Economy Of Pakistan Essay In Urdu

Pakistan ranked as number 43-44 among the countries of the world in nominal GDP, 26th in GDP with purchasing power parity and number 55 in the world in factory output.[citation needed]

Pakistan's industrial sector accounts for about 24% of GDP. Cotton textile production and apparel manufacturing are Pakistan's largest industries, accounting for about 66% of the merchandise exports and almost 40% of the employed labour force. [1] Cotton and cotton-based products account for 61% of export earnings of Pakistan. The consumption of cotton increased by 5.7% over the past five years while the economic growth rate was 7%. By 2010 the spinning capacity increased to 15 million spindles and textile exports hit $15.5 billion.[citation needed] Other major industries include cement, fertilizer, edible oil, sugar, steel, tobacco, chemicals, machinery and food processing.

The government is privatizing large-scale parastatal units, and the public sector accounts for a shrinking proportion of industrial output, while growth in overall industrial output (including the private sector) has accelerated. Government policies aim to diversify the country's industrial base and bolster export industries.

Mining and quarrying[edit]

The country has immense reserves of various minerals and natural resources. Important minerals found in Pakistan are gypsum, limestone, chromites, iron ore, rock salt, silver, gold, precious stones, gems, marble, copper, coal, graphite, sulphur, fire clay, silica. The salt range in Punjab Province has the largest deposit of pure salt found anywhere in the world. Balochistan province is a mineral-rich area having substantial mineral, oil and gas reserves which have not been exploited to their full capacity or fully explored, recent government policies have begun to develop this region of the country and to tap into the immense resources found there. The province has significant quantities of copper, chromite and iron, and pockets of antimony and zinc in the south and gold in the far west. Natural gas was discovered near Sui in 1952, and the province has been gradually developing its oil and gas projects over the past fifty years.[2]

Major reserves of copper and gold in Balochistan's Reko Diq area have been discovered in early 2006. The Reko Diq mining area has proven estimated reserves of 2 billion tons of copper and 20 million ounces of gold. According to the current market price, the value of the deposits has been estimated at about $65 billion, which would generate thousands of jobs.

The discovery has ranked Rekodiq among the world's top seven copper reserves. The Rekodiq project is estimated to produce 200,000 tons of copper and 400,000 ounces of gold per year, at an estimated value of $1.25 billion at current market prices. The copper and gold are currently traded at about $5,000 per ton and $600 per ounce respectively in the international market.[3]Khyber Pakhtunkhwa Province accounts for at least 78% of the marble production in Pakistan. Pakistan is home to some of the most finest and purest grades of marble, granite and slate found in the world. Much of the grades A Marble that is exported out of European countries like Italy actually have their origins in Pakistan which previously lacked fine polishing and processing machinery. The Government has taken steps to invest in this crucial sector with the recent establishment of a Marble City within Balochistan. [4]

The Federal Bureau of Statistics provisionally valued this sector at Rs.211,851 million in 2005 thus registering over 99% growth since 2000.[5]

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Main article: Fuel extraction in Pakistan

Pakistan's first oil field was discovered in the late 1952 in Balochistan near a giant gas field at suo Sui in Balochistan. The Toot oilfield was discovered in the early 1960s Islamabad in the Punjab. Production has steadily increased since then. [6]

Pakistan's first gas field was the giant gas field at Sui in Balochistan which was discovered in the late 1952. [7] Pakistan is also a major producer of Bituminous coal, Sub-bituminous coal and Lignite. Coal mining started in the British colonial era and has continued to be used by Pakistani industries after independence in 1947.[8][9]

Pakistan produced about 45 tonnes of Uranium in 2006.[10]

Manufacturing[edit]

In FY 2002-03, real growth in manufacturing was 7.7%. In the twelve months ending 30 June 2004, large-scale manufacturing grew by more than 18% compared to the previous twelve-month period. The textile and garment industry's share in the economy along with its contribution to exports, employment, foreign-exchange earnings, investment and value added make it Pakistan's single largest manufacturing sector. The industry comprises 453 textile mills: 50 integrated units; and 403 spinning units, with 9.33 million spindles and 148,000 rotors, The capacity utilization was 83% for spindles and 47% for rotors during 2003.[1]

The Federal Bureau of Statistics provisionally valued large-scale manufacturing at Rs.981,518 million in 2005 thus registering over 138% growth since 2000 [11] while small-scale manufacturing was valued at Rs.356,835 million in 2005 thus registering over 80% growth since 2000.

