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Pakistan's Per Capita income Rises to $3135 Amid Slow Growth

just to clear some confusion..........

the said growth rate of 16 percent is logical. the breakdown is 2.4% plus inflation rate.

the growth rate which we see every year is real growth rate which does not take into account increases in income due to price level goin up.
 
Stick to the topic please, which is discussing the Per Capita Income Numbers mentioned.

Either support or refute the claims made with other credible data, sources and/or arguments.
 
^ I think you're mixing nominal GDP and PPP GDP. GDP doesn't grow that fast.
 
Capital suggestion

Dr Farrukh Saleem
Sunday, June 19, 2011

Talk about extremism. More than 72 million Pakistanis make Rs100 or less per day. And yet, Budget 2011-12 has allocated Rs5.5 million per day for foreign tours of the president and the prime minister of the Islamic Republic. Imagine; if our president and the prime minister decide to stay home for a month the money thus saved would be sufficient to provide two decent meals to nearly two million of the 72 million Pakistanis living below the poverty line.

Talk about extremism. Four out of 10 Pakistanis live in abject poverty. And yet, the PM Secretariat’s gas bill from the Sui Northern Gas Pipelines Limited (SNGPL) is in the amount of five million rupees (yet to be paid).

Extreme poverty means having to pick between buying medicines for your sick daughter or cooking dal for your aging mother. Extreme poverty means having to pick between buying milk for your infant daughter or roti for your teenage son. Between 2008 and 2011, the number of Pakistanis living in extreme poverty has gone up from 47 million to 72 million – a three year jump of more than 50 percent. Coincidentally, accumulated food inflation over the past three years has clocked at a frightening 57 percent.

Imagine; 100 million Pakistanis make Rs170 per day or less. As Pakistanis at Rs100 per day and Rs170 per day end up spending 60 percent to 70 percent of what they earn on food so when food inflation goes through the roof, millions more are pushed into extreme poverty. Over the past three years an average of 8.5 million Pakistanis are being forced into extreme poverty per year – and that’s a total of 26 million additional Pakistanis facing extreme poverty.

In 1995, the World Summit on Social Development defined absolute poverty as “a condition characterised by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information.” Imagine; more than 40 percent of all Pakistanis are in a “condition characterised by severe deprivation of basic human needs...”.

Chances are that no one reading this makes Rs100 or less per day but if you are, this is what you could buy with it: 1.25 kilos of dal mash or less than two kilos of sugar or 700 grammes of mangoes or two kilos of tomatoes or four kilos of onions – not all, just one of the five. And then there’s rent, clothes, and utility bills to worry about.

Corrupt governance, poor education, war, capital flight, or a brain drain, any one of these on its own can cause a ‘poverty trap’ in which the poor are unable to get out of poverty for generations. Imagine; Pakistan suffers from all five – corrupt governance, poor education, war, capital flight, and a brain drain. As a consequence, at least 72 million Pakistanis are now trapped into a nasty ‘poverty trap’. Governments can help break the trap but a government that has trapped itself into a Rs1,000,000,000,000 budgetary deficit cannot. Imagine; a Rs1,000,000,000,000 deficit is the equivalent of Rs1,200 a month for each and every one of the 72 million extremely poor Pakistanis.

The United Nations defines poverty as “a violation of human dignity”. Poverty and violence are directly proportional while poverty and national pride are inversely proportional. Remember; sovereignty is a concern of the well-heeled not the under-fed.

The writer is a columnist based in Islamabad. Email: farrukh15@hotmail.com
 
Capital suggestion

Dr Farrukh Saleem
Sunday, June 19, 2011

Talk about extremism. More than 72 million Pakistanis make Rs100 or less per day. And yet, Budget 2011-12 has allocated Rs5.5 million per day for foreign tours of the president and the prime minister of the Islamic Republic. Imagine; if our president and the prime minister decide to stay home for a month the money thus saved would be sufficient to provide two decent meals to nearly two million of the 72 million Pakistanis living below the poverty line.

Talk about extremism. Four out of 10 Pakistanis live in abject poverty. And yet, the PM Secretariat’s gas bill from the Sui Northern Gas Pipelines Limited (SNGPL) is in the amount of five million rupees (yet to be paid).

Extreme poverty means having to pick between buying medicines for your sick daughter or cooking dal for your aging mother. Extreme poverty means having to pick between buying milk for your infant daughter or roti for your teenage son. Between 2008 and 2011, the number of Pakistanis living in extreme poverty has gone up from 47 million to 72 million – a three year jump of more than 50 percent. Coincidentally, accumulated food inflation over the past three years has clocked at a frightening 57 percent.

