's largest camel market, second-largest apricot and ghee market and

third-largest cotton, onion and milk market. The economic importance of agriculture has

declined since independence, when its share of GDP was around 53%. Following the poor

harvest of 1993, the government introduced agriculture assistance policies, including

increased support prices for many agricultural commodities and expanded availability of

agricultural credit. From 1993 to 1997, real growth in the agricultural sector averaged 5.7%

but has since declined to about 4%. Agricultural reforms, including increased wheat and

oilseed production, play a central role in the government's economic reform package.

Majority of the population is directly or indirectly dependent on this sector. It contributes

about 25 percent of Gross Domestic Product (GDP) and accounts for half of employed labor

force and is the largest source of foreign exchange earnings.

MINING:

Pakistan is endowed with significant mineral resources and is emerging as a very

area for prospecting/exploration for mineral deposits. Based on available information, the

country's more than 6,00,000 km² of outcrops area demonstrates varied geological

potential for metallic and non-metallic mineral deposits. Except oil, gas

regulated at federal level, minerals are a provincial subject, under the constitution of the

Islamic Republic of Pakistan. Provincial governments are responsible for development and

exploitation of minerals, besides, enforcing regulato

framework the federal and provincial governments have jointly set out Pakistan's first

National Mineral Policy in 1995, duly implemented by the provinces, providing appropriate

institutional and regulatory framewo

regime.

In the recent past, exploration by government agencies as well as by multinational mining

companies presents ample evidence of the occurrences of sizeable minerals deposits.

Recent discoveries of a thick oxidized

the Punjab province, covered by thick alluvial cover have opened new vistas for metallic

minerals exploration. Pakistan has a large base for industrial minerals. The discovery of c

deposits having over 175 billion tones of reserves at Thar in the Sindh province has given

an impetus to develop it as an alternate source of energy. There is vast potential for

precious and dimension stones.

The enforcement of Mineral Policy (1995) ha

activities and attract international investment in this sector. International mining companies

have responded favorably to the NMP and presently at least four are engaged in mineral

projects development.

Currently about 52 minerals are under exploitation although on small scale. The major

production is of coal, rock salt and other industrial and construction minerals. The current

contribution of the mineral sector to the GDP is about 0.5% and likely to increase

considerably on the development and commercial exploitation of Saindak & Reco Diq copper

Pakistan is endowed with significant mineral resources and is emerging as a very



metallic mineral deposits. Except oil, gas and nuclear minerals



exploitation of minerals, besides, enforcing regulatory regime. In line with the constitutional



institutional and regulatory framework and equitable and internationally competitive fiscal



oxidized zone underlain by sulphide zones in the shield area of


minerals exploration. Pakistan has a large base for industrial minerals. The discovery of c



precious and dimension stones.

The enforcement of Mineral Policy (1995) has paved the way to expand mining sector



out 52 minerals are under exploitation although on small scale. The major



erably on the development and commercial exploitation of Saindak & Reco Diq copper

Pakistan is endowed with significant mineral resources and is emerging as a very promising



and nuclear minerals



ry regime. In line with the constitutional



rk and equitable and internationally competitive fiscal



zone underlain by sulphide zones in the shield area of


minerals exploration. Pakistan has a large base for industrial minerals. The discovery of coal



s paved the way to expand mining sector



out 52 minerals are under exploitation although on small scale. The major



erably on the development and commercial exploitation of Saindak & Reco Diq copper

and gold deposits (world's largest gold mine), Duddar zinc lead, Thar coal and gemstone

deposits.

SECONDARY SECTOR OF PAKISTAN’S ECONOMY:

Industry is the secondary sector of Pakistan’s Economy details is as under

MANUFACTURING BY PROVINCE

Pakistan's industrial sector accounts for about 24% of GDP. Cotton textile production and

apparel manufacturing are Pakistan's largest industries, accounting for about 66% of the

merchandise exports and almost 40% of the employed labour force. Other major industries

include cement, fertilizer, edible oil, sugar, steel, tobacco, chemicals, machinery, and food

processing. The government is privatizing large-scale industrial units, and the public sector

accounts for a shrinking proportion of industrial output, while growth in overall industrial

output (including the private sector) has accelerated. Government policies aim to diversify

the country's industrial base and bolster export industries. Large Scale Manufacturing is the

fastest-growing sector in Pakistani economy

Major Industries include textiles, fertilizer, cement, oil refineries, dairy products, food

processing, beverages, construction materials, clothing, paper products and shrimp

In Pakistan SMEs have a significant contribution in the total GDP of Pakistan, according to

SMEDA and Economic survey reports, the share in the annual GDP is 40% likewise SMEs

generating significant employment opportunities for skilled workers and entrepreneurs.

