tumblr hit tracking tool

October 1, 2014

Pakistan Economy and Economic Review 2011, Problems, Forecast, Outlook, Indicators

Will 2011 be better year for Pakistan economy? How Pakistan economy will perform in 2011? These are vital questions and their answers depend upon many factors. As a whole, 2010 is the worst year in economic history of Pakistan. The poor performance of the economy in year 2010 was caused by floods in summer and poor economic and financial management. Followings are the facts about Pakistan Economic Problems 2011/Pakistan economic outlook 2011/Pakistan economic forecast 2011 and Pakistan Economic future in 2011.
One thing is sure there will not be any increase in the income of ordinary man. The number of the poor in Pakistan will also increase. If in 2011, population is 175 million this means that some 70 million people will live in absolute poverty. It also means that more than 40 percent of population of Pakistan will be in absolute poverty. The main problem is that most of these poor lives in urban cities and towns and they have less opportunities as compared with country side poor.


There is no prospect that economy of Pakistan in 2011 will grow with rapid pace and there are serious apprehensions that foreign assistance will not be available in 2011. This mean the government will borrow more from central bank and market. In that case it means more higher inflation in the country. Another bad impact of this borrowing will be less investments and slow economic activities. The only positive point in this dark and gloomy scenario will Pakistan’s textile exports because EU and USA pledge to give special access to Pakistani exports in their markets.

So far Pakistan fails to adopt the RGST as recommended by IMF and hence there are chances that IMF will stop the remaining loan money which means more problems for Pakistan economy in year 2011.
Recent floods of 2010 in Pakistan also played havoc with infrastructure and agriculture. Pakistan needs billions of rupees for the rehabilitation of affected people and for the reconstruction of infrastructure but shot of money government is handicapped. It will definitely put negative impacts on the Pakistan economic growth rate in 2011 and especially on agricultural growth in year 2011.
The gap between expenditure and revenue is increasing in Pakistan. It increased with rapid pace during 2010 and it will further increase in 2011. To bridge the gap between expenditure and revenue government will have to borrow money from foreign lenders which means more burden on exchequer in shape of interests. Internal borrowing means more rapid inflation in country. Pakistan economy challenges are huge and Pakistan economic indicators 2011 are also not good.
All above discussed factors are signaling towards gloomy picture of Pakistan economy in year 2011. It does not mean that nothing can be done to make economic situation better in Pakistan because sincere efforts of our leaders and better planning can change the gloomy looking year into bright year for economy of Pakistan.

Comments

  1. There is no scope of growth until Pakistan focus on home front problem rather than its neighbors.

  2. naji saleh says:

    international policies adopted by a country count very much.economy of pak can be boosted by decreasing income gaps

    • @jani saleh
      Thanks for sharing your thoughts with us
      yes you are right but economy of Pakistan has also many other problems like inflation, slow GDP growth rate, foreign debts etc.

  3. it is possible when govt current exp less than capital exp

  4. Corruption is the main reason of economic losses in countries like PAkistan and India

  5. One Day Pakistan will be on the top of world in field of progress and people welfare

    • You are joking right? because your defense analyst Zaid Hamid said Pak will be on moon in next 5 yrs and nothing happened. He also said that all important decisions of the world will be taken in pakistan. He was a buffoon and you are his follower I suppose.

      • @Madhan
        We use to write for all countries of all regions. This article was written by our Pakistan based writer. As far as your comments are concerned it is your own personal thoughts and ideas we are approving it so may be other readers can reply you back what they thought is right.
        Thanks for sharing your thoughts with us

  6. Thanks for this information, it was very helpful .

  7. moh zaman mangol says:

    the economy can not boost untill and unless,we do not improve our tex system,,and we should depend upon our own natural resources instead of depending upon foriegn aids and loans,,which is burden on us in the form of heavy and multiple intersts.we should make proper and good plans for future operation,,we should utlize our coal resources and should make dams inorder to overcome our future energy needs,,above all we need a good and sencere politician,,,,and many more….

  8. jamshed khan says:

    the main cause of our backwardness/low economic growth/economic development is lacked of patriatism among our people. all the citizen of the country do not have love with their country. they considered the country resources lavishly and uselessly. so patriatism is essential for all aspects because other nation of the world have developed their country with love, patriatism and sincerity.

  9. NISAR AHMED NOONARI THUL says:

    One Day Pakistan will be on the top of world in field of progress and people welfare

    Reply

  10. Muhammad Umer says:

    now Pakistan is running through situation of highly law and order disturbance which is the main reason of slackness of economic growth. if it is controlled in this country then domestic and foreign investors are willing to invest in Pakistan. and it will leave positive effect on economic growth

  11. pakistan need a honest leadership and then they have to stop borrowing money from other countries. As God has given them $2.7 billion gold in north waziristan and 50,000 megawatt electricity and 100 million barrel diesel just through the gasification of these reserves.

    on which we could rebuild a new pakistan

  12. pakistan need security + control on cruption + sincere leadeship+ increae tax + education + better relationship with neighbours specially india + identity of every singal citizen in pakistan + less defance budget hig development budget + less goverment expenses +increase export less import + dams and windmils for energy + more provences + high pay and training for police + check and balance, accountibilty and transparancy in all gov departments + Accaptance for everybody irespactive of relagion or cast or background + tolrance

  13. Ahsan Ali says:

    A well written article. I disagree with the ending sentences. Its not easy to turn things around. Its possible, but not easy.
    The tools that the Central Bank can use to stimulate the economy include the Monetary Policy and the Fiscal Policy. Using the Monetary Policy, the central bank can lower interest rates and / or print more money. In the current state, this would be a disaster as it would put continued inflationary pressure on the economy. The governement is already under pressure to reduce its Fiscal Deficit. This has to be done by increasing the Tax Base, which requires reforms and a curb on corruption.
    The economy faces the effects of a power shortage, which increases the cost of production for our exports, making them less competetive in the international market. We compete with China, India, Banglades, Srilanka etc, and these countries dont have the problems we face.
    We havent even been able to see a SBP Governor complete his/her term in a while… The Govt needs to allow the SBP to operate independently, that should be a first step.
    Alas, too many things need to be changed.

Speak Your Mind

*