Imagine; 100 million Pakistanis make Rs170 per day or less. As Pakistanis at Rs100 per day and Rs170 per day end up spending 60 percent to 70 percent of what they earn on food so when food inflation goes through the roof, millions more are pushed into extreme poverty. Over the past three years an average of 8.5 million Pakistanis are being forced into extreme poverty per year – and that’s a total of 26 million additional Pakistanis facing extreme poverty.

In 1995, the World Summit on Social Development defined absolute poverty as “a condition characterised by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information.” Imagine; more than 40 percent of all Pakistanis are in a “condition characterised by severe deprivation of basic human needs...”.

Chances are that no one reading this makes Rs100 or less per day but if you are, this is what you could buy with it: 1.25 kilos of dal mash or less than two kilos of sugar or 700 grammes of mangoes or two kilos of tomatoes or four kilos of onions – not all, just one of the five. And then there’s rent, clothes, and utility bills to worry about.

Corrupt governance, poor education, war, capital flight, or a brain drain, any one of these on its own can cause a ‘poverty trap’ in which the poor are unable to get out of poverty for generations. Imagine; Pakistan suffers from all five – corrupt governance, poor education, war, capital flight, and a brain drain. As a consequence, at least 72 million Pakistanis are now trapped into a nasty ‘poverty trap’. Governments can help break the trap but a government that has trapped itself into a Rs1,000,000,000,000 budgetary deficit cannot. Imagine; a Rs1,000,000,000,000 deficit is the equivalent of Rs1,200 a month for each and every one of the 72 million extremely poor Pakistanis.

The United Nations defines poverty as “a violation of human dignity”. Poverty and violence are directly proportional while poverty and national pride are inversely proportional. Remember; sovereignty is a concern of the well-heeled not the under-fed.

The writer is a columnist based in Islamabad. Email: farrukh15@hotmail.com
The article has biased facts!!!


1-Pakistan has a very large middle class larget thn indias!
2-72 million Pakistanis? this guy is smokin some real shyt! BCOZ Pakistanis entire labour force comprises of 35-37 million:
Labour Laws Pakistan
3-Almost rs 10000 is the minmum wage in Pakistan and not 3000!

Imagine; 100 million Pakistanis make Rs170 per day or less
Why imagine tht 100 million earn rs170 per day and the rest earn rs100 per day? Tht means tht the entire country is poor!!!


The article is full of shyt.
 
Here's a BBC report of how inflation is hurting Indians and Pakistanis:

Inflation is the price that ordinary Asians are paying for high growth rates.

For the less well-off, who spend their money on food and fuel, the story is even worse. The rise in their household expenses at the moment is usually higher than headline inflation rates.

According to the International Monetary Fund, last year consumer prices rose 13.2% in India, 11.7% in Pakistan and 9.2% in Vietnam. Other Asian nations coped better but the average for developing Asia was 6% - compared to a 1.6% average rise in prices in advanced economies.

The speed at which prices are shooting up means that unless people find ways to save and invest effectively, they in fact get much poorer - even if Asia is getting richer.
---
The world is jealous of Asia's sky-high growth rates, but for ordinary people the price of success is corrosive inflation which could eat away their savings.

"From outside it looks good," says Manasi Pawar. "We're staying in a big house, paying so much in rent and our kids are going to great schools."

Manasi, a qualified software worker in hi-tech Hyderabad in India, recently became a full-time mother. Her husband also works in the IT industry.

The couple epitomise the emergence of a well-to-do middle class in Asian countries - except there's one significant snag.

"We were actually losing money," says Manasi.

The couple recently woke up to the fact that inflation rates of nearly 9% meant that their savings were actually disappearing in front of their eyes.

"We were sitting on a bunch of cash but we didn't know where to put it, and it's important that we don't let it lie there in the bank - because a bank doesn't give an interest rate that even matches the inflation rate," she says.
----
The poorest people in society, who spend disproportionately more on food, are hit most savagely of all.

But there is a way to fight back against inflation: to save, and to put some of that money in a part of the economy that rises along with inflation.

For most people, that means investing in shares or equities. "The only way you can make money long-term is through an equity linked product," says Ms Halan.

Money in the bank in India may only earn 3% or 4% - which in fact means you are losing money. But equity linked funds in this exploding economy have risen much faster, sometimes as high as 25%.

BBC News - India's middle class pays the price for growth
 
& why are you people so happy with high inflation? (thanking the news?)

