Economic Sectors of Pakistan(1)

7/29/2019 Economic Sectors of Pakistan(1)

1/98

Economic sectors of Pakistan

1

INTRODUCTION

OF TITLE


2/98


2

The Economy indicates the management of domestic matters, the instruction and govt. ofhousehold stuffs; especially as they concern expense or disbursement; as, a careful economy.

The economy of country indicates the various aspects which affect the country in several

ways.

An economic sector of any country refers to as a division of that country's population basedupon the economic area in which that population is employed. The economy includes several

sectors that evolved in successive stages.

Here this report is specifically focuses on various economic sectors of Pakistan and includesthe information and overall investigation of the same. So, the detailed information of

Pakistan Economic Sectors would help to know whether its a healthy country or

not.Pakistan has a semi-industrialized economy which mainly encompasses capital market,

chemicals, food processing, agriculture and other industries.


3/98


3

COUNTRY

OVERVIEW


4/98


4

LOCATION

Home to one of the worlds cradles ofevolution, Pakistan shares its eastern border withIndia and north-east with China, with Afghanistan running along the north-west and Iran

in the south-west. Along the southern border of Pakistan runs the Arabian Sea withapproximately 1,000 kilometres of coastline. Pakistan covers an area of approximately

803,940 square kilometres which is twice the size of California.

POPULATION DEMOGRAPHICS

The sixth most populous Country of the world, Pakistans current population is ofapproximately 164 million, with a growth rate of 1.828% (2007 estimates). The majorityof southern Pakistans population lives along the Indus River; in the north, most of the

people are focussed in the cities of Faisalabad, Peshawar, Islamabad and Lahore. Karachi,

the capital of the Sindh province and the largest city in Pakistan, by quality of being a

seaport, the financial and commercial midpoint. With a population of over 11million,

Karachi is also the 5th most populous city of the World.

97% of the Countrys population is Muslim, making Pakistan the 2nd largest Muslimcountry in the world and an important member of the Organization of the Islamic

Conference. Hinduism and Christianity form the primary minority religions; other

religious groups include Sikhs, Parsees, and also there are a small number of Buddhists.

The constitution and law defines Pakistan as an Islamic nation and Islamic Shariah is thesupreme law of Pakistan.

INTERNATIONAL TIME

International time of Pakistan is GMT + 5.


5/98


5

LANGUAGE

Pakistans national language is Urdu, but comparatively few people use it as their mothertongue. Punjabi is the most general language followed by Sindhi, Pashto, Saraiki, and

alsoBaluchi respectively and english is extensively used by educated people and is the

official language of Pakistan.

CURRENCY

The currency of this country is Rupee and the acronym used for the currency is PKR.

THE CONSTITUTION AND LEGAL SYSTEM

This country is a federal republic with four provinces, capital territory (Islamabad) andterritory consisting of tribal areas.

Pakistan also administers Azad Kashmir and the Northern Areas and portions of theJammu and Kashmir region.

The constitution of the Islamic Republic of Pakistan of 1973 provides for Parliamentarianform of Government and the Prime Minister is the head of Government and the President

(collectively elected by the National Assembly and the Senate & the Provincial

Assemblies) is the head of the federation. The National Assembly and Senate are the

legislator institutes. The National Assembly has 342 members who are elected from all

provinces and the capital territory and tribal areas on the basis of population. The Senate

derives equal demonstration from all the four provinces and has a total membership of

100 member.


6/98


6

Pakistans legal system is based on English common law and adapted for the needs of anIslamic state. High Court & Supreme Court of Pakistan are the highest forum of judiciary

at regional and national level, respectively. And also the Shariah court is responsible for

ensuring that the Countrys law are as per Islamic commands.

HIGHLIGHTS OF THE ECONOMY

Pakistan used to be heavily dependent on the agriculture sector but slowly & graduallythe industry and service sectors have increased their shares in latest years and they

collectively account for around 3/4 of the GDP.

In 2006-2007 Pakistan's real GDP at factor cost grew by 7% and inflation remainedaround 7.9%. During that period, there was a considerable increase in the level of FDI.

Total exports amounted to US $17 billion 2006-07, growing by about 3.40 % andcrossing the $17 billion mark. Imports amounted to US$ 30.5 billion during the same

period increasing by about 8.22%. Major exports are textiles (garments, cotton cloth, and

yarn), leather, sports goods, and carpets & rugs. United States of America, United Arab

Emirates, Germany & Hong Kong are the main export partners while major import

commodities are petroleum & petroleum products, machinery, transportation equipment,

edible oil, pulses, iron & steel and tea. The major import partners are Kuwait, Saudi

Arabia, United Arab Emirates, United States of China andAmerica.

Wheat, Cotton, Rice and Sugarcane are Pakistans main crops while main industries ofthese Country are cement, power,textiles, telecommunications, commercial& investment

banking, agro-based produce, surgical goods, leather & leather goods, oil & gas, sports

goods, and cutlery.


7/98


7

Rawalpindi,Karachi, Lahore, Islamabad, Gujranwala, Faisalabad, Hyderabad, and Sialkotare the Countrys key business centres. Gwadarand Karachi have the sea ports while

Multan,Lahore, Hyderabad, Faisalabad, Rawalpindi, Sialkot, Peshawar and Quetta have

the dry ports. Lahore, Islamabad, Karachi, Peshawar & Quetta have the International

Airports.


8/98


8

GROWTH

&

STABILIZATION


9/98


9

The Gross Domestic Product (GDP) in Pakistan expanded 3.67 %in 2012 from theprevious year and GDP Growth Rate in Pakistan is reported by the Pakistan Bureau of

Statistics.

Historically, from 1952 until 2012, Pakistan GDP Growth Rate averaged 4.98 %reachingan all-time high of 10.2 %in June of 1954 and a record low of -1.80 %in June of 1952.

The Gross Domestic Product (GDP) growth rate provides an aggregated measure of

changes in value of the goods and services produced by an economy. This countrys

economy has suffered in the past from decades of internal political disputes, mixed levels

of foreign investment, a fast growing population,& a costly ongoing confrontation with

neighboring India.

