Tag Archives: GDP

Economic Indicators 1999-2009

Updated June 2010!

 

Compiled by: Mirza Rohail B and Afreen Baig

 

Pak Economy in 1999 was: $ 75 billion (Source)
Pak Economy in 2007 is: $ 160 billion (Source) and (Source)
Pak Economy in 2008 is: $ 170 billion (Source) and (Source)

GDP Growth in 1999: 3.1 % (Source)

GDP Growth in 2005: 8.4 % (Source)

GDP Growth in 2007: 7 % (Source) and (Source)

GDP Growth in 2009: 2 % (Source) and (Source)

 

GDP Purchasing Power Parity (PPP) in 1999: $ 270 billion (Source)
GDP Purchasing Power Parity (PPP) in 2007: $ 475.5 billion (
Source)
GDP Purchasing Power Parity (PPP) in 2008: $ 504.3 billion (
Source)

 

GDP per Capita Income in 1999: $ 450 (Source)
GDP per Capita Income in 2007: $ 926
(Source)

GDP per Capita Income in 2008: $1085 (Source)

 

Pak revenue collection 1999: Rs. 305 billion (Source)
Pak revenue collection 2007: Rs. 708 billion (
Source) and (Source)

Pak revenue collection 2008: Rs. 990 billion (Source)

Pak revenue collection 2009: Rs. 1150 billion (Source) and (Source)

 

Pak Foreign reserves in 1999: $ 1.96 billion (Source)
Pak Foreign reserves in 2007: $ 16.4 billion (
Source) and (Source)

Pak Foreign reserves in 2008: $ 8.89 billion (Source)

Pak Foreign reserves in 2009: $ 14.3 billion (Source)

 

Pak Exports in 1999: $ 8 billion (Source) and (Source)
Pak Exports in 2007: $ 18.5 billion (
Source)

Pak Exports in 2008: $ 19.22 billion (Source) and (Source)

Pak Exports in 2009: $ 17.78 billion (Source) & (Source) & (Source)

 

Textile Exports in 1999: $ 5.5 billion
Textile Exports in 2007: $ 11.2 billion (
Source)

 

KHI stock exchange 1999: $ 5 billion at 700 points
KHI stock exchange 2007: $ 75 billion at 14,000 points (
Source)
KHI stock exchange 2008: $ 46 billion at 9,300 points (
Source) and $ 20 billion at 4,972 points (Source)

KHI stock exchange 2009: $ 26.5 billion (Source) at 9,000 points (Source)

 

Foreign Investment in 1999: $ 301 million (Source)
Foreign Investment in 2007: $ 8.4 billion (
Source)

Foreign Investment in 2008: $ 5.19 billion (Source)

 

Large Scale Manufacturing (LSM) in 1999: 1.5% ( Source)

Large Scale Manufacturing (LSM) in 2005: 19.9% (Source)

Large Scale Manufacturing (LSM) in 2007: 8.6% (Source)

Large Scale Manufacturing (LSM) in 2008: 4.8%  (Source)

Large Scale Manufacturing (LSM) in 2009: (-8.2 %) (Source)

 

Debt (External Debt & Liabilities) in 1988: $ 18 billion

Debt (External Debt & Liabilities) in 1999: $ 39 billion (Source)  (Source)  (Source)

Debt (External Debt & Liabilities) in 2007: $ 40.5 billion (Source) and (Source)

Debt (External Debt & Liabilities) in 2009: $ 52 billion (Source) & (Source)

 

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The Realistic Prospects for Investment in Pakistan

Courtesy: VISION21

By, Afreen Baig

Budget 2010-11 has come with many promises to reform the economy. The government has set forth few objectives for it to achieve. The 7th objective is a resolve to make the country ‘fertile for investment’, with whatever limited resources available.

