2. Economic Challenges of Pakistan
Presented By:
 Zeeshan Raza

3. Outlines
 Introduction to Economy
 Initial Phase of Economic Challenges of Pakistan
 Economic Planning In Pakistan
 Contemporary Economic Challenges of Pakistan

4. Introduction to Economy
 An economy is a system of making and trading things of value.
 Its is usually divided in to goods and services.
 It makes trade possible.
 Set of interrelated production and consumption activities.

5. Initial Phase of Economic Challenges
of Pakistan
 Large Scale of Population movement
 Heavy Influx of refugees
 Division of Assets and Cash
 Cotton mills, Factories and Office machinery
 Underdevelopment of Karachi port
 Military assets
 Distribution of rivers

6. Economic Planning in Pakistan
 First five year plan (1955-1960) presented by liaqat Ali Khan. It Focuses on Agriculture
sector.
 Second five year plan (1960-1965) presented by Ayub Khan government. Priority was
given to heavy industrial development.
 Third five year plan (1965-1970).It focuses on GNP growth and enhances the capability
of private sector.
 Fourth five year plan (1970-1975) is presented during reign of Bhutto. It replaces
nationalization program.
 Fifth five year plan (1978-1983) is presented during General Zia era. It focuses to
eradicate poverty.
 Sixth Five year plan (1983-1988). It focuses to uplift the economy by 6.5 %.
 Seventh Five year plan (1988-1993). It emphasizes on public sector.
 Eighth Five year plan (1993-1998).It focuses on industries and commerce.

7. Contemporary Economic Challenges of
Pakistan
 Covid-19
 Energy Crises
 Political Instability
 Corruption
 Poverty
 Inflation
 Illiteracy
 Unemployment
 Infrastructure
 Population
 Global warming
 Trade deficit
 Terrorism
 CPEC
 Oil and Gas

8. Covid 19
 GDP declined from 1.9 % in 2019 to -1.5 % in 2020.
 Lock down
 Current account deficit shrunk from 4.8 % in 2019 to 1.1 % in 2020.
 Total export values contracted 7.5 %.
 Relief program of Rs. 144 billion handed over to 12 million families.

9. Energy Crisis
 It refers to shortage of electricity, oil, natural gas and natural recourses.
 Energy consumption increases by 1 kg ton of oil equivalent, GDP increases by $ 2.517
million .
 Increment in unemployment.
 Effect in agriculture
 Effect on industries
 Effect on education
 Effect on production
 Higher electricity Prices

10. Political Instability
 Role of civil and military bureaucracy.
 Protest.
 Displaced leadership.
 Dynastical politics.

11. Corruption
 It refers to the misuse of one’s power for personal gain.
 Pakistan ranked 120 in transparency corruption index in 2020.
 FATF grey list.
 Pakistan lost Rs. 8.5 trillion in corruption.
 Resource misallocation.

12. Poverty
 According to UNDP 65% population of Pakistan earns less than $ 2 per day.
 Pakistan is ranked among the 43 countries who are most exposed to poverty.
 Declination in GDP increases 30 to 40 percent poverty.

13. Inflation
 Annual inflation charges in Pakistan declined to 8.4 % in November of 2020.
 Sugar and Wheat guide rate have been blamed for inflation.
 Trading corporation of Pakistan (TCP) imports wheat to meat extra demand.
 Egg prices smash previous record.

14. Illiteracy
 Financial weakness is a sole factor of Pakistan Illiteracy.
 Only 36% of population are economically secured.
 Literacy rate of Pakistan is 58%.
 Most of the teens dispatched to earn cash for stay hood as a substitute of study.
 Most of the people do not endure the cost of Education.

15. Unemployment
 According to IMF unemployment rate in Pakistan is 6.2 % in 2020.
 Unemployment is the key measure of Economic health.
 Contemporary unemployment is due to Covid-19.
 Privatization of the government institutions made 80 million people unemployed in
2020.
 Businessmen are taking their investment out of the country.

16. Infrastructure
 According to World Economic forum Pakistan ranked 67th in the fundamental
Infrastructure category.
 Lack of infrastructure increases urbanization.
 According to World bank infrastructure comprise of roads, rails, ports, airports,
electricity, energy and water.
 The inefficiencies of the rail, road, port and aviation sectors are now costing the
economy over 4 % of GDP.

17. Population
 According to Worldometre elaboration Pakistan’s population is 222,974,428 in Dec
2020.
 Pakistan’s population is 2.83 % of the total population of world.
 Due to huge population Pakistan is unable to invest in education and health sector.

18. Global warming
 According to vulnerability index report Pakistan is a rankd 12th in country’s worst hit by
global warming.
 Due to high temperature and lack of water crops are damaging.
 Introduction of billion trees.

19. Trade deficit
 Import ratio is greater than export.
 Impact of covid-19.
 Tax collection.
 Government spends more, generate less.
 PBS reports march 2020 export are $1.8 billion in march 2019 and march 2020 $2.357
billion.
 Pakistan average share in world trade is 0.14%.

20. Terrorism
 Direct and indirect effects of terrorism on Pakistan economy.
 Loss of human capital diverting from investment.
 Redirecting public investment fund to security.
 Limiting trade.
 Foreign borrowing have increased.
 Ministry of finance report on economy losses in war and terror.

21. Oil and Gas
 Impact of energy sources on Pakistan economy.
 Lack of refineries.
 Importing oil
 Covid-19
 High rate of Petroleum products.
 OGDCL profit in 2019 is Rs 192.047 billion.
 NSGP agreement with Russia in 2017.
 Over fees and US sanction.

22.  Pakistan has second largest coal reservoir of 185 billion tons.
 Gas pipeline agreement with Iran 2011.
 Disagreement and sanction.
 Pakistan imports nearly 80% energy requirements from international market.

23. CPEC
 Insecurity.
 International pressure.
 Political instability.
 Global warming.
 Pressure of india.
 Profit distributions.