Here's a BBC report of how inflation is hurting Indians and Pakistanis:

Inflation is the price that ordinary Asians are paying for high growth rates.

For the less well-off, who spend their money on food and fuel, the story is even worse. The rise in their household expenses at the moment is usually higher than headline inflation rates.

According to the International Monetary Fund, last year consumer prices rose 13.2% in India, 11.7% in Pakistan and 9.2% in Vietnam. Other Asian nations coped better but the average for developing Asia was 6% - compared to a 1.6% average rise in prices in advanced economies.

The speed at which prices are shooting up means that unless people find ways to save and invest effectively, they in fact get much poorer - even if Asia is getting richer.
---
The world is jealous of Asia's sky-high growth rates, but for ordinary people the price of success is corrosive inflation which could eat away their savings.

"From outside it looks good," says Manasi Pawar. "We're staying in a big house, paying so much in rent and our kids are going to great schools."

Manasi, a qualified software worker in hi-tech Hyderabad in India, recently became a full-time mother. Her husband also works in the IT industry.

The couple epitomise the emergence of a well-to-do middle class in Asian countries - except there's one significant snag.

"We were actually losing money," says Manasi.

The couple recently woke up to the fact that inflation rates of nearly 9% meant that their savings were actually disappearing in front of their eyes.

"We were sitting on a bunch of cash but we didn't know where to put it, and it's important that we don't let it lie there in the bank - because a bank doesn't give an interest rate that even matches the inflation rate," she says.
----
The poorest people in society, who spend disproportionately more on food, are hit most savagely of all.

But there is a way to fight back against inflation: to save, and to put some of that money in a part of the economy that rises along with inflation.

For most people, that means investing in shares or equities. "The only way you can make money long-term is through an equity linked product," says Ms Halan.

Money in the bank in India may only earn 3% or 4% - which in fact means you are losing money. But equity linked funds in this exploding economy have risen much faster, sometimes as high as 25%.

BBC News - India's middle class pays the price for growth
 
Here's a BBC report of how inflation is hurting Indians and Pakistanis:

Inflation is the price that ordinary Asians are paying for high growth rates.

For the less well-off, who spend their money on food and fuel, the story is even worse. The rise in their household expenses at the moment is usually higher than headline inflation rates.

According to the International Monetary Fund, last year consumer prices rose 13.2% in India, 11.7% in Pakistan and 9.2% in Vietnam. Other Asian nations coped better but the average for developing Asia was 6% - compared to a 1.6% average rise in prices in advanced economies.

The speed at which prices are shooting up means that unless people find ways to save and invest effectively, they in fact get much poorer - even if Asia is getting richer.
---
The world is jealous of Asia's sky-high growth rates, but for ordinary people the price of success is corrosive inflation which could eat away their savings.

"From outside it looks good," says Manasi Pawar. "We're staying in a big house, paying so much in rent and our kids are going to great schools."

Manasi, a qualified software worker in hi-tech Hyderabad in India, recently became a full-time mother. Her husband also works in the IT industry.

The couple epitomise the emergence of a well-to-do middle class in Asian countries - except there's one significant snag.

"We were actually losing money," says Manasi.

The couple recently woke up to the fact that inflation rates of nearly 9% meant that their savings were actually disappearing in front of their eyes.

"We were sitting on a bunch of cash but we didn't know where to put it, and it's important that we don't let it lie there in the bank - because a bank doesn't give an interest rate that even matches the inflation rate," she says.
----
The poorest people in society, who spend disproportionately more on food, are hit most savagely of all.

But there is a way to fight back against inflation: to save, and to put some of that money in a part of the economy that rises along with inflation.

For most people, that means investing in shares or equities. "The only way you can make money long-term is through an equity linked product," says Ms Halan.

Money in the bank in India may only earn 3% or 4% - which in fact means you are losing money. But equity linked funds in this exploding economy have risen much faster, sometimes as high as 25%.

BBC News - India's middle class pays the price for growth

Again, if Inflation is hurting Indians then with 13-14% inflation what are Pakistanis doing. I find it funny that Pakistanis think they are doing better than us.
 
The reason being our strong agricultural support - this is making farmers richer.
 
Pakistan’s nominal per capita income rose 16.9 percent to $1,254 in 2010-11 from $1,073 in 2009-2010, according to the Economic Survey of Pakistan. Using the IMF's purchasing power parity exchange rate of Rs. 34 to a US dollar (versus official exchange rate of Rs. 85 to a US dollar), Pakistan's per capita income in terms of purchasing power parity works out to $3,135.00.