If an economy runs towards economic imbalance, stagnation or recession, or if one has to kick start a new economy, there are two main options any government has. First, the government along-with the Central bank pledges to pump in direct money to start the circulation cycle. Recent examples of this are the US government’s pledge for the ‘rescue package’ worth roughly $12 trillion towards the economy. Similarly UK government spent nearly a trillion Pound to bail out and refinance its bank through ‘Quantitative Easing’. Likewise, Japan also launched above $350 billion stimulus packages, to lift its economy out of the recent recession and over the past decade of its economic stagflation it has taken several such smaller initiatives to stimulate the economy. All these measure will fall under what is termed as Keynesian thesis after J M Keynes. Alternatively, one may call these Deficit financing. The idea is that the government uses its resources to increase consumption and liquidity which in turn increases demand and economic activity resulting in increased jobs and employment.

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Data: Board of Investment

Foreign Investment:  boi

 

2001-02: $475 million

2002-03: $820 million

2003-04: $922 million

2004-05: $ 1.677 billion

2005-06: $ 3.872 billion
2006-07: $ 8.417 billion
2007-08: $ 5.193 billion

 

Exports – Imports = Trade deficit/surplus 

 

2001-02: $ 9.13 bn — $10.34 bn = $1.2 billion

2002-03: $11.16 bn — $12.22 bn = $1.06 billion

2003-04: $12.31 bn — $15.59 bn = $3.28 billion

2004-05: $14.39 bn — $20.6 bn = $6.21 billion

2005-06: $16.47 bn — $28.58 bn = $12.11 billion

2006-07: $17.01 bn — $30.54 bn = $13.53 billion

2007-08: $19.22 bn — $39.96 bn = $ 20.74 billion

 

 

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Economic way forward for Pakistan

 Written By: Honorable Shaukat Aziz, ex-Prime Minister of Pakistan  shaukat2

2009:  When I was asked to write a piece on the economic way forward, I hesitated at first because I felt that with a new government in place it is better that we leave the way forward to the new economic  managers, rather than play the role of back seat drivers and provide unsolicited advice. But the  mountain of criticism of the previous government policies from all sorts of arm chair critics, ranging from retired bureaucrats and economists of the cold war era, who still  believe in the supremacy of state management of the economy and for whom Venezuela and Bolivia are the new role models, to Islamists who  feel that the entire western global economic system is doomed and we need to chalk out a new paradigm – convinced me that perhaps the time  had come to analyze the past and set the record straight, assess the current situation and contribute to the debate on the way forward.

Now that we have the political parties of the nineties back in power it can be instructive to examine a few economic indicators of the nineties with the past eight years and draw inferences. Since the economic growth numbers have been challenged by the critics.  I will use numbers that are not subject to disagreement. So for example, if the GDP growth numbers are being challenged, than other growth indicators that the public can understand can show the reality. The official GDP growth from around US $ 65 billion in 1999-2000 to US$ 165 billion in 2007-08 (a factor of 2.5 times) is challenged as being fudged, but growth of credit to the private sector over the same time period from Rs 1 trillion to Rs 2.5 trillion, again a factor of 2.5 times, cannot be challenged.

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The Pak Economy: Bigger than We Think

25 June 2004

The Finance Ministry of Pakistan came out with the Annual Economic Survey last week, and it offered both a huge surprise, and an explanation for an economic mystery that had developed over the last seven years. The mystery was how did India’s economy, measured on a per person (commonly called per capita) basis, become so much larger than Pakistan’s?

After the first 45 years of growth, Pakistan had enjoyed a faster rate of growth resulting in a higher per capita GDP (gross domestic product) than India. Since 1991, India has grown faster than Pakistan, but it started from far behind. However, about 1998, India’s statistics surged past Pakistan, and widened their lead through the next several years. By 2003, India had a GDP per capita of 500 dollars, while Pakistan, depending on the source, was about 450. Measured using an alternative technique that takes into account the lower costs of services and labor in poor countries (i.e. a haircut in Pakistan does not cost 15 dollars) to more accurately reflect purchasing power, India was listed as being way ahead at 2800 dollars versus only 1900 for Pakistan.

