@All you people have requested to post regarding economy ... I could not complete it but I am going to post it now .. I have given preview of two sectors of economy by dividing it into three major sectors...

Economy of Pakistan.


Pakistan has a semi-industrialized economy, which mainly encompasses textiles, chemicals, food processing, agriculture and other industries. Pakistan economic conditions are bad due to growing terrorism, political instability, infrastructure problems and lack of stable foreign policy .It is being feed by foreign organization like IMF and various banks. Pakistan policy makers have to work according to their conditions which have hampered its own economic interest. The most immediate vulnerability lies in the country’s external position. Foreign exchange reserves have plunged to a critical low in the past two months. This has resulted from a sharp rise in the current account deficit, with the import bill surging, capital flows at a virtual standstill and continuing external debt repayments, including to the International Monetary Fund (IMF).


There are three major sectors of economy which includes; agriculture, industries and commodity producing sector. Agriculture includes crops, livestock, forestry and fishing .whereas leading industries of Pakistan are mining and Quarrying , manufacturing , electricity distribution ,production as well as gas distribution and construction . Commodity sector includes wholesale trade, communication, transportation, finance, insurance, storage and housing industry. How these three sectors are contributing to our economy is being discussed with analysis.


Agriculture:


Agriculture is central to economic growth and development in Pakistan. Being the dominant sector, it contributes 21.4 percent to GDP, employs 45 percent of the country’s labor force and contributes in the growth of other sectors of the economy. In order to improve efficiency of this sector, it has been devolved to provinces to boast market oriented results. The previous federal ministry has been renamed as “National food security and research”. To improve efficiency , it has initiated “zero hunger pro-gramme “ which aimed at providing food in security risked areas, to pregnant women and feeding of children below five as well as to provide food in schools.


During 2012-13, agriculture sector exhibited a growth of 3.3 percent on the back of positive growth in agriculture related sub sectors, Crops grew at 3.2 percent, Livestock 3.7 percent, Forestry 0.1 percent and Fishing 0.7 percent. During 2012-13 weather condition and water situation has an impact on these Kharif crops that paved the way for decrease in output of rice and cotton crops. Except cotton ginning, all other sub-sections of agriculture has shown improvement in their yield and production. It might due to 12.7 % less availability of water in comparison with previous year.


Textile industry which is heavily depended in cotton lint suffered a severe back short .Consequently; it has increased inflation and lowers the buying trend of textile goods. Sugar cane crop has given a healthy boast up of 62% in 2013 comparing it previous year which has 59% approximately. It helps in the manufacturing of paper, clip board and ethanol. Rice is an important cash crop of the country types. Rice ranks as second amongst the staple food grain crop in Pakistan and it has been a major source of foreign exchange earnings in recent years.


The production decreased due to decrease in area and affects of monsoon rain and late receding of water period in rice fields prolonged the sowing. Pakistan has introduced mechanization, fertilizer and developed irrigation system to boast up agrarian products. The sector provides net source of foreign earnings. Historically livestock has been dominated by smallholders to meet their needs of milk, food security and cash income on daily basis. Gross value addition of the livestock sector at constant cost factor has increased from Rs.735billion (2011-12) to Rs.756 billion (2012-13); showing an increase of 2.9 percent as compared to Previous year. Poultry sector is one of the most organized and vibrant segments of the agriculture industry of
Pakistan.

Industrial sector:



Manufacturing accounts for 13.2 % of gross domestic production and 13.8% of employed labor force. It is one of the most vibrant sectors of economy which is divided in to large scale manufacturing and small scale manufacturing. It has received a severe setback due to energy shortages and electricity shortfall. In rubber products group, motor tires and cycles tubes were the main contributors which managed to grow by 18.12 percent and 12.62 percent, respectively. The growth in iron & steel products was on account of growth recorded in H/CR sheets/strips/coils/plates 45.53 percent. Three steel plants were commissioned in Karachi during 2012(One in H2-FY12 and two in H1-FY13) are joint ventures with Saudi Arabia, Japan and International Finance Corporation which also improved steel production in the country.

In petroleum refining, higher margins improved the cash flows of local refineries and in addition partial resolution of the circular debt situation also enabled the firms to import more crude oil and increase capacity utilization. Petroleum products growth mainly arrived from the production of LPG 25.72 percent, motor sprits 21.90 percent and furnace oil 19.83percent during the period under review. In non metallic mineral product, cement managed to grow by 6.08 percent because of timely release of public sector development funds during the period amounting to Rs. 183.2 billion, which stimulated the construction activities.

The food, beverages & tobacco and textile group which accounts about half of the Large Scale Manufacturing (LSM) remained modest during the Period under review. The items showed positive growth in food, beverages & tobacco includes soft Drinks 15.58 percent, juices, syrups & squashes 14.05 percent, cooking oil 14.75 percent and tea Blended 18.99 percent. Restaurant and fast food chains are flourishing in the country. The demand for dairy products, processed food and beverages has increased manifold thus brought a positive impact in food group. In textile groups, items registered positive growth includes cotton yarn 1.27 percent, cotton cloth 0.22 percent, knitting wool 14.89 percent and woolen & worsted cloth 2.20 percent.

The reason behind the negative growth of electronics is smuggling on large scale.TV , air conditioners , electric bulbs and automobiles like jeep buses , cars showed a negative growth with respect to previous year.


Agro-based industries boasted the GDP because of heavy production which spurred to an incremental increase in industrial goods. Iron import has improved the manufacturing industry further. Except textile industry, all industries spurred manufacturing growth. Textile industry severe setback due to minimum production of cotton affected badly GDP. In order to increase its production, it needs specialized labor, large investment in machinery and developed technology. Apart from above mentioned facts energy short fall need to be reduced. The export ration of ready-made garments has increased also by 12%.Same is the case with towel ,canvas ,jute , woolen fabrics and art silk and synthetic weaving industry which tantamount sharp increase in prices of garment products.

Fertilizer is second consumer of gas after energy sector .On June 2012 gas pipelines had been closed of sui-Northern due to shortage of gas. This policy of gas supply is deteriorating the fertilizer industry of country which is resulting into low production, undue price hike, increase in imports and subsidy, depletion of foreign exchange reserves and erosion of investment. In 2012-13, the cement industry witnessed the continuation of high retention prices that helped cement companies to improve their margin. Pakistan is among top 20 leading producers and top 5 leading exporters of cement in the world. Pakistan cement isbeing exported to Afghanistan, South Africa, Iraq, India, Sri Lanka, Tanzania, Djibouti, Mozambique,Sudan and Kenya.

All information has been extracted from economic survey ...

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