STUDY OF MICRO & MACRO

ECONOMICS OF PAKISTAN

SUBMITTED TO: PRESENTED BY:

PROF : SUHRUD SANTOSH KUMAR
NEURGAONKAR MARKITING : B
(MITSOT) PRN : 092051
 Pakistan

Formal Name: Islamic Republic of Pakistan.

Short Form: Pakistan.
Term for Citizen(s): Pakistani(s).
Capital: Islamabad (Islamabad Capital Territory).
Major Cities: Pakistan has seven cities with a population
of 1 million or more: Karachi (9,339,023), Lahore (5,143,495),
Faisalabad (2,008,861), Rawalpindi (1,409,768), Multan
(1,197,384), Hyderabad (1,166,894), and Gujranwala
(1,132,509).
Capital: Islamabad
Total area : 796,095 sq km
Economy of Pakistan
Rank : 28th economy.
Currency :1 Pakistani Rupee (PKR)
Rs. = 100 Paisa
Fiscal year :July 1–June 30
GDP :$433.1 billion (2009 est.)
GDP growth : 4.2% (2009 est.)
GDP per capita : $2,500 (2009 est.)
Trade organisations
ECO

 SAFTA

ASEAN

 WIPO

 WTO
 TRADE
Exports $19.55 billion (2010 est.) (67th)
Export goods : textile goods (garments, bed linen, cotton cloths, and yarn), rice, leather
goods, sports goods, chemicals manufactures, carpets and rugs
Main export partners: United States 22.4%, UAE 8.3%, UK 6%, China 15.4%, Germany
4.7% .

Imports : $28.31 billion f.o.b. (2009 est.)

Import goods : Petroleum, Petroleum products, Machinery, Plastics, Transportation
equipment, Edible oils, Paper and paperboard, Iron and steel, Tea
Main import partners : China 14.7%, Saudi Arabia 10.1%, UAE 8.7%, Japan 6.5%,
United States 5.3%, Germany 5%, Kuwait 4.9% .
Main industries
textiles
chemicals
 food processing
steel
 transport equipment
paper products
 automobiles
 machinery
 beverages
construction
materials
Clothing, paper products.
Pakistan Balance of Trade

Pakistan reported a balance of trade deficit

Equivalent to 1450.9 Million USD in July of 2010.
Pakistan exports rice, furniture, cotton fiber, cement,
tiles, marble, textiles, clothing, leather goods, carpets
and rugs and food products. Pakistan imports mainly
petroleum, petroleum products, machinery, plastics,
transportation equipment, edible oils, paper and
paperboard, iron and steel and tea.
 
Cont….
Exports of goods; services; income and workers' remittances (BoP;
US dollar) in Pakistan

This page includes a chart with historical data for

Exports of goods; services; income and workers'
remittances (BoP; US dollar) in Pakistan. The
Exports of goods; services; income and workers'
remittances (BoP; US dollar) in Pakistan was
reported at 33791200000.00 in 2008, according to the
World Bank. Exports of goods and services are the
total value of goods and services exported as well as
income and workers' remittances received. Workers'
remittances include compensation of employees.
 Pakistan Exports

Pakistan exports were worth 1787.9 Million USD in July of

2010. Pakistan exports rice, furniture, cotton fiber, cement,
tiles, marble, textiles, clothing, leather goods, sports goods,
surgical instruments, electrical appliances, software, carpets
and rugs and food products. Pakistan now is being very well
recognized for producing and exporting cements in Asia and
Mid-East. Main exports partners are European Union (UK),
United States, UAE, and Afganistan. This page includes:
Pakistan Exports chart, historical data and news.
CONT……..
Pakistan GDP Growth Rate

The Pakistan economy expanded 2.00 percent over the last

year, as measured by the year-over-year change in Gross
Domestic Product (GDP ). Unlike the commonly used
quarterly GDP growth rate the annual GDP growth rate takes
into account a full year of economic activity, thus avoiding
the need to make any type of seasonal adjustment. The
Pakistan Gross Domestic Product is worth 167 billion dollars
or 0.27% of the world economy, according to the World Bank.
From 1998 until 2009, Pakistan's average annual GDP Growth
was 4.92 percent reaching an historical high of 9.00 percent
in December of 2005 and a record low of 2.00 percent in
December of 2001. This page includes: Pakistan GDP Growth
Rate chart, historical data and news.
Cont……
Pakistan Imports