IMF-approved government policies, bolstered by foreign investment & renewed access toglobal markets and have generated a solid macroeconomic recovery during the last

decade and this page includes a chart with historical data for Pakistan GDP Growth Rate.


10/98


10

Some Important Points:

Real GDP growth for 2011-12:estimated: 3.7 %for 2010-11: 3.0 %

The commodity producing sector has performed quite better in outgoing fiscal year ascompared to last year; the current year growth rate is 3.28%in compared with 1.47 %last

year.

Agriculture growth: 3.13 %current year against 2.38 %last year. Major Crops registered an accelerating growth of 3.18 %in comparison with a negative

growth of 0.23 %last year.

The major crops including Cotton, Sugarcane and Rice had growth in production of 18.6%, 4.9 %and 27.7 %respectively.


11/98


11

However, Wheat having a negative growth of 6.7 %mainly due to 2.6 %decline in areaunder cultivation. In addition to this sowing was also delayed because of late receding

rain water in lower Sindh which resulted in a decline in both the acreage as well as the

yields.

Minor Crops growth declined by 1.26 %, because of rains affect in Sindh.

Sector Result

Minor crops Declined by 1.26 %

Livestock Previous year : 3.97 % Current year : 4.04 %

Fisheries Previous year : 1.94 % Current year : 1.78 %

Forestry Previous year : 0.40 % Current year : 0.95 %


12/98


12

Industrial sector contains 25.4%of GDP. Sub sectors: manufacturing, mining &quarrying, construction, electricity and gas distribution.

Manufacturing Sector registered growth at 3.56 %compared to the growth of3.06%last year.

Small scale manufacturing maintained its growth of last year at 7.51 %andslaughtering growth is estimated at 4.46 %against 4.38 %last year.

Large Scale Manufacturing has also witnessed a slight improvement. It has shown agrowth 1.05%in July-March 2011-12 as against 0.98%last year.

Construction Sector has shown 6.46%growth as compared to negative growth of7.09%in last year.


13/98


13

Factor 2010-2011 2011-2012 Increase or Decrease

Private consumption - - 75 %increase

Public consumption - - 13 %increase

Total consumption 83 % 88.35 % 5.35 %increase

Real private consumption 3.7 % 11.6 % 7.9 %increase

Real government consumption 5.2 % 8.2 % 3 %increase

Per capita real income (in %) 1.33 % 2.33 % 1 %increase

Per capita real income (in dollars) 1258 1372 1.09 %increase

Total investment 13.1 % 12.5 % 0.6 %decrease

Fixed investment 11.5 % 10.9 % 0.6 %decrease

Private investment 8.6 % 7.9 % 0.7 %decrease

Public investment 2.9 % 3.0 % 0.1 %increase

National savings 13.2 % 10.7 % 2.5 %decrease

Foreign direct investment 1292.9 % 666.8 % 49 %decrease

Workers remittances (in $) 9046.61 10,876.99 20.23 %increase


14/98


14

Mining and Quarrying sector recorded positive growth of 4.38 %during the year2011-12 against the negative growth of 1.28 %last year.

Electricity and gas distribution witnessed a growth of -1.62 %against the growth of -7.25 %last year.

The Services sector has registered a growth rate of 4.02 %in 2011-12 against thegrowth of 4.45%in the last year. This performance is dominated by Finance and

Insurance at 6.53%, Social and Community Services 6.77% and Wholesale and Retail

Trade 3.58%. The contribution of communication,transport and storage is estimated

at 1.25%.

Source:-http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-

data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-

data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-

FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGU

Oy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3

Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1
http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1


15/98


15

Education


16/98


16

According to the Pakistan Social and Living Standard Measurement (PSLM) Survey2010-11 and last PSLM 2008-09, the literacy rate for the population (10 years and above)

is 58% during 2010-11, as compared to 57% in 2008-09 . Literacy remains much higher

in urban areas than in rural areas & much higher for men than for women and Province

wise data suggest that Punjab leads with 60% literacy followed by Sindh with 59%,

Khyber Pakhtunkhwa with 50% and Baluchistan with 41%.

In this country the Gross Enrolment Rates (GER) at the primary level excluding katchi(prep) for the age group 5-9 years at National level during 2010-11 increased slightly to

92% from 91% in 2008-09. Amongst the provinces, Punjab shows a marginal increase

from 97% in 2008-09 to 98% in 2010-11. Sindh remained stable with 84%, Khyber

Pakhtunkhwa improved from 87% to 89% and Baluchistan declined slightly from75% to

74% in 2010-11

Source:-

http://www.google.co.in/imgres?imgurl=http://2.bp.blogspot.com/_PSEkM9lXSh8/Sf43Cc98hdI/AAAAAAAADhs/RyO4mQ8n0GI/s400/

LiteracyChart.jpg&imgrefurl=http://thepathans.blogspot.com/2009/05/for-many-pakistani-children-

madrasas.html&usg=__NVuBVzXZ7pmUQNkPuf-

5_UbLj88=&h=240&w=400&sz=21&hl=en&start=5&zoom=1&tbnid=uDMzjsiIJrxkiM:&tbnh=74&tbnw=124&ei=VRrIUMjYFo2yrAe

a9IHQBw&prev=/search%3Fq%3Deducation%2Bin%2Bpakistan%2Bchart%26hl%3Den%26tbo%3Dd%26biw%3D1366%26bih%3

D640%26tbm%3Disch&itbs=1


17/98


17

In Pakistan the Net primary level enrolment rates at the National/Provincial (excludingkatchiabadies) level for the age group 5 to 9 years. The NER at the National level during

2010-11 slightly decreased to 56% from 57% in 2008-09. Punjab shows a decrease from

62% in 2008-09 to 61% in 2010-11. Sindh also shows decrease from 54% to 53% in

2010-11, Khyber Pakhtunkhwa witnessed a decrease from 52% to 51% and Baluchistan

improved from 44% in 2008-9 to 47% in 2010-11.

In this country the overall number of enrolments during 2010-11 were39900.30thousands as compared to 38202 thousands during the same period last year.

This shows an increase of 4.4%. It is estimated to increase to 41596.50 thousands during

2011-12. The number of institutes stood at 227.80 thousand during 2010-11 ascompared to 228.40 thousand during the same period from2009 to 2010. However, the

number is estimated to increase to 228.30 thousand during 2011-12.