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Musharraf Era: Pakistan Flourishes

Compiled By: Mirza Rohail B

©Our leader – Musharraf

All this is all the more amazing when one considers that just six years ago, Pakistan was on the verge of bankruptcy, with only a little more than $1bn in foreign exchange reserves and its stock market teetering at 1,000 points (worth $5 billion only) and foreign debt servicing at 65% of GDP. Our exports were at a pitiful $7.5 billion.

The once ever-declining rupee stood stable at around 60-61 to a dollar since Musharraf took over. Of the 184 member countries of the IMF, Pakistan’s rate of economic growth 7% is one of the best in the world. The Karachi stock market is now above 13,000 points and worth around $65 billion. Now foreign debt servicing has lowered to become 28%. Our exports increased to become $18 billion.

1. Pakistan economy is among the fastest growing economies in the world as its economy has reached the size of $170 billion from a mere $70 billion in 1999. Pakistan attracted a record FDI of $8.6 billion in 2007-08.

2. 2007: National revenues had swelled from Rs 308 billion during 1988-99 to around Rs 800bn in 2007; and FBR estimates now 2.8 million Income Tax payers.

Year             Total CBR     Direct         Indirect      Custom     Sales     Central excise 

1998-99       308.5bn        110.4bn       198.1bn     65.3bn      72bn       60.8bn

2005-06       712.5bn       224.6bn       487.9bn     138.2bn    294.6bn      55bn   

2008-09     810.3bn        305bn             –          105.3bn    319.3bn       80.5bn  (2008-09 Progressive)

3. Public sector development program (PSDP) has also grown from Rs 80 billion in 1999; to Rs 520 billion in 2007 and increased further to Rs 549.7 billion in 2008.

4. FACT: The rate of growth in Pakistan Large Scale Manufacturing (LSM) is at a 30-year high. Construction activity is at a 17-year high.

LSM: 1999-00 was  1.5% and 2004-05 was 19.9% and 2006-07 was 8.6% and 2007-8 is 5%.

5. FACT: The Infrastructure Industries Index, which measures the performance of Seven industries, i.e. Electricity generation, Natural gas, Crude oil, Petroleum products, Basic metal, Cement and coal, has recorded a 26.2 percent growth in Industrial sector of Pakistan.

6. FACT: Jan 14: Pakistan now has a total of 245,682 Educational institutions in all categories, including 164,579 (i.e. 67 per cent) in the public sector and 81,103 (i.e. 100 per cent) in the private sector, reports the National Education Census (NEC-2005). The census — jointly conducted by the Ministry of Education, the Academy of Educational Planning and Management (AEPAM) and the Federal Bureau of Statistics (FBS) — reveals that the number of private-sector institutions has increased from 36,096 in 1999-2000 to 81,103 in 2005, i.e. by 100 per cent. 45,007 Educational Institutions have increased in Musharraf Era.

7. FACT: Pakistan is 3rd in world in Banking profitability, a report of IMF said. On the IMF chart, Pakistan’s banking profitability is on third position after Colombia and Venezuela. On the IMF chart India is on 36th position and China is on 40th position. Pakistan’s Banking sector turned profitable in 2002. Their profits continued to rise for the next five years and peaked to Rs 84.1 ($1.1 billion) billion in 2006

8. 11 May 2009: By producing 7.746 tonnes of gold during the last five years – 2004 to 2008Pakistan joins the ranks of gold producing countries. According to the data with the Saindak Metal Limited – during the last five years – Pakistan has produced 86,013 tonnes of copper, 7.746 tonne gold and 11.046 tonne silver, besides the production of 14,482 tonnes of magnetite concentrate (iron), bringing in a total of $633.573 million.

9. In 1999 what we earned as GDP: we used to give away 64.1 % as foreign debt and liabilities. Now in 2006, what we earn as GDP: we give ONLY 28.3 % as foreign debt and liabilities. Now we are SAVING 35 % of Our GDP for economic growth.

