Economic Policies And Their Efficiencies

The economy of Pakistan is the 27th largest economy in the world in terms of purchasing power, and the 48th largest in absolute dollar terms. Pakistan's economy mainly eccompasses textiles, chemicals, food processing, agriculture and other industries. The economic system of production and management of material wealth. Basically, an economically stable country with good management will have a productive economy and vice versa. To understand the Economy, we need to first comprehend what exactly makes up the economy of a nation. Similarly, the productiveness and the management depends on various factors. These factors are the political stability, export trade, foreign relations, population, employment rate, literacy rate and profit and loss ratio.

Keeping all these factors in mind, Pakistan has certain policies to upkeep the economic status of the country. For instance the fiscal policy. A recent evaluation found that there was a growth rate of 7 percent per year for four successive years till 2007. Proper economic policies made economic development look impressive in spite of being a very poor country. It has been seen that economic growth rate of Pakistan was better than average growth rate of world as a result of a stable economic policy in Pakistan.

Manufacturing and financial services sectors have boomed because of latest economic policy of Pakistan. Stronger economic reforms were taken up as parts of economic policy at Pakistan. Foreign exchange position has been improved and there was a growth in currency reserves. GDP growth rates have been steady. However, in present situation, inflationary stress and a low saving rate have retarded growth a little bit.

Syed Yousaf Raza Gilani, Prime Minister of Pakistan states that economic indicators of nation are positive. However the inflation rate is not showing any positive signs to the common man even it is to the economy as a whole. Expenses have risen to a very high level in this modern day and time. Most of the population of Pakistan is below the poverty line, and cannot afford this inflation. Listning to politicians stating benefits for the economy of Pakistan will not help these poverty stricken people because all they see is the higher class getting benefits ouf of everything. However, as everything was getting better, the terrorist activities have put the foreing exchange and the stock market at stake. The common man always has to suffer the most. Financial status has been always a problem and is increasing day by day in Pakistan.