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.
Compiled by: Mirza Rohail B
Pakistan is on the verge of Telecom revolution. Pakistan Telecommunications Authority (PTA) in 2004 introduced two types of license for ISPs – regional and nationwide, and also exempted them from Central Excise Duty. Since liberalization, over the past four years, the Pakistani telecom sector has attracted more than $9 billion in foreign investments. During 2007-08, the Pakistani Communication sector alone received $ 1.62 billion in Foreign Direct Investment (FDI) – about 30% of the country’s total foreign direct investment.
By March 2009, Pakistan had 91 million mobile subscribers – 25 million more subscribers than reported in the same period 2008. In addition to 3.1 million fixed lines, while as many as 2.4 million are using Wireless Local Loop connections.
Pakistan is ranked 4th in terms of broadband Internet growth in the world, as the subscriber base of broadband Internet has been increasing rapidly with the total base crossing 170,000 in the country. The rankings are released by Point Topic Global broadband analysis, a global research centre.
Pakistan according to PC World was amongst those top five countries with the highest SMS traffic processed with 763 million SMS during 2008-09. In terms of year-on-year growth, Pakistan traffic volume grew by 253 percent compared to last year during the same period.
The contribution of telecom sector to the national exchequer increased to Rs 110 billion in the year 2007-08 on account of general sales tax, activation charges and other steps as compared to Rs 100 billion in the year 2006-07.
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.
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.
Compiled By: Afreen Baig and Mirza Rohail B
Pakistan has an estimated population of 170 million, above two per cent of the world’s population and it’s the 6th largest country of the world.
Pakistan’s literacy rate was currently estimated at about 50% according to the United Nations Development Program 2009. As per the PSLM Survey 2004-05, the literacy rate of population 10 years and above was 53% showing an annual growth ratio of 1.5% since the 1998 census. As such, the estimated Literacy Rate comes to 56% in 2007. According to the statistics, Pakistan has made some steps forward trying to educate its children, but still there are around some 13 million children that do not receive any education and instead work or hard labor jobs or even in the streets, being completely or almost illiterate. Statistics indicate that India with 61%, Sri-Lanka with 90%, Iran 82% and China 93% are the few Asian countries with much faster development rate than Pakistan.
According to statistics by the Ministry of Education, there are 256,088 educational institutions of all categories in Pakistan, with a total enrollment of 37,462,884 students.
There are 182,477 (71%) education institutions in the public sector and 73,611 (29%) in private sector. Enrolment wise, public sector has an enrollment of 25,213,894 (67%) in various categories of educational institutions whereas 12,248,990 (33%) enrolment is in the private sector. The total male student enrolment is 21.133 million (56%), whereas the total female student enrolment is 16.329 million (44%). The total teaching staff is 1,363,501, out of which 0.756 million (56%) is in the public sector and 0.606 million (44%) in the private sector. Out of the total 1.363 million teachers, 0.617 million (47%) are male and 0.695 million (53%) are female teachers.
- The Federal Bureau of Statistics valued Marble Production sector at Rs.211,851 million in 2005 thus registering over 99% growth since 2000.
- The Federal Bureau of Statistics valued Large-scale Manufacturing at Rs.981,518 million in 2005 thus registering over 138% growth since 2000 while Small-scale manufacturing was valued at Rs.356,835 million in 2005 thus registering over 80% growth since 2000.
- The Federal Bureau of Statistics valued Construction sector at Rs.178,819 million in 2005 thus registering over 88% growth since 2000.