Source:-

http://www.google.co.in/imgres?imgurl=http://upload.wikimedia.org/wikipedia/commons/thumb/d/d3/Literacy_Fed

eral_Areas_Pakistan.jpg/270px-

Literacy_Federal_Areas_Pakistan.jpg&imgrefurl=http://en.wikipedia.org/wiki/Education_in_Pakistan&usg=__UBd

UPDwnzVp_DvGf_jaITt7yexU=&h=193&w=270&sz=15&hl=en&start=16&zoom=1&tbnid=u7AQIFIPjZh1BM:&

tbnh=81&tbnw=113&ei=sR_IUM6wPI7QrQeGx4GoBg&prev=/search%3Fq%3Deducation%2Bin%2Bpakistan%2

Bcharts%26hl%3Den%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1


18/98


18

In Pakistan the number of teachers during 2010-11 were 1409.40 thousand as comparedto 1386.10 thousand during the same period 2009-10 showing an increase of 1.7%. This

number is estimated to increase further to 1445 thousand during the year 2011-12.

In Pakistan the total of 134,118 youth received vocational and technical training underthe Presidents FunniMaharatProgramme and Prime Ministers Hunermand Pakistan

Programme.

In these country HEC is also playing its role in running different scholarship programmesto enhance the academic qualification at various levels on merit basis in line with

requirement.

In Pakistan during the period 2008-12 a number of 3996 scholarships were awardedunder different programmes,3572 scholars proceeded to avail these programmes on merit

basis and a number of 1650 scholars completed their studies.


19/98


19

MONEY

&

CREDIT


20/98


20

The monetary policy of Pakistan intends to a stabilizing economic growth by a series ofchannels. The predicted economic and inflation activities are affected by the same. A

sound fiscal position is essential for attaining macroeconomic constancy and it will be

caused by efficient resource allocation and the mobilization of domestic savings.Because

of this, the central bank through its monetary policy and strategies plays an influential

role.

The persistence of sound monetary management is to taking on the comprehensivechallenges which are faced by economy since it deals with major issues of price stability,

money supply control and explanation of managed interest rate. In Pakistan, monetary

management has mainly focused on calculating inflation. Inflation has steadily stayed in

double digits in the last few years on account of difficult domestic and external economic

environment.

In difficult economic situation, the State Bank of Pakistan (SBP) followed a proactivepolicy which response to shave-off additional demand. Italso has contained the fiscal

deficit of Pakistan economy. The SBP adopted an expansionary monetary policy duringthe fiscal year 2011-12.SBP lowered the discount rate by cumulative 200 bps points to 12

%during first half of fiscal year 2011-12, to support in boosting the private sector credit

and investment.


21/98


21

Recent Monetary & Credit Development:-

Broad Money (M2) witnessed an expansion of 9.09% during July-11th May, 2011-12 ascompared to 11.47% during the same period in 2010-11.

Net Domestic Assets (NDA) during July to 11thMay, 2012 stood at Rs 880.90 billionagainst Rs 481.60 billion during the same period last year, reflecting an increase of

14.90% over the last year.

On the other hand, Net Foreign Assets of the banking system during the period underreview declined to Rs 272.20 billion as compared to an increase of Rs 181.10 billion in

the same period of 2010-11.

Source: Ministry of Finance, Government of Pakistan


22/98


22

The credit to private sector witnessed a net increase of Rs. 234.8 billion during July2011-11

thMay, 2012 as compared to Rs 107.8 billion in the same period last year.

The weighted average lending rate (including zero mark-up) on outstanding loans stoodat 12.80% while the weighted average deposit rate (including zero mark-up) stood at

6.98% in March 2012.

Government borrowing from the banking system for budgetary support and commodityoperations stood at Rs 1,003.30 billion during July to 11

thMay, 2011-12 as compared to

Rs. 506.50 billion in the comparable period of the last year. Government has borrowed

Rs.442.30 billion from the State Bank of Pakistan, while Rs 642.10 billion borrowed

from the scheduled banks.



23/98


23

Commodity finance a aims to provide short term advances either to the government,public sector corporations or private sector for the procurement of the commoditiessuch

as cotton on, wheat, rice sugar and d fertilizer. During July 2011-11th May, 2012 loans

for commodity finance registered a net retirement of Rs 81.60 billion against the

retirement of Rs 101.10 billion in the same period of fiscal year from 2010 to 2011. The

retirement was primarily concentrated in the second quarter of fiscal year 2011-12 as

the government released Rs 78 billion to procurement agencies for the settlement of

accumulated subsidies.


During July 2011-11thMay, 2012 credit to public sector enterprises registered a sharpdecline from Rs 10.60 billion in 2010-11 to Rs 142.60 billion. The revival of private

investment in the economy was one o of the main concerns for SBP to ease to the

monetary policy stance in 2011-12. However, the desired boost in private investment

demand could not take place due to energy shortages and an unfavorable law and order

situation.


24/98


24


Moreover, substantial government borrowing has packed out the private sector from receiving

credit. This has limited the availability of credit. Similarly, due to rising NPAs, banks preferred to

investin liquid assets rather than extending credit to private sector.


25/98


25

Transportation

&

Communication


26/98


26

In Pakistan there are 96% roads of inland merchandise and 92% of passenger traffic anddefinitely the backbone of Pakistans economy.

In Pakistan heavy rains & floods severely damaged the transport and communicationsystem during last 2 years and initial estimates indicate that road approximately 8,385 km

and 190 km railway lines were damaged including bridges and allied structures.

Current road network of Pakistan is about 2,60,000 km which caters services to 11million automobiles of all type and also NHA roads network is around 12,000 km, which

is merely 4% of the overall road network but takes 80% of Pakistans commercial traffic.

There are 52 new design passenger coaches were imported from China at a cost of Rs. 4.1billion. Remaining 150 passengers coaches will be manufactured at Pakistan railways

carriage factory Islamabad by 30th June 2013.

All the 46 development projects include construction of roads, river Bridger, tunnels,flyovers, interchanges.

In Pakistan during the current financial year, NHA has launched/awarded 16 new growthprojects covering a length of above 500 km inclusive construction of a number of

flyovers, bridges & interchanges costing ofRs. 70,951 million.

