Economy :  

The Macmillan dictionary defines economy as the system by which a country’s

trade, industry and money are organised. By Merrium dictionary,  the system in one's
country of producing, buying, and selling goods.

GDP: The gross domestic product (GDP) of a country is one of the main indicators used to
measure the performance of a country’s economy. GDP can be thought of as the total value of all
goods and services produced within the borders of a country during a specific period of time,
usually a year or a quarter.
Impact of GDP on economy: When GDP growth is strong, firms hire more workers and can afford
to pay higher salaries and wages, which leads to more spending by consumers on goods and
services.Firms also have the confidence to invest more when economic growth is strong, and
investment lays the foundation for economic growth in the future. 
When GDP growth is very low or the economy goes into a recession (temporary economic decline), the
opposite applies (workers may be retrenched  ‫مختصر‬and/or paid lower wages, and firms are reluctant to
invest).

Nominal Current GDP of Pakistan: GDP(PPP):

GDP Growth: GDP Rank:

GDP per caita: GDP per capita RANK:

GDP BY sector:

Fiscal Account: Fiscal Account consists of two components; Government Revenues and
Expenditures. When Revenues = Expenditures, it is known as Fiscal Balance. When Revenues >
Expenditure, it is known as Fiscal Surplus and when Revenues < Expenditures, it is known as
Fiscal Deficit.
Trade Deficit:Excess of imports over the exports of goods is also known as Trade Deficit.
A country’s Balance of Payment (BOP) : The balance of payments (also known as balance of
international payments ) of a country is the difference between all money flowing into the country in a particular
period of time (e.g., a quarter or a year) and the outflow of money to the rest of the world. These financial
transactions are made by individuals, firms and government bodies to compare receipts and payments arising out of
trade of goods and services.

It consists of two major components known as Current Account and Capital Account.
Current Account:Transaction of income, services, gifts, goods.The Current Account is the
difference between a nation's total exports of goods, services and transfers, and its total imports
of them. (Net income) A current account deficit implies a reduction of net foreign assets: Current
account = change in net foreign assets. If an economy is running a current account deficit, it is absorbing
(absorption = domestic consumption + investment + government spending) more than that it is producing.

A current account deficit occurs when a country spends more on imports than it receives on exports. A trade
deficit happens when a country's imports exceed its exports
Capital Account(net change in ownership): Borrwing or lending to and from abroad,
investment to and from abroad, Sale and purchase of shares . Means: (The capital account is a
miscellaneous (mixed) account. Combined with the financial account, it represents the transfer of capital to
help pay for the current account, which includes the trade of goods and services. The capital account
is usually not very large.)

Trade deficit Imports-exports Imports Exports

Curent Account balance: Current account deficit (GDP diminishing)

Fiscal account deficit (Tax,expentditures)(budget)

Tax to GDP Ratio:

GNI (GrossNational Income): GNI is the total amount of money earned by a nation's people and businesses.
It is used to measure and track a nation's wealth from year to year. The number includes the nation's gross
domestic product plus the income it receives from overseas sources.

Debt to GDP ratio:  The debt-to-GDP ratio is the ratio of a country's public debt to its gross domestic
product (GDP). ... The higher the debt-to-GDP ratio, the less likely the country will pay back its debt and the higher
its risk of default.

Debt to GDP Ratio:

Total Debt (%of GDP): Debt servicing amount (%ofGNI):

Read Article: https://nation.com.pk/17-May-2020/how-pakistan-can-increase-tax-collection-by-rs44b-

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