Subject:Research Methods in Business

Assignment:Interview with Finance Minister of Pakistan,questioned about the economy of Pakistan

Submitted to:Dr. Syed. Tahir. Hussain

Submitted by:Syed. Sajid. Hussain.

MINHAJ UNIVERSITY Gulberg Campus Lahore.1. Pakistan economy grew between 2004-07 due to rise in GDP from 5 to 8%. This was

largely due to development in industrial and services sector. Now the GDP has a great fall The country’s poverty levels reduced by 10% from the year 2001 to 2007. The economy why?

2. A pressing problem facing the economy is the government's chronically high budget deficit, which has adverse implications for the nation's balance of payments, inflation and exchange rates, capital formation, and overall financial stability. What steps are taking government to reduced the bufget deficit.

3. Pakistan’s primary sector plays a major role in the country’s economy and produces a range of agricultural products. Around 43% of the country’s labor is engaged in the primary sector, which in turn contributes 20.8% to the country’s economy. Wages of labors has not been increased why?

4. Pakistan is the second largest producer of Chickpea and the third largest producer of mango in the world according Food and Agriculture Organization of the United Nations. Some other major agricultural products of Pakistan include onion, cotton, rice, tangerines, oranges, apricot, sugarcane, date palm, Clementine and wheat.

5. Dairy farming is also a large industry in Pakistan. Pakistan is the fifth largest milk producer in the world and has a considerable livestock population, it spends around $40 million a year on formula milk import.

6. Pakistan’s manufacturing sector provides employment to 20.3% of the country’s labor force. Some major manufacturing industries include cotton textile and apparel manufacturing, carpets, rugs, rice, chemicals, sports goods and leather goods.

7. Some other popular industries are construction materials, mineral, paper products, food processing and beverages. Around 51.4% of country’s exports include textile and apparel. The secondary sector experienced a growth of 5.4% in 2007-08.

8. Electricity shortage remains the biggest challenge in ensuring development of Pakistan. By hiring temporary electricity houses the rate will also increase and this is not a permanent solution.

9. The services sector of Pakistan mainly includes industries such as finance, insurance, transport, communications and storage that account for 24% of the country’s GDP. Government imposed tax with great rotio instead step by step increase.

10. Wholesale and retail trade has 30% share in the GDP. With increase in the country’s software exports, the IT industry is emerging as a flourishing service industry. Despite union unrest, the Pakistani government is actively engaged in privatization of banking, telecommunications and utilities to produce more jobs in the country.

11. Pakistan’s international trade is suffering from huge amount of deficit due to low demand for its exports. Domestic political instability also accounts for trade deficit. The trade deficit stood at $15 billion in FY 2008.

12. Pakistan is a member of several international organizations such as ASEAN, ECO, SAFTA, WIPO and WTO. Steps have been taken to liberalize the trade and investment regimes of the country.

13. Due to increasing current account deficit, the trade gap range of maximum tariffs was raised from 20%-25% to the 30%-35% on 300 luxury items by Pakistani government in the 2008-09 budget. However, the growth rate of GDP dropped to 5.8% in 2008 and public and external debt indicators worsened.

14. Pakistan is the world’s 27th largest economy based on its purchasing power. However, the country remained impoverished due to internal political disturbances and negligible foreign investment.

15. Another factor in the large debts is Pakistan's dependence on foreign oil and other imported fossil fuels. As a nation, Pakistan uses 350,000 barrels of oil per day. Of this, 293,000 barrels per day are imported. 1.1 million Short tons of coal are imported each year. The combination of these two alone make up a huge part of the over one billion dollar trade deficit. These resources are used primarily for the generation of power.

16. Due to all of these sources of debt, half of government expenditures are dedicated to fulfilling debt repayment obligations.  In order to finance these payments, additional grants and loans are required each year totaling approximately 25% of revenues.  This prevents Pakistan from devoting significant resources to economic development and/or social improvements.

17. Dependent on western policies and exports with some countries, eg. USA, UAE, China, UK, Afghanistan etc. As the slump came in USA, Pakistan greatly affected by this is due to dependence of mostly export to USA. What government making plans to exports with more countries.

18. Literacy being defined as those over 15, who can read and write, 50.0% male illiteracy, 75.6% female illiteracy. In this budget government has cutoff 50% on education.

19. Pakistan economy downed due to heavy imports from China, Saudi Arabia, UAE, Kuwait, USA etc. There is a huge difference between imports and exports amounts which will cause in devaluation of pakistani currency.

20. What the government take action on tranfering and use of money taking from SBP and as a loan and aids. Because the corruption has deeply roots in economy of Pakistan.

21. The government employees taking the benefit of 50% increase in pay and pensioners will 15% to 20%, the reduced in saleries of NA’s members that is the good step taken but the tax on luxeries items has abolished.

22. Government has increased GST by 1% to make it 17% and in India the GST is 7-1/2 % and government also imposing VAT(value addtion tax) on some items that will also great effect on economy, the KSE showing negative values for many days.

23. Those institutions which shows heavy losses or become white elephants, what the government taking plans to make it profitable, either by privatiztion or by providing financial support.

24. The different helping programs e.g, Benazir Income Support, Sasti Rooti, Subsidies on different items but now government has reduced on some and abolished on some items like utilities.

25. Middle class is not that much developed which means less movement out of country and less expatriate money. How many of GDP kept to improve the living standard of people. Different programs has introduced by the government, but not affected.