A substantial amount of Pakistan economic growth is largely expected in fiscal year 2008-2009. Pakistan economy, one of largest in South Asia has been forecast to grow 5.5 percent in 2009. However, it was previously estimated to be 5.8 percent, as was said by finance ministry in Islamabad. However shortage of power and flawed polices have made chances of economic growth in Pakistan a little slim, as pointed out by deputy chairman of Planning Commission, Salman Faruqui.
Economic growth of Pakistan is seen through gross domestic product purchasing power parity, which was estimated to be $454.2 billion in 2008. Official exchange rate was approximately $160.9 billion, while real growth rate in 2008 GDP of Pakistan, as per statistical data was found to be 4.7 percent. GDP per capita income was $2,600 in 2008.
For economic growth of Pakistan, each sector contributes individual amounts to economy and thereby adding to GDP. Agricultural sector contributes about 20.4 percent to Pakistan GDP. 26.6 percent is added by industrial sector as was estimated by 2008. 53 percent was received from service sectors during 2008.
Government is introducing new policies to encourage economic growth in Pakistan. Poverty reduction is among main issues that have been taken up by government for economic growth of Pakistan. In Pakistan, it was estimated that more than 160 million people of this nation survive on less than $2 a day. Government has plans to improve roads, dams and power generating plants to create more job opportunity and enhance possibilities of economic growth at Pakistan. For this, 541 billion rupees will be spent to accentuate Pakistan economic growth. Pakistani Prime Minister Gilani assured that gains of Pakistan economic growth will be invested on benefit of common people. Farm sector is also expected to grow, which at present accounts for one-fourth of GDP.
Central bank of Pakistan has increased discount rate at which it lends to commercial banks by 1.5 percentage points. This was done to bring down inflation rate in Pakistan. In 2008, total investment was estimated to rise to 22.4 percent of GDP. Economy of Pakistan showed 5.4 percent growth in manufacturing, 4.8 percent growth in large scale manufacturing and 1.5 percent growth in agriculture sector in 2008. It has been found that there has been a growth of 18.4 percent in per capita income and 17 percent growth in finance and insurance sector in 2008. Pakistan economic growth is also marked by increase in public debt burden, which rises from 55.2 percent of GDP to 56 percent.
The US dollar is extending its gains in response to the strong US GDP figures. There are four elements of the report to note. First, the economy expanded by 4.0% in Q2, well above consensus expectations. Second, Q1 was revised to show a 2.1% contraction rather than 2.9%. Third, personal consumption improved to 2.5% from a revised 1.2% pace in Q1 (originally 1.0%). Fourth, and arguably even more significant that the growth itself is the core PCE deflator. It rose to 2.0% from 1.2%.
Professor of Economics & Director of the Earth Institute at Columbia University. Special Adviser to the UN Secretary-General on the Millennium Development Goals. Founder & co-President of the Millennium Promise Alliance.
Chancellor of the Exchequer of the United Kingdom from 1992 to 2007. Prime Minister of the UK between 2007 and 2010. Inaugural 'Distinguished Leader in Residence' at New York University. Advisor at World Economic Forum
James W. Harpel Professor of Capital Formation and Growth at the John F. Kennedy School of Government in Harvard University. Director of Program in International Finance and Macroeconomics at the National Bureau of Economic Research.