At present, 46 development projects having length of approximately 2000 km areongoing approximately at a cost Rs. 245 billion in different sections.

In Pakistan NHA has completed 12 projects of bridges,flyovers, interchanges& road upgradation during the last one year at a cost of Rs. 19.60 billion.

NHA is simultaneously constructing 12 Bridges across the rivers. These are: on riversSutlej 2, on rivers Chenab 4, on river swan 1 and 5 on river Indus.


27/98


27

In Pakistan Telecommunication arrangement includes damages to cellular sites, exchangecenters, equipment, power system and supporting civil works is amounting to $1.90

million.

There are six factories including Locomotive Factory Risalpur, Carriage FactoryIslamabad, and four concrete Sleeper Factories in Kohat, khanewal, sukkur, are Kotri, are

being corporatized for eventual privatization subject to approval of the government.

Pakistan cabinet committee of restructuring has approved a restructuring framework fortheir Railways and also during the last financial year, 16 kms of track was rehabilitated

on Pakistan Railways network besides doubling more than 15 kms of track.

In Pakistan ministry of Railway has also adopted a Track Access Policy (TAP) forprivate sector participation to operate freight and passenger trains on Pakistan

infrastructure and they also created a Real Estate Development and Marketing

Company as subsidiary of Ministry of Railways.

There is a new dry port was set up at Prem Nagar near Raiwind industrial area andLahore through public private partnership approximately at a cost of Rs. 490 million.

In Pakistan consolidated revenues of PNSC group during July-March 2011 to 2012 wereRs. 6640 million as compared to Rs. 6772 million last year and also the corporation

intends to acquire four vessels through commercial loan/joint venture basis.


28/98


28

Following chart shows the growth of countries economic growth,

In Pakistan two new destinations have been introduced during the year 2011: Karachi Madina and QuettaZahedan and also there are three new routes were introduced during

the year 2011: PeshawarKaula Lumpur, Sialkot-Riyadh and Sialkot-Dammam.

International Airlines Corporation of Pakistan earned increased revenue amounting to Rs.116 billion in year 2011 as compared to 107 billion last year. A purchase agreement of 5

Boeings 777 has been signed.

In Pakistan Karachi port trust handled cargo 27.8 million tonnes during the first 9 monthscurrent fiscal year.

In Pakistan acquisition of two vessels in process, while two more vessels will be acquiredin next financial year.


29/98


29

22 passengers coaches have been rehabilitated at Pakistan Railway Carriage FactoryIslamabad during last year.

The volume of cargo import during July-March 2011-12 stood at 14.7 million tones, andalso exports handled 4.90 million tones during July-March 2011-12.

Pakistan Ministry of Communications has prepared a draft National Transport Policywhich covers all modes of transport sectors i.e. (i) Roads, (ii) Railways, (iii) Ports &

Shipping and this policy also includes the National Transport Corridor Improvement

Program. This programme has been launched in this country to revamp the whole

transport sector including ports, roads, railway etc. and provides a frame work to develop

and improve the North South corridor.

In Pakistan the Total cargo handled on Gawadar port up till now is 4.10 million toneswhile Gawadar Port earned total revenue since its start of operation amounting to Rs.

53.40 million and also in the Port Qasim Authority handled a cargo volume 19.70 million

tones during July-March 2011-12.


30/98


30

There is the total mobile subscribers reached 118.30 million by the end of March 2012 ascompared to 108.90 million last year in Pakistan and subscribers of Local Loop (FLL +

WLL) reached at approximately 6 million, out of which 3.1 million belong to FLL and

2.8 million belong to WLL in these nation.

So due to mobile substitution in Pakistan, Fixed Local Loop teledensity has beendeclining over the years and it stands now at 1.93% compared to 2.10% last year showing

a0.17% decrease.

The broadband subscribers reached 1.9 million at the end of February 2012 in Pakistanbecause of that the revenues of the telecom sector during the 2011-12, status at Rs. 363

billion compare to the last year 344.20 billion show an increase of 5.40%.

In Pakistan mobile perception rose 64.90% in 2011-12 next to 60.4% in 2010-11 whichshows an increase of 4.30% points in total teledensity.

In Pakistan the Auction of 3G licenses is probable which will bring more FDI in thecountry.

Telecommunication power and the State Bank of Pakistan have signed a memorandumof Understanding (MOU) both the institutions have shown their interest and promise in

interesting mobile banking services in the country.

In Pakistan cumulative investment of just about US $ 2.5 billion in the electronic mediaindustry.

Because of increasing investment new jobs to more than 2 lakh people of diversifiedskills and qualifications have been provided. In addition, over 7 million people have been

accommodate through circuitous employment.


31/98


31

In Pakistan with the current growth rate of more than 7% per annum, it is estimated thatthe cumulative investment in the electronic media industry will reach above $ 3 billion

by the end of the current financial year.

In the last year 2011, telecom sector invested US$ 495.80 million with cellular mobilesector being the major supplier And also telecom sector involved over US$ 79 million

Foreign Direct Investment (FDI) in the country which is about 5% of the total FDI land

in Pakistan in 2011.

There is also a PBC outdoor Services, broadcast programmes for 08 hrs daily in 11foreign languages covering Afghanistan, Iran, China, India, Bangladesh, Nepal and Sri

Lanka in Pakistan.


32/98


32

The total Central Production Units (CPU) manufacture music, drama, features,documentaries and programmers for special occasions and CPU has over 2 million

minutes recording in its archives which are being digitized in the country.

In these country the PBC News is putting on air 117 News bulletins daily.it includesExternal,National, Regional and Local News bulletins besides resume of National

Assembly and Senate.


33/98


33

Large

Scale

Manufacturing


34/98


34

The industrialized sector grew at an average rate of 8% from the sixties to the eighties,

but fell to 3.9% during the nineties. This was largely caused by lessening in investment levels

due to lack of permanence and consistency in policies. Political shakiness law and order position

in the major industrial centers, transport bottlenecks, as well as changeableness and inadequate

ease of use of power supply at reasonably priced rates were additional factors pulling down the

sector.


