economy of pakistan short essay

Economy Of Pakistan Essay

Prepare Economy of Pakistan essay with our well-researched study material. Even the student of 5th grade can understand this essay easily.

Essay On Pakistan Economy (200 words)

Pakistan is a developing country with a mixed economy largely dependent on agriculture, services, and industry. The country’s population is over 200 million, making it the fifth most populous country in the world. Despite facing several economic challenges over the years, Pakistan has made significant progress recently.

Pakistan’s economy is largely driven by agriculture, which employs almost half of the country’s workforce. The country is among the world’s largest producers of wheat, rice, sugarcane, and cotton. The services sector is the largest contributor to Pakistan’s GDP, accounting for around 60% of the total output. The industry sector, which includes manufacturing and construction, contributes around 20% to the country’s GDP.

Pakistan has faced several economic challenges, including high inflation, low foreign reserves, and a large budget deficit. However, in recent times, the government has taken several measures to stabilize the economy, including seeking assistance from the International Monetary Fund (IMF) and implementing structural reforms.

In conclusion, Pakistan’s economy is a mixed economy largely dependent on agriculture, services, and industry. While the country has faced several economic challenges over the years, it has made significant progress recently, thanks to the government’s efforts to stabilize the economy.

Economy Of Pakistan Essay (500 words)

Pakistan is a developing country in South Asia with over 220 million population. The country has a rich history and culture but faces numerous economic challenges. The Pakistani economy faces several difficulties, including high unemployment, low literacy, political instability, and insufficient infrastructure. Despite these challenges, the country has made some progress in recent years.

The Pakistan’s economy is heavily dependent on agriculture, which accounts for approximately 20% of the country’s GDP and employs around 43% of the workforce. The main crops include wheat, rice, sugarcane, and cotton. However, the sector faces several challenges, including water scarcity, lack of modern technology, and inadequate government policies. The government has recently launched several initiatives to improve the sector, such as the Kissan package, which aims to provide financial assistance to small farmers.

The manufacturing sector is another significant contributor to the Pakistani economy, accounting for approximately 25% of the GDP. The country produces various goods, including textiles, cement, and fertilizer. However, the sector faces several challenges, including power outages, low productivity, and a lack of skilled labor. The government has launched several initiatives to improve the sector, such as the National Industrial Policy, which aims to provide incentives for investment in the manufacturing sector.

The services sector is the most significant contributor to the Pakistani economy, accounting for approximately 55% of the GDP. The sector includes various industries, including banking, telecommunications, and retail. The government has launched several initiatives to promote the services sector, such as the Trade Development Authority of Pakistan, which aims to promote exports of services.

Despite some progress, Pakistan’s economy faces several challenges, including a high inflation rate, a large budget deficit, and a high debt-to-GDP ratio. The government has launched several initiatives to address these challenges, such as the International Monetary Fund’s Extended Fund Facility program, which aims to provide financial assistance and support structural reforms.

Another significant challenge facing the Pakistani economy is political instability. The country has faced several political crises recently, leading to a lack of policy continuity and investor uncertainty. The government has launched several initiatives to address this issue, such as the China-Pakistan Economic Corridor , which aims to improve connectivity between Pakistan and China and boost economic growth.

In conclusion, Pakistan’s economy faces several challenges, including a high unemployment rate, low literacy rates, political instability, and insufficient infrastructure. However, the country has made some progress in recent years, particularly in the services and manufacturing sectors. The government has launched several initiatives to address these challenges, such as the Kissan package and the National Industrial Policy. Despite these efforts, Pakistan’s economy still has a long way to go before achieving sustained and inclusive economic growth.

Related Essays:

• Essay On The Importance Of Forest
• Essay On Health Is Wealth
• Essay On My Favourite Personality Quaid E Azam
• Essay On The Importance Of Trees
• Essay On Psl 2022
• Essay On My Favourite Mode Of Transport
• Essay On Discipline
• Essay On Fatima Jinnah In Urdu
• Essay On My Neighbour
• Essay On Khidmat E Khalq In Urdu

Sana Mursleen is a student studying English Literature at Lahore Garrison University (LGU). With her love for writing and humor, she writes essays for Top Study World. Sana is an avid reader and has a passion for history, politics, and social issues.

Applications and Essay Online

Essay On Economics Of Pakistan – 100, 150, 200, 250, 300, 500 words

Pakistan, a country with a diverse and rich cultural heritage, has been grappling with a myriad of economic challenges over the years. The economic landscape of Pakistan is characterized by a complex interplay of factors such as political instability, security concerns, inflation, poverty, and a growing population. Understanding the economic dynamics of Pakistan is crucial for policymakers, economists, and stakeholders to devise effective strategies for sustainable development and growth.

In this series of essays on the economics of Pakistan, we will explore various aspects of the country’s economy, ranging from its historical context to contemporary challenges and opportunities. We will delve into the impact of globalization, trade policies, fiscal reforms, and social welfare programs on the economy of Pakistan. Additionally, we will examine the role of agriculture, industry, services, and foreign investments in shaping Pakistan’s economic landscape. By analyzing these key factors, we aim to provide a comprehensive overview of the economic challenges and potentials facing Pakistan and offer insights into possible pathways for fostering economic growth and prosperity in the country.

100 words Essay On Economics Of Pakistan

Pakistan, a developing country in South Asia, faces numerous economic challenges. Despite having a diverse and rapidly growing economy, it continues to struggle with issues such as poverty, inflation, and unemployment.

The country’s economy relies heavily on agriculture, which accounts for a significant portion of its GDP. However, Pakistan also has a growing industrial sector, particularly in textiles, manufacturing, and services.

The government plays a crucial role in shaping economic policies and strategies to address these challenges. Key areas of focus include improving infrastructure, promoting foreign investment, and reducing corruption.

In recent years, Pakistan has made progress in terms of economic growth and stability. However, there is still a long way to go in achieving sustainable development and prosperity for its people.

150 words Essay On Economics Of Pakistan

The economy of Pakistan is a mixed system with elements of both socialism and capitalism. The country’s economy is heavily dependent on agriculture, with the sector accounting for a significant portion of its GDP and employment. In recent years, there has been a push towards industrialization and modernization to diversify the economy.

Pakistan faces various economic challenges, including corruption, political instability, and a large informal economy. This has hindered the country’s growth and development prospects. Additionally, the high levels of poverty and income inequality in Pakistan have been a major concern for policymakers.

To address these challenges, the government has implemented various economic reforms, including privatization, tax reforms, and investment in infrastructure. However, these efforts have been hindered by political and social factors.

Overall, the economic outlook for Pakistan is uncertain, with the country facing numerous challenges that need to be addressed for sustainable economic growth.

200 words Essay On Economics Of Pakistan

Pakistan is a country with a diverse economy that faces challenges such as high levels of poverty, unemployment, and inflation. The country’s economic growth is hindered by political instability, corruption, terrorism, and energy crisis. The various industries in Pakistan include agriculture, textiles, pharmaceuticals, shipping, and information technology.

One of the key sectors in Pakistan is agriculture, which employs a large portion of the country’s workforce and contributes significantly to the GDP. However, the sector is faced with issues such as outdated farming techniques, lack of infrastructure, and water scarcity.

