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An Analysis: Pakistan’s Economic Development Outlook of last 5 Years

Sheer fall in Pakistan’s Economic Development in last five years is a real concern for the whole country. In April 2023, Pakistan’s GDP was 0.4 percent and Inflation 29%. 60% Pakistan’s population is below 30 years of age. This youth bulge is a dynamite as well as biggest resource, depends how it is tackled. Pakistan need to increase 1 million jobs annually. Almost 10 million people are touch extreme poverty line.

The April 2016 report states that Pakistan, while not growing as quickly as its neighbors, has continued its steady growth recovery since previous three years. Strong growth in consumption, rising foreign exchange reserves, fast-growing workers’ remittances and a lower import bill compensated for a significant fall in exports. Low oil prices generated a significant boost, driving a 9.1 percent fall in the import bill and reducing inflation significantly, in turn creating scope to reduce the policy rate. May 2017 report indicated that Pakistan’s economy continues to grow strongly, emerging as one of the top performers in South Asia. However, revenue growth was slow, with the fiscal deficit growing for the first time in three years. Exports continued to fall as imports grow, substantially increasing the current account deficit.

According to a World Bank report of April, 2014, despite rise in terrorism, Pakistan economy was at a turning point, with projected GDP of 3.6-4%, and steady inflation of 7.9 %. However, Three sources of risk were pointed out; imports more than it exports, limited access to reliable energy, and cumbersome business regulations.According to October 2014 report, political uncertainty did the trick and steady economic progress was slowed down. Inflation was still in single figure, tax collection was higher than previous year and GDP was at 4 which was highest in last 7 years.

In October 2018, Pakistan had reached again at a cross road.

Center for international and strategic studies report of Dec 2018 indicated that Pakistan current account deficit had reached $18 billion which was more than 45% compared with $12 Billion. US suspended the annual bilateral support of 1.3 billion Dollars which was coming since 2001.