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Essay Outline: Economic Crisis in Pakistan: Challenges and Prospects

Table of Contents

CSS Essay Outline: Economic Crisis in Pakistan: Challenges and Prospects

By: mureed hussain jasra (csp), introduction.

1. Global economic crisis 2. Economy of Pakistan at a crossroads 3. Causes of economic decay In Pakistan

Challenges of Economic Crisis in Pakistan

1. Dwindling foreign exchange reserves 2. Current account deficit increasing exponentially 3. Stagnant Small and Medium Enterprises (SMEs) 4. Reduced Foreign Direct Investment (FDIs) 5. Shameful picture on human development index 6. Social fabric of Pakistan torn by a never ending war on terror 7. Myopic financial policies leading to fiscal quandary of Pakistan: Relying on IMF 8. Regressive taxation exempting the wealthy and squeezing the poor of Pakistan 9. Clienteles politics directly conflicting progressive reforms in fiscal policy 10. Rampant corruption and money laundering further festering the economic crisis of Pakistan 11. Mass illiteracy: biggest hurdle in the way of producing a well-trained workforce concentration of wealth in a few hands

Prospects of Economic Crisis in Pakistan

1. Increasing political awareness translating into positive political will necessary for economic progress in Pakistan 2. Investment by foreign countries and individual 3. Peaceful environment due to curtailment of terrorism: conducive environment for economic stability in Pakistan 4. Burgeoning middle class auguring well for economic prognosis of Pakistan 5. Policy initiative keeping public opinion at the center: a sure way for a stable economy 6. China-Pakistan Economic Corridor (CPEC) as a harbinger of economic stability 7. Advances in science and technology 8. Continuation of democracy laying a frame work of stable Pakistan 9. A robust foreign policy centered on regional cooperation to achieve trade viability 10. Restoration of relation with neighboring countries

About the author

economic problems of pakistan and their solutions essay css

Mureed Hussain Jasra (CSP)

Mr. Mureed Hussain Jasra boasts of a diverse professional background. Being a Civil Servant, he has served at important positions in the Federal Secretariat and autonomous bodies dealing with the important policy level matters. Prior to joining Civil Service of Pakistan, he served as a lecturer of English in the Federal Government of Pakistan and won accolades in academic circles and intelligentsia for his professional commitment and devotion to work. Mureed Hussain Jasra's current fame among the CSS aspirants owes to his stellar success as being the most towering CSS coaching teacher and mentor. Under his careful mentorship, many young men and women have won distinctions in the CSS/PMS competitive examinations and are now serving the nation in different capacities. He regards teaching as the singular driving passion of his life and has founded Civil Services Preparatory School for the young aspirants. Mr. Jasra is an avid reader of books and loves debate on history, culture, literature and governance. He is Masters in English Literature.

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An Analysis of Pakistan’s Economy in 2023

Pakistan’s Economy in 2023: Analyzing Its Challenges and Prospects

Pakistan’s economic situation in 2023 is marked by both challenges and opportunities, according to an Analysis of Pakistan’s Economy 2023. While many have suffered through difficult times economically recently, signs of growth and stability are emerging across the board.

Pakistan Is Facing 10 Economic Challenges

Pakistan’s rapid population growth – estimated at 2.2% annually – has placed additional strain on resources within the country. Leading to unemployment, poverty and inequality issues.

Pakistan suffers from inadequate infrastructure that is unable to keep pace with the growing needs of its rapidly increasing population. Hampering economic development and making it harder for businesses to compete against international rivals.

Low Tax Revenues: Pakistan suffers from an inadequate tax-to-GDP ratio. Meaning the government lacks enough revenue to finance public services and stimulate economic activity.

Deteriorating Public Finances:

Pakistan’s public finances have seen significant deterioration over the years, with budget deficit and public debt increasing significantly – exacerbating economic difficulties further.

An Ineffective Banking System and Economy:

Pakistan’s banking system is ineffective and cannot meet the needs of its population. Thus impeding economic development as businesses struggle to access funds necessary for growth.

Weak Regulatory Environment:

Pakistan suffers from an inadequate regulatory environment , which hinders economic development. Corruption and cronyism have proliferated throughout society as a result, further undermining progress toward economic advancement.

Lack of Investment in Economy:

Pakistan has not been successful at attracting sufficient foreign direct investment (FDI). An essential ingredient of economic development as it provides capital, technology, and access to new markets.

Human Capital Inadequacy:

Pakistan lacks an adequate pool of educated workers, which has limited its economic growth potential.

Poor Education:

Pakistan suffers from an inadequate educational system that has inhibited its citizens’ development of human capital and made them less competitive in global economies.

Pakistan is facing numerous security concerns that have prevented economic development, including terrorist attacks, political instability and regional tensions.

The current account deficit

Pakistan’s economy faces several serious obstacles. One being its current account deficit which has steadily been widening for several years now. This trend can be partly attributed to a large trade deficit and declining exports that has reduced foreign exchange reserves. Inflation also remains an ongoing concern as rising prices erode consumers’ purchasing power.

Pakistan’s economy has experienced substantial improvements.

Pakistan has experienced some positive economic developments despite these obstacles. Pakistan has made significant strides toward stabilizing its fiscal situation by taking measures to reduce budget deficit. And boost revenue collection, and by making efforts to attract foreign investment to spur economic growth.

Enhancing Infrastructure Development in Pakistan.

Recent years, Pakistan has also focused on strengthening its infrastructure, with particular attention being given to improving transportation and energy systems. Such investments should ultimately pay dividends by increasing productivity while simultaneously decreasing business costs in Pakistan.

Pakistan’s growing technology sector, which is driving innovation and increasing competitiveness. Pakistan boasts a vibrant startup ecosystem featuring many young entrepreneurs creating products and services which they hope can be exported abroad.

Even with these successes, however, the country still faces significant obstacles. Most notably, more must be done by government to address poverty and inequality. Two persistent issues in many parts of the country. Furthermore, improvements need to be made in business climate and make it easier for entrepreneurs to launch and expand their companies.

While Pakistan’s economic situation in 2023 presents both challenges and opportunities, there is reason for optimism. Recent progress made has resulted in some success; with continued efforts being put in to tackle its financial difficulties. It should be well positioned for building a more secure future.

Are IMF debt traps the real danger for Pakistan’s economy in 2023?

International Monetary Fund (IMF) loans have long been seen as being an economic debt trap for certain nations, such as Pakistan. Critics allege that IMF loan conditions can lead to an endless cycle of debt. And austerity measures that damage both economy and people in these nations.

Proponents of IMF programs maintain that these loans provide essential funding for countries facing economic difficulty. and that the conditions attached to these loans are essential in helping restore economic equilibrium and foster sustainable development.

Pakistan has received IMF assistance on multiple occasions in the past, though some of their conditions can be controversial. For example, Pakistan was required to implement austerity measures such as cutting spending and raising taxes that may prove challenging when facing economic instability.