The textile industry is another major player in Pakistan’s economy, accounting for a significant portion of the country’s exports. The industry faces challenges such as power shortages, high cost of production, and stiff competition from other countries.

Pakistan also has a growing IT sector, which has the potential to drive economic growth and create jobs. However, the sector faces challenges such as lack of skilled workers and inadequate infrastructure.

Overall, the economy of Pakistan has great potential for growth, but the country must address issues such as political instability, corruption, and terrorism in order to realize this potential. Additionally, investments in infrastructure, education, and technology are necessary to drive economic growth and create a more prosperous future for the country.

250 words Essay On Economics Of Pakistan

Pakistan is a country with a mixed economy, where both the public and private sectors play significant roles. The economy of Pakistan faces various challenges, including high inflation rates, low foreign investment, and unstable political conditions.

One of the key issues in the economics of Pakistan is the high inflation rate. Inflation in Pakistan has been a persistent problem, impacting the cost of living for the general population and reducing the purchasing power of the currency. The government has implemented various measures to control inflation, such as tightening monetary policy and increasing interest rates.

Another challenge faced by the economy of Pakistan is the low foreign investment. Investors are hesitant to invest in Pakistan due to political instability, security concerns, and inconsistent policies. To attract more foreign investment, the government has introduced various incentives, such as tax breaks and subsidies.

The agriculture sector plays a vital role in the economy of Pakistan, employing a significant portion of the population. However, the sector faces challenges such as water scarcity, outdated farming techniques, and lack of modern technology. The government has taken steps to modernize the agriculture sector by providing farmers with access to better seeds, fertilizers, and machinery.

Overall, the economy of Pakistan is facing various challenges, but the government is taking steps to address them. By focusing on controlling inflation, attracting foreign investment, and modernizing the agriculture sector, Pakistan can achieve sustained economic growth and development.

300 words Essay On Economics Of Pakistan

The economics of Pakistan is a topic of great importance due to the country’s relevance in the South Asian region. Pakistan is a developing country with an emerging market economy that is heavily reliant on agriculture, industry, and services. The country faces numerous challenges such as poverty, inflation, unemployment, and lack of infrastructure, but also has great potential for growth and development.

One of the key characteristics of Pakistan’s economy is its dependence on agriculture, which accounts for a significant portion of the labor force and GDP. However, the sector faces challenges such as water scarcity, outdated farming techniques, and lack of access to credit, which hinder its potential for growth.

In recent years, Pakistan has made strides in industrialization, with sectors such as textiles, manufacturing, and construction playing a significant role in the economy. The government has also introduced policies to promote investment and improve infrastructure, leading to increased foreign direct investment and economic growth. However, the country still faces challenges such as energy shortages, high production costs, and political instability, which hamper the growth of the industrial sector.

The services sector is another important component of Pakistan’s economy, with industries such as banking, telecommunications, and retail contributing significantly to GDP. The sector has seen significant growth in recent years, driven by increased consumer spending, urbanization, and technological advancements. However, challenges such as limited access to financial services, low levels of education, and lack of skilled workers hinder the sector’s potential for growth.

In terms of trade, Pakistan faces a trade deficit due to high imports and low exports. The country exports mainly textiles, agriculture products, and sports goods, while importing machinery, petroleum products, and chemicals. The government has introduced policies to promote exports and reduce imports, but challenges such as inefficient customs procedures, lack of trade agreements, and geopolitical tensions hinder the country’s trade potential.

In conclusion, the economics of Pakistan is a complex and multifaceted issue that requires careful analysis and effective policy interventions. The country has great potential for growth and development, but also faces numerous challenges that need to be addressed to realize this potential. By focusing on sectors such as agriculture, industry, services, and trade, Pakistan can overcome these challenges and achieve sustainable economic growth in the future.

500 words Essay On Economics Of Pakistan

Pakistan, a country located in South Asia, has a diverse and complex economy that has evolved significantly over the years. The economic landscape of Pakistan is shaped by a variety of factors such as its geographical location, historical background, political stability, and external influences.

The economy of Pakistan is primarily based on agriculture, industry, and services. Agriculture is the largest sector in terms of employment and contribution to GDP. The country is known for producing a variety of crops such as wheat, rice, cotton, sugarcane, and fruits. The agricultural sector faces challenges such as water scarcity, outdated farming techniques, and lack of modern technology.

The industrial sector in Pakistan is also significant, with industries such as textiles, cement, steel, and fertilizers playing a crucial role in the economy. The country has a large workforce employed in the industrial sector, which contributes significantly to GDP. However, the industrial sector faces challenges such as energy shortages, outdated machinery, and lack of investment in research and development.

The services sector in Pakistan is also a major contributor to the economy, with sectors such as banking, telecommunications, retail, and tourism playing a crucial role. The services sector has grown significantly in recent years, driven by factors such as urbanization, increasing disposable income, and technological advancements. However, the services sector also faces challenges such as lack of skilled workforce, regulatory hurdles, and competition from other countries.

One of the major challenges facing the economy of Pakistan is poverty and income inequality. The country has a significant portion of its population living below the poverty line, with limited access to basic necessities such as healthcare, education, and clean water. Income inequality is also a pervasive issue, with a small elite class controlling a large portion of the country’s wealth.

Another major challenge facing the economy of Pakistan is inflation and currency depreciation. The country has experienced high inflation rates in recent years, driven by factors such as increase in energy prices, depreciation of the Pakistani rupee, and global economic conditions. Currency depreciation has also become a significant issue, affecting the purchasing power of the common people and increasing the cost of imports.

The government of Pakistan has taken several measures to address these economic challenges and improve the overall economic performance of the country. Initiatives such as the China-Pakistan Economic Corridor (CPEC), tax reforms, and investment in infrastructure are aimed at promoting economic growth, creating employment opportunities, and attracting foreign investment.

In conclusion, the economy of Pakistan is complex and diverse, with various challenges and opportunities. The country has a rich agricultural sector, a strong industrial base, and a growing services sector. However, challenges such as poverty, income inequality, inflation, and currency depreciation continue to hinder economic growth. By implementing appropriate policies and reforms, Pakistan can overcome these challenges and achieve sustainable economic development.

Final Words

In conclusion, the economics of Pakistan present a complex and challenging landscape. Despite facing various issues such as inflation, unemployment, and trade deficits, the country has also seen growth and development in recent years. The government plays a crucial role in addressing these challenges through effective policies and reforms that aim to stabilize the economy, attract foreign investment, and promote sustainable growth.

Moving forward, it is essential for Pakistan to focus on strengthening key sectors such as agriculture, manufacturing, and services to drive economic growth and reduce dependency on imports. Furthermore, investments in infrastructure, education, and healthcare are crucial for building a more resilient and competitive economy.

While there are undoubtedly numerous challenges that lie ahead, there is also immense potential for Pakistan to emerge as a strong and prosperous economy in the future. By addressing the underlying issues, implementing sound economic policies, and fostering a conducive business environment, Pakistan can unlock new opportunities for growth and development, ultimately improving the lives of its citizens and ensuring a brighter future for the country.

Similar Posts

Essay on is competition really good – 100, 150, 200, 250, 300, 500 words.

Competition is a fundamental aspect of human nature that drives progress and growth in various aspects of life. It is often touted as a catalyst for innovation, motivation, and excellence. However, there is an ongoing debate about whether competition is truly good or if it has detrimental effects on individuals and society as a whole….

