ECONOMIC CRISIS OF

PAKISTAN
SEQUENCE OF PRESENTATION
 Introduction
 Economic Crisis of Pakistan
 Causes
 Effects

 Challenges

 Conclusion
 Recommendations
 Bibliography
 INTRODUCTION

 History of the Problem:

 Distribution of assets at the time of partition
 Dynamics of South Asia
 Loans from international institutions (IMF)
 Burden of War on terror
 Ill aligned policies of governments
 CAUSES OF ECONOMIC CRISIS OF
PAKISTAN

• Short Term Policies

• Natural Disasters
• Excessive Reliance on Financial Institutions
• Macro-economic issues
• Low Tax-Base
o About 50 million tax payers
 CONTINUED…
 Decline in exports
 CONTINUED…

• Over-valued Currency
• Undocumented Economy
• High Defense Expenditure
• Terrorism
o Global Terrorism Index- 4th worst hit out of 163

states
• Current Account Deficit
• Energy Crisis
 EFFECTS OF ECONOMIC CRISIS OF
PAKISTAN

 Unemployment
 Inflation

 Circular Debt

 Budgetary Constraints

 Declining Purchasing Power

 Withering Trust of Foreign Investors

CHALLENGES OF ECONOMIC CRISIS OF
PAKISTAN

 Lack of Quality Education

 94th out of 137th in Global Quality Education List
 Neighboring India stands at 34th
 63% children enrolled in primary schools, half of
them dropout due to various reasons
 Poverty
 1/3rd of Population below Poverty Line
 CONTINUED…

 Lack of Good Governance

 Debt Servicing
 Around 30% government expenditure earmarked
 CONCLUSION

Without any doubt the targets are difficult but not

impossible.

All institutions of the country must work in collaboration

to improve the economic indicators.

The impacts shall certainly become palpable in all spheres

of the society.
 RECOMMENDATIONS

• Investment Friendly Environment

• Encouragement of Domestic Industry
• Long-term policies
• Investment in Human Capital
o 164th among 195 states in terms of investment in

Education and Health

o 134th among 157 countries in World Bank’s Human

Capital Index
 CONTINUED…

 Capitalize on CPEC opportunity

 Equitable taxation for all industry
 Resolve Energy Crisis
 Promotion of Tourism Industry
 WEF’s Travel and Tourism Competitiveness Index

2019 ranks Pakistan 121 among 140 countries

 Three positions improved since 2017
 BIBLIOGRAPHY
 CSIS. (2019). Center for Strategic and International Studies. Retrieved 11 25, 2019,
from CSIS: https://www.csis.org/analysis/economic-crisis-pakistan-again-whats-
different-time
 Malik, S. (2019). Pakistan's Economic Woes: The Way Forward. Retrieved 11 26,
2019, from https://thediplomat.com/2019/04/pakistans-economic-woes-the-way-
forward/
 Rana, S. (2019). Tax-to-GDP ratio sinks to lowest in five years at 9.9%. Retrieved 11
25, 2019, from https://tribune.com.pk/story/2004148/2-tax-gdp-ratio-sinks-lowest-five-
years-9-9/
 Talpur, M. (2017). Nine Causes of Slow Economic Growth in Pakistan . Retrieved 11
24, 2019, from https://dailytimes.com.pk/7932/9-causes-of-slow-economic-
development-in-pakistan/
 Yaqoob, M. (2011). The Causes of Economic Crisis in Pakistan and Its Remedial
Measures. SBP Research Bulletin .
THANK YOU