Pakistan imports were worth 3238.8 Million USD in

July of 2010. Pakistan imports mainly petroleum,
petroleum products, machinery, plastics,
transportation equipment, edible oils, paper and
paperboard, iron and steel and tea. Its major import
partners are: European Union, China, Saudi Arabia,
United Arab Emirates and United States. This page
includes: Pakistan Imports chart, historical data and
news.
Cont…….
Pakistan Stock Market Index
Pakistan's main stock market index, the KSE100, rallied 531
points or 5.61 percent during the last 12 months. From 1990
until 2010 the KSE100 market value averaged 4439.71 points
reaching an historical high of 15676.34 points in April of 2008
and a record low of 538.89 points in June of 1990. This page
includes: Pakistan Stock Market Index chart, historical data
and news.
Tax revenue (% of GDP) in Pakistan
This page includes a chart with historical data for Tax revenue (% of GDP) in
Pakistan. The Tax revenue (% of GDP) in Pakistan was reported at 9.82 in 2008,
according to the World Bank. Tax revenue refers to compulsory transfers to the
central government for public purposes. Certain compulsory transfers such as
fines, penalties, and most social security contributions are excluded. Refunds and
corrections of erroneously collected tax revenue are treated as negative revenue.
Pakistan's economy has suffered in the past from decades of internal political
disputes, a fast growing population, mixed levels of foreign investment, and a
costly, ongoing confrontation with neighboring India. However, IMF-approved
government policies, bolstered by foreign investment and renewed access to
global markets, have generated solid macroeconomic recovery during the last
decade.


Pakistan Personal Income Tax Rates for 2009:

Slab No. /                                Taxable income                                   /  Rate of tax %

1.   Where taxable income is below Rs. 180,000                                              0%

2.   Where the taxable income is between Rs. 180,000 - Rs. 250,000             0.50%
3.   Where the taxable income is between Rs. 250,000 - Rs. 350,000             0.75%
4.   Where the taxable income is between Rs. 350,000 - Rs. 400,000             1.50%
5.   Where the taxable income is between Rs. 400,000 - Rs. 450,000             2.50%
6.   Where the taxable income is between Rs. 450,000 - Rs. 550,000             3.50%
7.   Where the taxable income is between Rs. 550,000 - Rs. 650,000             4.50%
8.   Where the taxable income is between Rs. 650,000 - Rs. 750,000             6.00%
9.   Where the taxable income is between Rs. 750,000 - Rs. 900,000             7.50%
10. Where the taxable income is between Rs. 900,000 - Rs. 1,050,000           9.00%
11. Where the taxable income is between Rs. 1,050,000 - Rs. 1,200,000       10.00%
12. Where the taxable income is between Rs. 1,200,000 - Rs. 1,450,000       11.00%
13. Where the taxable income is between Rs. 1,450,000 - Rs. 1,700,000       12.50%
14. Where the taxable income is between Rs. 1,700,000 - Rs. 1,950,000       14.00%
15. Where the taxable income is between Rs. 1,950,000 - Rs. 2,250,000       15.00%
16. Where the taxable income is between Rs. 2,250,000 - Rs. 2,850,000       16.00%
17. Where the taxable income is between Rs. 2,850,000 - Rs. 3,550,000       17.50%
18. Where the taxable income is between Rs. 3,550,000 - Rs. 4,550,000       18.50%
19. Where the taxable income is between Rs. 4,550,000 - Rs. 8,650,000       19.00%
20. Where the taxable income is more than Rs. 8,650,000                            20.00%

The basic exemption for male salaried person has been enhanced from Rs. 150,000 to Rs. 180,000. For the women
taxpayers this limit will be Rs. 240,000.
learning….
The Pakistan Gross Domestic Product is
worth 167 billion dollars or 0.27% of the world
economy, according to the World Bank. From
1998 until 2009, Pakistan's average annual
GDP Growth was 4.92 percent reaching an
historical high of 9.00 percent in December of
2005 and a record low of 2.00 percent in
December of 2009.
Cont…
Inflation rate in Pakistan is pretty high, therefore it
always made sense to
keep your money in $ and when the $ returns were
converted into Pak rupee
there was enough to pay your bills. 

However since 9/11 Pakistani rupee has

appreciated significantly and now State bank is in the
enviable position of
trying to maintain the $1=Rs60 level.
 Cont…..

when the rate of return are being reduced on

the saving schemas. So first let us look at what
we are actually talking about. The 12% return
that you are getting is subject to 10% wealth
tax. Which essentially means that you get 12% -
1.2% tax = Your actual return is 10.8%.
Learning…..
Human Rights: The government’s human rights record is
generally regarded as poor by domestic and international
observers, although there have been some improvements
since 2000. Security forces use excessive and sometimes
lethal force and are complicit in extrajudicial killings of
civilians and suspected militants. The police and military
have been accused of engaging in physical abuse, rape, and
arbitrary arrest and detention, particularly in areas of acute
conflict. Although the government has enacted measures to
counter these problems, abuses
 Investment learning…..
Problems facing the property sector in Pakistan
are very low rental yields, adverse tenancy laws,
absence of title to property and high property
taxes. However, Pakistan’s Securities &
Exchange Commission (SECP) has been
considering the regulatory framework for Real
Estate Investment Trusts