Alternative
FULL MEMBER
- Joined
- Oct 19, 2009
- Messages
- 282
- Reaction score
- 0
- Country
- Location
GDP is undoubtedly the best aggregate measure of economic activity for a country, primarily because it represents the total dollar value of all goods and services produced over a specific time period.
To put it simply if we consider a home was a country; total income of its residents whether in cash or in kind or in the form of goods obtained in exchange for the labour performed would be its GDP.
However, one thing to remember is that size of the national GDP tells us little about over all or individual economic welfare or general living conditions. For example should the total output increase at the same rate as the population, there is likely to be no resultant rise in our material well-being. Therefore before we start jumping with joy, let us wait for the population numbers.
One must think about the 'parallel economy', that is, undocumented economy of Pakistan: Legit businesses nowhere accounted for.
Estimates ranges from 30% to more than 100% of documented sector..............
You can read the views of Chief of Institute of Chartered Accountants of Pakistan on Business Recorder below
http://fp.brecorder.com/2016/05/2016051345400/
If you search you will find foreign sources on undocumented sector of Pakistan Economy also.
And we can corroborate this, rather easily, if we compare some key information with other Country, say, Bangladesh. IMF say Bangladesh's GDP is $270 Billion.
For example, Petroleum consumption, you will find that Pakistan Consumes for than 3 times the Bangladesh.
http://www.theglobaleconomy.com/rankings/oil_consumption/
Number of registered vehicles total
http://apps.who.int/gho/data/node.main.A995
In Bangladesh some 21062 cars were registered in year 2015,http://www.dhakatribune.com/bangladesh/2016/09/22/quader-will-fix-number-cars-family-can/
and in Pak Suzuki alone produced more than 134,000 motor cars, not counting other manufacturers and imports.
Check the natural gas consumption figures of Pakistan which is about double of Bangladesh.
Check the Electricity production and consumption figures too.