PART1

THE REASON FOR DECLINE IN PAKISTAN’S ECONOMY:

OVERVIEW ON PAKISTAN’S ECONOMY SINCE 1951 TO TILL DATE:

Being a Pakistani if I see the current conditions happening in my country, I would

probably consider that my country has the lowest economy rate as compared to other
Asian countries. But when I studied it deeply and looked at the real facts I came to know
that Pakistan’s economy is the 2nd largest economy in South Asia. This is something that
gave me hope that we can overcome the decline soon by using plenty of resources
available here.
Pakistan’s overall GDP has increased since 1951 but still it is observed that the economy
is not stable due to some external and internal reasons. Pakistan’s economy is resilient
and has proved itself during the major crisis from year 1998 to 2005 which includes
Global Recession period, major event of 9/11, earth quake in Pakistan in 2005 and Asian
Financial crisis etc. Here is the graph which is issued by State Bank of Pakistan which
shows the GDP rate since 1951 to 2007.

Its resilience is proved by an experiment which showed that it is not as weather sensitive
as it was perceived, the analysis of 2008 which examined more then 65 countries to be
weather sensitive to the industry sectors and others, Pakistan’s economy was found to be
least weather sensitive in terms of its economy.

According to many sources, the Pakistani government has made substantial economic reforms
since 2000, but today due to inflation and economic crisis worldwide, Pakistan's economy
reached a state of Balance of Payment crisis.