Essay On Fitness – 100, 150, 200, 250, 300, 500 words

In today’s fast-paced world, the importance of fitness and leading a healthy lifestyle cannot be overstated. The benefits of staying physically active and taking care of our bodies extend far beyond just the physical aspect. Fitness encompasses not only the strength and agility of our bodies but also the well-being of our minds and overall…

Essay On Quami Ekta Week – 100, 150, 200, 250, 300, 500 words

Quami Ekta Week, also known as National Integration Week, is a significant period in India aimed at promoting unity, peace, and harmony among citizens of diverse cultures, religions, and backgrounds. This annual observance, which takes place from November 19th to 25th, serves as a reminder of the importance of fostering a sense of national unity…

Essay On Discipline – 100, 150, 200, 250, 300, 500 words

Discipline is a fundamental aspect of success and personal growth. It is the ability to control one’s actions, thoughts, and behavior in order to achieve a specific goal. In this collection of essays on discipline, we explore the various factors and practices that contribute to developing discipline in different aspects of life. From self-discipline to…

Essay On Amritsar – 100, 150, 200, 250, 300, 500 words

Amritsar, a city in the northwest region of India, holds immense historical and cultural significance. This vibrant city is known for its rich Sikh heritage, iconic landmarks, and tumultuous past. From the serene Golden Temple, the holiest shrine of Sikhism, to the poignant Jallianwala Bagh memorial, which commemorates a tragic event in India’s struggle for…

Essay On Nationalism – 100, 150, 200, 250, 300, 500 words

Nationalism is a complex and multifaceted concept that has played a significant role in shaping societies, cultures, and political systems around the world. In its simplest form, nationalism can be defined as a shared sense of identity and loyalty to a particular nation or state. While nationalism can foster a sense of unity and pride…

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Essay Writing
• Dissertation Writing
• Assignment Writing
• Report Writing
• Literature Review
• Proposal Writing
• Poster and Presentation Writing Service
• PhD Writing Service
• Coursework Writing
• Tutoring Service
• Exam Notes Writing Service

Editing and Proofreading Service

Technical and Statistical Services

• Appeals and Re-Submissions

Personal Statement Writing Service

• Sample Dissertations
• Sample Essays
• Free Products

Sample Essay: The key characteristics of the economy of Pakistan and perspectives for its long-term growth

1. dynamics of key macroeconomic indicators.

Pakistan is a country in South Asia with a population of 208 million people, which is the fifth largest population in the world (PBS, 2017). Pakistani economy is semi-industrialised with a well-developed agricultural sector and an increasing share of the services sector (Iqbal, 2016). It is one of the fastest growing economies in the world driven by the rapidly growing middle class (Kaplan, 2012; Alam, 2015).

The rates of real economic growth during the last four decades have been around 5%. Along with that, it is necessary to underline a high average inflation rate which is shown in Figure 1.

Figure 1. Real GDP Growth and Inflation in Pakistan

Source: IMF (2019)

One of the main sources of inflation is the rigid structure of taxes, with 39% being direct taxes and 61% being indirect ones. The disadvantage of such high indirect taxes is that producers reimburse these costs by adding them to the end price of their products (Khan, 2019).

As for other key macroeconomic indicators, they are presented in Figure 2.

Figure 2. Pakistan Key Macroeconomic Indicators

* Financial year (FY) 2019 lasted from July 2018 to June 2019.

Source: COFACE (2019)

Figure 2 evidences that a current account balance has been increasing in the previous three years because of the increasing trade deficit, but this growth decelerated in 2019 due to devaluation of the rupee. This is because of low exports entailed by tough competition in the textile production, the main item of the Pakistani exports. Along with that, remittances from expatriates at the level of 7% of GDP partially mitigated the deficit. As for public debt, it increased by almost 10%, from 67.6% in 2016 to 73.0% of GDP in 2019 and it is expected to drive up the cost of borrowing for the government (COFACE, 2019).

Domestic debt increased by five times and external debt by 1.4 times in between 2009 and 2018. This makes the government spend almost 30% of the overall budget on servicing the debt which exaggerates the budget deficit (Khan, 2019).

Along with that, a cumulative depreciation of the exchange rate was at the level of 25.5%, the development budget reduced whereas energy prices increased. This entailed the deceleration of private consumption growth from 6.8% in FY18 to 4.1% in FY19 and a decline in investment by 8.9%. The industrial sphere growth decelerated from 4.9% in FY 2018 to 1.4% in FY19 while the services sphere grew by 4.7% in FY 2019 which is 1.5% lower than in FY 2018. Unfavourable weather conditions have undermined productivity of the agricultural industry and led to the growth of only 0.8%, which was significantly lower than the targeted growth of 3.8% (World Bank, 2019).

2. Strengths and Weaknesses of the Pakistani Economy

The perspectives of the Pakistani economy are vague although the potential drivers of growth are present. First of all, the main source of growth is the population growing at a rate of 2% annually, which expands the internal market. This also contributes to the availability of labour force (Mirxa et al., 2019). However, over 40% of workers are employed in agriculture which has at least two detrimental consequences. First, this labour force remains unskilled and second, agriculture substantially depends on weather and commodity world prices. Besides, health, agricultural and educational deficiencies are present. This makes the contribution of agriculture in the Pakistani economy quite low.

Second, there are two factors that may accelerate growth in the nearest future. The first one is that Pakistan is an important centre of Islamic finance which provides significant capital flows while the Pakistan stock exchange is among the fastest-growing stock markets in the world (Masood, 2018). Another factor is high amounts of transfers from expatriate workers which increase solvency of the country population. On the negative side, the Pakistani economy can be characterised by low diversification and dependence on external energy sources (Baz et al., 2019). Moreover, the level of regional development is very different, with Karachi being the industrial and financial capital of the country and Balochistan and other rural regions having slower development (COFACE, 2019).  It is estimated that the informal sector of the economy is about 40% of the country’s GDP while the collected taxes contribute only about 15% of GDP (COFACE, 2019). As mentioned, indirect taxes account for about 61% of all collected taxes. The harm of this tax structure for the economy is that indirect taxes including import duties excise taxes and fees are essentially regressive which implies that they mostly strike the poorest segment of the population. Furthermore, the applied system of indirect taxes turned to be too complex and ineffective while the introduction of the value-added taxation was sabotaged by the opposition (Masood, 2018). As for the direct taxes, the number of tax payers is extremely low, namely about 1 million per 116 million of the working population. Moreover, tax avoidance has become a norm in Pakistan (Cevik, 2016).

This is very low compared to peer emerging economies which generates one of the most striking problems of the Pakistani economy, namely a great imbalance between the public sector income and expenditure (Masood, 2018). Excessive expenditure includes persistent losses of some public enterprises (IMF, 2018) and losses in the power sector (World Bank, 2018). In addition, ineffective public investment exaggerates the mentioned imbalance (Masood, 2018).

Finally, the country is being torn apart by political instability. It is hard to speak about sustainable economic growth when there is no clear vision of the country’s future perspectives and the chosen course may substantially change in case of the arrival of a new government. This also makes the country’s perspectives dimmer for foreign investors who fear for the safety of their capital (Tabassam et al., 2016).

