Report on Economic Performance of Pakistan since 1990 to

2015

Report prepared by:

To Respected Sir,
Mr.Farukh Qureshi

Presented in Khadim Ali Shah Bukhari Institute of Technology

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Reference:
Report of Economic Performance of Pakistan is general written for the purpose of knowledge
and education the research which has been made to write this report is solely taken from the
official and unofficial websites. Brief research has been made on economic activities on
Pakistan, there shall be websites mentioned at the end of this report for reference.

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TABLE OF CONTENT

 Introduction 01

 What Is Economic Performance 05

 What Is Economic Indicators 05

 Pakistan In 1990 06

 Pakistan’s Economics performance since 1990 to 2015 07

 Inflation Rate Since 1990 to 2015 09

 Unemployment Rate Of Pakistan Since 1990 to 2015 10

 Conclusion 12

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INTRODUCTION OF PAKISTAN:

Located in the continent of Asia, Pakistan covers 770,875 square kilometers of land and 25,220
square kilometers of water, which gives its location great significance. The Geography of
Pakistan is a profound blend of landscapes varying from plains to deserts, forests, hills, and
plateaus ranging from the coastal areas of the Arabian Sea in the south to the mountains of
the Karakoram range in the north.

The British government passed the Indian Independence Act on July 15th 1947. The Act
reaffirmed the principles envisaged in the Third June Plan. Mountbatten appointed a Boundary
Commission headed by Cyril Radcliff for demarcation of boundaries in the Punjab and Bengal.
The Boundary Award was completed and submitted to the Viceroy on 10th August and
announced on 17th August ,three days after the creation of Pakistan. Lord Mountbatten made
substantial changes to the Award and deprived Pakistan of certain Muslim majority areas in the
provinces of Punjab and Bengal Formation of Pakistan (14th August 1947):
Bengal and the Punjab assemblies voted for the partition of their respective provinces. Sindh
Assembly and Balochistan Jirga decided to opt for Pakistan. A referendum was held in the
North West Frontier Province from 6th to 17th of July. Majority of the voters were reported to
have voted in favor of Pakistan.
Mountbatten flew to Karachi to transfer power to the newly created state of Pakistan on 14th
August 1947. Quaid-e-Azam Muhammad Ali Jinnah was sworn in as the first Governor General
of Pakistan. Liaquat Ali Khan took over as the first Prime Minister. Territory of the state of
Pakistan was divided into two parts. These two parts known as East Pakistan and West
Pakistan, were separated from each other by nearly one thousand kilometers of Indian Land.

WHAT IS ECONOMIC PERFORMANCE:

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Income is one of the most significant factors in measuring economic performance, and gross
domestic product (GDP) is the most commonly used measure of a country's economic activity.
In short, GDP reflects the value of all final goods and services legally produced in an economy
in a given time period.

The distinction between final goods and intermediate goods is an important one. A tomato sold
to a ketchup manufacturer would NOT be included in the GDP number, while a tomato sold in a
store as produce would be included, as it represents the final use of that good. It is also worth
noting that trade in illegal goods and services are also excluded from GDP figures.

WHAT IS ECONOMICS INDICATORS:

Economic indicators are often combined to produce a composite view of economic

performance. For example, the state of Florida, on July 11, 2016, released an analysis on its
economic indicators for the month of May 2016. The analysis consisted of its CPI, employment
levels, unemployment insurance, unemployment rate, real estate and housing price index.

It was found that Florida's CPI for the month of May 2016 was slightly higher than the national
average. Employment within the state grew by 24,000 jobs from April to May, a good sign.
Unemployment claims, measured on a four-week moving average, remained well below the
state's peak in 2009, which resulted in an unemployment rate of 4.7%, equal to the national
average for May. Finally, new homes in Florida dropped by 9.1% and housing prices increased
by 2%, which may cause slight concern.

PAKISTAN IN 1990:

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As we see the Pakistan from 1990 , indeed there were a lot to cover but since this report this
particularly about economic growth from 1990 to 2015 , General elections were held
in Pakistan on 24 October 1990 to elect 217 members of the National Assembly They resulted
in a surprise victory for IslamiJamhooriItehad (IJI), a conservative front led by Nawaz Sharif,
which won 106 seats. The IJI had campaigned for privatization and social conservative policies.
Voter turnout was 45.5%The outgoing party, the PPP/PDA, lost the elections. IJI won the
popular vote by a very narrow margin of only around 100,000 votes, but the narrow victory in the
popular vote translated into 106 seats for IJI against the PDA's 44 seats. The popular argument
regarding PDA's huge loss of seats is that the PDA's vote, despite being almost equal to that of
IJI, was much more spread out whereas IJI's vote bank was more concentrated. This resulted in
PDA candidates losing in IJI won seats by narrow margins.

As new government taken control of country economics activities start to happen. In 1990 to
1991 GDP growth rate was 5.47 % and inflation rate was recorded as 12.66 % As an aftermath
of the 1990 general elections, the right-wing conservatives under the leadership of Sharif came to
the power for the first time in the history of Pakistan. Nawaz Sharif strike the stagflation with full
force after forcefully implementing the privatization and economic
liberalization programmes.[31] The stagflation was temporarily ended in the country. However,
Sharif's programmes were widely criticized by Pakistan Peoples Party in state media and the
growth did not contain the sustainability.[31] The privatization programme under the economic
liberalization programme came with largely surrounded controversies and reckless by Nawaz
Sharif to implement his programme. According to the Pakistan Peoples Party, Nawaz Sharif's
government arbitrarily fixing the reference prices of the (privatized) state units and ignoring
those suggested by the evaluations; though, Sartaj Aziz strongly dismissed the claims.

PAKISTAN ECONOMIC PERFORMANCE SINCE 1990 TO 2000

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GDP and GDP Annual growth rate:

From 1990 to 2000 Pakistan gone through various phases of GDP and GDP growth rate, a
huge raise in 1992 where GDP hit the top of 7.57 where as a fall has recorded in 1993 where
GPA stands on 2.1 percent.

From Year 2000 TO Year 2015

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The graphs shows the percentage rises in 2005 to 8.96% and a sharp drop on between 2008
and 2010 where as 0.36 recorded in 2009.

In Pakistan, services are the biggest sector of the economy and account for 53 percent of total
GDP. Within services the most important segments are: public administration and defence (18
percent of total GDP); wholesale and retail trade (17 percent) and transportation (10 percent).
Industry accounts for 25 percent of GDP. Within industry, the manufacturing segment
represents 19 percent of GDP and mining and construction accounts for 5 percent. The

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remaining 22 percent is contributed by livestock (11 percent) and fishing, forestry and
agriculture

INFLATION RATE SINCE 1990 TO 2015:

In Pakistan, services are the biggest sector of the economy and account for 53 percent of total
GDP. Within services the most important segments are: public administration and defence (18
percent of total GDP); wholesale and retail trade (17 percent) and transportation (10 percent).
Industry accounts for 25 percent of GDP. Within industry, the manufacturing segment
represents 19 percent of GDP and mining and construction accounts for 5 percent. The
remaining 22 percent is contributed by livestock (11 percent) and fishing, forestry and
agriculture.

Inflation refers to price rise of important essential commodities like wheat, flour, milk, meat,
medical services and other essential services of life etc. Inflation affects the whole social
framework of society including economy of the country, production and political environment.
Inflation is a deadly disease for developing economies as it imposes high cost on economies
and societies. Inflation refers to price rise of important essential commodities like wheat, flour,
milk, meat, medical services and other essential services of life etc. Inflation affects the whole
social framework of society including economy of the country, production and political

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environment. Inflation is a deadly disease for developing economies as it imposes high cost on
economies and societies.

UNEMPLOYEMENT RATE OF PAKISTAN SINCE 1990 TO 2015:

Like other major issues prevailing in Pakistan, unemployment is also the largest one. In
Pakistan, the unemployment rate is very high and the major reason is the wastage of resources
on the large scale. It results in the decrease in the income of people. The Unemployment
Problem in Pakistan is increasing rapidly and due to this, many crimes are taking place. We can
see that many people no matter, what the education are idle because they are not getting any
job not even the jobs of clerks, in ordinary offices or in schools. The condition of unemployment
is leading towards the depressing state and the main reason is the poor education system,
which are running under the government.

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Unemployment rate has always been a problem for Pakistan as high unemployment cause a
bad influence on economic performance, 7.8 unemployment rate recorded in 2002 where in
2008 only 5% recorded.

Graph shows an unemployment rate is high in 2012 and slowly decreasing in 2013 and 2014

One of the major and the biggest problems of unemployment in Pakistan is the growth of
population. According to the survey, the population of Pakistan is increasing with the rate of
2.2%. The reason behind the massive population is illiteracy, early marriages and also lack of
awareness. This problem is very common, especially in rural areas where there are more
uneducated people. Government or any other sector cannot provide them jobs.

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CONCLUSION:

Pakistan has been struggling throughout the time beginning from 1990 to 2015, Pakistan faced
many problems while establishing the economic like political instability or war threats by
neighbor country India, rate fluctuation in international market or unemployment, but there are
solutions to such problems such as to decrease the unemployment problem in Pakistan like the
improvement in the education system. There should be proper planning by the government of
Pakistan. Every sector should be developed and job should be given on the merit basis only.
Moreover, family planning centers should be opened everywhere to educate the people. In the
end, one must say that this unemployment problem should not be ignored as it holds great
importance. Increased investment in physical capital such as factories, machinery, and roads
will lower the cost of economic activity. Better factories and machinery are more productive than
physical labor. This higher productivity can increase output. An increase in investment in human
capital can improve the quality of the labor force. This would result in an improvement of skills,
abilities, and training. A skilled labor force has a significant effect on growth since skilled
workers are more productive.

Source of data:

https://tradingeconomics.com/

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