Automotive Industry[edit]

Pakistan’s automotive industry is the one of the fastest growing industries of the country, accounting for 4% of Pakistan's GDP and employing a workforce of over 1,800,000 people.[12] Currently there are 3200 automotive manufacturing plants in the country, with an investment of ₨92 billion (US$870 million) producing 1.8 million motorcycles and 200,000 vehicles annually. Its contribution to the national exchequer is nearly ₨50 billion (US$470 million). The sector, as a whole, provides employment to 3.5 million people and plays a pivotal role in promoting the growth of the vendor industry. Pakistan’s auto market is considered among the smallest, but fastest growing in South Asia. Over 180,000 cars were sold in the fiscal year 2014-15, rising to 206,777 units fiscal year 2015-16.

Technology[edit]

Pakistan has huge potential for the technology industry, which includes software development and electronics manufacturing. Pakistan Aeronautical Complex recently started manufacturing of Tablet PCs, Ebook readers and notebooks in collaboration with INNAVTEK of China. Software development also has a huge potential, which is being utilized as a result of numerous projects initiated by the Government of Pakistan.

Construction[edit]

After the devastating 2005 Kashmir earthquake Pakistan has instituted stricter building codes. The cost of construction in Pakistan will increase 30 to 50% due to implementation of a new building code which requires strengthening of structures to withstand earthquake of 8 to 8.5 magnitude. The demand for cement has increased due to reconstruction after the earthquake. The price of cement has increased by 50% and Pakistan government banned export of cement to lower the prices and the reconstruction costs.

Dubai Ports World, announced on June 1, 2006 that it will spend $10 billion to develop transport infrastructure and real estate in Pakistan.[13] Dubai Ports World is also discussing the possibility of the company taking over operational management of Gwadar port in Balochistan.[14]

Emaar Properties, announced on May 31, 2006 three real estate developments in the cities of Islamabad and Karachi in Pakistan. The projects, with a total investment of $2.4 billion, will include a series of master planned communities that will set new benchmarks in commercial, residential and retail property within Pakistan.[15]

In addition the conglomerate signed an unprecedented $43 billion deal to develop two island resorts - Bundal Island and Buddo Island - over the next decade. [16]

The Federal Bureau of Statistics provisionally valued this sector at Rs.178,819 million in 2005 thus registering over 88% growth since 2000.[17]

Electricity, gas and water supply[edit]

See also: Electricity Sector in Pakistan

Pakistan has extensive energy resources, including fairly sizable natural gas reserves, some proven oil reserves, coal (Pakistan has the largest coal reserves in the world[18]), and a large hydropower potential. However, the exploitation of energy resources has been slow due to a shortage of capital and domestic political constraints. Domestic petroleum production totals only about half the country's oil needs, and the need to import oil has contributed to Pakistan's trade deficits and past shortages of foreign exchange.

The current government has announced that privatization in the oil and gas sector is a priority, as is the substitution of indigenous gas for imported oil, especially in the production of power. Pakistan is a world leader in the use of compressed natural gas (CNG) for personal automobiles.

The short-term national energy demand has expanded significantly since 2001 due to massive rise in sales of durable goods like refrigerators, washing machines, split air conditioners, et al.. [19] In 2004, Access Group International announced plans to invest $1 billion over the next 5 years in solar cell manufacture and wind farms. MOUs have been signed with Alternate Energy Development Board. [20] In early 2005, the government approved a 25-year Energy Security Plan to boost electric capacity eightfold. [21]

The Canadian conglomerate Cathy Oil and Gas signed a memorandum of understanding in late 2006 to invest $5 billion in oil and gas exploration, development, production and commercialisation in Pakistan.[22]

The World Bank estimates that it takes about 32 days only to get an electrical connection in Pakistan.[1]

The Federal Bureau of Statistics provisionally valued this sector at Rs.215,662 million in 2005 thus registering over 62% growth since 2000.[11]

See also[edit]

References[edit]

EVEN the swankiest chandelier is not much use these days without electricity. Just as Shahbaz Sharif explains Pakistan’s new energy policy, his Lahore home plunges into darkness, briefly hiding him, his oil paintings and a fine china tea set. Has Punjab’s chief minister staged a blackout for dramatic effect? Laughing, he denies it: power cuts are routine. City dwellers endure as much as ten hours of cuts a day; villagers are usually without power for much longer. On occasion, supply has fallen 40% short of national demand.

Chronic electricity shortages vie with some heavyweight contenders to top the list of Pakistan’s biggest problems. Mr Sharif’s brother is the prime minister, Nawaz Sharif, who won a general election last year promising to fix the country’s electricity mess. Without reliable power, Pakistan will struggle to lift a dismally low rate of economic growth—just 2.9% a year on average for the past five years, not much more than the 2% annual growth of the population, now 186m-strong. Thanks to a stagnant economy, millions of young Pakistanis are without jobs or regular incomes, especially in the burgeoning cities. Poverty and bleak prospects must surely be contributing to the extremist violence that daily rocks the country.

