• Friday, November 22, 2019

Pakistan Economy Nears Trillion Dollar PPP GDP Mark

Discussion in 'Pakistan Economy' started by RiazHaq, Dec 17, 2015.

  1. RiazHaq

    RiazHaq SENIOR MEMBER

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    Haq's Musings: Pakistan PPP GDP Nears Trillion Dollar Mark in 2015

    Pakistan's PPP GDP is nearing trillion US$ mark in 2015, according to the latest figures available from the International Monetary Fund.

    Nominal GDP based on current exchange rates is reported at $270 billion in 2015, up from $246 billion in 2014, an increase of $24 Billion. Pakistan's per capita nominal GDP for 2015 is $1,427.085, up from $1,325.790 in 2014.

    [​IMG]
    The nation's PPP GDP increased from $884 billion to $930 billion, an increase of $46 billion. Pakistan per capita PPP GDP is $4,902 for 2015, up from $4,749 in 2014, according to the IMF.

    A dramatic decline in terrorist violence in Pakistan since the launch of Pakistan Army's Operation Zarb-e-Azb and a big drop in international oil prices have helped drive the country's economic recovery in recent months.

    Among the clearest signs of recovery are increasing auto sales, growing smartphone purchases and cement consumption.

    Pakistan auto industry is booming. Toyota, Suzuki and Honda factories are working around the clock in the southern port city of Karachi and eastern city of Lahore -- yet customers can still wait for up to four months for new vehicles to be delivered, according to media reports. At the same time, increased construction activity is visible everywhere in the country. First 5 months of the current fiscal year have seen sales of93,570 cars, an increase of 66% over the same period last year.

    Over 2 million 3G subscriptions and a corresponding number of smartphones are being bought every month in the country. More than half the people in Pakistan are expected to own a smartphone within the next few years.

    Domestic cement sales have jumped by a phenomenal 16.89% to 4.29 million tons during July and August 2015 from 3.67 million tons shipped in the same period last year.

    After its September meeting, the State Bank of Pakistan (SBP) said the rise in fixed investment financing in the energy generation and distribution, chemicals and services sectors signal possible increase in their productive activity in coming months. “The implementation of infrastructure development and energy projects under the China-Pakistan Economic Corridor (CPEC) will further enhance the improving investment environment. Therefore, there is anticipation of higher economic activity in 2015-16, which is expected to boost credit uptake,” it said.

    Even as its economy recovers, it is unfortunate that Pakistan continues to lag behind its South Asian neighbors in human development. The latest 2015 human development report from the United Nations Development Program (UNDP) shows that the country's leadership is continuing fail its people, particularly the youth, by its lack of focus and underinvestment in education and health care sectors. There can be no sustainable economic growth without investing in human development. It requires immediate attention.


    Related Links:

    Haq's Musings

    Pakistan Auto Industry

    Record Cement Sales Raise Hope Of Pakistan Economic Recovery

    Credit Suisse Bullish on Pakistan Cement Industry

    China-Pakistan Economic Corridor

    Pakistan Army Acts Against Terrorists

    Pakistan Middle Class Larger & Richer Than India's

    Top Global Investor Bullish on Pakistan


    Haq's Musings: Pakistan PPP GDP Nears Trillion Dollar Mark in 2015
     
  2. Talha Sheikh

    Talha Sheikh FULL MEMBER

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    fazool
     
  3. alimobin memon

    alimobin memon FULL MEMBER

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    im not economist but I have a question if so much pak is improving why is its rs value going down every year ?
     
  4. Sulman Badshah

    Sulman Badshah STAFF

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    Rupee value is upto govt to maintain.. usually govt devalue the money is because to increase the export (the pakistani products in foreign gets more cheaper)
     
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  5. VCheng

    VCheng ELITE MEMBER

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    It is simple: Pakistan consumes more than it produces.
     
  6. Kambojaric

    Kambojaric SENIOR MEMBER

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    The economic health of a nation cannot only be judged by the value of its currency. For example 1 US dollar today will give you 122.47 Yen (Japanese currency). 1 US Dollar however will today give you 104.77 Rupees. Does this mean that the Pakistani economy is doing better than the Japanese economy? Not at all. Weakly valued currencies however have their own advantages, the most notable one being the ability to export more goods on to the global market at a cheaper rate. This makes your goods more competitive and is something countries resort to when they need to grow the amount they export and stabilize their balance of trade.
     
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  7. rational

    rational BANNED

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    Congratulations :tup:
     
  8. Thəorətic Muslim

    Thəorətic Muslim SENIOR MEMBER

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    Most currencies fluctuate, the exchange rates are determined by the flow of that currency in/out. High demand for the currency means great valuation. And since pretty much everyone wants the American Dollar....

    For an export oriented economy, China, needs to value it's currency lower than the American Dollar, 1 Yuan = $6something US. To make it's poor quality goods competitive. While Pakistan needs the same thing, cheaper Pakistani Rupee means the Pakistani product/service is cheaper. But that comes at a disadvantage also, cheaper Rupee means more Rupees are needed to buy imports.

    Some more factors are: Inflation, Stability, Trade deficit/surplus, and interest rates.
     
  9. Nilgiri

    Nilgiri ELITE MEMBER

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    As the Chinese members (Esp the trolls) will remind you, PPP means nothing :D.

    Also it may take another year or two for Pakistan to surpass trillion dollar PPP since it grew by 46 billion and its at 930 billion (2015). This means Pakistan will also surpass 5000 per capita USD in PPP in a year or two.

    The really bad Gross Fixed Capital Formation (stagnant at 13% for 5 years now) and the declining literacy rate (drop 2% points in the last survey by Pakistani Bureau of Statistics) are the two most worrying problems for Pakistan's long term growth perspective along with the bad tax structure and overall poor availability of quality labour.
     
  10. tarrar

    tarrar SENIOR MEMBER

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    All I know is, Pakistan's economy is falling sharply & it is mainly due to the heavy loans taken by b!tch & corrupt Govt. of Ppp & pnl-n, who had & are only filling their pockets. Pakistan economy will never boom in the presence of ppp & pnl-n it will always suffer badly. All the claims made by ppp & pml-n on their party doing well for the economy is nothing more than pure lies.
     
  11. xyxmt

    xyxmt ELITE MEMBER

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    that is true but then you and I make up the difference
     
  12. marbella

    marbella FULL MEMBER

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    the claim is not done by govt. its by riaz sir.
    b + . and keep reading haq's blogs. That will make you feel good and superior to anyone.
     
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  13. That Guy

    That Guy PDF THINK TANK: ANALYST

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    That's not what the numbers show. The economy isn't doing as good as it should be, but it is doing well.

    Your fear mongering is baseless.
     
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  14. Azadkashmir

    Azadkashmir SENIOR MEMBER

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    it would be great if pak were to switch to gold n silver no paper no usury etc haha see the faces of politicians and corrupt generals. baba zardari swiss account paisa useless ho gay kyu vo paper hai, apko buddy ko banga beycha fer barter karthay hai roti khanna okay.
     
  15. Talwar e Pakistan

    Talwar e Pakistan SENIOR MEMBER

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    Not even close man... our economy is doing good so far - but no where close to our potential.
     
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