35/98


35

Some Important Points:

During the first 9 months of the current fiscal year 2011-12, Large Scale industrializedposted a growth of 1.05% as compare to growth of 0.98% during the same period last

year.

The groups wise showing increase included: Pharmaceutical (10.9%), Paper and Board(8.4%), Wood Product (7.4%), Food Beverages and Tobacco (6.5%), Nonmetallic

mineral Products (2.9%), Leather Product (1.8%) and Textile (0.8%).

Items wise contribution in Large Scale Manufacturing indicates growth in GeneratingSets (143.9%), Blankets (109.9%), Electric Transformer (31.2%), Heavy Machinery

&equipments (21.0%), Sugarcane Machine (19.2%), Sugar (15.3%), Liquids/Syrups

(14.1%), Tea blended (13.3%), Tablets (10.7%), Jeeps & Cars (8.8%), Footwear (6.2%),

LPG (3.4%), Cement (2.9%) and Sugar (15.3%).

Automotive Industry such as Buses, Cars, LCVs and 2/3 wheelers managed significantgrowth at 23%, 9.1%, 5.7%and 3.1% respectively as compared to 24.7%, 16.4%, 23.3%

and 12.6% during the same period last year.

Mining and quarrying sector 4.4% in 2011-12 as against -1.3% last year. The maincontribution to this modest performance came from Flourite, Bauxite, Chromite, Chalk

and Natural gas which posted a positive growth of 591.5%, 111.3%, 82.2%, 82.2% and

4.0% respectively during the current financial year.


36/98


36

TEXTILE: AN IMPORTANT PART OF LARGE SCALE MANUFACTURING

Pakistan's textile industry broadly comprises a large-scale organized sector, and a small-scale cottage sector and its integrated industry consists of subsectors including processes

such as spinning, weaving, knitting, ginning, finishing, and apparel & textile product

making-up; fibers such asman-made fibers, artificial silk, cotton, wool & jute; and end-

products such as home textiles, towels, tents, hosiery, carpets, rugs, apparel and knitwear.

The textile industry of Pakistan has a total conventional spinning capacity of 1550million kgs of yarn, weave capacity of 4368 million square meters of fabric and

concluding capacity of 4000 million square meters. The industry has a manufacture

capacity of 670 million units of garments 400 million units of knitwear and 53 million

kgs of towels.


37/98


37

Auto mobile industry:

KARACHI: The Pakistans auto industry has become a most important industrial sector

that has attain development in the large-scale industrialized sector.


38/98


38

Pakistan Automotive Manufacturers Association (PAMA):

In Pakistan licensed by the Ministry of Commerce, Government of Pakistan under theTrade Organizations Ordinance 2007 and registered under the Companies Ordinance

1984 as a company with limited legal responsibility.

Objective:

To look after interest of Members It helps to play central role in all policy making process of the Government for the

automotive industry of country

To enable Pakistani Auto Industry attractive Global Player To provide the members high quality specialized service & create excellent

communication amongst members

To be the principal source of statistical data on the entire automotive industry of thecountry

It helps to play its role to foster harmony and accord amongst all stakeholders


39/98


39

FISCALDEVELOPMENT


40/98


40

There are mainly four types in fiscal expansion as follows:

A. Fiscal Policy Developments

B. Revenue Measures

C. FBR Tax Collection

D. Fiscal Performance: July-March, 2011-12

The significance of a prudent fiscal policy cannot be refused as it supports economicactivity through sustainable growth and poverty alleviation.

The effective accomplishment of the policy endeavors to mobilize resources throughtaxes and public savings, which can fund much desirable public goods and services.

It also helps to correct fiscal imbalance as well as promote investment and growth byoptimal allocation of possessions and through improving the tax system.

Consequently, a well-structured fiscal policy ensure rapid economic growth andexpansion in the country.

Pakistans economy, which largely remained impervious to the global financial crisis dueto its lower experience to international finance, faced comprehensive challenges on

external and internal fronts mainly campaign against fanaticism, unbalanced law and

order situation, persistent energy shortages and non-materialization of external inflows.

Additionally the extraordinary calamity of floods in 2010 and thrashing rain in Sindh in

2011 contribute further stress on the economy. However, the fiscal situation was well

contained.

Efforts to manage the fiscal deficit within good enough level through an disbursementmanagement strategy, austerity procedures and reforms in public sector enterprise have

yielded results.


41/98


41

A. Fiscal Policy Developments

Tax as a major source of proceeds and growth plays a vital role in construction upinstitutions and markets. A good tax system not only helps in equitable giving out of

economic benefits for social justice but also attracts speculation at all levels of business

activities. The nonappearance of an efficient tax system discourage well predictable

investment and compels the country to rely on permanent borrowing from interior and

external sources to finance the budgetary deficit, which may crowd out private

speculation.

Pakistans fiscal deficit for the financial year 2011-12 is report 4.0% as compare to 5.9%in fiscal year 2010-11.

Further details can be shown from the following table of Fiscal Indicators as% of GDP.

The sooner Pakistan improve its fiscal position by making sharp fiscal adjustment, thelesser the price it is likely to pay for its fiscal unruliness A sharp fiscal modification can

reduce large external current explanation imbalances, restore the self-confidence of

global investors, ease financing constraints, prop up growth and contain price rises.


42/98


42

B. Revenue Measures

The government introduce reform initiative through presidential ordinance andwithdrawal of SRO based exemption; amendments were made in Income Tax Ordinance

2001, the Sales Tax Act 1990and Federal Excise Act 2005. These measures were

effective from 15th and 16th March, 2011 to meet the growing need of flood affected

people and to reach the assigned target. These reforms include:

15% surcharge on income and move forward taxes Increase in the rate of special excise duty from 1% to 2.5% , however special excise duty

was abolished in 2011-12

extraction of special regime of assessable price for levy of GST at 8% on actual value ofsugar

Removal of SRO based exemption from fertilizer, pesticides, tractor and removal of zerorating from machinery, plants and equipment

Constraint of zero rating to register person for export of textile, leather, carpets, sportsgoods and surgical goods.

The withdrawal of exemption and the left over amount of 15% flood relief surchargecontribute a supplementary amount of around Rs 50 billion during July-March, 2011-12.