Experts contend that Pakistan has benefitted greatly from IMF assistance in terms of meeting its key economic challenges, such as reducing fiscal deficit and stabilizing foreign exchange reserves. Furthermore, technical assistance was given by IMF which has helped strengthen Pakistan’s policies and institutions.

The International Monetary Fund is often seen as a debt trap for Pakistan’s economy. Though various experts hold differing viewpoints on the matter. While IMF programs can present challenges that require creative solutions and may hinder sustainable growth and stability in some instances. They can also be invaluable support in times of difficulty and provide invaluable assistance when times get rough.

Why experts consider IMF a Debt Trap?

Experts describe the International Monetary Fund as a debt trap for various reasons, including:

Conditions can be stringent:

International Monetary Fund loans come with stringent conditions that may include austerity measures and structural reforms. That can be difficult for countries to implement and can have far-reaching economic and social ramifications.

Cycle of Debt: IMF loans often carry with them strict conditions that force countries into an endless cycle of debt repayment; the country often taking on additional loans just to service previous ones. This burden of repayment is difficult to escape.

Harmful impacts on economy:

IMF-mandated austerity measures such as cutting spending and raising taxes can damage both a country’s economy and its citizens, including reduced consumer spending and economic growth.

Long-term impact on economy:

IMF loans may have significant long-term repercussions for an economy and its citizens. For instance, cutting spending on social programs may worsen poverty and inequality, while decreasing public sector size could have adverse effects on job creation and economic development.

Unwanted focus on development:

Critics contend that the IMF’s emphasis on macroeconomic stability and fiscal discipline can come at the expense of development and poverty reduction efforts that are vital components of long-term growth and stability.

Experts often refer to the IMF as a debt trap due to its stringent loan conditions and subsequent debt cycle, harmful effects on economies and citizens, long-term consequences, and lack of focus on development.

Will Pakistan be able to increase economic growth over the coming years?

Forecasting Pakistan’s economy can be difficult, but certain factors could have an effect on its ability to expand in coming years.

Political Stability: An attractive political environment is essential to attracting investment and supporting economic expansion. If Pakistan can maintain stability through reforms that foster an enabling business environment, its economy could see substantial improvements.

Reforms: Over the past several years, Pakistan’s government has implemented numerous reforms designed to enhance tax collection, reduce budget deficits and stabilize currency exchange rates. If these reforms continue along with measures designed to spur economic development, Pakistan could improve its economic outlook significantly.

Investment: Pakistan relies heavily on foreign investment to bolster its economy. If the government can create an environment conducive to investors, attracting sufficient funds could drive economic development forward.

Export Growth: Pakistan relies heavily on exports as an engine of economic expansion; thus increasing exports will be vital if it wants to achieve sustained economic development. If the government can improve competitiveness of exports and thus boost growth and the economy simultaneously.

Infrastructure Development: Infrastructure expansion.

Investment in infrastructure such as transportation and energy systems can reduce business costs while simultaneously increasing productivity. If governments continue investing in this area, economic growth could increase significantly and open new doors for business and industry.

Conclusion In summation, Pakistan’s economic success will depend on various factors including political stability, reforms, investment decisions, export growth and infrastructure development. If the government can overcome any hurdles to sustainable economic development and create an ideal environment for sustained economic development then Pakistan may achieve sustained economic stability and growth in coming years.

Conclusion Pakistan’s economic situation in 2023 was determined by a combination of factors, including government reforms, investment decisions, export growth and infrastructure development. While political instability and austerity measures present challenges to economic progress, progress was also made with tax collection and decreasing budget deficits.

International Monetary Fund (IMF) loans have long been considered controversial in Pakistan due to their strict conditions, which can create a debt trap. Critics contend that IMF’s focus on macroeconomic stability and fiscal discipline may come at the cost of development efforts and poverty alleviation initiatives.

Pakistan’s ability to successfully diversify and strengthen its economy over the coming years will depend on several key elements, including political stability, reforms, investment decisions, export growth and infrastructure development. If the government can maintain stability while creating an environment favorable to business and investment activity then sustained economic growth may be possible – yet with so many challenges still standing in its way it may take considerable effort and patience in order to realize lasting economic success for Pakistan.

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Muhammad Munib Rasool

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Pakistan’s Economic Crisis: Unveiling the Causes, Impacts, and Remedies

Dr. ali sajjad, 30 october, 2023.

Pakistan has been grappling with an economic crisis in recent years, which is marked by high rates of inflation, a declining currency, and an increasing debt load. The country’s population has been significantly impacted by this crisis, with many people finding it challenging to meet their financial obligations. This blog will cover the reasons behind the current economic crisis, its effects on the nation, and potential solutions to the problem.

Causes of Crises

1 – external debt.

Pakistan’s current economic crisis is primarily caused by its external debt, which amounts to $126.3 billion. The country owes this debt to a wide range of creditors, including multilateral organizations, Paris Club nations, private and commercial lenders, and China. The growth of this debt load can be attributed to several factors such as excessive borrowing, slow growth, weak exports, and currency depreciation. Pakistan’s foreign exchange reserves are currently around $4 billion, which is insufficient to pay for even one month’s worth of imports. As a result, there is a significant chance that the nation will not be able to pay its debts in full

2 – Inflation

Pakistan is currently facing a decline in the purchasing power of its populace and an increase in poverty due to a record-breaking inflation rate of over 25%. The rising costs of food, fuel, electricity, and imported goods are the primary causes of this inflation. The government’s expansionary fiscal and monetary policies, which were implemented to boost the economy in the face of the COVID-19 pandemic, have further exacerbated the inflationary pressure.

3 – Energy Crises

Pakistan is currently dealing with a persistent energy crisis that has seriously hampered its ability to produce goods and expand its economy. The country relies heavily on imported petrol and oil, which are expensive and prone to price volatility. Unfortunately, poor management, corruption, and a lack of investment in renewable energy sources have resulted in insufficient and inefficient domestic energy production. As a result, Pakistan frequently experiences load shedding and power outages, which negatively affect millions of homes and businesses. The country’s GDP has decreased by up to 4% recently as a result of energy shortages.

4 – Political Instability

Pakistan’s financial instability is significantly impacted by its political instability. Frequent changes in government, governance, and political unrest have weakened foreign and domestic investor confidence. This has led to a decrease in foreign direct investment (FDI), causing capital flight and lowering the likelihood of economic growth. Exchange rate volatility, caused by political unrest, harms businesses that depend on stable exchange rates for international trade. Inconsistent economic policies and budgetary constraints lead to budget deficits and increased borrowing, elevating the risk of sovereign debt crises. Insecurity issues related to political instability, including terrorism and civil unrest, disrupt economic activities, deter foreign investment, and damage infrastructure, collectively contributing to economic and financial instability in Pakistan. The political uncertainty has undermined the confidence of investors, creditors, and the public in the government’s ability to address the economic challenges.

Consequences of Crises

1 – social unrest.

Due to the economic hardships the Pakistani people have experienced, there is a great deal of unhappiness and frustration, which has taken many different forms, including protests, strikes, riots, and violence. The social fabric and confidence in the government have been damaged by the rising cost of living, unemployment, inequality, and insecurity. The nation’s stability and unity are in danger as a result of the economic crisis’s escalation of ethnic, sectarian, and regional tensions.

