Pakistan Economic Analysis: Low FDI and Conflict with India Raises Public Debt Burden

Pakistan economic analysis shows that national economy is not exactly in best of health. There are plenty of reasons behind present economic conditions that Pakistan finds itself in. Major causes have been low levels of foreign investment and an ongoing conflict with neighboring country India. Closer economic analysis in Pakistan reveals that this has contrived to bar Pakistani economy from achieving its fullest potential.

Pakistan economic analysis shows that national economy is not exactly in best of health. There are plenty of reasons behind present economic conditions that Pakistan finds itself in. Major causes have been low levels of foreign investment and an ongoing conflict with neighboring country India. Closer economic analysis in Pakistan reveals that this has contrived to bar Pakistani economy from achieving its fullest potential.

Pakistan GDP growth in fiscal year of 2008 has been estimated to be 5.8 percent. It can be assumed as a result of in depth economic analysis at Pakistan that due to internal conflicts and political disputes, economy of Pakistan has always been impoverished and underdeveloped.

In fiscal year 2008, gross domestic product of Pakistan with regards to purchasing power parity was estimated to be $454.2 billion. Pakistani GDP for official exchange rate was approximately $160.9 billion. Real growth rate in 2008 GDP of Pakistan, as per statistical data was found to be 4.7 percent, while $2,600 was GDP per capita income.

Economic analysis of Pakistan shows that each sector contributes differently to Pakistan economy. Agricultural sector contributes about 20.4 percent to Pakistan gross domestic product. 26.6 percent is contributed by industrial sector as was estimated by 2008 GDP of Pakistan. 53 percent was received from services sector during 2008.

Privatization of banking sector assisted by foreign assistance made Pakistan get access to global markets. This was suggested by IMF. There has been a macroeconomic recovery since then in Pakistan. Between 2004 and 2007, there has been a growth of 6-8 percent. As per in depth Pakistan economic analysis this growth was accelerated by industrial and service sectors. Since 2001, level of poverty has decreased by 10 percent and a steady development can be seen in Islamabad. There has been a 52 percent real increase in budget share.

Inflation, however, remains chief concern in Pakistan among public. In Pakistan economy, inflation rate moved up from 6.9 percent in fiscal year of 2007 to 11 percent in early months of 2008. This was result of mounting prices of commodities across financial globe. Since emergency rule in November 2007, value of Pakistani rupee has declined.

Detailed Pakistan economic analysis shows that there was 5.4 percent growth in manufacturing, 4.8 percent growth in large scale manufacturing and 1.5 percent growth in agriculture sector in 2008. In addition there has been a growth of 18.4 percent in per capita income and 17 percent growth in finance and insurance sector in 2008. Increase in public debt burden is also shown to have gone up from 55.2 percent of GDP to 56 percent.