National University of Sciences

& Technology
(NUST-PNEC)

Name: _____________________________

Roll No: _____________________________

Semester: _____________________________

Section: ______________________________

Subject: Economincs Engineering

2023
What is the current and previous year’s economic growth of Pakistan?
What can be the possible reasons of the fluctuation?
Annual percentage growth rate of GDP at market prices based on constant local currency.
Aggregates are based on constant 2010 U.S. dollars. GDP is the sum of gross value added by
all resident producers in the economy plus any product taxes and minus any subsidies not
included in the value of the products. It is calculated without making deductions for
depreciation of fabricated assets or for depletion and degradation of natural resources.

Pakistan GDP growth rate for 2022 was 6.1%,

Pakistan GDP growth rate for 2023 was -0.5%, which is a massive decrease in the GDP.
According to International Monetary Fund.
 -:Reason for Fluctuations:-
Fluctuations in any country, including Pakistan, can be influenced by a combination of
economic, political, social, and environmental factors. It's essential to note that the
situation is dynamic, and various factors may interact to contribute to fluctuations. Here are
some possible reasons for the fluctuations.

1. Economic Factors:-
 Inflation: Fluctuations in inflation rates can impact the cost of living and affect
consumer spending.
 Exchange Rates: Currency devaluation or appreciation can impact trade balances
and the overall economy.
 Trade Deficit: A widening trade deficit can lead to economic instability.
2. Political Instability:
 Government Policies: Frequent changes in government policies can create
uncertainty and affect investor confidence.
 Corruption: Widespread corruption can hinder economic growth and development.
3. Security Issues:
 Terrorism: Persistent security concerns can negatively impact investment, tourism,
and overall economic activity.
4. External Debt and Aid:
 High Debt Levels: A high level of external debt can put pressure on the country's
finances.
 Dependency on Foreign Aid: Reliance on foreign aid can make the country
vulnerable to external economic conditions.
5. Natural Disasters:
 Climate Change: Increasing frequency of natural disasters, such as floods
or droughts, can impact agricultural productivity and infrastructure.
6. Population Growth:
 Demographic Pressures: Rapid population growth can strain resources
and services, impacting economic development.
7. Health Crises:
 Pandemics: Events like the COVID-19 pandemic can have significant
economic and social repercussions.
Also explain the terms?
a. GDP per capita:-
Gross Domestic Product (GDP) per capita is a measure that represents the average
economic output per person within a specific region or country. It is calculated by
dividing the total Gross Domestic Product of a country by its population. The formula for
GDP per capita is:
GDP per capita = Gross Domestic Product / Population
b. GDP growth:-
Gross Domestic Product (GDP) is the total value of all goods and services produced
within a country's borders over a specific time period. GDP growth refers to the
percentage increase or decrease in the value of the country's goods and services
production over time, usually measured on a quarterly or annual basis.
a. GDP per capita rank:-
GDP per capita is the GDP divided by the total population of a country. It provides a
measure of average economic output per person. The GDP per capita rank indicates a
country's position in terms of economic output per person when compared to other
countries.
b. GDP by sector:-
GDP is typically divided into different sectors based on the nature of economic activities.
The three main sectors are:
 Primary Sector: Includes agriculture, forestry, fishing, and mining.
 Secondary Sector: Involves manufacturing and industry.
 Tertiary Sector: Encompasses services such as retail, healthcare,
education, and finance.

e. GDP by component:-
GDP can be broken down into four main components, representing different types of
economic activities. These components are:

 Consumption (C): Spending by households on goods and services.

 Investment (I): Spending on capital goods and additions to inventories by
businesses.
 Government Spending (G): Expenditures by the government on goods and
services.
 Net Exports (Exports - Imports): The value of a country's exports
minus its imports.
2. Exports and Import deficit of the country?
Export:-
According to the provisional figures compiled by the Pakistan Bureau of Statistics, exports from
Pakistan during February, 2023 amounted to Rs.584,156 million (provisional) as against
Rs.525,461 million in January, 2023 and Rs.497,273 million during February, 2022 showing an
increase of 11.17% over January, 2023 and by 17.47% over February, 2022.

Import:-
Imports into Pakistan during February, 2023 amounted to Rs. 1,075,784 million (provisional) as
against Rs. 1,141,525 million in January, 2023 and Rs. 1,027,152 million during February, 2022
showing a decrease of 5.76% over January, 2023 but an increase of 4.73% over February, 2022.