43/98


43

C. FBR Tax Collection

Tax collection by the FBR was targeted at Rs 1952.30 billion for fiscal year 2011-12. Revenuecollections of FBR stood at Rs 1426 billion during July-April 2011-12, thereby shimmering

24.0% growth over Rs 1149.8 billion self-possessed during the analogous period last year.

Among the four federal taxes, the maximum growth 33.7% has been recorded in sales tax

receipts, followed by civilization 17.7%, and direct tax 22.6%. It does not include Rs. 19 billion

together by Sindh province on GST on Services.

For July-April, 2012, direct taxes have been a major source of FBR tax revenue collectedworks, contributing 37% of total receipts. Net collected works was estimated at Rs. 528.90

billion.

Indirect taxes grew by 24.9% during July-April, 2012 and accounted for 62.9% of the total FBRtax revenue. Net compilation was estimated at Rs.897.20 billion.


44/98


44

D. Fiscal Performance: July-March, 2011-12

Total spending of Rs. 3721.2 billion was predictable for the full year, comprise of Rs.2976.3billion of current disbursement (80% of total), and Rs. 744.9 billion of expansion disbursement

and net lending (20% of total).

During July-March, 2011-12 total expenditures amounted to Rs 2641.90 billion against Rs2262.60 billion in the same period last year. Current expenditures stood at Rs 2154.10 billion

and enlargement expenditures and net lending recorded at Rs 428 billion during July to March,

2011-12.

Total revenues reached to Rs 1747 billion during July to March, 2011-12 against Rs 1495.30billion in the same period of last year and within Revenues tax revenues stood at Rs 1379.20

billion including Rs. 1,321.50 billion of Federal and Rs 57.60 billion of provinces, and non-tax

revenues remained at Rs. 367.90 billion during the same period of fiscal year 2011-12.


45/98


45

Energy


46/98


46

The total consumption of petroleum foodstuffs in the power sector was 8,139 million tonscompared to 8,814 million tones last year which in a weak position the growth in this

sector, thus redeployment negative growth of 5.20% in this sector in this country.

In the gas sector of Pakistan provide increased by 4.9% in July-March 2011-12 as theaverage manufacture of natural gas was 4236.06 million cubic feet per day during this

period while it was 4,050.83 million cubic feet per day in analogous period last year.

Source:-

http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/-

u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogsp

ot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhr-

bpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zG

UPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa%

3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1
http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/-u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogspot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhr-bpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zGUPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa%3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/-u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogspot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhr-bpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zGUPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa%3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/-u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogspot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhr-bpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zGUPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa%3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/-u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogspot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhr-bpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zGUPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa%3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/-u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogspot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhr-bpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zGUPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa%3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/-u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogspot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhr-bpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zGUPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa%3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/-u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogspot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhr-bpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zGUPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa%3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/-u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogspot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhr-bpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zGUPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa%3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/-u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogspot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhr-bpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zGUPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa%3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/-u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogspot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhr-bpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zGUPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa%3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/-u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogspot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhr-bpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zGUPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa%3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/-u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogspot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhr-bpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zGUPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa%3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/-u8k7XfyD8jE/T9g53Vg1XqI/AAAAAAAABsE/8T5y3_NGVu0/s1600/Energy%2BGraph.png&imgrefurl=http://aikbaat.blogspot.com/2012/06/re-thinking-pakistans-energy-crisis.html&usg=__y0Y5UmRlwv8rwGhr-bpxsl8MRo0=&h=349&w=426&sz=16&hl=en&start=1&zoom=1&tbnid=0e5z05zogAO_1M:&tbnh=103&tbnw=126&ei=P6zGUPSGEsSOrgey1YCIDg&prev=/search%3Fq%3Denergy%2Bconsumption%2Bin%2Bpakistan%2B2011%26hl%3Den%26sa%3DX%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&itbs=1


47/98


47

In these country of Pakistan the most important energy supply during current year is64.52 million TOE compared to 63.09 million TOE last year thus performance an

increase of 2.3%. The ease of use of energy per capita in 2011 remained 0.372 Tone Oil

Equivalent TOE matched to 0.371 Tone Oil Equivalent (TOE) in 2010 posting a positive

growth rate of 0.16%.

In Pakistan the average crude oil manufacture during July-March 2011-12 remained66,032 barrels/day as against 65997 barrels per day during the analogous period of last

year showing an increase of 0.05%.

In Pakistan the natural gas in the form of CNG posted a constructive growth 10.8%during July-March 2011-12.

In Pakistan the industrial sector had shown positive growth of 24.2% in the expenditureof petroleum products during July-March 2011-12 when compared with last year.

The transfer sector in this country surprisingly showed a family member small growth of3.5% in the utilization of petroleum products as expenditure of petroleum product intransport sector remained 6,832.9 million tones during July-March 2011-12 compare to

6,599.1 million tones during equivalent period last year in Pakistan.

There is a total contribution of Hydel in electricity generation increased to 33.6% in2010-11 in this country.

In Pakistan Water and Power expansion Authority (WAPDA) remain the maincontributor to electricity generation with 48.7% coming from this source.

There is almost 96% work on the main dam at Mangla, spillway and allied amenities hadbeen completed and immigration work is in advancement Likewise 99.7% work on

Satpara and 72.1% on GomalZam dam has been completed.


48/98


48

In this country there is one of the beneficiary of Tetra-collaborator power import projectunder the head of Central Asia-South Asia (CASA-1000) electricity trade.

Karachi Electricity bring in Corporation (KESC), Pakistan Atomic Energy Commission(PAEC), KotAddu Power Company (KAPCO) and the Hub Power Company (HUBCO)

have 8.3, 3.6, 6.2 and 9.1% , respectively.

In Pakistan the Independent Power Producers (IPPs) have contributed almost 25% .

Water and Power Development Authority is executing, on priority basis, the projects suchas 969 MW-Neelum Jhelum, 1410 MW-Tarbela 4th Extension, 7100 MW-Bunji, 4320

MW-Dasu, 740-MW Munda Dam and most mentionable 4500 MW-DiamerBhasha Damprojects, to cope with the increasing demand of power in this country.