3. Recommendations: Main Drivers of Sustainable Growth

The main recommendations are connected with addressing existing imbalances in the economy of Pakistan in favour of more effective mechanisms for managing and distributing funds. First of all, the disbalance between public consumption and revenues that has been existing for decades should be mitigated. The measures for attaining this goal can be the revision and reform of the tax system in terms of tax structure, increase in the volume of collected direct taxes and optimisation of the indirect taxes regulation. Along with that, the governance of public enterprises should be enhanced to reduce their losses.

Solutions to the problems in the agricultural and power sectors would also contribute to fostering economic growth. Baz et al. (2019) suggest that policymakers and regulators should revisit their policies in these two sectors to make them more attractive for foreign investors. In particular, building new hydropower dams is required to provide the additional volumes of energy to the industrial sector and mitigate the deficit of water.

In this light, the findings made by Uddin et al. (2019) should be taken into account. These authors revealed that institutional factors including government size, legal structure and strong property rights, trade liberalisation and civil liberty have significant positive impact on FDI inflows. Among the institutional factors, regulation was indicated to have the strongest influence on inward FDI flows to Pakistan. Moreover, outcomes obtained by Tabassam et al. (2016) showed that political instability had a considerable negative effect on economic growth in Pakistan in the previous periods. Therefore, the government should undertake corrective measures to ensure political stability in the country.

A potential driver of growth for the Pakistani economy aimed at addressing these problems is the realisation of the China-Pakistan Economic Corridor (CPEC) project. This strategic project has been designed to stimulate economic relationships in the region as it will connect Pakistan's Gwadar port with the north-western part of China by 2030 (Mirza et al., 2019). According to CPEC, over US$46 billion are planned to be invested in Pakistan's infrastructure and in industrial, power, and agricultural spheres. This will allow for reducing power outages by means of increasing electricity generation capacity and investing in other sectors of the Pakistani economy. Given these capital injections, Pakistan is expected to gain the targeted increase in GDP growth rate by 7.5% by 2030 and create additional 2 million jobs.  Pakistan's vision 2025 accounts for these investments and plans fast urbanisation up to the level of 50-60% of the entire population and acceleration of economic growth to the rate of 8% already by 2025 (MPDR, 2015).

To sum up, the perspectives of the Pakistani economy look vague in the long term. On the one hand, its potential for growth is represented by the ongoing increase in population and thus labour force as well as opportunities to increase its internal market. On the other hand, the existing imbalances between government revenues and expenditure, ineffective public spending, poor-balanced tax system, deficit of power and water and persistent political instability that frightens potential foreign investors, do not allow for gaining sustainable growth.

Alam, K. (2015) Pakistan has 18th largest ‘middle class’ in the world: report, Available at: https://tribune.com.pk/story/973649/pakistan-has-18th-largest-middle-class-in-the-world-report/, [Accessed on 17 February 2020].

Baz, K., Xu, D., Minua, G., Kwaku, A., Ali, I., Khan, I., Cheng, J. and Ali, H. (2019) Energy consumption and economic growth nexus: New evidence from Pakistan using asymmetric analysis, Energy , 189, pp.1-9.

Cevik, S. (2016) Unlocking Pakistan’s Revenue Potential, IMF Working Paper, Available at: www.imf.org/external/pubs/ft/wp/2016/wp16182.pdf, [Accessed on 17 February 2020].

COFACE (2019) Major Macroeconomic Indicators, Available at: https://www.coface.com/economic-studies-and-country-risks/pakistan, [Accessed on 17 February 2020].

IMF (2018) Pakistan’s First Post-Program Monitoring Discussions, International Monetary Fund Staff Report, Available at: www.imf.org/en/Publications/CR/Issues/2018/03/14/Pakistan-First-Post-Program-Monitoring-Discussions-Press-Release-Staff-Report-and-Statement-45724, [Accessed on 17 February 2020].

IMF (2019) Pakistan Country Data, Available at:  https://www.imf.org/en/Countries/PAK#countrydata, [Accessed on 17 February 2020].

Iqbal, A. (2016) Pakistan an emerging market economy: IMF, Available at: https://www.dawn.com/news/1218182, [Accessed on 17 February 2020].

Kaplan, S. (2012) Is Pakistan an emerging market? Available at: http://www.globaldashboard.org/2012/02/13/is-pakistan-an-emerging-market/, [Accessed on 17 February 2020].

Khan, B. (2019) Debt, taxes and inflation: Highlights from the last 10 years of Pakistan's economy, Available at: https://www.dawn.com/news/1403998, [Accessed on 17 February 2020].

Masood, A. (2018) Why Does Pakistan Have Repeated Macroeconomic Crises? Centre for Global Development, Available at: https://www.cgdev.org/sites/default/files/why-does-pakistan-have-repeated-macroeconomic-crises.pdf, [Accessed on 17 February 2020].

Mirza, F. M. Nishat, F. and Ullah, K. (2019) Impact of China-Pakistan economic corridor on Pakistan's future energy consumption and energy saving potential: Evidence from sectoral time series analysis, Energy Strategy Reviews , 25 (2), pp. 34-46.

MPDR (2015) Pakistan 2025: One nation - One vision, Ministry of Planning, Available at: https://planipolis.iiep.unesco.org/sites/planipolis/files/ressources/pakistan-vision-2025.pdf [Accessed on 17 February 2020].

PBS (2017) Provisional summary results of 6th population and housing Census-2017, Pakistan Bureau of Statistics, Available at: https://web.archive.org/web/20171015113737/http://www.pbscensus.gov.pk/, [Accessed on 17 February 2020].

Tabassam, A. H., Hashmi, S. H. and Rehman, F. U. (2016) Nexus between Political Instability and Economic Growth in Pakistan, Procedia - Social and Behavioural Sciences , 230, pp. 325-334.

Uddin, M., Chowdhury, A., Zafar, S., Shafique, S. and Liu, J. (2019) Institutional determinants of inward FDI: Evidence from Pakistan, International Business Review , 28 (2), pp. 344-358.

World Bank (2018) Electric power transmission and distribution losses (% of output) – Pakistan, Available at: https://data.worldbank.org/indicator/EG.ELC.LOSS.ZS?locations=PK, [Accessed 17 February 2020].

World Bank (2019) The World Bank In Pakistan, Available at: https://www.worldbank.org/en/country/pakistan/overview, [Accessed on 17 February 2020].

Monday - Friday:   9am - 6pm

Saturday: 10am - 6pm

Got Questions?

Email:  [email protected]

*We do NOT use AI (ChatGPT or similar), all orders are custom written by real people.

Our Services

Essay Writing Service

Assignment Writing Service

Coursework Writing Service

Report Writing Service

Reflective Report Writing Service

Literature Review Writing Service

Dissertation Proposal Writing Service

Dissertation Writing Service

MBA Writing Service

Need some help?

Select a contact option below and we will get back to you for free.

• Ask this writer a question
• Request a copy of this paper (with tables, figures and calculations where applicable)
• Get professional help with part of your work

The World Bank In Pakistan

Pakistan has important strategic endowments and development potential. The increasing proportion of Pakistan’s youth provides the country with a potential demographic dividend and a challenge to provide adequate services and employment.

