Pakistan Economy

So, $1 trillion undokyumented ekanamy has annual investments of just $37 billion (most of which is real estate and big construction works like unnecessary dams). For contrast in India it is roughly around $1.33 trillion.

The year, 2023-24, has witnessed the lowest ever level of fixed investment in Pakistan. It is estimated at 11.4% of the GDP. This is in comparison to 15.4% of the GDP in 2017-18 and even higher at 16.3% of the GDP, as far back as 2007-08. Both private and public investments have declined sharply in 2023-24.

 
However, estimates for the 2024-25 season indicate a staggering 65% decline, according to the Pakistan Cotton Ginners Association’s report from September 15, 2024, with production expected to reach only 5 million bales. This falls far short of the textile industry’s annual demand of 13-15 million bales.

The sharp decline is rippling through the economy, particularly affecting rural communities reliant on this critical cash crop. The impact is severe for vulnerable groups such as female workers and local farmers, with significant economic and social consequences.

 
With IMF loan approval, Pakistan’s confidence has soared. The first IMF installment is not enough to cover the up coming loans which are due in next three months. Hence what happens to the suffering of Pakistani people. They are buying wheat flour at Pakistani Rupees 4,000 a bag. People have not paid electricity bills hence homes are without power, farmers are not getting enough water to grow their crops as Pakistani Army has cornered most of the water. The exports cannot process orders as there is no money to buy raw materials Etc.

That IMF loan does not help much. The sufferings of the people are so great that I am told that half of Lahore’s population will run towards India as they know, things are far better on this side of the border.

On the other hand, Pakistani Army and ISI are not short of cash. They have it in plenty. They have been organizing trouble on Indian side of the border and recently they spent a huge amount of money to start riots in Bangladesh which resulted in the elected government being thrown out. Unlucky for them, they took the eye off the ball in India and now receiving terror related trouble in Bulochistan and Afghan border. That will keep Pakistani Army busy for a long time.

Hence, Pakistan’s future is as sad as it was a year or two back. It is unlikely to improve in the near or distant future if the Army/ISI keeps manipulating the politics.
 

4.7pc of GDP: IMF projects external financing needs for FY25 at $18.813bn

The Fund in its latest report “2024 Article IV Consultation and Request for an Extended Arrangement under The Extended Fund Facility” noted that the country’s external financing need would be $20.088 billion in the fiscal year 2025-26. The report also noted that available financing is $18.175 billion for the current fiscal year 2024-25.
 
OGDC’s revenue for the quarter dropped by 12 percent year-over-year due to decreased production and weaker average oil prices. Crude oil production fell by 3 percent year-over-year, while gas production saw an 8 percent decline.

This is after inflation by the way
 
ISLAMABAD: The current account surplus declined to $98 million in the first quarter of the current year against the same period the year before while large scale manufacturing (LSM) sector’s negativity declined from negative 2.53 percent July-August 2023 to negative 0.19 percent in the same period of 2024.

 
Tax to GDP ratio at 8.77% mashallah
 
ISLAMABAD: Pakistan’s foreign assistance inflows fell by more than 55 per cent to about $2.7 billion in the first four months (July-October) of the current fiscal year, apparently because of delays in securing a bailout from the International Monetary Fund (IMF) and subsequent $1bn disbursements. Last year, inflows had amounted to $6.05bn in these four months.

Pakistan realises just $2.7bn so far against an annual target of $19.4bn

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Indus Motor, Ghandhara Tyre temporarily halt production


May be that is the only way left with Pakistani intelligentsia to lead economy to ruins and begin hungry man’s revolution. That way Army’s power to dictate terms and grab money would be cut and economy is straightened up. The Islamist will also go in hiding, if the public anger is high.
 

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