2 – Security challenges

Pakistan’s current economic crisis has significantly weakened its capacity to address both internal and external security challenges. The country is currently grappling with a resurgence of terrorism perpetrated by various militant groups. These groups have exploited the economic crisis to further their nefarious activities, posing a significant threat to Pakistan’s stability and security.

3 – Regional implications

Significant effects of Pakistan’s economic crisis on regional stability and growth. Pakistan, a nuclear-armed nation with a population of more than 200 million, is very significant from a geopolitical standpoint. The potential collapse or instability of Pakistan’s economy could have significant repercussions for its neighbors and the global community.

Solutions to the Crisis

To address the economic crisis in Pakistan, the government and international community must act urgently and comprehensively. The following are some possible solutions:

1 – Debt relief

Pakistan may think about asking for debt relief from its creditors to lessen payback pressure and spend resources for growth. The government can negotiate a favorable debt rescheduling or restructuring with its creditors. Pakistan might also receive crucial financial aid and policy direction by asking the International Monetary Fund (IMF) for help in restarting the halted bailout program.

2 – Structural reforms

It is essential to put structural changes into place to address the underlying causes of Pakistan’s economic problems. To lower inflation, the budget deficit, and the national debt, the government should implement responsible fiscal and monetary policies. To increase revenue production and boost efficiency, it is essential to improve tax collection and expense management. Additionally, expanding export markets and encouraging the export sector can increase foreign exchange revenues. Reduced reliance on imported oil and gas can be achieved by making investments in the energy sector and the development of renewable energy.

3 – Political dialogue

Pakistan must resolve its political crisis through constructive dialogue and consensus-building. The government and the opposition should engage in a peaceful and productive dialogue to end their confrontation and find a mutually acceptable solution to their differences. The government and the opposition should also work together to address the economic challenges and implement the necessary reforms. Both parties must respect the rule of law, the constitution, and the democratic process to ensure the legitimacy and stability of the political system.

4 – International collaboration

By enlisting the aid of its allies and partners, including China, Saudi Arabia, Turkey, Iran, and the United States, Pakistan can improve its international collaboration. This may result in financial support, business opportunities, easier commerce, and technological breakthroughs. The government should also improve ties with its neighbors, especially with India and Afghanistan, to promote regional peace and cooperation. By taking part in regional initiatives, Pakistan can gain from regional connection and integration.

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Dr. Ali Sajjad is currently working as an Assistant Professor at Chaudhary Abdul Rehman Business School, Superior University. From the University of Utara Malaysia, he obtained a PhD in Banking and Finance. Moreover, he is a researcher having years of teaching and research experience. He has several publications and his area of research is accounting, finance, entrepreneurship and Islamic finance.

Please note that all opinions, views, statements, and facts conveyed in the article are solely those of the author and do not necessarily represent the official policy or position of Chaudhry Abdul Rehman Business School (CARBS). CARBS assumes no liability or responsibility for any errors or omissions in the content. When interpreting and applying the information provided in the article, readers are advised to use their own discretion and judgement.

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Pakistan’s Informal Economy: The Way Forward CSS ESSAY 2020

Pakistan Informal Economy The Way Forward

Table of Contents

Thesis statement

The informal economy in Pakistan presents both challenges and opportunities, and a strategic approach is needed to harness its potential and address its drawbacks.

Introduction

The informal economy refers to economic activities that operate outside the legal and regulatory framework, often characterized by unregistered businesses, casual employment, and limited social protection. In Pakistan, the informal economy plays a significant role in employment generation and income generation, particularly for marginalized groups. However, it also presents challenges in terms of legal recognition, social security, and tax compliance. This essay explores the opportunities and challenges of Pakistan’s informal economy and proposes strategies for harnessing its potential for sustainable development.

Exposition: Understanding Pakistan’s Informal Economy

The informal economy in Pakistan is characterized by its large size and diverse nature. It encompasses a wide range of activities, including street vending, home-based work, small-scale manufacturing, and agriculture. The informality is fueled by factors such as limited access to formal employment, weak regulatory enforcement, and the informal social networks that facilitate economic transactions. Despite its prevalence, the informal economy faces limited legal protection and operates in a vulnerable environment.

Argumentation: Challenges of the Informal Economy

The informal economy in Pakistan faces several challenges that hinder its potential benefits. Firstly, informal workers lack legal recognition and protection, leading to exploitative labor practices and limited access to benefits such as minimum wages, social security, and occupational safety. Secondly, the absence of formal financial inclusion restricts access to credit and savings, hindering investment and growth. Thirdly, the informal sector’s contribution to tax evasion deprives the government of vital revenue, limiting public investment in infrastructure and social services. Lastly, the informal economy can create an uneven playing field, impacting the formal sector’s growth and competitiveness.

Argumentation: Opportunities and Benefits of the Informal Economy

Despite the challenges, the informal economy in Pakistan also offers opportunities and benefits. Firstly, it serves as a significant source of employment and income generation, absorbing surplus labor and providing livelihoods for individuals who lack formal employment options. Secondly, the informal sector demonstrates flexibility and adaptability in response to economic shocks, allowing for resilience and survival in times of crisis. Thirdly, the informal economy contributes to poverty reduction by providing opportunities for income generation and livelihood sustainability. Moreover, it acts as a breeding ground for entrepreneurship and innovation, fostering economic dynamism and creativity. Lastly, the informal economy presents avenues for economic integration and inclusive growth by providing linkages with the formal sector.

Description: Strategies for Harnessing the Informal Economy

To harness the potential of Pakistan’s informal economy, a comprehensive and strategic approach is needed. Firstly, formalization initiatives should be implemented, including simplified registration procedures, tax incentives, and legal protection for informal workers. Secondly, enhancing access to social protection and welfare programs, such as healthcare, retirement benefits, and insurance, is crucial for improving the well-being and security of informal workers. Thirdly, promoting financial inclusion through the expansion of formal banking services, microfinance, and digital payment systems can provide access to credit, savings, and financial tools for informal entrepreneurs. Fourthly, investing in education and skills development programs tailored to the needs of the informal economy can enhance productivity and enable upward mobility. Lastly, fostering collaboration and coordination between formal and informal sectors, such as supply chain integration and subcontracting arrangements, can create synergies and facilitate the gradual transition to formality.

Narration: Success Stories and Case Studies

Several countries have successfully integrated their informal economies, providing valuable lessons for Pakistan. For instance, India’s National Rural Employment Guarantee Act (NREGA) guarantees a minimum number of days of employment for rural workers, ensuring income security and poverty alleviation. Brazil’s Bolsa Familia program provides conditional cash transfers to low-income families, improving their social and economic conditions. Closer to home, the Punjab Small Industries Corporation (PSIC) has facilitated the formalization of small-scale industries in Punjab, promoting access to finance and market linkages.