Poverty has increased slightly amid recent shocks, despite some economic stabilization. Pakistan made significant progress towards reducing poverty between 2001 and 2018 with the expansion of off-farm economic opportunities and increased external remittances. However, this has not fully translated into improved socio-economic conditions: over one-third of school-age children across Pakistan were found to be out of school; nearly two-thirds of those in school in FY24 were learning deprived; and alarmingly high rates of stunting - 40 percent in FY23 - persist. Critical constraints, including recurrent fiscal and current account deficits, protectionist trade policies, unproductive agriculture, a difficult business environment, a heavy state presence in the economy, and a financially unsustainable energy sector, have remained largely unaddressed, leading to slow and volatile growth. Amid the COVID-19 pandemic, the catastrophic 2022 floods and macroeconomic volatility, poverty has increased. The estimated lower-middle income poverty rate is 40.5 percent (US$3.65/day 2017 PPP) for FY24 with an additional 2.6 million Pakistanis falling below the poverty line from the year before.

Pakistan has made recent progress towards macroeconomic stabilization, but risks remain extremely high and faster sustained growth will require substantial reform. At the beginning of FY24, Pakistan's economy faced a potential economic crisis in the face of political uncertainty, global monetary policy tightening, and fiscal and external imbalances, that led to pressures on domestic prices and foreign reserves. To preserve reserves, measures to manage imports and capital outflows were introduced, which disrupted local supply chains, economic activity and exacerbated inflationary pressures. Under the interim government, an IMF Stand-By Arrangement was approved in July 2023. Consequently, exchange rate flexibility was restored, import controls were relaxed, and steps were taken to contain the fiscal deficit. Political uncertainty also diminished with the successful conduct of the general elections. Coupled with favorable weather conditions and easing external conditions, the economy began recovering in FY24. Consequently, growth of real GDP at factor cost is estimated to have risen to 2.5 percent in FY24, after contracting by 0.2 percent y-o-y in FY23. Downside risks remain high, with the outlook predicated on a new IMF-EFF program being implemented, continued fiscal restraint, and additional external financing. Heavy banking sector exposure to the sovereign, domestic policy uncertainty, geopolitical instability and delays in global monetary easing pose significant risks to the outlook. Robust economic recovery over the medium term will require the steadfast implementation of much broader fiscal and economic reforms.

GDP growth is projected to gradually recover but remain below potential. Economic activity is expected to continue recovering, with real GDP growth reaching 2.8 percent in FY25, as the economy benefits from the availability of imported inputs, easing domestic supply chain disruptions and lower inflation. Business confidence will also improve with credit rating upgrades, reduced political uncertainty, and fiscal tightening measures, such as the devolvement of constitutionally mandated expenditures to the provinces and higher agricultural income taxes. However, output growth will remain below potential as tight macroeconomic policy, elevated inflation, and policy uncertainty continue to weigh on activity. Limited growth in real wages and employment will keep the poverty rate near 40 percent through FY26. However, with continued progress on reforms and macroeconomic stability, poverty reduction is expected to gradually resume. With high base effects and lower commodity prices, inflation will slow to 11.1 percent in FY25 but remain elevated due to higher domestic energy prices, expansionary open market operations, and new taxation measures. On the external front, the CAD is forecast to remain low at 0.6 percent of GDP in FY25 but widen as domestic demand recovers. The fiscal deficit is projected to increase to 7.6 percent of GDP in FY25 due to higher interest payments but gradually decrease on fiscal tightening and falling interest payments.

The Government continues to face a challenging economic environment while maintaining progress towards macroeconomic stabilization and critical structural reforms. Downside risks to the outlook remain high, with the recovery expected to continue but predicated on the new IMF-EFF program remaining on track and on additional external financing inflows. Continued fiscal restraint will dampen aggregate demand, income, employment, and poverty alleviation. Heavy banking sector exposure to the sovereign, domestic policy uncertainty, federal-provincial government political misalignments and geopolitical instability pose significant risks. To manage these risks, it will be critical to adhere to sound overall economic management and buttress market sentiment, including through articulating and effectively implementing a clear strategy for economic recovery; constraining fiscal expenditures and carefully targeting any new expenditures; maintaining a flexible exchange rate; and remaining on-track with critical structural reforms, including those in the energy sector.

Last Updated: Oct 03, 2024

The  Country Partnership Strategy  (CPS) for Pakistan for FY2015-20 is structured to help the country tackle the most difficult—but potentially transformational—areas to reach the twin goals of poverty reduction and shared prosperity.

The Pakistan team continues to engage with stakeholders on the next Country Partnership Framework (CPF). The CPF will draw from several analytical works, including  Pakistan Systematic Country Diagnostic: Leveling the Playing Field , and the recently published  Country Climate Development Report  and  Country Economic Memorandum .

The four results areas of the current CPF are:

Transforming the energy sector:  WBG interventions are supporting improved performance of the energy sector by supporting reforms and investments in the power sector to reduce load shedding, expand low-cost generation supply, improve transmission, improve governance and cut losses.

Supporting private sector development:  A mix of budget support, investments and analytical work supports improvements in Pakistan’s investment climate, in overall competitiveness, agricultural markets and productivity, and skills development. 

Reaching out to the underserved, neglected, and poor:  Investments support financial inclusion, micro, small and medium enterprises (MSMEs), women and youth (including through enrollment outcomes), fragile provinces/regions and poorer districts, social protection, and resilience and adaptation to mitigate the impacts of climate change.

Accelerating improvements in service delivery:  At the federal and provincial levels, the Bank supports increasing revenues to fund services and setting more ambitious stretch targets for areas that are not producing change fast enough (especially education and health). At the provincial level, this involves support to better service delivery in cities.

Cross cutting themes for the program include women’s economic empowerment, climate change and resilience, and regional economic connectivity.

The WBG has third-largest portfolio of $15.7 billion in Pakistan ($11.7bn IDA, $3.8bn IBRD, $0.2mn in co-financings). The portfolio is supporting reforms and investments to strengthen institutions, particularly in fiscal management and human development. Partnerships are being strengthened at provincial levels, focusing on multi-sectoral initiatives in areas such as children's nutrition, education and skills, irrigated agriculture, tourism, disaster risk management, and urban development. Clean energy, and social/financial inclusion, both remain major priorities.

ENHANCING DISASTER RESILIENCE

As one of the countries most vulnerable to climate change, Pakistan is affected by recurring catastrophes, including the unprecedented 2022 floods, which affected an estimated 33 million people, resulting in US$14.9 billion in damages and US$15.2 billion in economic losses . Pakistan’s economy continues to suffer chronic strain from prevailing and likely future threats of hazards. Since the 2005 Pakistan earthquake, which led to nearly 73,000 deaths and caused damages to over 570,000 houses, the Bank has been supporting the Government of Pakistan in shifting to an anticipatory disaster risk management approach. Initially, the Bank provided technical assistance to the government to highlight physical and fiscal risks from hazards, including risk assessments of federal and provincial capitals. In parallel, the Bank also used grant resources to build the capacity of Provincial Disaster Management Authority of Balochistan.

Following the floods of 2014, at the request of Government of Pakistan, the World Bank prepared the US$125 million IDA-funded Disaster and Climate Resilience Improvement Project (DCRIP) to support the restoration of flood protection infrastructure and strengthen government capacity to manage disasters and climate variability in Punjab. The project was successfully concluded in November 2021, achieving its intended development objectives and surpassing the targets for several key results indicators. DCRIP directly benefitted more than 8 million people, half of which are women. The project also repurposed US$7 million to support the Government of Punjab in the pandemic emergency response through procurement of personal protection and healthcare equipment.