Fixing the mess means cutting through immense and intertwined problems. Private power firms produce much less than they could, because the state purchaser does not always pay them. In turn, electricity consumers, among them the federal and provincial governments, do not pay the state purchaser. It creates a “circular debt”, which reached $5 billion at its peak. The government last year said that it had, in effect, cleared that debt. But the IMF, for one, warns that it can build up again.

Shahbaz Sharif, who has a national role helping the prime minister on economic policy, says that many consumers continue to pilfer electricity and gas. Some, such as some madrassas (religious schools), refuse to pay even a fraction of their bills, confident that no one would dare cut them off. Liquefied natural gas (LNG), a growing portion of Pakistan’s energy mix, sells at a sixth of its import price. A plan to raise residential electricity tariffs was scrapped in October after judges objected. That ruling may be revisited now that a populist chief justice has retired.

Consumers might be keener to pay if only they got more in return. State-run generation and distribution companies are so ill-managed that the Punjabi cities of Gujranwala and Faisalabad run at 10% capacity. The government’s response is to order the urgent sale of 31 energy and other businesses.

Fixing dysfunctional energy firms would do most to unleash the country’s economic potential, says Mohammad Zubair, the privatisation minister, parachuted in from IBM. Management by state firms is “a disaster”. He talks of gross overstaffing, incompetent engineers and poor financial control. Combined annual losses at all state-run companies have reached $4.7 billion, equivalent to a third of all tax revenue. Private investors must be found to take over, Mr Zubair says, because “the government can’t spend more”.

The biggest task, however, is to change the country’s ill-judged energy mix. About a third of its electricity comes from oil-fired power stations. Many were commissioned in the late 1980s, when crude oil was cheap. With oil now over $100 a barrel, they are desperately expensive. Pakistan spends over $14 billion a year importing oil and other energy products, a big hard-currency bill. Another third of energy comes from gas, much of it also imported. Reliance on imports will certainly grow. Three new LNG import terminals are to be built by 2016, raising capacity by half. And the government this week again confirmed grand plans to bring in natural gas across the border from Iran (and perhaps, in turn, to export some of it to India). But that will remain a pipe-dream for as long as the United States, Pakistan’s biggest donor, is opposed to it. In any case a major pipeline would be vulnerable to violent groups, including Baluchi separatists and the Taliban outfits increasingly active in the south.

Other options exist. Billions of tonnes of coal reserves sit in Sindh province, yet coal accounts for a tiny part of electricity generation. A new plan orders several new coal-fired stations, with Chinese money and help, but even then fuel would be imported from Malaysia. China is also lending money to expand the civil nuclear programme. In November the prime minister inaugurated a $10 billion, 2200MW nuclear plant to be built by 2019, for Karachi, a city of 18m; understandably, there are worries about safety. New plans for solar parks and more hydropower are also trumpeted.

Nothing will fix Pakistan’s energy problems quickly. Long blackouts are certain when temperatures rise again this summer, but gains could show in about three years—in time for the next election. Muhammad Mansha, an industrialist and Pakistan’s richest man, is optimistic that the government’s attempts to grapple with the power sector will boost business confidence and the economy more widely. Chinese investment in the garment industry is a shot in the arm, as is the removal of import tariffs on Pakistani garments going to the European Union. The EIU, a sister company to The Economist, predicts annual GDP growth of nearly 4% a year until 2018.

Mr Mansha sees other hopeful signs, particularly in Pakistan’s abysmally skimpy trade with India. His cement company’s exports of 700 tonnes a day to India are up from 300 tonnes a year ago, and he expects that to double again. On February 14th India’s commerce minister, Anand Sharma, was due in Lahore for a joint announcement to open the land border to cargo for 24 hours a day and to allow container transport—though he cancelled the trip at the last minute. Currently the border is open only during daylight, and—astonishingly—much is unloaded and loaded onto fresh lorries on the backs of porters. If the myriad restrictions went, a Delhi think-tank says, bilateral trade could quickly rise tenfold, from just $2.6 billion a year.

One day cross-border trade in energy could follow. Hydropower in disputed Kashmiri territories, for example, would be best exploited if India and Pakistan co-operated. India has offered to extend its electricity grid across the border in Punjab and to arrange gas imports for Pakistan, though so far nothing has come of it. Pakistan, in turn, could export coal to India, a hungry consumer of the stuff. Huge mutual gains in energy co-operation are to be had—if only the two countries were serious about achieving them.

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