Pakistan’s economy

My observations on Pakistan’s economy (By Tang Tianru)

Pakistan’s current fiscal and taxation policies are characterised by increasing tariffs, expanding the proportion of taxes, raising all kinds of living, production and material rates, resulting in a sharp rise in the production costs of enterprises and an increase in the burden of business operation. At the same time, the exchange rate of the Pakistani rupee against the US dollar has depreciated sharply recently. The consumption cost of the people has risen sharply in a short period of time. As a result, the market demand becomes weaker, and the inflation rate is higher. At the time of rising production costs, enterprises have encountered the double challenge of shrinking market demand, adding to their difficulties and worrying conditions. Some enterprises have stopped production or sought to withdraw from the Pakistani market to seek overseas development, thus increasing the unemployment rate in Pakistan.

An overview of Pakistan’s economy (by: Maham Fatiama)

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The industrial sector of the country contributes to 20 percent of GDP. In 2018 it recorded a growth of 5.80% as compared to the growth of 5.43% last year

Pakistan is facing a financial crisis since its independence in 1947. There are many reasons but political crisis has always been a major one.

Currently, we are facing trade deficit and that is because of wrong financial policies of the past governments. That is also because certain experiments were done with the economy in the past which didn’t prove fruitful. For example, before 1970s Pakistan’s private sector was booming and companies were making profit hence making jobs vacancies. But, during the regime of Zulfiqar Ali Bhutto, Pakistani companies were nationalized and they came under the direct control of the government of Pakistan. Therefore many of the companies and businessmen shifted to other lands in the search of a level playing field.