Small and medium scale firms represent nearly 90% of all the enterprises in Pakistan and

employ 80% of the non-agricultural labor force. These figures indicate the potential and

further growth in this sector.

Pakistan's largest corporations are mostly involved in utilities like oil, gas and

telecommunication

TEXTILES

Most of the Textile Industry is established in Punjab. 10% of United States imports

regarding clothing and other form of textiles is covered by Pakistan. Textile exports in 1999

were $5.2 billion and rose to become $10.5 billion by 2007. Textile exports managed to

increase at a very decent growth of 16% in 2006. In the period July 2007 – June 2008,

textile exports were US$10.62 billion. Textile exports share in total export of Pakistan has

declined from 67% in 1997 to 55% in 2008, as exports of other textile sectors grew. The

major reason of decline of textile export of Pakistan is the Govt unhealthy policies. Sui

Northern Gas Pipelines Ltd. » (SNGPL) notified the textile mills to reduce the supply of gas

for five months. Head of All Pakistan Textile Mills Association of Enterprises Anis-ul-Haq has

expressed concern about the decision: "Now is the time to the textile industry out of a

three-year downturn. The demand for textile products is growing, and if we are not able to

fulfill our current orders, we will lose international buyers. "Monthly loss the textile industry

because of interruptions in gas supply could reach about U.S. $ 1 billion, or 4 – $ 5 billion

for the fiscal year ending June 20 next year. The expression "industrial undertaking" has

been used in many a provision in the Income-tax Act, e.g., section 10(15)(iv )(f) and

section 80-I. There has been some controversy as regards the true import of the expression

"industrial undertaking" for the purpose of section 10(15)( iv)(f) of the Income-tax Act

relating to exemption from income-tax in respect of interest on certain foreign borrowings.

Keeping in view the legislative intent, an Explanation has been inserted at the end of section

10(15)( iv) of the Income-tax Act to define the term "industrial undertaking" for the

purpose of this provision. An industrial undertaking will mean an undertaking engaged in

the business of: manufacture or processing of goods, or generation or distribution of

electricity, or any other form of power, or mining, or construction of ships, or operation of

ships or aircraft.

As of 2010, Pakistan is one of the largest users of CNG (compressed natural gas) in the

world. Presently, more than 3,000 CNG stations are operating in the country in 99 cities and

towns, and 1000 more would be set up in the next two years. It has provided employment

to over 50,000 people in Pakistan, but the CNG industry is struggling to survive the 2013

energy crisis.

SERVICES

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.

The government is acutely conscious of the immense job growth opportunities in service

sector and has launched aggressive privatization of telecommunications, utilities and

banking despite union unrest.

COMMUNICATION

After the deregulation of the telecommunication industry, the sector has seen an

exponential growth. Pakistan Telecommunication Company Ltd has emerged as a successful

Forbes 2000 conglomerate with over US $1 billion in sales in 2005. The mobile telephone

market has exploded fourteen-fold since 2000 to reach a subscriber base of 91 million users

in 2008, one of the highest mobile teledensities in the entire world. In addition, there are

over 6 million landlines in the country with 100% fibre-optic network and coverage via WLL

in even the remotest areas. As a result, Pakistan won the prestigious Government

Leadership award of GSM Association in 2006.

The contribution of the telecom sector to the national exchequer increased to Rs 110 billion

in the year-end 2007–08 on account of the general sales tax, activation charges and other

steps as compared to Rs 100 billion in the year-end 2006–07.The World Bank estimates that

it takes about 3 days to get a phone connection in Pakistan. In Pakistan, the following are

the top mobile phone operators:

Mobilink (Parent: Orascom Telecom Holding, Egypt)

Ufone (Parent: PTCL (Etisalat), Pakistan/UAE)

Telenor (Parent: Telenor, Norway)

Warid (Parent: Abu Dhabi Group / SingTel, UAE/Singapore) [ Currently Merged with

Moblink]

Zong (Parent: China Mobile, China)

By March 2009, Pakistan had 91 million mobile subscribers – 25 million more subscribers

than reported in the same period in 2008. In addition to the 3.1 million fixed lines, while as

many as 2.4 million are using Wireless Local Loop connections. Sony Ericsson, Nokia and

Motorola along with Samsung and LG remain the most popular brands among customers.

