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Group Members: Abdullah Zain Abid khan Fawad Mir Asad Farouk

http://www.statpak.gov.pk/depts/fbs/publications/nec2005/nec44.pdf

Total literacy rate (%), 1999/2000 47 percent

Total adult literacy rate (%), 20032008 55 percent

Source:http://www.unicef.org/infobycountry/pakistan_pakistan_statistics.html#63

Youth (1524 years) literacy rate, 20032007, (Male ) 80 Percent Youth (1524 years) literacy rate,20032007, (female) 60 Percent

Source:http://www.unicef.org/infobycountry/pakistan_pakistan_statistics.html#63

Primary education is root cause

Causes: Opportunity Cost of child labor compared to education Costly reading material and stationary Effects: Low Overall level of economic development Extensive and widespread poverty

Data 2002

Registered Doctors
Registered Dentists

101,635
5,068

Nurses
Midwives Lady Health Visitors Population per doctor Population per dentist
Source: Issues In Pakistan economy by S.A Zaidi

44,520
23,084 6,397 1,446 29,405

Health Services Delivery (2006-07) Human Resources(Registered, 2007)


Total Health Facilities Hospitals Dispensaries Basic Health Units Rural Health Centers MCH Centers TB Centers First Aid Points: Beds in hospitals & dispensaries Population per bed Population to health facility ratio 13,937 965 4,916 4,872 595 1,138 371 1,080 105,005 1,515 11,413 Doctors Doctors registered as specialists Dentists Dental specialists Nurses Midwives Lady Health Visitors Lady Health Workers Lady Health Supervisors Population per doctor Population per dentist Population per nurse 107,835 19,623 7446 433 43,646 2,788 3,864 95,000 3,385 1,475 21,362 3,644

Source: http://www.health.gov.pk/

Source: http://www.who.int/whosis/mort/profiles/mort_emro_pak_pakistan.pdf

source: http://apps.who.int/globalatlas/predefinedReports/TB/PDF_Files/pak.pdf

source: http://www.who.int/malaria/publications/countryprofiles/profile_pak_en.pdf

Abid khan

The International Monetary Fund (IMF) was Established in 1944 responsible for promoting exchange rate stability and providing temporary assistance (under Stand-By Arrangement) to a member state facing short-term balance of payments difficulty.

The Fund introduced new support facilities with time i.e. SAF (Structural Adjustment Facility) ESAF (Enhanced Structural Adjustment Facility) EFF (Extended Fund Facility) and PRGF (Poverty reduction growth Facility) of medium-term nature.

SAPs are designed for individual countries but have common guiding principles and features which include
improving the balance of payment position, cutting the fiscal deficit, lowering inflation and increasing growth.

Trade Policy
To adopt competitive real exchange rates.devalue your currency Lifting restrictions on exports is advised to encourage exports Decrease in quantitative restrictions on imports..i.e. quotas and reduction in tariff to strengthen the international competiveness of domestic industry. The principal is outward-oriented export led path for economy, and domestic and international prices should be brought in line with each other.

Fiscal Policy
The reduction and elimination of fiscal deficits by curtailing public expenditure Increase in prices in the public sector for increasing revenues Reformed and rationalized tax system.to increase government revenue raising ability Subsidies on energy and agriculture sector substantially cut or eliminated altogether.

Public Enterprises

Financial Sector

Treat state economic enterprise same as private sector Reform public enterprise to improve efficiency and profitability Close or privatize unprofitable public enterprises to reduce government fiscal burden
Improve the regulatory framework to restore public confidence Relax interest rate ceilings Liberalize time deposit rates and lending rates

Industrial Policy

Agriculture

Remove protection from the industrial sector to make it more competitive Remove price controls over goods to improve resource allocation Promote export oriented industries
Eliminate bias against agriculture by adjusting exchange rate and removing the protection on industry Agric prices to be liberalized and subsidies discontinued.

Broad objectives achieved Economic growth revived Fiscal deficit and external debt ratio reduced Inflation came down to less than 4 percent in 2001-04 (re-emerging in later years and reaching 9 percent in 2005) Progress made in structural reforms especially in
trade, interest rate management and capital account liberalization.

the tax-GDP ratio remained at low level of 11% lending to public utilities high (1% of GDP) Social indicators showed improvement, yet they remained far below the desired levels.

Financial sector share in GDP increased quite significantly. Balance of trade deficit incresed from $1.208bn in 2003 to $20.745bn in 2008. Total external debt increased from $36.5b in 2002 to $52b by 2009

SDR 5.17 billion ($ 7.6 billion) equal to 500% of Pakistan's quota in the Fund. Arrangement period 23 months. disbursed in seven tranches It is on interest rate of 3.51-4.51%. The amount and interest will be repaid in five years from 2011.