Pakistan’s informal economy presents both challenges and opportunities. While the informal sector provides employment and income opportunities for many, it also faces issues related to legal recognition, social protection, and tax compliance. By implementing targeted strategies, such as formalization initiatives, enhanced social protection, and financial inclusion, Pakistan can harness the potential of the informal economy for sustainable development. It requires the collaboration of policymakers, stakeholders, and society at large to recognize the importance of the informal economy and work towards creating an enabling environment that fosters its growth and integration. Through these efforts, Pakistan can pave the way forward towards a more inclusive and resilient economy.

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An Economic Crisis in Pakistan Again: What’s Different This Time?

Photo: AAMIR QURESHI/AFP/Getty Images

Critical Questions by Daniel F. Runde and Ambassador Richard Olson

Published October 31, 2018

Pakistan’s newly-elected government is already dealing with a balance of payments crisis, which has been a consistent theme for the nation’s newly elected officials. Pakistan’s structural problems are homegrown, but what is different this time around is an added component of Chinese debt. Pakistan is the largest Belt and Road (BRI) partner adding another creditor to its already complicated economic situation.

Pakistan’s system is ill-equipped to make changes which would avoid future excessive debt. A bailout from the International Monetary Fund (IMF) is probably the safest bet for the country although it is unclear whether the United States will support the program. How Pakistan decides to handle its debt crisis could provide insight into how the U.S., IMF, and China will resolve development issues in the future. Beijing is a relatively new player in the development finance world so much is to be learned from how it deals with Pakistan and how it could possibly maneuver in other developing countries in Asia, Africa, and Latin America.

Q1: What is Pakistan’s current financial and economic situation?

A1: Pakistan held its most recent elections in July 2018. The Pakistan Tehreek-e-Insaf party gained over 100 seats in the parliament, and its founder Imran Khan , a famous cricket team captain, was installed as prime minister. Prime Minister Khan has inherited a balance of payments crisis , the third one in the last 10 years. By the end of June 2018, Pakistan had a current account deficit of $18 billion , nearly a 45 percent increase from an account deficit of $12.4 billion in 2017. Exorbitant imports (including those related to the China-Pakistan Economic Corridor (CPEC)) and less-than-projected inflows (export revenues and remittances) have led to a current account deficit widening, with foreign currency reserves levels covering less than two months of imports—pushing Pakistan towards a difficult economic situation .

Part of Pakistan’s financial crisis stems from the fact that 2018 was a poor year for emerging markets. Global monetary tightening, increased oil prices, and reduced investor confidence have negatively impacted the country’s already precarious economic situation. But the country’s deep structural problems and weak macroeconomic policies have further exposed the economy to an array of debt vulnerabilities.

Pakistan has had an overvalued exchange rate, low interest rates, and subdued inflation over the last few years. This loose monetary policy has led to high domestic demand, with two-thirds of Pakistan’s economic growth stemming from domestic consumption. An overvalued exchange rate has led to a very high level of imports and low level of exports. Pakistan’s high fiscal deficit was accelerated even further in 2017 and 2018 because elections have historically caused spending to rise (both of the most recent fiscal crises followed elections). Perhaps the greatest financial issues facing Pakistan are its pervasive tax evasion and chronically low level of domestic resource mobilization. Taxes in Pakistan comprise less than 10 percent of GDP , a far cry from the 35 percent of countries that are part of the Organisation for Economic Co-operation and Development (OECD). Pakistan also suffers from impediments in the energy sector through frequent and widespread power outages that hurt its competitiveness.

In Western media, Chinese investment is often cited as the main driver of Pakistan’s debt crisis. This is somewhat true as China’s BRI makes Pakistan a key partner through the shared CPEC. The CPEC is a $60 billion program of infrastructure, energy and communication projects that aims to improve connectivity in the region. CPEC infrastructure costs have certainly placed a greater debt burden on Pakistan, but the current structural problems are homegrown; the root cause of the energy shortages is now less a matter of power generation, and more of fiscal mismanagement of the power sector .

Q2: What are Pakistan’s options?

A2: Pakistan appears to be in perpetual crisis-mode, and for too long the Pakistani government has been overly reliant on U.S. bilateral assistance. While it may not be the first choice of the Pakistani government, an IMF bailout is the most likely outcome of this financial crisis because it is probably the only path for Pakistan to regain its macroeconomic stability. Any “bailout” from a bilateral donor (meaning China or Pakistan’s Gulf State friends, including Saudi Arabia which has recently provided Pakistan $3 billion for a period of one year as balance-of-payment support) will not get at the root issues that Pakistan faces—its loose macroeconomic, fiscal, and monetary policies. Pakistan needs to get its house in order and remedy many of its domestic economic issues. 18 out of Pakistan’s 21 IMF programs over the last 60 years have not been completed despite obtaining over $30 billion in financial support across those programs. Just like today’s current financial crisis, Pakistan’s last two IMF packages (in 2008 and 2013) were also negotiated by incoming governments.

Q3: Would the U.S. support a new IMF Pakistan program?

A3: The current U.S. administration and Congress would not be supportive of additional bilateral funding to Pakistan—meaning money coming directly from the United States. Since 2001, Pakistan has been the beneficiary of the U.S. Coalition Support Fund (CSF), which reimburses allies for costs incurred by war on terrorism. The CSF is used to reimburse Pakistan for U.S. military use of its network infrastructure (e.g., ports, railways, roads, airspace) so that the United States can prosecute the war in neighboring Afghanistan, as well as certain Pakistani military counter-terrorism operations. The CSF for Pakistan has been as high as $1.2 billion per year, and, in recent years, $900 million per year. With nearly $1 billion in CSF distributed every year, along with $335 million in humanitarian assistance, it will be difficult to convince Congress to appropriate more funds for a Pakistan bailout yet. However, due to inaction on the part of Pakistan to expel or arrest Taliban insurgents operating from Pakistani territory, the United States has recently cut another $300 million from the CSF, bringing the total to $850 million in U.S. assistance withheld from Pakistan this year. In fact, all security assistance to Pakistan, whether it is international military education and training, foreign military financing, or the CSF, has been suspended for this year according to one State Department official.

An IMF program for Pakistan faces resistance from some members of Congress. A group of 16 senators has already signed a letter to President Trump that outlines their opposition to bailing out Pakistan because the IMF package would, in effect, be bailing out Chinese banks.

The Trump administration has also taken a hardline stance towards assisting Pakistan with its financial crisis. Secretary of State Pompeo stated this past July that he would not support an IMF bailout that went towards paying off Chinese loans. In September, Secretary Pompeo visited Pakistan, and there were indications that the United States would not block an IMF program. If an IMF program is enacted, there is no doubt that it would have stronger conditionality and a greater insistence on full transparency of Pakistan’s debt obligations.

Q4: Would an IMF package be a bailout of the Chinese?

A4: The terms of Pakistan’s loans with China are currently unclear and multiple news outlets have reported that Pakistan has refused to share CPEC information with the IMF. However, it is not unreasonable to presume that the terms in those contracts would be more demanding than terms typically asked by the IMF. Unless the terms between Pakistan and China and its state-owned enterprises (SOEs) are disclosed and made clear to the IMF, then it is unwise for the IMF to proceed with a bailout package.