Although Pakistan's per capita GDP rose by only 0.7% in real terms, the much higher 16.9% nominal per capita income increase reflects a combination of the nation's double-digit inflation rate and the the rupee's stable exchange rate with the US dollar which has been losing ground to most major world currencies in 2010-2011.

The idea of PPP or purchasing power parity is quite simple. A US dollar can be exchanged today for about 85 Pakistani rupees. But with Rs 85 you can buy more goods and services in Pakistan than one US dollar can buy in the United States. So Pakistan's GDP expressed in dollars at current exchange rates is about 40% of what it is when adjusted for PPP. The current ratio for both Indian and Pakistani GDP conversion from nominal US dollars to PPP dollars is about 2.5, calculated as follows:

Country......Official Rate....Purchasing Power.....Ratio

India...........INR 45.................INR 18..........2.5

Pakistan.......PKR 85................PKR 34..........2.5



Looking at the increase in per capita income alone is quite misleading in judging the health of Pakistan's economy. Other indicators, such as real GDP growth and investments, show that the state of the economy is very poor. The nation's GDP grew only 2.4% in real terms in 2010-2011. Domestic investment dropped to a 40-year low of 13.4% of GDP, and foreign direct investment (FDI) declined by 29 percent to $1.232 billion during July-April 2010-11 from $1.725 million in the same period a year earlier.

In addition to improved security environment, Pakistan has an urgent need for serious economic reform, greater social justice and better governance. Unless the PPP government acts to improve this situation, no amount of foreign aid, external loans and other help will suffice. The first step in the process is for the ruling elite to lead by example by paying their fair share of taxes and adopting less extravagant personal lifestyles to get Pakistan's fiscal house in order.

Haq's Musings: Pakistan's Per Capita Income Exceeds $3,100 in 2011

If this was a deliberate attempt to mislead, then it was quite blatant. In fact a sort of first that I came across.

However, if you are genuinely confused, please note that the inflationary increase is actually an indicator of the purchasing power depreciation. That is why the exchange rates go adverse.

Going by your logic, Zimbawe could be the most properous country in the world today, just because today their internal money flow is a million times more than what it was in 1999! I hope you get the point and see the real difficulties facing the Pakistani economy. The Pakistani rupee has been facing a steep fall in recent times and it is a genuine cause of worry. In general the exports go up with such a fall but even that has not happened. The cost of manufacturing has actually kept up with the falling exchange!
 
Here's a BBC report of how inflation is hurting Indians and Pakistanis:

Inflation is the price that ordinary Asians are paying for high growth rates.

For the less well-off, who spend their money on food and fuel, the story is even worse. The rise in their household expenses at the moment is usually higher than headline inflation rates.

According to the International Monetary Fund, last year consumer prices rose 13.2% in India, 11.7% in Pakistan and 9.2% in Vietnam. Other Asian nations coped better but the average for developing Asia was 6% - compared to a 1.6% average rise in prices in advanced economies.

The speed at which prices are shooting up means that unless people find ways to save and invest effectively, they in fact get much poorer - even if Asia is getting richer.
---
The world is jealous of Asia's sky-high growth rates, but for ordinary people the price of success is corrosive inflation which could eat away their savings.

"From outside it looks good," says Manasi Pawar. "We're staying in a big house, paying so much in rent and our kids are going to great schools."

Manasi, a qualified software worker in hi-tech Hyderabad in India, recently became a full-time mother. Her husband also works in the IT industry.

The couple epitomise the emergence of a well-to-do middle class in Asian countries - except there's one significant snag.

"We were actually losing money," says Manasi.

The couple recently woke up to the fact that inflation rates of nearly 9% meant that their savings were actually disappearing in front of their eyes.

"We were sitting on a bunch of cash but we didn't know where to put it, and it's important that we don't let it lie there in the bank - because a bank doesn't give an interest rate that even matches the inflation rate," she says.
----
The poorest people in society, who spend disproportionately more on food, are hit most savagely of all.

But there is a way to fight back against inflation: to save, and to put some of that money in a part of the economy that rises along with inflation.

For most people, that means investing in shares or equities. "The only way you can make money long-term is through an equity linked product," says Ms Halan.

Money in the bank in India may only earn 3% or 4% - which in fact means you are losing money. But equity linked funds in this exploding economy have risen much faster, sometimes as high as 25%.

BBC News - India's middle class pays the price for growth

So you already knew it and were misleading from the start?
 
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