Analysis of Pakistan Industries
By: Afaq Ali Khan
Business Studies Department, BUKC 1
Analysis of Industries in
Pakistan
By:
Afaq Ali Khan
Development Economics & Its Characteristics
• Economic development is the process
whereby an economy’s real national income
increases over a long period of time and the
rate of development is greater than the rate
of growth of population, then per capita
income will increase. (Mair and Baldwin)
3
Development Economics & Its Characteristics
• Economic growth coupled with the structural
changes in the economy for obtaining a better
life. (Michael Todaro)
• Objectives of Development
– Provision of basic needs such as food , cloth
shelter, health and protection
– Raising level of living – increasing income
– Expanding the range of economic and social
choice
4
ECONOMIC GROWTH
• Increase in goods and services
• Increase in real GDP
• Increase in real per capita
• Increase in potential GDP
• Expansion in PPF
5
Economic Growth & Economic Development
• Economic growth is a steady process by which
the productive capacity of the economy is
increased overtime to bring about rising levels
of national output and income.
(Michael P. Todaro)
6
Elements of Economic Growth
• Long term process
• Rise in real per capita income
• Rise in productivity
• Greater Equality in distribution of income and
reduction in unemployment.
7
SOURCES OF ECONOMIC GROWTH
• Supply factors (FOP): FOP
• Demand Factors ( AD):
• AD= C + I + G+X
8
ECONOMIC GROWTH
• Benefits
• Standard of living
• More employment opportunities
9
ECONOMIC GROWTH
• Cost
• Pollution
• Traffic jam
• More garbage
10
Economic Development
• The term Economic Development is
comprehensive in its scope as compared to
economic growth. It signifies both economic
growth as well as structural changes in the
economy.
11
Structural Changes
• Occupational structure
• Sectoral structure of national output
• Structure of industrial production
• Structure of foreign trade
• Technological progress
• Social institutional changes
12
Main Measures of Economic Development
• Increase in real GDP
• Increase in real per capita income
• Rise in the overall well being of the people
• Social economic, political indicators
• Human development index
13
Common Characteristics of Developing
Countries
• A country is said to be underdeveloped which
is characterized by the co-existence in greater
or less degree, of unutilized or under-utilized
manpower on the one hand and of
unexploited natural resources on the other.
(Stanley)
14
Common Characteristics of Developing
Countries
• As of November 2023, Pakistan’s overall debt
burden surged to Rs63.390 trillion
including Rs40.956 trillion in domestic
loans and Rs22.434 trillion in international
loans.
• As of March 2022, the total Public Debt
and Liabilities of Pakistan are estimated to be about
₨54 trillion (248.7 billion USD)
15
Common Characteristics of
Developing Countries
• Low per capita income of $ 1471 in 2023
• Unproductive uses of funds
• Inappropriate investment decision
• Agriculture is the main occupation- (37.4%) in
employment generation
• Under-utilization of national resources
• High rates of population growth
• Unemployment and disguised unemployment
16
Common Characteristics of Developing
Countries
• Low level of productivity
• Lack of experties and initiative
• Deficiency of capital
• Backward state of technology
• Dependence on exports of primary products
• Brain drain
• Government controlled by wealthy persons
• Excess of unskilled workers.
17