The IMF’s focus is not in projecting power and influence; rather it seeks to help struggling nations get back on their feet. The same cannot be said for China. China appears to be most interested in spreading its influence and gaining valuable assets for its military and expanding economy, while at the same time exporting its surplus capacity for infrastructure building. In its annual report to Congress, the Department of Defense reiterated this concern, “countries participating in BRI [such as Pakistan] could develop economic dependence on Chinese capital, which China could leverage to achieve its interests.”

Of Pakistan’s nearly $30 billion trade deficit, 30 percent is directly attributable to China . If China were concerned about the economic crisis in Pakistan, it would make immediate concessions which Pakistan Finance Minister Asad Umar says China is working on . To help with the crisis, China could readjust its trade surplus with Pakistan in different ways. For example, China could buy Pakistani cement and other purchases in the short term to illustrate that they are aware of and swiftly responding to the economic turmoil in Pakistan. Other nations have struggled with debt obligations to China. For instance, in July 2017, Sri Lanka signed over a 99-year lease for Hambantota Port to a Chinese SOE because of Sri Lanka’s inability to pay for BRI costs. Malaysia took a different path and decided to cancel major infrastructure projects with China in August 2018 due to worries that they would increase its debt burden .

Q5: What are the consequences if there is no IMF package?

A5: It is likely that China will provide even more assistance to broaden Pakistan’s dependency. Chinese banks and SOEs have already invested heavily into Pakistan, so much so that state bank loans have not been fully disclosed to the global community. In fact, Pakistan’s Status Report for July 2017 through June 2018 shows that Chinese commercial banks hold 53 percent of Pakistan’s outstanding commercial debt. However, that percentage may be even higher than the report depicts. While China and Pakistan have agreed to make all CPEC projects readily available to the public, the information is scattered and often left blank on essential financial reports (see July-June 2017 document ), and so it is difficult to obtain a full sense of the degree of Pakistan’s indebtedness to China. Again, much of the loan information provided by the Pakistani government, especially concerning China, is not entirely transparent.

If China chooses to follow through and become the “point person” for an assistance package, the pressure will be taken off the IMF. But, if the United States does not support an IMF package, it will forego major geopolitical potential in the region to its main competitor, China.

Pakistan represents a litmus test of all future cases in which the IMF, United States, China, and any emerging market country are all involved. Depending on how Beijing chooses to navigate Pakistan’s financial crisis, China may soon find itself responsible for rectifying the debt burdens of Zambia and many other BRI countries.

Q6: What are U.S. geopolitical “equities” in Pakistan?

A6: The United States is invested in Pakistan because of its significant geopolitical importance.

Pakistan is an important component of the balance of power in South Asia. Both India and Pakistan have nuclear weapons capabilities. Moreover, China, India, and Pakistan have been in dispute over the Kashmir region since 1947. Regional stability is in the interest of the United States.
Despite its ambiguous stance on militant groups, Pakistan is ostensibly an ally of the United States because of its proximity to Afghanistan. Since the War on Terror began in 2001, Pakistan has been an active partner in the elimination of core al Qaeda within Pakistan and has facilitated aspects of the U.S. military campaign in Afghanistan.
The United States now seeks a negotiated settlement to the conflict in Afghanistan. To accomplish this, perhaps the United States will come to Pakistan with a simple offer: “deliver the Taliban, and we will give you the IMF.”
Whereas previous administrations may have tried to “play nice” with Pakistan, under the Trump administration, there is a chance that the U.S. government will push the IMF to adopt stricter terms for a Pakistan bailout, citing the Pakistani government’s failures of the last two programs.
Other than strategic military importance, one of the most important national security challenges to the United States is Pakistan’s demographic trends. Currently, over 64 percent of Pakistanis are under the age of 30—the largest percentage of youth in the country’s history. Over the next 30 years, Pakistan’s population will increase by over 100 million, jumping from 190 million to 300 million by 2050 . The spike in youth population presents an opportunity for the U.S. government and private sector to increase investment in Pakistan. Pakistan’s economy must generate 1 million jobs annually for the next three decades and GDP growth rates must equal 7 percent or more per year to keep up with the population boom. Were Pakistan’s economy to collapse, the world would see the first instance of a failed state with a substantial arsenal of nuclear weapons.
An economically healthy Pakistan could be a large market for U.S. goods and services. If the U.S.-Pakistan relationship is strained as a result of this financial crisis, it will not only harm the United States militarily but will also harm U.S. businesses and Pakistani consumers.

Q7: Should the U.S. support an IMF package to Pakistan?

A7: Given the geostrategic importance of Pakistan for the United States, we should support a package but with stronger conditionality than in 2013 along with full transparency and disclosure of its debt obligations.

Daniel F. Runde is senior vice president, director of the Project on Prosperity and Development, and holds the William A. Schreyer Chair in Global Analysis at the Center for Strategic and International Studies (CSIS) in Washington, D.C. Richard Olson is a non-resident senior associate at CSIS. He is the former U.S. ambassador to the United Arab Emirates and Pakistan; most recently he served as the U.S. special representative for Afghanistan and Pakistan during the Obama administration. Special thanks to CSIS Project on Prosperity and Development program coordinator Owen Murphy and intern Austin Lucas for their contributions to this analysis.

Critical Questions is produced by the Center for Strategic and International Studies (CSIS), a private, tax-exempt institution focusing on international public policy issues. Its research is nonpartisan and nonproprietary. CSIS does not take specific policy positions. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s).

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Home → Articles → The Economic Challenges of Pakistan: Exploring the Roots and Possible Solutions of the Crisis

Written by Rida Raja • August 31, 2023 • 8:00 pm • Articles , Current Affairs , Pakistan , Published Content

The Economic Challenges of Pakistan: Exploring the Roots and Possible Solutions of the Crisis

Ms Rida Raja has an undergraduate degree in Economics from COMSATS University Islamabad.

Currently, Pakistan is faced with several economic challenges which include a balance of payments crisis, soaring inflation, mounting debt obligations, and persistent budget deficit, among others. However, the debate around these macroeconomic issues tends to be heavily politicized and therefore, the approach to look at them often also loses focus on the underlying economic determinants at play. To understand these economic issues better, it is imperative to analyze them through an economic lens, to devise evidence-based policies.

Decoding Pakistan’s Economic Woes

One of the economic challenges of Pakistan is that the country has been trapped in a destructive state of no sustainable economic growth over the past 5 decades. This is precisely why today it stands on the verge of default, which would already have been the case, had there been not the lender of the last resort, the International Monetary Fund (IMF) .

If one were to diagnose one of the root causes of the country’s today’s economic instability, it could be summed up in this statement made by Paul Krugman, an American economist, “Productivity is not everything, but, in the long run, it is almost everything.’’ To simplify, the output growth of an economy comes either from the expansion of inputs or by increasing the productivity of these inputs. However, an economy’s long-term well-being is highly contingent upon its total factor productivity, or simply productivity.