In 2016, the Bank also prepared and delivered the US$100 million IDA-funded Sindh Resilience Project (SRP) to mitigate flood and drought risks in selected areas, and strengthen Government of Sindh's capacity to manage natural disasters. About 5.75 million people across the province have benefitted from project interventions till date. The drought mitigation component of the project, comprising construction of small groundwater recharge dams, has already started generating strong development impacts for the target communities. In 2021, the Bank approved an additional financing of US$200 million to scale up the small groundwater recharge dams component and set up an emergency rescue service for Sindh.

The Bank has also prepared and delivered the US$188 million IDA-funded Pakistan Hydromet and Climate Services Project which aims to strengthen Pakistan’s public-sector delivery of reliable and timely hydro-meteorological services and enhance community resilience to shocks. The Contingent Emergency Response Component (CERC) was activated under this project to disburse US$150 million in response to the 2022 floods to provide cash assistance to 1.3 million flood affected families.

Furthermore, as part of comprehensive emergency response and rehabilitation support for 2022 floods, the Bank is implementing two emergency projects for the province of Sindh, which was disproportionately affected by the catastrophe. The US$500 million IDA-funded Sindh Flood Emergency Rehabilitation Project (SFERP) aims to rehabilitate damaged infrastructure and provide short-term livelihood opportunities through cash-for-work in selected areas of Sindh affected by the 2022 floods. The project is also strengthening the capacity of the Government of Sindh to respond to the impacts of climate change and natural hazards through expansion of the Sindh Emergency Rescue Service (Rescue 1122) and enhancing the preparedness of relevant line departments. In less than 2 years, the Sindh Flood Emergency Rehabilitation Project has made rapid implementation progress which is reflected in the significant results achieved till date. About 1.7 million people have benefited from rehabilitated infrastructure built to resilient standards. Meanwhile approximately 139,000 households have benefited from short term livelihoods support, of which 45 percent are women.

Similarly, the IDA-funded US$500 million Sindh Flood Emergency Housing Reconstruction Project is delivering beneficiary-driven, multi-hazard resilient reconstruction of core housing units damaged or destroyed in the floods of 2022 in selected districts of Sindh. The Project is supporting the provision of an estimated 350,000 housing subsidy cash grants and strengthening the capacity of the Government of Sindh by providing technical assistance for the overall housing reconstruction program. The Sindh Flood Emergency Housing Reconstruction Project has also achieved strong implementation progress with more than 600,000 beneficiary bank accounts opened. As of September 2024, around 137,000 core housing units have been reconstructed to multi-hazard resilient standards.

The Bank has also launched the Country Climate and Development Report (CCDR) for Pakistan. The Pakistan CCDR provides analyses and policy recommendations on harmonizing efforts to achieve further economic growth and lower poverty rates, on the one hand, with the pursuit of a climate-resilient, low-carbon, and equitable development path, on the other. The CCDR strongly emphasizes the need to build long-term resilience while exploring pathways for Pakistan to achieve deep decarbonization by 2050, and eventually reach net-zero emissions by 2070 without undermining its development ambitions.

Most recently, the Bank carried out the Pakistan Crisis Preparedness Gap Analysis (CPGA) in collaboration with the government, development partners, non-governmental organizations, and the private sector. The CPGA assesses and provides recommendations on the preparedness for natural hazards, food insecurity, and health emergencies, across five key components: Legal and Institutional Foundations; Understanding and Monitoring Risks; Financial Preparedness; Primary Response; and Social and Livelihood Support. The analysis, part of the World Bank’s new Crisis Preparedness and Response Toolkit, provides a high-level overview of crisis preparedness gaps in Pakistan and provides a roadmap for future to strengthen the country’s crisis preparedness.

Pakistan has made progress in mainstreaming the Sustainable Development Goals (SDGs) in national policies and strategies, however, there is a slow progress in improving health outcomes. According to the maternal mortality survey in 2019 [1], the country’s maternal mortality ratio  was 186 deaths per 100,000 live births down from 276/100,000 live births in 2006-07. Large gaps exist across provinces with Sindh and Balochistan having twice the number of maternal deaths as compared to the national average. The country also has one of the highest infant and under-5 mortalities in the region (62 and 74 deaths per 1,000 live births, respectively). Twenty-two percent of the children born have low birth weight with variations across provinces.

On average, access to quality reproductive, maternal, newborn, child, and adolescent health with nutrition services in Pakistan is inadequate, with regional disparities. About 49 percent [2] of pregnant women do not receive the recommended four or more anti-natal care (ANC) visits essential for a safe and healthy pregnancy outcome. With 33.8 percent of births outside of health facilities, the risk of maternal and infant mortality and morbidity is high. 42 percent of women of reproductive age in Pakistan have anemia due to poor nutrition. At 3.6 births per woman [3], Pakistan’s fertility rate is still relatively high, and except for Punjab, adolescent fertility has increased, and modern contraceptive prevalence rate (mCPR) has been low in the last decade at 25 percent. High fertility rate and teenage pregnancies contribute to poor maternal and child health outcomes which pose risks of death and illness.  Poor health affects all facets of women’s lives including delayed development milestones, education, learning skills and gainfully participating in the labor force.

Stunting rates for children under age 5 have dropped from 45% to 40.2% from 2013 to 2018 [4]. However, it is still high and large disparities exist among provinces. This prevalence varies from 36.4% in Punjab to 46.6% in Balochistan. The average annual rate of reduction since the last 2018 National Nutrition Survey has been estimated at only 0.5 percent, which is frighteningly slow to reach the national targets. Although the situation is worse in rural and poor households, more than 20 percent of under-5 children in the wealthiest income quintile are also stunted, meaning poverty is not the only driver of stunting.

Immunization coverage for children aged 12-23 months, increased considerably over the past 8-9 years from 54% in 2013 to 77% in 2022. In Punjab 89.5% of children are fully immunized while in Khyber Pakhtunkhwa, Sindh and Balochistan 60.5%, 68%, and 37.9% are respectively fully vaccinated [5].

The World Bank has been supporting the health sector in Pakistan through national and provincial projects. The “National Health Support Program”, approved in Fiscal Year 2023, supports the strengthening of equitable delivery and quality of essential health services at the primary level and the “Sindh Integrated Health and Population Project”, approved in Fiscal Year 2023, supports to improve quality health services in selected areas and restore and rehabilitate healthcare services impacted by floods. The “Punjab Family Planning Program” is aimed to improve modern contraceptive prevalence rate (mCPR) while simultaneously tackling the knowledge and cultural barriers that hinder access to family planning services in the province. Provincial “Human Capital Investment projects” are being implemented in Balochistan, Punjab and Khyber Pakhtunkhwa with the aim to improve utilization of quality health targeted and social services to the poor and vulnerable population.