49/98


49

In Pakistan the household sector consumed 44% of the total electricity generatedfollowed by industrial (26%), government (12.3%), agriculture (10.4%) and commercial

(6.8%) during July-March 2011-12.

In Pakistan the major users of coal are the cement sector and brick kilns; about 60% oftotal coal is consumed by cement while 39% is consumed by the brick kiln industry

during current year as compared to 62% consumption of coal in cement industry and 37%

in brick kiln industry last year.


50/98


50

Agriculture


51/98


51

An Introduction:-

Pakistan is one of the world's largest producer of the following merchandise according to

FAOSTAT the arithmetical arm of the Food & Agriculture Organization of The United Nations

given here with the 2008 ranking:

Apricot (3rd) Buffalo Milk (2nd) Chickpea (3rd) Cotton, lint (4th) Cotton, Seed (3rd) Dates (5th) Mango (6th) Onion, dry (4th) Oranges (11th) Rice, paddy (11th) Sugarcane (5th) Tangerines, Mandarin Orange, Clementine (9th) Wheat (10th)

Pakistan's most important natural resources are Arable land and water. About 25% of

Pakistan's total land area is under cultivation and is watered by one of the principal irrigation

systems in the world and Pakistan irrigates three times more acres than Russia. crop growing

accounts for about 23% of GDP and employs about 44% of the labor force.

ZaraiTaraquityBank Ltd. is the largest economic institution geared towards the enlargement

of agriculture sector through provision of economic services and mechanical expertise
http://en.wikipedia.org/wiki/Zarai_Taraqiati_Bank_Limitedhttp://en.wikipedia.org/wiki/Zarai_Taraqiati_Bank_Limited


52/98


52

Modernization should be adopted in Agriculture..

PESHAWAR - More than 80% of Khyber Pakhtunkhwa populace is directly or in aroundabout way dependent on the cultivation sector and as a result on industries in the

province Khyber Pakhtunkhwa Agriculture Minister ArbabAyub Jan said on Monday and

If we have to rely on the agriculture sector and we should adopt modern irrigation

system and latest technology for the enlargement of this sector he said.

In Pakistan addressing the inaugural ceremony of a three-day international seminar onDairy Science Park held at Agriculture University Peshawar, he said the sector was on

top of all sectors in developed countries purely because they had entirely concentrated on

the research wing.

Large number of agriculture scientists and specialist were present in KhyberPakhtunkhwa and there was a great demand for them in the entire world and he said the

past governments did not pay heed to the fundamental sector adding together that the

government had started an assortment of projects in the agriculture sector which would

have constructive effects on it in future.


53/98


53

Pakistan has a rich and vast natural resource base, covering various ecological andclimatic zones; hence the country has great potential for producing all types of food

commodities.


54/98


54

Agriculture has an important direct and indirect role in generating economic growth andthe importance of agriculture to the economy is seen in 3 ways: first: - it provides food to

consumers and fibers for domestic industry; second: - it is a source of scarce foreign

exchange earnings; and third: - it provides a market for industrial goods.

The total geographical area of Pakistan is 79.6 million hectares. About 27% of the area iscurrently under cultivation. Of this area, 80% is irrigated and in this regard, Pakistan has

one of the highest proportions of irrigated cropped area in the world and also the

cultivable waste lands offering good possibilities of crop production amount to 8.90

million hectares. Growth in cropped area is very impressive: from 11.60 million hectares

in 1947 to 22.60 million hectares in 1997.


55/98


55


56/98


56

Agriculture:

Factor 2010-2011 2011-2012 Increase/Decrease in% age

Overall Growth 2.4% 3.1% 0.7%

Cotton ( in bales ) 11,460 13,595 18.6%

Wheat ( in thousand tons ) 25,214 23,517 -6.7%

Rice ( in thousand tons ) 4,823 6,160 27.7%

Sugarcane ( in million tons ) 55.3 58.0 4.9%

Interpretation: Here it can be seen that there is an increase in the production of Cotton,Rice & Sugarcane while there is a decrease in the production of Wheat. The overall

growth of the Agriculture is 3.1% in 2011-2012 as compared to 2.4% in 2010-2011

which shows an increase of 0.7% .


57/98


57

Factor 2010-2011 2011-2012 Increase or Decrease

Gram 496 thousand tons 291 thousand tons 41.3%

Maize 3707 thousand tons 4271 thousand tons 15.2%

Minor crops

1. Mung2. Potatoes3. Chilies4. Onions5. Masoor

22.0% increase

17.5% increase

78.3% decrease

15.4% decrease

12.8% decrease

Credit disbursement 168.7% 197.4% 17%

Agriculture credit disbursement of Rs. 197.4 in (July-March) 2011-12. It is higher by17.0%, as compared to Rs. 168.70 billion over the same period last year.

The total availability of urea during Rabi 2011 to 12 was 3,526 thousand tonescomprising of domestic production 2,160 thousand tones. Imported supplies of 1,202

thousand tones. Besides this the total off take was 2,710 thousand tones. Leaving a stock

of 800 thousand tones for next season.

The total estimated availability of urea during Kharif 2012 around 3487 thousand tonescomprising 800 thousand tones of opening stock, 2280 thousand tones of domestic

production & 407 thousand tones of imported supplies. The total off take is estimated

around 3200 thousand tones during Kharif 2012 which leaves a stock around 287

thousand tones.


58/98


58

The Rabi 2011-12 started with 224 thousand tones of DAP as opening stock. The totalavailability of DAP was approximately 760 thousand tones including 271 thousand tones

of imported supplies and approximately 260 thousand tones of domestic production.

The off take of DAP during Rabi 2011-12 was about 572 thousand tones leaving behind177 thousand tones of opening stock for Kharif 2012 and also estimated DAP availability

during Kharif 2012 will be around 838 thousand tones comprising 177 thousand tones of

opening stock.

361 thousand tones of domestic production and 300 thousand tones of imported suppliesand the estimated demand is around 620 thousand tones during Kharif 2012, which

reflects comfortable situation.

