Pakistan economic policy explained with examples

Pep

1. MID-TERM
PRESENTATION
Presented By: Aaqib Shaikh

2. QUESTION - 2
Gross Domestic Product (GDP): Reflects the market value of all goods and services
produced in Pakistan, indicating economic health and growth.
Gross National Product (GNP): Encompasses all economic production by Pakistan's
residents, including overseas income, highlighting broader economic contributions.
Challenges in Pakistan:
Income Inequality: Significant disparities in wealth distribution across different
regions and social classes.
Environmental Impact: Deforestation, water scarcity, and air pollution are
worsened by rapid industrial growth.
Inflation: Persistent inflationary pressures affecting the Pakistani’s cost of living
and purchasing power.

3. Fiscal vs. Monetary Policy: Key
Differences in Pakistan
Authority: Fiscal policy is determined by the government (Ministry of Finance), while the SBP
handles monetary policy.
Tools and Impact: Fiscal policy operates through government spending and taxation decisions
directly affecting the economy. In contrast, monetary policy adjusts the cost of borrowing and
the money supply to influence economic trends indirectly.
Response to Economic Challenges: Fiscal initiatives can target specific sectors (e.g.,
agriculture, manufacturing) for development or support, whereas monetary policy addresses
broader economic indicators like inflation and currency stability.

4. QUESTION - 3
Government Policies
Taxation
Subsidies
Regulations
Monetary Policies
Individual and Business
Responses
Adjusting Purchasing Power
Shifting Spending Patterns
Modifying Investment
Strategies
Adapting Production
Revising Pricing Strategies
Policy Impact
Economic Stability
Growth Facilitation
Social Issue Addressal
Decision-Making Interconnectedness
Macroeconomic Factors
Inflation's Effect on Purchasing
Unemployment's Influence on Confidence
Interest Rates' Role in Borrowing
Decision-Making Complexity
Need for Holistic Understanding
Navigating Economic Challenges
Optimizing Individual and Business Outcomes

5. QUESTION - 4
1947 Onwards: Agrarian beginnings
Industrialization Efforts: Early attempts
1960s: Ayub Khan's reforms
1970s: Bhutto's nationalization
1980s: Zia-ul-Haq's liberalization
Post-1988: Inconsistent reforms
2008: IMF interventions due to crisis
2010s: Energy shortages; CPEC initiation (2013)
Recent: COVID-19 impacts
Current Challenges: Informal economy, political instability, energy, governance

6. QUESTION - 5
Trends in Pakistan's Agricultural Evolution
Crop Diversification: Enhances food security.
Technological Advancements: Boosts productivity, reduces resource use.
Livestock Sector Growth: Secures food and livelihoods.
Export-Oriented Agriculture: Elevates global economic stance.
Overall Impact: Moves towards sustainability and resilience in agriculture.

7. Group 1
In the context of Pakistan, how do political stability, infrastructure development, human capital enhancement, and access to
finance collectively impact its economic growth and development, and what strategies should the Pakistani government adopt to
maximize the positive effects of these factors?
Group 2
How do social and cultural influences shape economic decision-making processes in different contexts, such as personal life,
business strategies, and governmental policies, and what implications do these influences have on the economic outcomes?
Group 3
Considering the significant transitions from initial economic challenges, agrarian focus, industrialization efforts, and
nationalization policies to recent economic liberalization, privatization, and the impacts of CPEC, how have these shifts
historically influenced Pakistan's economic development trajectory, and what lessons can be learned to navigate the current
economic challenges facing the nation?
Group 4
How have the trends, policies, and challenges associated with agricultural evolution in Pakistan influenced its agrarian shifts and
policy impacts?
Group 5
How has the trajectory and development initiatives in Pakistan's agricultural sector influenced its evolution, and what ongoing
issues continue to shape its landscape
Group 6
What are the key shifts in industrial policy and growth trends that have shaped the industrial evolution in Pakistan?
QUESTIONS (GRP 1-6)