The World Bank also invests in analytical work through “Programmatic Advisory Services and Analytics (PASA)”, aiming to generate evidence for reforms and provide technical support to the federal and provincial governments in implementing Universal Health Coverage in Pakistan. Additionally, the Bank is working with the Government of Pakistan, through analytics to build capacity of the country stakeholders of the human and animal sectors on health emergency preparedness and response from a one-health perspective.  The Bank is also developing thorough and comprehensive analyses on nutrition that will contribute to the development of a nation-wide program to accelerate stunting reduction in under-five children in pursuit of accumulating human capital in Pakistan.

Sources: [1] Pakistan Maternal Mortality Survey 2019; [2] Universal Health Coverage Index 2023; [3] Demographic and Health Survey 2018; [4] National Nutrition Survey 2018; [5] Third-Party Verification Immunization Coverage Survey Round Two 2022.

Actions to Strengthen Performance for Inclusive and Response Education (ASPIRE) is a 5-year US$200 million program that became effective in August 2020. The program is aimed at enhanced targeting of COVID-19 education response, generating improved learning opportunities for out-of-school children (OOSC) and at-risk students, and enabling stronger federal-provincial coordination and management. To date, the Ministry of Federal Education and Professional Training (MoFEPT) and the provincial education departments have achieved four Disbursement-Linked Results (DLR): adoption of National School Health and Safety Protocols, approval of National Education Response and Resilience Plan, provision of distance learning kits to 50,000 students across the country, and provision of hygiene and cleaning kits to 20,000 public schools nationwide. The activities planned in in FY23 mostly focused on construction and rehabilitation, communication campaigns, teachers training, multi-modal programs, and specific intervention related to Out of School Children (OOSC). The ASPIRE program has also been successful at leveraging the Inter-Provincial Education Ministerial Conference (IPEMC) and the Technical Steering Committee (TSC) platforms for improved coordination between the Federal and Provincial Education Departments.

Data and Research in Education (DARE) is a US$10 million Bank Executed Trust Fund (BETF) provided by the Foreign, Commonwealth & Development Office alongside the ASPIRE program. The project supports Pakistan education sector’s response and recovery by providing technical assistance to the Federal Government, in order to strengthen the education data infrastructure and coordination mechanisms between the federal and provincial governments, enhance evidence-based decision making and improve targeting of programs to reduce inequality and gender-gap. The main components under DARE include strengthening the provincial-Federal education data management processes, enhancing sector coordination on student learning outcomes and improvement of sector monitoring, evaluation and decision making by supporting policy research and impact evaluations.

Under the 5-year Higher Education Development in Pakistan (HEDP) the World Bank supports research excellence in strategic sectors of the economy, improved teaching and learning and strengthened governance in the higher education sector. The project has been successful in bringing some key reforms in the sector, including: introduction of an Undergraduate Education Policy which established the criteria for Associate Degree and transition of all Bachelor’s Degree programs from two-years to four-years; research capacity development by providing competitive research, innovation, and commercialization grants, such as the Rapid Research Grants, for research on critical COVID-19 related topics and Innovative Seed Fund to support startups and entrepreneurs; expansion of digital connectivity and remote learning systems to ensure continuity of education during COVID-19 and capacity building trainings of faculty, especially females under the newly established National Academy for Higher Education.

The Bank supports interventions in the education sector in Punjab through the Human Capital Investment project (US$200 million, with US$30 million supporting strengthening and scale-up of early childhood education in 11 districts in South Punjab). The project supports the development of a 2-year early childhood education (ECE) curriculum and strengthening of ECE services in Punjab. Currently a minimum of 11,000 ECE classrooms meet new quality standards, which include the presence of a trained teacher and caregiver as well as a kit with instructional material. In addition, content for teaching and learning materials is being updated to ensure alignment with evolving curricula and standards.  The project is also supporting rehabilitation of around 450 flood-affected schools in South Punjab.

The 5 year Sindh Early Learning Enhancement through Classroom Transformation (SELECT) project of $155 million – financed in part by grants from the Global Partnership for Education ($55 million) – supports the Sindh Education Sector Plan & Roadmap (SESPR) 2019–2024 and targets 12 of 29 districts in Sindh with the lowest performance on education outcomes. SELECT focuses on foundational literacy and teaching quality, school construction to improve access to elementary schools and enhance school learning environments (including in flood-affected schools), school dropout prevention (especially for girls) through a student attendance monitoring and redressal system, and improved school and district-level governance.

Balochistan

The Balochistan Human Capital Investment Project (BHCIP), which became effective in 2021, is implemented together with the health sector. The education component (US$17.75 million) focuses on the improved utilization of quality education services in selected refugee hosting districts. BHCIP funds the rehabilitation of schools and upgrading of primary schools to middle and high schools, merit-based hiring of additional teachers and strengthening of the education sector stewardship. To date, BHCIP has initiated the procurement of supplies for schools, including basic furniture, ECE classroom materials, science, and IT laboratory equipment. The project also aims to improve student assessment and teacher training across the province by supporting the Balochistan Assessment and Examination Commission and Provincial Institute of Teacher Education. Use of data for decision making and schools’ capacity to contribute to generating reliable data is another important element of the project that strengthens governance at school and district levels.

Khyber Pakhtunkhwa

In March 2021, the Government of Pakistan approved the US$200 million Khyber Pakhtunkhwa Human Capital Investment Project (KPHCIP) – a five-year project that aims to improve the availability, utilization, and quality of primary healthcare services and elementary education services in 4 districts of Khyber Pakhtunkhwa. The districts were selected because they have some of the highest refugee populations in the province. This financing includes a grant of USD $62.5 million from the IDA18 regional sub-window for refugees and host communities (IDA-18 RSW). The education component (US$115 million) of the project focuses on improving the availability, utilization, and quality of education services in selected districts for all children, especially out-of-school children, refugees, and girls.  The project was restructured in 2023-24 to support rehabilitation and reconstruction of flood-affected schools in the original districts as well as 9 additional flood-affected refugee-hosting districts. The project is currently supporting the equipping of ECE classrooms, establishment of Accelerated Learning Pathways centers and girls’ community schools, and training of teachers and school leaders.

OPERATING IN CONFLICT AREAS

In the aftermath of the militancy crisis in Pakistan, the Multi-Donor Trust Fund (MDTF) for Khyber Pakhtunkhwa (KP), Federally Administered Tribal Areas (FATA), and Balochistan was established in August 2010. The aim was to support the reconstruction, rehabilitation, reforms, and other interventions needed to build peace and create the conditions for sustainable development in the affected regions. After more than a decade of implementation, the MDTF officially closed on December 31, 2023.

In two rounds, the MDTF supported a range of projects to help build state-citizen trust in KP, FATA, and Balochistan. Round I of MDTF projects was implemented from August 2010 to March 2017 and focused on helping the provinces come out of the militancy crisis and take strides towards conflict prevention and peacebuilding. Subsequently, Round II was implemented from April 2017 to September 2023, achieving results towards reconciliation, peacebuilding and enhancing state- citizen trust by focusing on three pillars: (i) Growth and Jobs Creation; (ii) Improved Service Delivery; and (iii) Policy Reforms and Improved Governance.

The MDTF has aimed to build peace and create the conditions for sustainable development, but it has also helped address an array of immediate emergencies in Pakistan. For example, the MDTF has responded to unforeseen and immediate needs by supporting livelihood improvement measures in Balochistan in the aftermath of the 2022 floods. Furthermore, the fund was among the first to respond to the COVID-19 pandemic in Pakistan, providing much-needed resources.