In layman’s language, productivity can be defined as the amount of output that can be generated from a given amount of inputs. This reflects the effectiveness with which the inputs in the production process are being utilized. An analysis of Pakistan’s economic history shows that the country’s productivity growth rate, and therefore, its GDP growth rate and exchange rate have been on an overall downward trend since the early 1970s. Pakistan has repeatedly required the assistance of the IMF programme. With each new government, this issue has only increased. The working paper by PIDE further reveals that the GDP growth rate has primarily been influenced by an increase in the quantities of inputs in the production processes, except for the eras of the 1980s and 2010s.

These findings have important implications for policymakers; the mere accumulation of inputs never guarantees sustainable economic growth or economic recovery,, and it is the productivity of the factors of production that was required by Pakistan all along to avoid its current state of economic challenges.

There is strong evidence that supports this direct positive linkage between total factor productivity and sustainable economic growth rate. For instance, for the nations of G-7, G 12, and G-20, it has been found that the total factor productivity has been a more significant contributor to the economic growth of these nations than that of the accumulated factors themselves.

A Struggle to Save Pakistan’s Economy

The long-term growth of an economy is determined crucially by the way its income is spent. In the case of Pakistan, consumption expenditure has consistently taken such a huge proportion of the country’s income that very little is left for savings, and therefore, investment. An analysis of the data from the Pakistan Economic Survey FY2022 would help to understand the precarious situation of the consumption-oriented economy of Pakistan.

As per PES 2021-22, the total consumption formed 96.2% of the country’s GDP; to further disaggregate, household private consumption accounted for 85.2% of the GDP. This means a major proportion of an average Pakistani citizen’s income goes into consumption, leaving an insignificant part of it for savings. Unfortunately, this has remained the case for the past three decades.

On the other hand, the total investment as a percentage of GDP is stuck at 14% to 15% for the past three years. The different versions of Pakistan’s economic surveys also show that in the past decade, the investment-to-GDP ratio mostly remained at this level, except for 2017-18.

In the 2000s, this ratio was comparatively higher reaching up to 22.5% in 2006-07. This demonstrates that the country has only deteriorated in terms of investment to GDP ratio with time. However, a downfall in the country’s overall propensity to invest can be traced back to as early as the mid-1980s. To sum it up, Pakistan being a consumption-led economy, has failed to generate enough domestic/national savings to support the level of investment needed for sustained economic growth. Instead, it has continued to pile its external debt.

Export Enigma: Can Pakistan Crack the Code to Sustainable Growth?

The performance of Pakistan’s export sector is not competitive globally, both in terms of quantity and quality. It can be demonstrated from the fact that in 2023, the country’s exports stood at US$31.55 billion, which is far below its true potential of US$88.1 billion. Since the past five decades, the real export growth has mostly remained volatile and patchy. There are several reasons for this, including the energy crisis, limited trade openness, regular floods, and institutional rigidities, among others.

However, one of the primary reasons for the poor performance of the export sector is that it is highly concentrated in a few items; cotton manufacturers, leather, and rice form almost 70% of Pakistan’s total exports. In other words, the country’s export sector is primarily being driven by the low-tech, low-end textile industry.

To further emphasize, more than half of Pakistan’s export earnings come from labor-intensive and light-manufacturing products; it is important to recognize that without value-addition, it is impossible to thrive in today’s highly competitive international markets. Another dimension to this problem is the country’s trading destinations. Historically, the US, China, and the European Union have been Pakistan’s top trading partners; however, the country remains far from tapping its full trade potential;

Take the South Asian region, for instance, the country’s trade potential with the region is $67 billion, but it is only being captured up to $23 billion. Considering the bilateral trade, India could be a significant trading partner in terms of export destination for Pakistan, as the trade potential between the countries is $37 billion, but only $2.3 billion is being utilized. These numbers present the country’s failure to identify and capture the markets with the potential of developing a comparative advantage.

Moreover, there is significant untapped potential for further enhancement even in the country’s current export and trade destinations, which also remain unaddressed. These factors certainly limit Pakistan’s ability to integrate into the global value chains (GVCs). Today, the scale and structure of international trade are dominantly governed by GVCs.

Pakistan has been slow in catching up with this development, as only 33.2% of the country’s exports are involved in the global value chains. A comparison with the other lower-income middle countries, such as Vietnam and India that have their total global value participation at 57.1% and 40%, respectively, clearly shows that they have been outpacing Pakistan.

Solutions for Economic Challenges Faced by Pakistan

Reforms in the agriculture sector.

In the agriculture sector, the productivity of our major crops’ yield needs to be enhanced, as it has remained consistently less than half as productive as that of other countries. To do so, an equitable and efficient distribution of water through a properly mechanized and modern irrigation system must be done.

Furthermore, the digital inclusion of farmers certainly enhances the value-addition in agriculture. This is particularly crucial for Pakistan, as most of its farmers lack modern skills and education. A practical example of such a policy reform is M-Kilimo, which is a mobile helpline in Kenya; it provides access to the farmers to gain all sorts of information related to agriculture by communicating with the agriculture experts on the phone. This includes information related to agricultural goods and services, market prices, weather forecasts, and other queries related to livestock and crops.

Pakistan should adopt vertical farming on a larger scale in order to enhance its production on smaller land holdings. In order to develop an export-oriented agriculture sector, that is globally competitive, it is imperative to invest in rural infrastructure, as well as in better seed and soil research, and soil testing.

Revitalizing Industrial Sector

Pakistan is not a highly industrialized nation; the textile sector is the only backbone of the country’s industrial sector. The importance of the textile sector can be realized from the fact that it is the source of more than 60% of the country’s export products. However, Pakistan has a long way to go before it can develop a strong industrial base, which is certainly a need of the hour given the country’s burgeoning population and the need for employment opportunities that would only be increasing over time. It would also help bring economic stability to a country that faces multifaceted challenges.

Pakistan needs to simplify and ease its regulatory processes; they are extremely difficult and lengthy, and therefore, discourage investment in the industrial sector. The importance of these policy reforms in this area can be realized from Singapore, a country that has one of the world’s most favorable regulatory environments for businesses, making it highly optimal for domestic entrepreneurs to invest and one of the most competitive economies across the globe.

Another important area to focus on is the human capital. An innovative and advanced industrial sector in any economy demands highly skilled labor. Therefore, measures such as the ‘dual education’ system, which is practiced in countries like Germany should also be implemented in Pakistan by the government. In this system, education along with on-the-job training is practiced equipping the individuals with essential knowledge and skills.

Most importantly, the energy crisis has remained a persistent bottleneck for the country’s industrial growth. In order to resolve it, Pakistan should bring changes to its energy mix; more focus should be given to the development of renewable energy sources such as solar power. For the current energy infrastructure, it is important to upgrade the transmission and distribution network to improve the efficiency and conservation of the energy sector.

Improvement in the Services Sector

The services sector has the largest share of the country’s GDP; the service value-added being more than 50% of the country’s GDP. However, in comparison to countries like India, Pakistan’s services sector is comparatively not as competitive, internationally. A range of reforms needs to be taken in this sector of the economy as well. Building human capital is the key to the growth of the services sector, and therefore, investment needs to be made in education and skill building.

