dear friends, I have gone through a number of interviews of year 2010 and 2011, and have found that the following questions of economy are asked frequently. I am now going to find out the answers to these questions. Is there anyone who has command ove economy, and can explain the following terms in easy words to a lay man (like me who have no interest nd understanding of economic terms ), please do the favour.
ECONOMY QUESTIONS:


 Whats is GDP? GDP of Pakistan and its growth rate

 Fiscal deficit, current account deficit

 Pak Import/Export figures, trade deficit, balance of payment

 Total debt, debt servicing amount?

 RGST, Documentation of economy?

 Tax to GDP ratio, ways to increase tax collection

 Pak Foriegn reserves, ways to increase them

 China's economic success, its main factors? Factors behind India's emerging economy?

 Benazir Income Support Program

 Flood Surcharge, recent Mini-budget

 Problems of developing state

 Why Pakistan take loans?

 Pak- Afghan transit trade

 HDI? What are its parameters? Who invented this measure?

 Pakistan's number on Corruption index?

 Inflation in Pakistan, how to control it?

 Trickle down effect.

 How can we reduce foreign debt of Pakistan?

 Trade with Europe

 What do I think about when people talk about the "economy of Pakistan"

 What are agricultural Marketing problems in Pakistan?

 What percentage of our agricultural product is perished before reaching market?

 How can we market our product domestically and internationally?

 How much percentage Govt of Pakistan is increasing?

 sum of external liabilities of Pakistan?

 How removal of subsidies helping our economy?

 What is external debt of Pakistan?

 Why nation trade with one an other?

 What is Circular debt?

 Why the circular debt is being used so widely nowadays?

 what is trade deficit of Pakistan

 three economic problems of Pakistan

 what is the share of Balochistan in NFC

 shares of sectors in economy

 what is fiscal deficit

 Why our economy has not been up to the mark?

 What should be the role of fiscal policy in this regard?

 So where do you seek reduction in current expenditure?

 How can we end inflation?

 Who controls prices? How can we make people save on consumption of commodities?.

 Who makes the monetary policy?

 What are the foreign reserves used for?

 What is the implication of trade with idea?

 The state bank has increased the discount rate to two percent what will be implication for it.

 How can we industrialize our country?

 How can we manage fiscal deficit?

 China vs. US (economically)

 What is the currency of EU


 Greece economy and its relation with Euro.

 Why EU is not granting membership to Turkey and Switzerland?

 How can we build foreign exchange reserves of Pakistan?

 How to regain microeconomic stability?

 Changes u want in agriculture?

 Budget

 Your views on latest Monetary Policy issued by the State Bank?

 How can borrowing of government from the SBP be curtailed?

 How can we curb tax evasion?

 What is economic development?
 CCP?
 HDI?
 Equity Vs Bond?
 Arbitrage?
 Debt trap?
 study FBR’s report
 Why do we need a documented economy?
 Trade Corridor of Pakistan
 What are Pakistan’s important exports?
 Economic profile of Pak
 How to increase exports?
 What external factors affect our economy?


Regards,

Whats is GDP? GDP of Pakistan and its growth rate
Gross domestic product (GDP) refers to the market value of all final goods and services produced within a country in a given period. It is the measure used to evaluate a country’s economic growth. Pakistan’s GDP has declined recently and is around 2.4% today. GDP, in nominal terms is approx. US $ 211 bn.

 Fiscal deficit, current account deficit
Fiscal Account consists of two components; Government Revenues and Expenditures. When Revenues = Expenditures, it is known as Fiscal Balance. When Revenues > Expenditure, it is known as Fiscal Surplus and when Revenues < Expenditures, it is known as Fiscal Deficit.
A country’s Balance of Payment (BOP) consists of two major components known as Current Account and Capital Account. The Current Account is the difference between a nation's total exports of goods, services and transfers, and its total imports of them. The difference between imports and exports of goods is also known as Trade Deficit.

 Pak Import/Export figures, trade deficit, balance of payment
Imports (2010) = US $ 41 bn
Exports (2010) = US $ 25 bn
Trade Deficit = 41-25 = 16 bn

 Total debt, debt servicing amount?
Total Public debt: Approx. US $ 64 bn. Debt servicing amount may change on yearly basis. It is a non-developmental expenditure and takes a big percentage of budget.

 RGST, Documentation of economy?
Refer to the following link for answer:
http://www.cssforum.com.pk/general/d...sales-tax.html

 Tax to GDP ratio, ways to increase tax collection
Total government tax collections divided by the country's GDP. It is measured in percentages. Pakistan has one of the lowest Tax to GDP ratios in the world. It is around 9%. Which means that only 9% of the economy/economic growth is being taxed. Whereas in most of the other asian countries it is around 15%.

 Pak Foriegn reserves, ways to increase them
US $ 16.5 bn, reserves may be increased by increasing exports, encouraging foreign investment and remittances etc.

__________________
Best end of life is not knowledge but action.
Don't limit yourself to what you think people are expecting!