Pakistan is on the verge of a telecom revolution and is by far the most attractive sector in

Pakistan in terms of Foreign Direct Investment coming into the country. Since liberalization,

over the past four years, the Pakistani telecom sector has attracted more than $9 billion in

foreign investments. During 2007–08, the Pakistani communication sector alone received

$1.62 billion in Foreign Direct Investment (FDI) – about 30% of the country’s total foreign

direct investment.

Present growth of state-of-the-art infrastructures in the telecoms sector during the last four

years has been the result of the PTA's vision and implementation of the deregulation policy.

Paging and mobile (cellular) telephones were adopted early and freely. Cellular phones and

the Internet were adopted through a rather laissez-faire policy with a proliferation of private

service providers that led to the fast adoption. With a rapid increase in the number of

Internet users and ISPs, and a large English-speaking population, Pakistani society has seen

an unparalleled revolution in communications.

According to the PC World, a total of 6.37 billion text messages were sent through Acision

messaging systems across Asia Pacific over the 2008/2009 Christmas and New Year period.

Pakistan was amongst the top five ranker with one of the highest SMS traffic with 763

million messages.

Pakistan is ranked 4th in terms of broadband Internet growth in the world, as the subscriber

base of broadband Internet has been increasing rapidly. The rankings are released by Point

Topic Global broadband analysis, a global research centre.

Pakistan has more than 20 million Internet users in 2009.The country is said to have a

potential to absorb up to 50 million mobile phone Internet users in the next 5 years thus a

potential of nearly 1 million connections per month.

Almost all of the main government departments, organizations and institutions have their

own websites.

The use of search engines and instant messaging services is also booming. Pakistanis are

some of the most ardent chatters on the Internet, communicating with users all over the

world. Recent years have seen a huge increase in the use of online marriage services, for

example, leading to a major re-alignment of the tradition of arranged marriages.

As of 2007 there were six cell phone companies operating in the country with nearly 90

million mobile phone users in the country.

There were 140 million mobile phone users in Pakistan in 2014, eighth largest in the world.

Wireless local loop and the landline telephony sector has also been liberalized and private

sector has entered thus increasing the teledensity rate. In mid-2008, the Local Loop

installed capacity reached around 5.5 million.

Telecom industry created of 80,000 jobs directly and 500,000 jobs indirectly.

The Federal Bureau of Statistics provisionally valued this sector at Rs.982,353 million in

2005 thus registering over 91% growth since 2000.

TRANSPORTATION

Pakistan International Airlines, the flagship airline of Pakistan's civil aviation industry, has

turnover exceeding $25 billion in 2015.The government announced a new shipping policy in

2006 permitting banks and financial institutions to mortgage ships.Private sector airlines in

Pakistan include Airblue, which serves the main cities within Pakistan in addition to

destinations in the Gulf and Manchester in the United Kingdom. The other private carrier is

Shaheen Air International whose network covers the main cities of Pakistan and the Gulf.

A massive rehabilitation plan worth $1 billion over five years for Pakistan Railways has been

announced by the government in 2005. A new rail link trial has been established from

Islamabad to Istanbul, via the Iranian cities of Zahedan, Kerman and Tehran. It is expected

to promote trade, tourism, especially for exports destined for Europe (as Turkey is part of

Europe and Asia).

FINANCE

Pakistan's banking sector has remained remarkably strong and resilient during the world

financial crisis in 2008–09, a feature which has served to attract a substantial amount of

FDI in the sector. Stress tests conducted on June 2008 data indicate that the large banks

are relatively robust, with the medium and small-sized banks positioning themselves in

niche markets. Banking sector turned profitable in 2002. Their profits continued to rise for

the next five years and peaked to Rs 84.1 ($1.1 billion) billion in 2006.

The credit card market continued its strong growth with sales crossing the 1 million mark in

mid-2005. Since 2000 Pakistani banks have begun aggressive marketing of consumer

finance to the emerging middle class, allowing for a consumption boom (more than a 7-

month waiting list for certain car models) as well as a construction bonanza.



HOUSING

Houses in Bahria Town are the largest private housing society in Asia. The property sector

has expanded twenty-threefold since 2001, particularly in metropolises like Lahore.