Considering the country’s growing problem of young population and that too with very limited jobs in the domestic market, an efficient strategy would be the introduction of short-term degrees or courses that would focus on the skills that have high demand internationally. For example, the youth could be equipped with the skills required for freelancing. These include graphic designing, academic writing, digital marketing, etc.

This way while the Pakistani economy deals with the crisis of twin deficits and debt obligations, the problem of unemployment and poverty could be somewhat efficiently tackled with this strategy. Certainly, with the current economic crisis, it is impossible for the government to create large job opportunities in the domestic market in the short run. Unlike other states, Pakistan hasn’t even tapped into the full potential of remittances from its diaspora. This is why it is important for the government to realize the need to deal with the crisis of food insecurity and unemployment that it would have to deal with in immediate term. If these looming issues are not given attention, they will lead to social unrest in the country further adding to the country’s economic crisis.

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Economic Challenges of Pakistan CSS

The post explains “Economic challenges of Pakistan CSS. Contemporary economic challenges of Pakistan. Economic Challenges of Pakistan CSS . Economic Challenges of Pakistan CSS. Economic challenges of Pakistan CSS.”

Some of the major economic challenges that Pakistan is facing today are given below.

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Low Rate Of Saving – We as a nation consume more and save less. Whereas people in developed countries saves 27 percent of their monthly income, people in Pakistan hardly saves only 14 percent.

Low Per Capita Income – Per capita income means average income earned by every person of a country in a given period of time, say a year. According to World Bank report, per capita income of Pakistan in 2020 was 1188.86 rupees.

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Impediments in Doing Business – The cost of doing business in Pakistan is very high. Though PTI government in the country has made much progress in this regard but still businessmen face many hurdles. As per World Bank’s latest rankings on ease of doing business for the year 2020, Pakistan has improved its position by 28 points from 136 to 108, which is unprecedented.

Ethnic Issues And National Integration in Pakistan CSS

Trade Deficit – We import more than export. According to data released by the Pakistan Bureau of Statistics (PBS) on Monday (April 4, 2022), the trade deficit in July-March 2021-22 increased to $35.4 billion. It was $14.6 billion, or over 70%, more than the same period of previous year.

Fiscal Deficit – Government spends more than it earned as a revenue over an year . Pakistan’s trade deficit has widened by 82.2 per cent during the first eight months (July-February) of the current fiscal year 2021-22, ARY News reported on March 2, 2022.

Energy Shortfall – Our industry is at a disadvantage that they get the orders from foreign countries but they cannot execute the orders because there are electricity outages.

Share in World Trade – Our share in the world trade is very low. Pakistan is stuck with only a few commodities – textiles, leather, rice, sports, goods and the surgical goods. We have not entered the markets for more dynamic products. All our exports are to a few markets – the USA, EU and the Middle East.

Governance Crises – Uncertainty and unpredictability due to lack of continuity and political instability and problems of law and order.

Other factors may include;
High unemployment rate
Increasing income inequality in society
Low productivity due to poor human capital development

Recommendations For Economic Challenges Of Pakistan

Increase rate of saving
Overcome trade and fiscal deficit
Increase prospects of doing business in the country
Build human capital

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Major Socio-Economic Problems of Pakistan

January 18, 2021
Daily Write-Ups , Featured , Opinions
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Written by Anum Saba

There are socio-economic problems that hinder the way to become a developed or self-sufficient state, since the beginning of Pakistan. Pakistan, the world’s fifth populous state, is fighting at many borders at the same time whether internal or external. It is neither able to manage the basic problems nor establish new strategies to get rid of them. Given below is the list of five main socio-economic problems.

Better Education

Inept Governance

Lack of Unaccountability

Education is indispensable for the peace, prosperity, and stability of a nation. Pakistan has failed to deliver technical education; it produces a lot who has a degree but don’t have the technical expertise to excel in life. Education is the basic fundamental for individual growth and economy to uplift the values of life. It is crucially important to emphasize to get vocational education. Though recent governments started many youth technical programs, they are merely a trifle for this huge youth. It is the need of the hour to invest in better education, and China is the biggest example to achieve high ranks only through it.

The inflation rate is continuously increasing along with a rapid increase in current account deficit. About twenty-four percent of the population lives below the international poverty line in Pakistan. Several factors result in the high inflation rate including, a rapid increase in population, lack of education, unemployment, and no new job opportunities. Poverty not only devalues one in the world but also brings many social evils and is the root cause of many crimes. It can only be eradicated through better education, job opportunities, and development work at ground level.

Corruption is robbing bright future of the young generation; moreover, hampers the socio-economic conditions of the country. It gives rise to many societal problems and hinders human progress. It also closes the door for foreign investment and creates a bad image of the country. It is cutting the roots of the country which in turn leads to weakening the bases and promotes chaos and conflicts among different departments. It is necessary to eradicate corruption and bring fair means in society.

Pakistan, soon after the death of Quaid e Azam and Liaquat Ali Khan, is facing the incompetent governance which results in poor management of departments from grass root level to a higher level. Successive governments are no more than a failure and unable to work for the betterment of the country. They are unable to handle social as well as economic and foreign matters. They are leading the country to the verge of destruction. It is the need of time to think about the country seriously rather than criticizing each other.

Lack of Accountability

The process of accountability is not transparent and very slow in the country. It promotes corruption, socio-economic problems, and opacity. It generates a gap between the departments and rulers. It is clear that it promotes instability in the state and departments do not work well enough to find corrupt and hold them accountable. Transparent investigation is the key to uplift the lives of people.

It is a matter of fact to eradicate all these problems to uphold a sustainable society and healthy living standards. Pakistan is not an exception that is facing all the problems, there are many countries around the world that rise again from the ashes. Pakistan can remove all its miseries by capable and efficient governance, bureaucracy, and a better education system, and an efficient economic system. Dancing around the fire is not a solution to any problem, people need a real change and transformation in the country’s progress.

About the writer:

Miss Anum Saba is one of the bonafide students of Sir Syed Kazim Ali . She has completed her 4.5 month-course on Online Creative English Writing and Advanced Grammar under his patronage. Having done graduation in computer science and courses in creative English writing, she loves writing blogs and articles on various topics: current affairs, everyday science, technology, beauty, cooking, and entertainment.

