Pakistan economic policy played a major role in 4.7 percent real growth rate of its gross domestic product in fiscal 2008. It has been found that there was a growth rate of 7 percent per year for four successive years till 2007. Proper Pakistan economic policies made economic development look impressive in spite of being a very poor country. It has been seen that economic growth rate of Pakistan was better than average growth rate of world as a result of a stable economic policy in Pakistan.
Manufacturing and financial services sectors have boomed because of latest economic policy of Pakistan. Stronger economic reforms were taken up as parts of economic policy at Pakistan. Foreign exchange position has been improved and there was a growth in currency reserves. GDP growth rates have been steady growth. However, in present situation, inflationary stress and a low savings rate have retarded growth a little bit.
Syed Yousaf Raza Gilani, Prime Minister of Pakistan states that economic indicators of nation are positive. Probable respite to masses will be extended by government as part of economic policy of Pakistan. He also pointed out that he will take measures to deal with economic recession. However, it will take time as whole world has been afflicted by recession. Discount rate of central bank has improved by 1.5 percentage points in order to deal with high rate of inflation in Pakistan.
Syed Yousaf Raza Gilani also said that oil process will fall in comparison to depreciation in international and global markets. Value of Karachi Stock Exchange has increased along with most of emerging markets of world. Foreign investments are being also encouraged in areas of telecommunications, energy, software, real estate, automotives, fertilizer, textiles, aerospace, steel, ship building, cement and arms manufacturing as part of Pakistan economic policy.
Pakistan economic policies include reduction of poverty, which will help in growth and development. Pakistan government has plans to improve roads, dams and power generating plants to create more job opportunities and enhance growth. Economy of Pakistan is fast growing and Gilani assured that gains will be invested on benefit of people of nation. Farm sector, which now contributes one-fourth of GDP, is also expected to grow in recent years. As per economic policies of Pakistan 541 billion rupees will be spent for development of Pakistan.
With the ECB meeting and US jobs data the key events of the week, it is understandable the August US trade balance, due out Friday, is not drawing much attention. However, the combination of the growth differentials, favoring the US, and the strong dollar lead to some concerns that trade will act as a drag on GDP.
Nouriel Roubini, a.k.a. “Doctor Doom”, is chairman of Roubini Global Economics and professor of economics at New York University’s Stern School of Business. Roubini has been consistently cited as one of the world’s top global thinkers. This year, he was voted as the most influential economist in the world by Forbes magazine.
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
Mario I. Blejer is a former governor of the Central Bank of Argentina and former Director of the Center for Central Banking Studies at the Bank of England. Eduardo Levy Yeyati is Professor of Economics at Universidad Torcuato Di Tella and Senior Fellow at The Brookings Institution.
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