Nevertheless, the Karachi Chamber of Commerce and Industry estimated in late 2006 that

the overall production of housing units in Pakistan has to be increased to 0.5 million units

annually to address 6.1 million backlog of housing in Pakistan for meeting the housing

shortfall in next 20 years. The report noted that the present housing stock is also rapidly

aging and an estimate suggests that more than 50% of stock is over 50 years old. It is also

estimated that 50% of the urban population now lives in slums and squatter settlements.

The report said that meeting the backlog in housing, besides replacement of out-lived

housing units, is beyond the financial resources of the government. This necessitates

putting in place a framework to facilitate financing in the formal private sector and mobilize

non-government resources for a market-based housing finance system.

The Federal Bureau of Statistics provisionally valued this sector at Rs.185, 376 million in


MINOR SECTORS


2005 thus registering over 65% growth since 2000.The Federal Bureau of Statistics

provisionally valued this sector at Rs.631,229 million in 2005 thus registering over 78%

growth since 2000. The Federal Bureau of Statistics provisionally valued this sector at

Rs.1,358,309 million in 2005 thus registering over 96% growth since 2000. The wholesale

and retail trade is the largest sub-sector of the services. Its share in the overall services

sector is estimated at 31.5 percent. The wholesale and retail trade sector is based on the

margins taken by traders on the transaction of commodities traded. In 2012–13, this sector

grew at 2.5 percent as compared to 1.7 percent in the last year.

ENERGY

For years, the matter of balancing Pakistan's supply against the demand for electricity has

remained a largely unresolved matter. Pakistan faces a significant challenge in revamping

its network responsible for the supply of electricity. While the government claims credit for

overseeing a turnaround in the economy through a comprehensive recovery, it has just

failed to oversee a similar improvement in the quality of the network for electricity supply.

Most cities in Pakistan receive substantial sunlight throughout the year, which would

suggest good conditions for investment in solar energy. If the rich people in Pakistan are

shifted to solar energy that they should be forced to purchase solar panels, the shortfall can

be controlled. This will make the economy boost again as before 2007. Economic growth in

Pakistan leads to electricity consumption but not vice versa.

DEVELOPMENT IN PAKISTAN 1958- TILL TODAY:

Pakistan was seen as a model of economic development around the world, and there was

much praise for its economic progression. The capital Karachi was seen as an economic role

model around the world, and there was much praise for the way its economy was

progressing. Many countries sought to emulate Pakistan's economic planning strategy and

one of them, South Korea, copied the city's second "Five-Year Plan"; the World Financial

Centre in Seoul is modeled after Karachi. In this era Pakistan got its first Automobile

industry, as well as land reforms were also took place there was also effect of green

revolution and tax concession which cause industries to set up in province of Punjab,

manufacturing sector has contributed around 8.3% in countries GDP private Tube wells

were also install to support farmers that increase production in agriculture sector which

causes GDP growth rate to exceed by 6% but this doesn’t cause development as whole

because development doesn’t make pace with rural population increase. East Pakistan was

dependent on imports that results in balance of payment problem. In 1970 Government of

Pakistan starts Nationalization Program in order to prevent any further division and to have

effective control on county’s economy during 1970-1980 government had complete control

over almost all corporations of Country including KESC, Heavy Mechanical Complex and

Steel Mill and Port Qasim was also set up in this era but GDP growth rate declined because

of adverse effect of Socialist policies and oil crises. The completion of the long gestation

period Tarbela Dam helped unleash an unprecedented agricultural growth, while fertilizer

and cement investments undertaken under Bhutto’s government contributed to the

industrial growth. Tremendous boost to economic activity was provided by rising worker

remittances, which rose to a peak of US $3 billion in 1982-83. In 1982-83, these

remittances were equivalent to 10% of the gross national product of Pakistan. During

1980’s government of Pakistan successfully negotiated with USA for larger external

assistance, unprecedented in the history of Pakistan. In addition to direct assistance to

Pakistan, the United States and allies funneled about US $5–7 billion to the Afghan

Mujahedins through Pakistan, providing further boost to the local economy. Similarly, the

narcotic trade which gathered momentum in the 1980s strongly supported the service

sector of the economy. The economic policies became market oriented. Buoyant remittances

and aid eased the foreign exchange constraints on the economy. During 1993-1998

economy of Pakistan had saw many ups and down because of Political instability, Financial

crisis in Asia and increase in defense budget. After words in 2000 Pakistan first time in the

history revenue collection were met in time and development was increased by 38% mostly

because of the Aid given by USA as collation support fund in war Against terror , although

reserves starts increasing, financial markets were more stable than past, inflation rate were

dropped to 3.5% but this start’s declining after 2008 because of no sustainable economic

policy and other factors such as Terrorism because of which it was estimated that around

40% of population were become in poverty line, suicide ratio increases the main reason for

this stagflation was no coordination in between fiscal and monetary policy.

