In fiscal year 2008, Pakistan GDP was $454.2 billion as per purchasing power parity, while Pakistani GDP as per official exchange rate was estimated to be $160.9 billion. Extensive research work shows that real growth rate in 2008 GDP of Pakistan was about 4.7 percent. Pakistan GDP according to per capita income has been estimated to be approximately $2,600.
Economical condition of Pakistan is underdeveloped as it suffers from internal crisis at several levels like economy, political disputes, low foreign investments and others. Every sector of Pakistan economy has made significant contributions to its GDP. Agricultural sector has contributed 20.4 percent to Pakistan gross domestic product. Industrial sector of Pakistan has accounted for 26.6 percent of 2008 GDP of Pakistan while 53 percent of Pakistani comes from services sector.
In 2008 fiscal deficit surpassed Islamabad’s target of 4% of GDP. This was result of low tax collection and increased spending. Inflation is a great problem in economy of Pakistan. In 2007, inflation was 7.7%, which jumped up to20.8% during 2008. This was so because of increase in prices of oil and various other commodities across world in this period. As result of political and economic instability, value of Pakistani rupee has depreciated.
However, government of Pakistan has talked of expanding Pakistan GDP to $38.15 billion in next five years. Pakistan gross domestic product was calculated to be approximately $94.80 billion during 2003-04. This amount had gone up to $132.95 billion by financial year 2008-09. Any improvement in conditions would be only possible if economy growth continues at a rate of seven per cent. Provided economic growth remained pegged to at least seven per cent growth per annum, Pakistan gross domestic product was expected to go up during financial year 2008-09.
However, at present, Pakistan economy is showing trends of growth as was forecast by federal government and donor agencies. This will lead to growth in GDP of Pakistan, greater employment opportunities, increase in per capita income and poverty removal. Various measures were taken by federal government to maintain and speed up current trend of economic growth in economic condition of Pakistan. Industry and service sector will increase in recent years, as was confirmed by Dr Ashfaque Hasan Khan, finance minister of Pakistan. Agricultural sector will not remain behind as well.
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