Pakistan has great prospect to develop and grow economically. Give reason.
Answers
Answer:
HOPE IT WOULD HAVE HELPED U
Explanation:
The economy of Pakistan is the 23rd largest in the world in terms of purchasing power parity (PPP), and 42nd largest in terms of nominal gross domestic product. Pakistan has a population of over 220 million [37] (the world's 5th-largest), giving it a nominal GDP per capita of $1,357 in 2019,[38] which ranks 154th in the world and giving it a PPP GDP per capita of 5,839 in 2019, which ranks 132nd in the world for 2019. However, Pakistan's undocumented economy is estimated to be 36% of its overall economy, which is not taken into consideration when calculating per capita income.[39] Pakistan is a developing country[40][41][42] and is one of the Next Eleven countries identified by Jim O'Neill in a research paper as having a high potential of becoming, along with the BRICS countries, among the world's largest economies in the 21st century.[43] The economy is semi-industrialized, with centres of growth along the Indus River.[44][45][46] Primary export commodities include textiles, leather goods, sports goods, chemicals and carpets/rugs.[47][48]
Growth poles of Pakistan's economy are situated along the Indus River;[45][49] the diversified economies of Karachi and major urban centers in the Punjab, coexisting with lesser developed areas in other parts of the country.[45] The economy has suffered in the past from internal political disputes, a fast-growing population, mixed levels of foreign investment.[50] Foreign exchange reserves are bolstered by steady worker remittances, but a growing current account deficit – driven by a widening trade gap as import growth outstrips export expansion – could draw down reserves and dampen GDP growth in the medium term.[51][52] Pakistan is currently undergoing a process of economic liberalization, including privatization of all government corporations, aimed to attract foreign investment and decrease budget deficit.[53] In October 2016, foreign currency reserves crossed $24.0 billion[54] which has led to stable outlook on the long-term rating by Standard & Poor's.[55][56] In 2016, BMI Research report named Pakistan as one of the ten emerging economies with a particular focus on its manufacturing hub.[57]
In October 2016, the IMF chief Christine Lagarde confirmed her economic assessment in Islamabad that Pakistan's economy was 'out of crisis'[58] The World Bank predicted in 2016 that by 2018, Pakistan's economic growth will increase to a "robust" 5.4% due to greater inflow of foreign investment, namely from the China-Pakistan Economic Corridor.[59] As of May 2019, the growth rate has been revised and the IMF has predicted that future growth rates will be 2.9%, the lowest in South Asia.[60] According to the World Bank, poverty in Pakistan fell from 64.3% in 2002 to 29.5% in 2014.[61][62][63] The country's worsening macroeconomic position has led to Moody's downgrading Pakistan's debt outlook to "negative".[64]
In 2017, Pakistan's GDP in terms of purchasing power parity crossed $1 trillion.[65] By May 2019, the Pakistani rupee had undergone a year-on-year depreciation of 30% vis-a-vis the US Dollar.[66]