PAKISTAN'S ECONOMIC FLUCTUATION

The fresh spell of political instability and poor law & order situation would not only reverse the course of economic recovery and growth, but would also hurt the short to medium term outlook of the real sector in 2010, which is already under severe crisis due to unabated power outages.
In addition to that, the revival of foreign investors’ confidence on Pakistan’s economy would not be an easy task for the economic managers in the context of new wave of terrorism that hit Karachi on 28 December, 2009 on the occasion of 10th Muharram (Aushura).
It is important to mention here that the SBP and Asian Development Bank in its report have predicted a modest revival in Pakistan’s economic growth for FY2010, in an anticipation of good agricultural and industrial growth.
The performance of the industrial sector during fiscal year 2009 was affected largely by power shortages and uncertain law& order situation. Therefore, it appears that any recovery going forward would largely depend on improving security situation and resolution of power crisis. The uncertain political situation could take heavy tool on government’s efforts to boost foreign inflows and to achieve projected growth rate in the industrial and agricultural sectors.
As per information on Pakistan economic conditions in financial year 2008, value of Pakistani rupee decreased in value because of political and economic instability. Pakistan is known to have one of fastest developing economies in world. Though it is a poor country, Economic conditions in Pakistan point out that growth rate has been better than global average growth rate.
Karachi Stock Exchange in 2009 experienced a great blow with five percent off in a single day. This has been recorded as worst single-day act in last 32 months. Political upheaval also forces economy of Pakistan to depend on International Monetary Fund (IMF).
Pakistan aims to reduce poverty, which is main concern for economic department of government. Focus is also given on betterment of infrastructure as well. Plans have been made to make more roads, dams and power generating plants so that people get more job openings and thereby help development.
There is no second opinion that the government met all such challenges to some extent with the help of external financing and macroeconomic stabilization program, initiated under an IMF-stand-By Arrangement.