President General Pervez Musharraf nine years Economic Progress The nine years present a commendable record in the history of economic management in Pakistan. An economic laggard in 1999, Pakistan is a resurgent economy in 2007.
What make a Country Rich, Happy, Healthy & Strong Nation. Is Good, Organize, Honest, Business Friendly Government and a Free Enterprise System, like Canada, Japan, Korea, Malaysia and Singapore. Oil, Gold, Natural Resources, Population, Area, Location is not the Key for Development. Take the example of Japan & Singapore
The present Pakistan Power Generation Capacity is 19,478 MW. It goes to the credit of President General Pervez Musharraf that immediately after assuming power be focused on this important national problem. He undertook construction of over a dozen small dams in Azad Kashmir northern areas and the NWFP with a total capacity of 4000 MW electricity besides increasing irrigation water supply bringing vast areas under cultivation within 2 to 3 years.
Work on Chashma 2 has already started to increase nuclear energy by another 500 MW. The production of natural gas during October 2007 was 4,500 million cubic feet per day, big jump from 1999.
President Musharraf began his government in 1999 with US $1.7 billion. In 2007 Pakistan’s foreign exchange reserves were over $16 billion. Pakistan’s credit rating has improved from a negative Selective Default (SD) in 1999, to B2/B in 2004. On the basis of this record, Pakistan raise US $500 million in Eurobond last year. Pakistan in 2004 is close to saying farewell to an important component of foreign aid offered by the International Monetary Fund.
The stock market capitalization of listed companies in Pakistan was valued at $45,937 million in 2005 by the World Bank. As a result, the corporate sector of Pakistan has grown dramatically in significance in recent times.
Karachi – the financial capital of Pakistan
Pakistan’s manufacturing sector has experienced double-digit growth in recent years, with large-scale manufacturing growing by 18% in 2003. A reduction in the fiscal deficit has resulted in less government borrowing in the domestic money market, lower interest rates, and an expansion in private sector lending to businesses and consumers. Foreign exchange reserves continued to reach new levels in 2003, supported by robust export growth and steady worker remittances.
Growing middle class
Measured by purchasing power, Pakistan has a 30 million strong middle class, according to Dr. Ishrat Husain, Ex-Governor of the State Bank of Pakistan. It is a figure that correlates with research by Standard Chartered Bank which estimates that Pakistan possesses a “a middle class of 30 million people that Standard Chartered estimates now earn an average of about $10,000 a year. In addition, Pakistan has a growing upper class with relatively high per capita incomes.
On measures of income inequality, the country ranks slightly better than the median. In late 2006, the Central Board of Revenue estimated that there were almost 2.8 million income-tax payers in the country.
The Economic Survey of Pakistan for 2006-2007 has concluded the country’s economy recorded 7.3 percent growth, Former Prime Minister Shaukat Aziz said that Pakistan’s economy should continue to grow every year at about seven percent and he also assured that many measures will be taken to give the economy a further boost. He promised privatization of companies and he also invested in the economy by allowing free education for under 16′s and also came up with a scheme to pay girls two hundred rupees a month as an incentive to attend school. Also in the next five years many foreign universities from different European nations have announced they will be opening campuses in Pakistan.
Exports jumped from US$ 8 billion in 1999 to $17 billion in 2007. Remittances from oversees Pakistanis increased from US$1.1 billion in 1999 to almost $6 billion in 2007. Real GDP growth has accelerated to 6.4% this year from 4.2% in 1999.
Large scale manufacturing grew by 18.1% in 2004 compared to 3.6% in 1999. The industrial growth of large scale manufacturing items recorded 18.01 per cent which is highest, automobile industry, textile sector, iron and steel, engineering, electrical, food beverages, jute goods, Leather, pharmaceuticals, chemicals, petroleum products, tires and tubes, non metallic mineral products.
Pakistan’s Karachi Stock Exchange has been the best performing market in the world during 2002. The KSE Index grew over 1500% in 9 years from 1055 to 15,000. The cost of doing business in Pakistan has been brought down. It is easier and more profitable to do business in Pakistan today.
Foreign Direct Investment has risen sharply to US$ 949.4 million this year as compared to $376 million in 1999. Trade barriers are on their way out. No government permission is required to invest in most sectors to the economy; foreign investors can own their businesses 100% in the industrial and services sectors, and can take their entire capital, profits and dividends out of the country. External debt has declined from US$ 37.6 billion to $35.3 billion in 2004 – a decline of $2.3 billion in 5 years .
After 1999 cellular explosion that enlarged the market from 225,000 mobile phone users in 2001 to 30,000,000 mobile users in 2007. Internet users have increased across Pakistan from 130,000 in 1999 to almost six million and a half by 2004. Working telephone land lines across the country have jumped from 3,025,319 in 1999 to 4,742,407 in 2004
Pakistan is a net food exporter, except in occasional years when its harvest is adversely affected by droughts. Pakistan exports rice, cotton, fish, fruits, and vegetables and imports vegetable oil, wheat, cotton, pulses and consumer foods. The country is Asia’s largest camel market, second-largest apricot and ghee market and third-largest cotton, onion and milk market.
The economic importance of agriculture has declined since independence, when its share of GDP was around 53%. Following the poor harvest of 1993, the government introduced agriculture assistance policies, including increased support prices for many agricultural commodities and expanded availability of agricultural credit. From 1993 to 1997, real growth in the agricultural sector averaged 5.7% but has since declined to about 4%. Agricultural reforms, including increased wheat and oilseed production, play a central role in the government’s economic reform package.
Much of the Pakistan’s agriculture output is utilized by the country’s growing processed-food industry. The value of processed retail food sales has grown 12 percent annually during the Nineties and was estimated at over $1 billion in 2000, although supermarkets accounted for just over 10% of the outlets.
The Federal Bureau of Statistics provisionally valued major crop yields at Rs.504,868 million in 2005 thus registering over 55% growth since 2000 while minor crop yields were valued at Rs.184,707 million in 2005 thus registering over 41% growth since 2000.
Pakistan’s nominal gross domestic product (GDP) in 1997 was US$ 75.3 billion. Five years later in 2002, the country’s nominal GDP came down to US$ 71.5 billion. During this five-year period, the real GDP grew by a meagre 3.0 per cent on an average. Pakistan government’s debt was 82 per cent of its GDP in 2002.
Over one-third of the government’s revenue was being used up in making interest payments on the national debt. The near stagnant economy suddenly started showing miraculous growth in 2002 after lifting of economic sanctions imposed after Pakistan’s 1998 nuclear tests. The economy grew at 5.1 per cent in 2003, 6.4 per cent in 2004 and 7.0 per cent in 2005.
The US$ 72 billions economy of 2002 has swelled into a US$ 108 billion economy in 2005. During 1997-2002 Pakistan’s average export growth has been 1.2 per cent per year and increased to 13 per cent per year during 2003-05. Pakistan’s debt as a percentage of the GDP came down to 59 per cent in 2005 from 82 per cent in 2002. Pakistan government’s interest payment as a percentage of revenue collection came down to 23 per cent in 2005 as compared to 35 per cent in 2002.
All figures are based on the last year of Musharraf Rule.
Habib Syed, Montreal, Canada April 21, 2013