The MDTF was closed on December 31, 2023, after the activities were completed and the targeted results were achieved. Of the funds of around USD 283 million, which included USD 11 million in investment income, USD 279 million (98 percent) was used for results, resulting in savings of around USD 3.6 million.

The MDTF achieved noteworthy results under its three results areas. The World Bank will continue to engage with the Governments of Khyber Pakhtunkhwa and Balochistan through several projects that build on the results achieved under the MDTF.

poor families, or 20 million people, are benefiting from BISP monthly cash grants all over Pakistan ($1 billion to date)

Pakistan: Commitments by Fiscal Year (in millions of dollars)*

Tackling nutrition challenges and supporting women empowerment in rural sindh, around the bank group.

Find out what the Bank Group's branches are doing in Pakistan.

STAY CONNECTED

Additional resources, country office contacts.

This site uses cookies to optimize functionality and give you the best possible experience. If you continue to navigate this website beyond this page, cookies will be placed on your browser. To learn more about cookies, click here .

Economic Crisis in Pakistan: Challenges and Remedies

• Bilal Ahmad
• November 26, 2022
• Daily Write-Ups , Economy of Pakistan
• 41994 Views

The following article is written by Bilal Ahmad , a student of Miss Syeda Saba and Miss Iqra Ali . For years, Miss Syeda Saba has been known for her Grammar teaching methodology, and Miss Iqra Ali for being a top-notch writer and a writing coach.

The decade of the 1960s is considered the golden age of economic growth in Pakistan. Due to the policies of the Ayub Khan regime, economic growth was so impressive that it was seen as a model of economic development by many developing nations. Unfortunately, things continued getting worse thereafter and have now reached a point where most economists think that Pakistan is heading towards bankruptcy. 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 revenue collection. Resultantly, the government has to borrow money from international and national financial institutions such as the World Bank, International Monetary Fund, and Asian Development Bank so that it can enable higher spending without having to increase taxes. The shortage of power and water is also a gigantic economic challenge. The prevailing energy crisis in Pakistan is eating up two percent of the economy; it is because all sectors of the economy are heavily dependent on power consumption. Frequent power outages have immensely damaged the industrial production and overall performance of all the other sectors of the economy. The water crisis is also the biggest issue for economic growth. The water crisis is hampering agricultural production, which has a significant share of the economy. The high cost of doing business is another challenge that needs to be addressed urgently.

Numerous problems and hurdles in the way of starting a business, such as a delay in communication, centralized decision making, lack of loyalty, lengthy registration procedures, and lack of skilled labour force, make it expensive and unaffordable for investors to start a business in the country. This is a serious barrier to economic growth. Another serious challenge Pakistan’s economy is faced with is poor governance, which has stymied smooth and sustainable development. Good governance comes through strong, independent state institutions. A country cannot grow unless the issue of poor governance is resolved. Political instability is like the sword of Damocles for our economy. There is no denying the fact that the political environment of a country has a profound impact on its economy. In a stable political environment, the government does not have to strive for its survival and is able to pay full attention to the economic well-being of the nation by devising long-term policies. Unfortunately, the political conditions of Pakistan have never remained stable. History reveals that since its inception, the country has been longing for a stable democratic government. The law and order situation has also taken a heavy toll on our national economy. Peace and progress are both intertwined. Peaceful conditions are crucial for attracting foreign and local investors.

First and foremost, Pakistan needs to ensure an environment conducive to investors so that foreign direct investment in the country can be increased. The government should offer tax incentives for the establishment of industrial units in various sectors as such units will provide employment to the youth and will also add to the government’s revenue collection. Second, the domestic investment must be encouraged through more flexible tax policies, particularly for small and medium enterprises. Such measures would stabilize the economy and reposition Pakistan on the international stage as an attractive destination for foreign investment. Third, Pakistan needs to focus on building up its domestic industry to expand its exports. All the hindrances to the development of domestic industry must be removed. Fourth, Pakistan must modernize its industrial and agriculture sector. New plants and equipment must be installed for the purpose of enhancing the quality and quantity of industrial production. Fifth, Pakistan needs to broaden its tax base. Currently, the agriculture sector is not being taxed, while large businesses are also often given a big tax break. The tax base can be widened by taxing the agricultural sector and undue tax amnesties to large businesses. Also, there is a dire need to introduce tax reforms and strengthen tax collection coordination at the national and provincial levels. Last but not least, advancement in the field of science and technology is the key driver for the acceleration of economic development. Pakistan needs to invest in the field of science and technology as it will have a positive influence on the agricultural and industrial output.

Taking everything into consideration, it can be said that the country’s severe economic challenges can be tackled if effective strategies and policies are devised and implemented. The country can revive its economy through institutional, educational, industrial, and agricultural reforms. In this way, it can be hoped that Pakistan will become a model of economic development for developing nations around the world.

Are you looking to learn English communication skills to qualify for the CSS and PMS English essay & Precis papers? Let’s join Sir Syed Kazim Ali and learn how to give your ideas and thoughts words, fluently and confidently. CSS & PMS 2024 Extensive English Course

Want to read CSS Pakistan Affairs Solved Past Papers and learn how to attempt them to score high? Let’s click on the link below to read them all freely. All past papers’ questions have been attempted by Sir Kazim’s students, who scored the highest in the subject. CSS Solved Pakistan Affairs

More Essays

Click on any to start reading the essay.

Want to read General Science & Ability Solved Past Papers to learn how to attempt them to score high? Let’s click on the link below to read them all freely. All past papers have been solved by  Miss Iqra Ali  &  Dr Nishat Baloch , Pakistan’s top CSS GSA coach having the highest score of their students.  General Science & Ability Solved Past Papers

Articles Might Interest You!

The following are some of the most important articles for CSS and PMS aspirants. Click on any to start reading.

Recent Posts

Top Categories

Cssprepforum, education company.

cssprepforum.com

Welcome to Cssprepforum, Pakistan’s largest learning management system (LMS) with millions of questions along with their logical explanations educating millions of learners, students, aspirants, teachers, professors, and parents preparing for a successful future. 

Founder:   Syed Kazim Ali Founded:  2020 Phone: +92-332-6105-842 +92-300-6322-446 Email:  [email protected] Students Served:  10 Million Daily Learners:  50,000 Offered Courses: Visit Courses  

More Courses

Basic English Grammar and Writing Course

Extensive English Essay & Precis Course for CSS and PMS

CSS English Essay and Precis Crash Course for 2023

Subscribe to our mailing list to receives daily updates direct to your inbox.

• CSS Solved Essays
• CSS Solved GSA
• CSS Solved PA
• CSS Solved Islamiat
• Current Affairs
• All Courses
• Writers Club
• All Authors
• All Members
• All Teachers
• Become an Author
• Who is Sir Syed Kazim Ali?
• Privacy Policy

CssPrepForum is Pakistan’s largest and greatest platform for CSS, PMS, FPSC, PPSC, SPSC, KPPSC, AJKPSC, BPSC, GBPSC, NTS, and other One Paper 100 Marks MCQs exams’ students. It has become Pakistan’s most trusted website among CSS, PMS students for their exams’ preparation because of its high-quality preparation material.

@ 2023 Cssprepforum. All RightsReserved.