Hania Adeel
Ahsan Nawaz 0917101 BSBS-SS(II)

Indicators of Economic Development


Economic Growth
A measure of the value of output of goods and services within a time period
Main sources of growth
Increase in resources Increase in productivity

Growth policies
Fiscal policy Monetary policy Growth or supply-side policy supply-

National Income Accounts (NIA) identity

GDP (Y) = C+I+(X-M) C+I+(XConsumption

Exports - Imports

Pakistan: Ten Years Ago
Nuclear tests lead to sanctions, depletion of foreign exchange reserves and deteriorating economic situation Capital Account Closure Heightened currency depreciation fears Sovereign Risk High Rating downgrade risk from International Credit

Pakistan: 2000-07 2000Consumption
Pakistan has registered 72% of GDP from consumption on average Structural changes

Increase in workers¶ remittances Real private consumption grew by 5.8% Purchasing power of people

Pakistan: 2000-07 2000Investment
Investment must rise at a faster pace than consumption Real investment grew at an average rate of 9.5% Investment to GDP ratio raised from 16.8% to 22.5%

1997/98 2000-01 1992/93 to 1987/88 to to to 20001992/93 2006-07 1997/98 01 GDP Agriculture Manufacturing Others Investment Per Capita Income 5.0 3.7 5.0 5.5 5.7 1.5 4.1 5.6 3.5 3.6 1.6 0.6 3.5 1.7 4.4 4.1 -1.6 -1.8 5.95 4.7 12.4 5.5 2.43 5

Figures are described in %

Current Challenges
Improve Macroeconomic Environment Bring Debt Situation Under Control Restore Investor Confidence Revive Economic Growth Restore Financial Sovereignty

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