8. China's economic success, its main factors?

The first factor is China's reforms. as long as China pursues social and economic reforms, its economy will keep growing rapidly.
The second is the fact that China has opened up to the outside world, welcoming all kinds of foreign investments and gradually opening its banking sector.
The third factor is education and technology support. According to Fan, the central government has invested a huge amount of capital and human resources in developing education and technology.
the final factor was urbanization which proved to be a vital driver of market demand and produced massive investments in infrastructure.

9. Factors behind India's emerging economy?

Firstly, it is domestic consumption
Secondly, rise of investment
Thirdly, increase in employment and growth in the labor force
Fourthly, increase in productivity of both capital and labor


10. Benazir Income Support Program

initiated by govt in year 2008-09, allocation of 70 billion rupees in fiscal year 2010-11, aimed to cover 5 million families having current income of less than 6,000.

11. Flood Surcharge

Pakistan impose a flood surcharge of 15 percent on income tax in order to tackle the country's widening budget deficit. Pakistan, whose tax-to-GDP ratio is around 10 percent, one of the world's lowest, is trying to show the IMF and other donors that it is working on ways to boost revenue.

12. Mini budget 2011:

The government has introduced a Rs 120 million mini-budget. As per the Income Tax (Amendment) Ordinance 2011, “a surcharge shall be payable by every taxpayer at the rate of 15 percent of the income tax payable”. The government has levied 17 percent general sales tax (GST) on imported and locally produced tractors, fertilisers and pesticides. These measures will generate Rs 53 billion before the next budget in order to achieve the government’s revised target of Rs 1,600 billion revenue collection. The government has decided to save Rs 120 billion by imposing a ban on all fresh recruitments, purchase of durable goods, and announced a 50 percent cut in expenditures on POL entitlements, purchase of stationery and travelling allowance. All these measures have been taken keeping in mind the International Monetary Fund’s (IMF’s) conditions to restrict the current year’s fiscal deficit below 5.5 percent of GDP.

__________________
Whatever is important will remain; whatever is useless will disappear.

Thanks a lot eager and usman

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Hard work conquers !

It's indeed a good effort to compile these questions. I think Raz and maliasgher are two right persons to look forward to with regard to the answers to these questions. Let's hope the duo read this post soon.


Regards,

__________________
Verily, His command, when He intends a thing, is only that He says "Be!" - and it is! (Al-Quran)

I must say your are doing an awesome job, for all those who have managed to qualify the CSS 2011, written part. Seniors and those who have appeared in the Psychological exam, already , must ensure maximum participation.

 Why Pakistan take loans?
Pakistan takes loans for following main reasons:

• IMF loans for bridging BOP deficit
• Debt Payments on already taken loans
• World Bank/ADB loans etc for different sectors/Developmental projects/purposes like defence health, education, energy sector etc.

Apart from interest bearing loans, Pakistan also receives aid from different sources like US/UNDP aid etc.

 Pak- Afghan transit trade
Refer to the following links for detail:

Pakistan, Afghanistan reach transit trade agreement
Historic Afghanistan Pakistan Transit Trade Agreement Signed | afghanistan.usaid.gov

 HDI? What are its parameters? Who invented this measure?
Human Development Index (HDI) is an index used to rank countries by level of 'Human Development'. HDI includes four indicators and three dimensions: The indicators are Life expectancy at birth, Mean years of schooling, Expected years of schooling and Gross national income per capita. The dimensions are Health, Education and Living standards.

The index was developed in 1990 by two economists Mahbub ul Haq (Pakistani) and Amartya Sen (Indian).

 Pakistan's number on Corruption index?
According to Transparency International's 2011 Corruption Perceptions Index (CPI), Pakistan ranked 134 among 182 countries. It means there are 46 countries in the world which are more corrupt than Pakistan

__________________
Best end of life is not knowledge but action.
Don't limit yourself to what you think people are expecting!

Correction:

Excess of imports over the exports proceeds is known as trade deficit.



The difference between imports and exports of goods is known as Trade Balance.


Regards

__________________
"Tumhary nafs ki qeemat Janat hay isy Janat say kam qeemat pey na bechna."
"Jiyo to istarh ky log tum sy milny ko tarsy; maro to istrah k log tumharee mot par royain"

Trickle down effect

The trickle-down effect is a marketing phenomenon that affects many consumer goods. Initially a product may be so expensive that only the wealthy can afford it. Over time, however, the price will fall until it is inexpensive enough for the general public to purchase.

__________________
Whatever is important will remain; whatever is useless will disappear.

A very good effort friends. keep it up. God bless you all.
Here goes my little contribution:

GNP:

Gross National Product (GNP) is the market value of all products and services produced in one year by labor and property supplied by the residents of a country. Unlike Gross Domestic Product (GDP), which defines production based on the geographical location of production, GNP allocates production based on ownership.

(the difference between GDP and GNP is that in former foreign remittances are included while GNP does not take foreign remittances into account, Please correct me if i am wrong)

Recession

In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way. Production, as measured by gross domestic product (GDP), employment, investment spending, capacity utilization, household incomes, business profits, and inflation all fall, while bankruptcies and the unemployment rate rise.

Recessions generally occur when there is a widespread drop in spending, often following an adverse supply shock or the bursting of an economic bubble. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation.