What Is Economy? • An economy consists of the economic system of a country or other area, the labor, capital and land-resources, and the economic agents that socially participate in the production, exchange, distribution, and consumption of goods and services of that area. Economy of Pakistan • The economy of Pakistan is the 27th largest economy in the world in terms of purchasing power, and the 45th largest in absolute dollar terms. • Pakistan has a semi-industrialized economy, which mainly encompasses textiles, chemicals, food processing, agriculture and other industries. Major Sectors • Agriculture • Industrial • services Industries • Cement • Electronics • Sports good • Cotton/Textile (largest Industry ) 66% exports and 44 % labor force • Fertilizers • Sugar • Steel • Edible oil Textile • It is major industry based on agriculture, heavy textile industry caters to domestic and external market. Major Centres are Faisalabad, Multan, Lahore and Karachi. Woollen Cloth is manufactured in Karachi, Lawrencepur, Harnai, Quaidabad, Multan and Bannu. Sugar • Pakistan has made tremendous progress in this industry. • It is a food item; agro based industry, • located in Sindh, Punjab and Sindh Iron and Steel Steel Mill near Karachi was set up with the help of the former Soviet Union. The major problem was that of raw material. The iron found in Pakistan is very poor in quality. Steel rolling units and iron related factories exist in different parts of Pakistan Machine, tools: • Heavy Mechanical Complex (HMC) Texla serve this purpose. HMC was set up with Chinese cooperation. • Machinery, industrial equipment, engineering goods, engines, machinery for sugar, cement, and fertilizer industry is prepared here Edible Oil • Vegetable Ghee, Cooking oil is a major food item. There is much expansion over the years both in private and public sectors. Now we are self sufficient, although some raw material for making cooking oil is imported. • About 60 units are in Sindh, Punjab and NWFP. Sport Goods • Sport goods are football, hockey sticks, cricket bat, volley ball, golf ball, badminton rackets, basketball, boxing gloves • 40 million balls are annually exported worth 210 USD • Sialkot export 70% of world demand for inflatable balls increased 7.8% in last year. • Employment more than 200,000. • Exporting goods worth $450 million. Natural Resources • Pakistan has natural resources • Coal, Gas, Salt, Gold, Marble, Gam stones are big resources • Marble industry provide a lot of employment • Gold, copper Reserves is estimated to $260billion Agriculture Pakistan is one of the world’s largest producer of the following crops • Wheat • Rice • Mangoes, Dates, Oranges • Cotton • Onion Agriculture • 25% of the total land area is under cultivation and water b the one of the largest irrigation system in the world • 22% GDP • Employs 44% Labour • Zarai Tarqiati bank is the largest financial institution Services • finance, • advertising, • telecommunication • Transportation • Tourism Tourism • Pakistan with its diverse culture, People and landscapes has attracted 75 million tourists • Ancient civilizations like Mohenjo-daro, Harappa and Taxila attract tourists • Due to 2nd highest mountain it attracts adventurers and mountaineers • Hunza, kalash valley n their culture • Mughal Architect Private Sector • Communication : Private mobile companies • Banking : private banks • Non profit organizations • Multi national companies Crisis In Economy • The economy has suffered in the past from decades of internal political disputes, • a fast growing population, • mixed levels of foreign investment, and • a costly, ongoing confrontation with neighboring India. • War on terror n terrorism within state • Energy Power crises • Inflation remains the biggest threat to the economy, jumping to more than 9% in 2005 before easing to 7.9% in 2006. • In recent few years, load-shedding has destroyed industrial growth in Pakistan Future Directions • There is no escape from industrialization. It is a must for prosperity and development. • We are having Mixed economy with an emphasis on private initiative. Privatisation and Foreign investment need appropriate conditions: • political and economic stability, infrastructure, less bottle necks, corruption issue, low interest loans and state support and above all security of investment.