Source:-http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-

value-added-percent-of-gdp-wb-data.png% 3Fs% 3D% 252Fpakistan% 252Fagriculture-value-added-percent-of-

gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-

wb-data.html&usg=__GQg6R-

FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbn

h=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search% 3Fq% 3Dagriculture% 2Bin% 2Bpakistan%

2Bcharts% 26um% 3D1% 26hl% 3Den% 26sa% 3DN% 26tbo% 3Dd% 26biw% 3D1366% 26bih% 3D640%

26tbm% 3Disch&um=1&itbs=1
http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.tradingeconomics.com/charts/pakistan-agriculture-value-added-percent-of-gdp-wb-data.png%3Fs%3D%252Fpakistan%252Fagriculture-value-added-percent-of-gdp-wb-data.html&imgrefurl=http://www.tradingeconomics.com/pakistan/agriculture-value-added-percent-of-gdp-wb-data.html&usg=__GQg6R-FYinfhG7ny7LPd4apBS6c=&h=300&w=700&sz=17&hl=en&start=9&zoom=1&tbnid=MxtYlBu4YEYRcM:&tbnh=60&tbnw=140&ei=0bLGUOy6NsLKrAeZ9IGgAg&prev=/search%3Fq%3Dagriculture%2Bin%2Bpakistan%2Bcharts%26um%3D1%26hl%3Den%26sa%3DN%26tbo%3Dd%26biw%3D1366%26bih%3D640%26tbm%3Disch&um=1&itbs=1


59/98


59

INFLATIONOF

PAKISTAN


60/98


60

Inflation is a rise in the general level of prices of goods and services in an economy overa period of time and when the general price level rises each unit of currency buys fewer

goods & services. Consequently, the inflation also reflects an erosion in the purchasing

power of money a loss of real value in the internal medium of exchange and unit of

account in the economy and a chief measure of price inflation is the inflation rate and the

annualized percentage change in a general price index (normally the Consumer Price

Index) over time.

Inflation's effects on an economy are various and can be simultaneously positive & negative andNegative effects of inflation include an increase in the opportunity cost of holding money

uncertainty over future inflation which may discourage investment and savings and also if

inflation is rapid enough, shortages of goods as consumers begin billboard out of concern that

prices will increase in the future and also positive effects include ensuring that central banks can

adjust real interest rates intended to mitigate recessions and encouraging investment in non-

monetary capital projects.

Economists generally agree that high rates of inflation and hyperinflation are caused byan excessive growth of the money supply Views on which factors determine low to

moderate rates of inflation are more varied and low inflation may be attributed to

fluctuations in real demand for goods & services, or changes in available supplies such as

during scarcities as well as to growth in the money supply. So, the consensus view is that

a long sustained period of inflation is caused by money supply growing faster than the

rate of economic growth.


61/98


61

Inflation is an inevitable property of any economy in the world or we can say in simplewords, inflation is the rise of general level of prices. Though, inflation is a much more

complex phenomenon than simply the increase of prices. Inflation is also identified with

the fall of market value of money within a particular economic system. Though, some

economists prefer to use the term inflation to describe a rapid increase in money supply

in a single economy. Commonly, this is the main cause of the increase of prices.

The first reaction to the term inflation is in most cases negative; however inflation is anindicator of a healthy economy. Commonly, mild inflation is a natural phenomenon of

any economy no matter how strong and stable it may be andsome economists say that

small steady inflation is greasing the wheels of commerce and one of positive effects of

mild inflation in a separate economy is that it is easier to adjust some relative prices.

Renegotiating these prices downward is much more difficult. Furthermore, some sectors

might suffer immensely from constant price level because of so-called sticky

downward prices that effect those sectors andso in an attempt to acquire 0 inflation,

employment & profits in such sectors would drop. In addition, stable prices and zero

inflation rate might trigger deflation, which in turn would entail recession, bankruptcy

and can even entail depression.

Whereas moderate and mild inflation is consider as a sign of healthy economy andinflation above these mild levels is considered to have a negative impact and when

government increases the money supply, and therefore the taxes, people are eager to

spend more money. With the growth of inflation, rate of taxes also increases and so

people are even more willing to spend money for 2 core reasons: to avoid paying taxes on

holding currency and to buy products before they increase in price. So, in such economic

conditions the demand for various goods is rapidly growing which naturally causes the

rise of prices and this collection of phenomena reinforces inflation, increases the velocity

of money and it is referred to as the vicious circle. This process is very difficult to

harness and in vast majority of cases it leads to hyperinflation.


62/98


62

The time value of money market expression is inseparable from inflation and from aparticular point of view inflation can be understood as a valid reason to invest money

rather than save it and the value of accumulated wealth would gradually decrease because

of inflation, which explains the expression above. Furthermore, there is a degree of

uncertainty regarding what the actual value of a particular currency would be in several

years but because of this uncertainty, investing is a correct activity.

The inflation rate as measured by the changes in Consumer Price Index (CPI) stood at10.8% during (July-April) during current fiscal year 2011-12, against 13.8% in the

comparable period of last year.


63/98


63

The food inflation on average basis is estimated at 11.1% and non-food 10.7%, against18.8% and 10.8% in the corresponding period of last year.

In these country the rise in non-food inflation has resulted from the upward adjustment inenergy, gas, electricity and fuel prices.

Core inflation is estimated at 10.4% during July-April 2011-12.

The Wholesale Price Index (WPI) during July to April, 2011 to 12 on annual averagebasis has recorded at 11.2% against 21.0% last year.

The Sensitive Price Indicator (SPI) recorded at 8.5% during July-April, 2011-12 against18.1% of last year.

In Pakistan the increase in overall inflation has driven by rise in world commodity andfuel prices, disruption in domestic supply chain by the floods.

Though, inflation has been contained during current fiscal year as compared to last yeardue to tight monetary policy better supply management & regular monitoring of prices

and supply chain by the Cabinet & National Price Monitoring Committee.


64/98


64

MONETARY

POLICY


65/98


65

The economy seems to have settled at an unenviable equilibrium of high inflation andlow growth and the protracted energy crisis and weak fiscal fundamentals are the main

reasons behind this outcome. Similarly, the declining trend in private investment

expenditures is continuing while strength of the balance of payment position remains

contingent upon foreign financial inflows. The pace of increase in domestic debt is also

considerabl

Documents

Economic Sectors of Pakistan(1)