Pakistan is a state which is going through several ups and downs when it comes to the economy of the country. There are several reasons which have contributed in this cause which includes the political instability, high inflation, unemployment and factors like terrorism which have played the major role in this cause. The current economic situation of Pakistan is still not as bright as it should be. An overview of which is being stated below.
The gross domestic product which shows the real growth and stability of the state is not as much attractive and impressive for Pakistan. The GDP for the year 2011 is just 2.4% as compared to the 3.8% of the previous year which shows the decline in the GDP. There are several factors which contribute in the GDP of Pakistan. Agriculture sector consists of the 20.9% in the total GDP while industry contributes about 25.8% and the remaining 53.3% is being contributed by the Services sector of Pakistan. While the labor which has involved themselves in these sectors are in the proportion in which agriculture acquires 45% of the total labor of the state and industry attains 20.1% while the remaining 34.9% is being involved in services sector.
Current Economic Situation of Pakistan
The poverty in Pakistan has impacted the economy negatively, as the stats shows that almost 22.3% of the total population of Pakistan falls below the poverty line which shows that such a huge amount of the people have no earning and nothing to eat. The unemployment is one other factor which has reduced the growth of the country. Youth which plays the vital role in the success of the country are suffering from this curse as the unemployment ratio in the youth aging in between 15-24 is 7% in males and 10.5% in females respectively. The total unemployment rate in Pakistan for the year is 5.6%.
The imports of the country are lesser than the exports which have caused the budget to fall in deficit. The budget for the respective years was giving the negative balance of payments as the revenues were of $26.3 billion while the total expenses were being calculated as $39.77 billion, so this huge difference has brought the budget deficit to -6.6% of the GDP which is too high, and to count on these issue the inflation has also poked up his head as the inflation rate has risen up to 13.7% which is one of the highest inflation rate in the world.