According to Department of Finance, External debt & liabilities (EDL) and DAWN:

1988 – $ 18 bn —–>  1990 – $ 20.5 bn —–>  1999 – $ 38.9 bn —–>  2000 – $ 35.48 bn —–>  2001 – $ 37.2 bn —–> 2002 – $ 34.8 bn —–>  2003 – $ 35.4 bn —–>  2004 – $ 35.3 bn —–>  2005 – $ 35.8 bn —–>  2006 – $ 37.6 bn —–>  2007 – $ 40.5 bn —–>  2008 – $ 45.9 bn —–>  2009 – $ 50 bn

 10. According to Economic Survey 2005. Poverty in Pakistan in 2001 was 34.46%. And, now after 7 years of Musharraf; Poverty in 2005 was 23.9%. Poverty DECREASED by 10.56%. Overall, 12 million people have been pushed out of Poverty in 2001 -2005!

11. Literacy rate in Pakistan has increased from 45% (in 2002) to 53% (in 2005). And, Education now receives 4% of GDP and English has been introduced as compulsory subject from grade 1.

12.  12-4-07: The IT industry, which was virtually non-existent seven years ago, has grown to be worth $2 billion of which $1 billion is export related. It rregistered a 50% growth. 55 foreign IT companies have already entered the market. Now the sector employed 90,000 professionals.

13. 30-1-08: The government has decided to set up a modern hospital cum Medical University in collaboration with the Harvard Medical International, USA, at a cost of Rs 18 billion. The university will be built at the Defence Housing Authority (DHA), Islamabad. A total of 2,500 students will be taught at the graduate level, while additional 600 seats will be available for postgraduate research courses.

14. Nov 2006: President Musharraf says that Pakistan will set up Nine Engineering World Class Science and Technology Federal Universities by 2008 with foreign assistance. He said the institutions of higher learning would be established in collaboration with Italy, South Korea, Japan, France, Sweden, Netherlands, Germany, Austria and China. The Cost of building these Foreign Universities will be above Rs 96.5 billion.

The Vice Chancellors, Heads of department, Professors and Faculty of the planned university will be from these Foreign Universities; while the Examination system, Quality assurance followed and the Degree awarded will also be from these Foreign Universities.

15. Government has approved to give at least 4% of GDP to Education in 2007 budget.

16. In 1999-2000 there were 31 Public Universities. Now 2005-2006 there are 49 Public Universities. HEC setup 47 Universities.

a) Air University (established 2002)

b) Institute of Space technology, ISB (established 2002)

c) Sardar Bahadur Khan Women University, Quetta (established 2004)

d) University of Science & Technology, Bannu (established 2005)

e) University of Hazara (founded 2002)

f) Malakand university, Chakdara (established 2002)

g) Karakurum International university, Gilgit (established 2002)

h) University of Gujrat (established 2004)

i) Virtual University of Pak, Lahore (established 2002)

j) Sarhad University of IT, Peshawar (established 2001)

k) National Law University, ISB (2007)

l) Media University, ISB (2007)

m) University of Education, Lahore (2002)

n) Lasbella University of Marine Sciences, Baluchistan (2005)

o) Baluchistan University of IT & Management, Quetta (2002), etc.

17. 6-member delegation of Australian Department of Education, Science & Technology and AusAID, is visited Pakistan on the request of PM Shaukat Aziz to help Pakistan in its efforts to realign its TVET (Technical and Vocational Education and Training) according to the market needs. Chairman NAVTEC Altaf Saleem informed the delegation about NAVTEC plans to increase the capacity to train one million people annually by 2010 from the present annual capacity of 320,000.

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Pakistan LoI to IMF

Pakistan: Letter of Intent, Memorandum of Economic and Financial

Policies, and Technical Memorandum of Understanding to IMF

 

 

November 20, 2008

 

 

1.    In the last decade, Pakistan’s economy witnessed a major economic transformation.

 

Ø  The country’s real GDP increased from $60 billion in 2000/01 to $170 billion in 2007/08 (fiscal year starts July 1st).

 

Ø  Per capita income rising from under $500 to over $1,000.

 

Ø  The volume of international trade increased from about $20 billion to nearly $60 billion.

 

Ø  Real GDP grew at more than 7 percent a year with relative price stability.

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