Tag Archives: Pakistan

Updates

Articles Newly Added

0- Insurance Companies of Pakistan  (Latest Feb 2013)

0- Pakistan: Why Deficit Financing has not worked and Alternative Strategies (Latest May 2011)

0- The Realistic Prospects for Investment in Pakistan (Latest May 2011)update

0- World Financial Crisis

0- JF-17 Thunder

0- Budget 2011-12  (latest)

0- Economic way forward for Pakistan – written by ex- PM Shaukat Aziz 

0- Communication Industry

0- CNG Industry

0- Textile Industry

0- Automobile Industry (updated Jan 2010)

0- Pakistan’s Hydroelectric Power Development

0- Pakistan’s Defense Industry goes UAV (updated Jan 2010)

0- Cement Industry

0- Musharraf Era: Pakistan Flourishes (updated)

0- Education Sector: Revolution Imminent (Latest)

Note: Kindly note that the links to all articles (Textile, CNG, Automobile, IT, etc)  have been updated! Articles may not turn up in google searches currently. Scroll below to view the Articles – Thanks!

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PAKISTAN: Why Deficit Financing has not worked and Alternative Strategies

Courtesy: VISION21

By, Afreen Baig

The World financial crisis of 2008 – 2010, exposed the weaknesses in the several of the first world economies, which were earlier considered to be the paradigm of economic success. Failure of the banking system, collapse of sub-prime mortgage business, ascending debt-to-GDP ratio, unpredictable unemployment and bankruptcies declared by several established businesses, raised serious doubts regarding the foundations of those economies.

Pakistan and most of the Middle Eastern economies have remained safe from the domino effect of the world financial crises, both for entirely separate reasons. The problems confronting Pakistan’s economy are due to economic mismanagement, living in quandary regarding policies, misplacement of priorities and corruption – not worldwide recession.

While the first world countries continue to have the resources and finances to deficit finance their economies out of recession, to push start the cycle and to increase the aggregate demand – third world and smaller economies like Pakistan have few viable options to exercise, these options being more functional and realistic. 

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Filed under Pakistan Economy, World Economy

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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Filed under Industrial sector, Investment, Musharraf Era, Pakistan Economy, Statistics & Indicators, Textile

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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Filed under Investment, Pakistan Economy, Statistics & Indicators

IT Industry overview

The IT and IT-enabled Services (ITeS) marketplace offers lucrative opportunities for developing countries to join the  ranks of the developed world. The scale and pace of growth in this sector is faster than in any other industry, and a number of developing countries are attempting to emulate the success enjoyed by countries such as China, Thailand and India.

Future IT Tower KHI

Future IT Tower KHI

The Government of Pakistan has been proactively developing the IT sector in Pakistan since the last few years. A few of the incentives offered include tax exemption till 2016, establishment of IT Parks with low rent, foreign ownership of equity invested in IT and 100% repatriation of profit allowed to IT companies.

State Bank Reporting Earnings Estimated Total IT Industry Export Revenue
Estimated Total IT Industry Size
US$ 116m US$ 1.4b US$ 2.8b

 

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Filed under Pakistan Economy, Telecom and I.T Industry

Cement Industry

Compiled by: Mirza Rohail B 

History & Introduction

 Growth of cement industry is rightly considered a barometer for economic activity. In 1947, Pakistan had inherited 4 cement cement_industry1plants with a total capacity of 0.5 million tons. Some expansion took place in 1956-66 but could not keep pace with the economic development and the country had to resort to imports of cement in 1976-77 and continued to do so till 1994-95. The industry was privatized in 1990 which led to setting up of new plants. Although an oligopoly market, there exists fierce competition between members of the cartel today.

The industry comprises of 29 firms (19 units in the north and 10 units in the south), with the installed production capacity of 44.09 million tons.  The north with installed production capacity of 35.18 million tons (80 percent) while the south with installed production capacity of 8.89 million tons  (20 percent), compete for the domestic market of over 19 million tons. There are four foreign companies, three armed forces companies and 16 private  companies listed in the stock exchanges. The industry is divided into two broad regions, the northern region and the southern region. The northern region has around 80 percent share in total cement dispatches while the units based in the southern region contributes 20 percent to the annual cement sales.   

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Textile Industry

Compiled By: Mirza Rohail B

Historically, Pakistan’s textile industry and clothing sector has always been a major contributor to the foreign exchange  earner and still contributes about 55% to the total export proceeds.

textile-to-exports1

The Economist reports that Pakistan is the 4th largest producer of cotton in the world and the 6th largest importer of raw cotton, the 3rd largest consumer of cotton, and the 1st largest exporter of cotton yarn. Over 1.3 million farmers, out of total of 5 million are involved in cultivation of this crop.

Textile exports in 1999 were $5.2 billion and rose to become $10.5 billion by 2007. Textile exports managed to increase at a very decent growth of 16% in 2006. In the period July 2007 – June 2008, textile exports were US$ 10.62 Billion.  Textile exports share in total export of Pakistan has declined from 67% in 1997 to 55% in 2008, as exports of other non-textile sectors grew.

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Filed under Pakistan Economy, Textile