In present days Pakistan is facing economy crippled with many challenges including energy

shortages, hyperinflation, mild economic growth, high debt and large budget deficit, $6.6

billion loan from the International Monetary Fund is provided to government t avoid a

balance-of-payments crisis. Lower oil prices, higher remittances and increased consumer

spending are pushing growth toward a seven-year high of 4.3 percent in the fiscal year of

FY2014-15.

Pakistan's GDP growth rate for FY 2012-2013 was down to 3.59% with estimates suggesting

that it will only reach 3.65% by the end of 2013 however the government expects to

increase it to 5.8% for FY 2014-2015. Business confidence in Pakistan is at a three-year

high in May 2014 largely backed by increasing foreign reserves to $10b while it is expected

that they will cross $15 billion by mid-2014. Along with that, in May 2014 IMF claimed that

Inflation has dropped to 13 per cent compared to 25% in 2008, foreign reserves are in a

better position and the current account deficit has come down to 3 per cent of GDP for

2014.

IS DEVELOPMENT IN PAKISTAN IS QUESTION MARK?

Pakistan has one of largest human resource potential in world, also has one of the largest

irrigation system of world, Land with most of resources but development isn’t made so far it

had to be made by now. More than 40 % people with in the country are living their lives

below the poverty line on average they are earning less than 125 RS, the cost of petrol is

increasing day by day which affects the rate of other prices as well.

POVERTY IN PAKISTAN

The wealth distribution in Pakistan is presenting a situation where one family looking for

new BMW, while another family looking for one time meal. Poverty in Pakistan is increasing

day by day, and because of poverty and hunger more than thousands of people commit

suicide with their families.

POVERTY RATIO IN PROVINCES

In 21st century Pakistan faces serious issue which lead in increasing of Poverty level, issue

of 9/11, then Earth quake in 2005 effect million of people, two continuous floods in the year

of 2010 and 2011 contribute a lot in increasing poverty in Pakistan.

SDPI’s study on poverty in Pakistan revealed that every third Pakistani is living his life below

the poverty line. Baluchistan which is considered as the land of mineral is facing a serious

issue of poverty, 52 % of total population in Baluchistan living below the poverty line, 33 %

of sindh population are living below the poverty line followed by KPK having 32 % ratio.

Punjab which is considered as the urban area also has 19 % population which living below

the poverty line.

CAUSES OF POVERTY IN PAKISTAN:

The main causes for poverty in Pakistan are as under:

Low literacy rate

Instable political and law and order situation

Less or no availability of health facilities

Power shortage and unemployment

High inflation

Inequality and natural disasters

Corruption

SOLUTION OF PROBLEM:

Education has direct impact on economic development sometimes non-direct as well,

education is the first step in way of development and it also provide basis for socio-

economic condition for country it is also considered as one of the most important tool to

reduce poverty mostly the one who are poor or living below poverty are not able to send

their children to private educational institutes that results in child labor increase on the

other hand governmental educational institutes’ are widening up the gap between poor and

richer by providing low quality education, it is also observed that human capital is only

developed through savings and than making investments in health sector but unfortunately

because of low literacy rate and high drop out ratio at secondary educational level majority

population is less literate that spend more and saves less because of which they are still in

poverty line.

Agriculture sector of Pakistan employees around 40% of labor force, most of farmers aren’t

familiar with latest available technology either because don’t have it or have no idea about

it although educating farmers will increase total agriculture production of Pakistan as well as

it will also enhance quality of product and remaining 60% uncultivated land could also

become cultivatable land. This will apparently increase country’s total GDP as well as will

also increase human development.

References:

http://www.pbs.gov.pk/

http://www.tradingeconomics.com/pakistan/indicators

http://www.pbs.gov.pk/

http://www.tradingeconomics.com/pakistan/indicators

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Developmental Economics