PAKISTAN’S
PAKISTAN’SECONOMY
ECONOMY&&THE
THE
ROLE
ROLEOF
OFIMF
IMF&&WORLD
WORLDBANK
BANKON
ON
IT.
IT.
By:
ASAAD IMTIAZ
ROLL # 8505
ECONOMY OF PAKISTAN
The economy of Pakistan is the 27th largest economy in
the world according to the purchasing power.
It is 48th largest economy in absolute dollar terms.
It is 2nd largest economy of South Asia.
Pakistan’s economy mainly encompasses,
Textiles
Chemicals
Food Processing
Agriculture
and other industries.
ECONOMIC HISTORY
Since 1947, Pakistan depends on agriculture.
Average annual growth rates
6.8% in the 1960s
4.8% in the 1970s
6.5% in the 1980s
4.6% in the 1990s
During the 1960s, Pakistan was seen as a model of
economic development around the world.
FACTORS AFFECTING ECONOMY
Growth and Investment
Agriculture
Manufacturing
Fiscal Development
Money and Credit
Inflation
Capital Market
Trade and Payments
External and Domestic Debt
Education
Health and Nutrition
Population, Labour Force and Employment
Poverty
Transport and Communication
Energy
SECTORS OF PAKISTAN ECONOMY
Agriculture:
Pakistan ranks fifth in the Muslim
world and twentieth worldwide in farm output.
25% of Pakistan's total land area is under cultivation and
is watered by one of the largest irrigation systems in the
world
Agriculture accounts for about 23% of GDP and employs
about 44% of the labor force
SECTORS OF PAKISTAN ECONOMY
Industry:
Pakistan's industrial sector accounts for about
24% of GDP
The total contribution of Auto industry to GDP in 2007
is 2.8%.
In 2009, Pakistan is one of the largest users of CNG in
the world. Presently, more than 2,900 CNG stations are
operating in the country in 85 cities and towns.
WORLD BANK
Its an international organization
184 member countries
The World Bank is one of the world’s largest sources of
funding and knowledge to support governments
INTERNATIONAL MONETARY FUND
Organization of 186 countries
Works to,
help the development of global monetary cooperation
secure financial stability
facilitate international trade
promote high employment and sustainable economic
growth
reduce poverty around the world
IMF ASSISTANCE TO PAKISTAN
Pakistan joined IMF on 11th July, 1950.
IMF is providing financial assistance to Pakistan since 1952.
According to 1977 statistics, Pakistan borrowed 1193 million dollars
from IMF.
Since 1980, the fund has made four main agreements with Pakistan as,
In November,1980
In December, 1988
In February, 1994
In July, 1997
They have given loan to Pakistan till 2009
EFFECTS OF IMF PROGRAMES:
The IMF program has led to increase the charges of gas,
electricity, petrol and telephone.
The imposition of sales tax on the advice of IMF has
greatly affected the incomes of the poor and middle class
earners.
The absolute poverty has increased which has promoted
unsocial activities.
WORLD BANK
They are supporting reforms at both the federal and
provincial level.
They are working with Pakistan Poverty Alleviation
Fund to bring difference in the lives of poor.
They are helping the victims of the Earthquake.
They are working with the government to improve
education outcomes.
WORLD BANK
They are joining with international partners to help Pakistan fight
polio.
They are focusing on un-served and underserved low-income
communities.
They are helping Pakistan prevent the spread of HIV/AIDS.
They are helping to ‘improve trade flows’ and ‘lower transit costs
and times’.
During the past four years from FY 2006 - 2009, the Bank has
approved 30 projects of total US$3.7 billion for Pakistan.
SUGGESTION
We should be self sufficient, we should rely on ourselves
If we have financial crisis, we should not beg for aid
from IMF and World Bank or any other organization, but
we can handle the problem by relying on ourselves.
THANKYOU…