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Economic Crisis in Pakistan: Challenges and Remedies
The economic situation of Pakistan is at a critical stage. Today, the country faces serious economic challenges, the first one among which is the ballooning trade deficit. Pakistan is an import-driven country where imports surpass exports. Another challenge is the fiscal deficit, when the expenditure of a government is greater than its total ...
Essay Outline: Economic Crisis in Pakistan: Challenges and Prospects
Prospects of Economic Crisis in Pakistan. 1. Increasing political awareness translating into positive political will necessary for economic progress in Pakistan. 2. Investment by foreign countries and individual. 3. Peaceful environment due to curtailment of terrorism: conducive environment for economic stability in Pakistan. 4.
Economy of Pakistan
The document discusses several key challenges facing Pakistan's economy: 1. Pakistan has high inflation, unemployment, and a shrinking GDP which restrict economic growth. 2. The economy relies heavily on agriculture and imports more than it exports, leading to large trade deficits. 3. The government spends more than it collects in revenues, resulting in high budget deficits that must be ...
CSS Solved Essays
CSS 2024 Solved Essay | BRICS and Pakistan: Prospects of Recovery Maryam Aqsa, a Sir Syed Kazim Ali student, has attempted the CSS 2024 Solved... CPF. July 24, 2024. CSS, CSS Solved Essays. 3970 Views. Being a Minority is a Fate No One wants.
Pakistan Economic Crisis Issues
5-Unveiling the primary reasons leading to the economic crisis in Pakistan. Excessive imports with less exports. Case in point: During the current fiscal year 2022-2023, Pakistan's imports have shown an increase of 2.38 per cent compared to last year's corresponding period. Lack of human capital and resource.
An Analysis of Pakistan's Economy in 2023
Pakistan Is Facing 10 Economic Challenges. Pakistan's rapid population growth - estimated at 2.2% annually - has placed additional strain on resources within the country. Leading to unemployment, poverty and inequality issues. Pakistan suffers from inadequate infrastructure that is unable to keep pace with the growing needs of its rapidly ...
Top 50 CSS Essay Topics in Pakistan for Exam Success: A Comprehensive
The impact of inflation on the common man in Pakistan; In conclusion, the top 50 essay topics for the CSS exam in Pakistan cover a wide range of issues that are essential for the country's development and progress. Candidates should prepare well for these topics to succeed in the essay writing section of the CSS exam.
Economy of Pakistan
The document discusses the economy of Pakistan, outlining both challenges it faces and prospects for improvement. Some of the key challenges include low domestic savings rates, large trade deficits due to higher imports than exports, and the government spending more than it earns in revenues. Prospects for improving the economy include changing mindsets to encourage savings, developing human ...
PDF LEADING ISSUES IN THE ECONOMY OF PAKISTAN
3.1 The Global Economy 39 3.2 Pakistan Economy: GDP Growth 40 3.3 Investment 41 3.4 Inflation 42 3.5 Balance of Payments 44 3.6 Public Finances 45 Chapter 4: The Economic Outlook for 2022-23 47 4.1 The Global Economy 48 4.2 Projections of Pakistan Economy 49 4.3 Balance of Payment Projections 51 4.4 Budgetary Projections 55
PDF Report of the Lecture on Economy of Pakistan: Challenges & Way Forward
ar. icipants o. Pakistan's economic challenges and the way forward. 1. Preamble The economy of Pakistan has struggled to take off for the past couple of decade. even with financial stimuli from international monetary institutions. Structural issues, lack of foreign direct investment, unemplo.
Pakistan's Economic Crisis: Unveiling the Causes, Impacts, and ...
Pakistan's current economic crisis is primarily caused by its external debt, which amounts to $126.3 billion. The country owes this debt to a wide range of creditors, including multilateral organizations, Paris Club nations, private and commercial lenders, and China. The growth of this debt load can be attributed to several factors such as ...
PDF CSS, PMS & OTHER Techniques, Outlines and Complete Essays ...
Socio Economic Problems in Pakistan Post Modern Ethos, a Challenge to the West World a Global Village: Learning to Live Together ... Terrorism in Pakistan: Causes and Solutions We can Kill Terrorists, not Terrorism ... The purpose of a CSS/PMS essay is to provide written evidence of your ability to give your opinion on a topic, weigh arguments,
Pakistan's Informal Economy: The Way Forward CSS ESSAY 2020
The informal economy in Pakistan faces several challenges that hinder its potential benefits. Firstly, informal workers lack legal recognition and protection, leading to exploitative labor practices and limited access to benefits such as minimum wages, social security, and occupational safety. Secondly, the absence of formal financial inclusion ...
English Essay Outline: Economic Crisis in Pakistan:Causes, Impacts and
=====English Essay Outline: Economic Crisis in Pakistan:Causes, Impacts and Solutions I CSS/PMS Essay ECONOMY=====Understanding current a...
An Economic Crisis in Pakistan Again: What's Different This Time?
Prime Minister Khan has inherited a balance of payments crisis, the third one in the last 10 years. By the end of June 2018, Pakistan had a current account deficit of $18 billion, nearly a 45 percent increase from an account deficit of $12.4 billion in 2017. Exorbitant imports (including those related to the China-Pakistan Economic Corridor ...
PDF Economic Challenges Facing Pakistan Dr. Ishrat Husain
economic c. economic growth rates had slided to 1 - 1.5 percent Investment rates had declined. from 20 to 15 percent of GDP, poverty had doubled from 17 to 34 percent, external. debt had doubled from $ 18 billion to $ 36 billion, debt servicing had risen to a level. where it claimed 56 percent of revenues, fiscal deficits were averaging about 6.
Economic Crisis in Pakistan and Its Solutions
5-Impacts of economic crisis on Pakistan. 5.1-Financial Impact. Abrupt depreciation of currency. Evidence: According to the State Bank of Pakistan Report, "The Pakistani currency experienced a sharp decline, reaching a new all-time low at PKR 305 against the US dollar in May 2023.". 5.2-Political Impact.
Economic Challenges Faced by Pakistan in 2023
Currently, Pakistan is faced with several economic challenges which include a balance of payments crisis, soaring inflation, mounting debt obligations, and persistent budget deficit, among others. However, the debate around these macroeconomic issues tends to be heavily politicized and therefore, the approach to look at them often also loses ...
Economic Challenges of Pakistan CSS
Ethnic Issues And National Integration in Pakistan CSS. Trade Deficit - We import more than export. According to data released by the Pakistan Bureau of Statistics (PBS) on Monday (April 4, 2022), the trade deficit in July-March 2021-22 increased to $35.4 billion. It was $14.6 billion, or over 70%, more than the same period of previous year.
Pakistan Economy issues/problems and their Solutions
Thanked 239 Times in 108 Posts. Pakistan Economy issues/problems and their Solutions. Pakistan Economy issues/problems and their Solutions. ADB started its operations for Pakistan in 1968. As of 31 December 2001, ADB's cumulative assistance to Pakistan totaled some $11.5 billion, of which $8.0 billion had been disbursed.
Major Socio Economic Problems of Pakistan
Given below is the list of five main socio-economic problems. Better Education. Education is indispensable for the peace, prosperity, and stability of a nation. Pakistan has failed to deliver technical education; it produces a lot who has a degree but don't have the technical expertise to excel in life.
Major Education Problems in Pakistan and Solutions (CSS Essay ...
The document discusses major problems with Pakistan's education system and potential solutions. It outlines 7 key problems: 1) an unequal education system divided along public/private lines, 2) regional disparities, 3) gender discrimination with far fewer girls in school, 4) a lack of technical education, 5) insufficient education funding, 6) untrained teachers, and 7) poverty preventing ...