Restore confidence of domestic and external Tightening of fiscal and monetary policies and Protect the poor and preserve social stability through a well-targeted and adequately funded social safety net. Initiated Economic Program to

Reduce fiscal deficit: 7.4% of GDP in 2008 to 4.2% in 2009 and 3.3% in 2010 Tighten monetary policy (increase interest rate, eliminate government borrowing) to reduce inflation to 6% in 2010 Increase expenditure on social safety net (0.6% of GDP to 0.9% in 2009) -work with World Bank to prepare a comprehensive program of safety net

Basic thrust of SAP in Pakistan has been to improve its balance of payment position by improving exports of cash crops Closure of public sector industries and removal of subsidies on food items and utilities. Rise in inflation Rise in poverty dramatic increase in the rate of suicides directly attributable to unemployment.

Pakistan received approximately US$31 billion in external assistance and IMF loans between 1985 and 2000, yet the amounts actually spent on infrastructure and the social action programme during this period have been miniscule in comparison Rampant corruption Vested interests and Economic mismanagement.

Impact faced by common people because of an immediate significant increase in the cost of utilities. 18% increase every two-three months in energy tariff. higher fuel costs and withdrawal of food subsidies. Burden transferred to consumers by industrialists through price hikes.

Fawad Mir

Large Scale Manufacturing


138% growth in 2005 since 2000

Small Scale Manufacturing


80% growth in 2005 since 2000

LSM growth reached highest in 2005


19.9%

Major Industrial estates developed


M3 Industrial Estate Sundar Industrial Estate Chakri Industrial Estate Port Qasim Industrial Estate

During 2005-08 telecom sector created


80,000 jobs directly 500,000 jobs indirectly

From 2004 to 2008 $9 billion FDI received


During 2007-08 $1.62 billion 30% of countrys total FDI

Represented 54% of economy Employed only 36% population Industry and agriculture were neglected

Textile exports
$10.5 billion in 2006-07 $10.62 billion in 2007-08 Declined by 20% in 2008 due to recession

Textile export share


67% in 1997 55% in 2008

Problems
Increase in Cost of Production Energy Crises Removal of subsidies Lack of new investment Global Recession

Asad Farouk

In 2004, Pervez Musharaf decides to send Pakistani military to Tribal areas Suicide bombing starts causing law and order problems.

Decline in Foreign Investments Internal Displaced People (IDP) Increase in Unemployment Stock exchange Suffered Decline Rise in Smuggling Governments Focus was not on dams and energy sector

We have lost 54 billion dollars in this war Press release by Foreign office

AID 10 billion dollar in Musharaf Era.

Land Mafia Sugar Mafia Cement Mafia Lng Mafia

Regulatory bodies doesnt have any importance because prices are controlled by these cartels

The same old nexus of bureaucracy, Military, Business giants and politicians controlling economy and resources.

It is considered as next Dubai A trade Corridor for China and Central Asian States But because of political instability its future is in danger. Example: Akbar bugtis extra judicial killing in Musharaf era.

Habib bank privatization


Privatized for 18 billion

The bank was sold at less than the price of its assets.

Bank of Punjab scandal


9 billion loan issued to haris steel and 2.2 billion given to phalia sugar mill of chaudhrys was written off.

Pakistan Steel mill

Intervention of judiciary saved Pakistan Steel . Government was going to receive only 21 billion where as the government was taking liability of 22 billion in shape of loans. Steel mill assets were 4457 acres of land,6.7 billion rupee profit in 2005.

Shaukat Aziz imposed GST Tax recovery targets were low Corruption in FBR Indirect Taxation Difference between have and have nots increased.

Akbar Bugti murder Chief Justice movement Lal Masjid Emergency NRO Benazir assassination

Turkey

The World Bank classifies Turkey as an upper-middle income country in terms of the country's per capita GDP in 2007. Turkey is often classified as a newly industrialized country by economists. GDP composition by sector agriculture: 9.3% Industry: 25.6% services: 65.1% (2009 est.

It has the world's 12th largest economy--and the third largest in Asia behind Japan and China Services, industry, and agriculture account for 54%, 29%, and 18% of GDP respectively

Why not martial law in Pakistan?

The Future of our economy lies in a civilized system. Politics is economics Military dictators and NRO democracy can never change the Fate of our economy and People Genuine democracy and Institutions can.