Pakistan is a country in South Asia. It is the world’s fifth most populous country, with a population of almost 242 million people. It is also home to the world’s second largest Muslim population. The country covers an area of 881,913 square kilometres, making it the 33rd largest country in the world by area.
Economic freedom score
Economic freedom in Pakistan is still below the world average. The country is 32nd in the Asia-Pacific region and scores only 55.0 out of 100. The economy depends heavily on agriculture, which accounts for 20 percent of the country’s GDP. As a result, the country’s economic growth has been negatively impacted by the global financial crisis. In addition, poverty is prevalent throughout the country, particularly in the rural areas. As a result, there are an estimated 40 million people living below the poverty line.
Pakistan ranks 153rd overall. It is ranked below Honduras, a small Central American country. Both countries have low levels of financial freedom. Moreover, both countries are similar in all other categories except for the Government Spending indicator. However, Pakistan is higher than Honduras in all other areas, including Business Freedom. This difference pushed the country’s score down nearly 50 spots.
Overall, Pakistan’s Economic Freedom score has dropped in recent years, with the score falling from 54.7 in 2002 to 51.7 in 2021. This decrease is the result of Pakistan’s lower economic freedom score relative to the world and regional averages. As a result, Pakistan’s economy is nearly in the’repressed’ category.
While Pakistan has a low ranking in the economic freedom index, it is more than halfway between the highest-ranked countries and the least-free countries. The overall score has fallen by 0.1 percent since 2008. More countries than ever are in the bottom-three in terms of economic freedom. The World Bank’s Freedom Index is the most widely used index of economic freedom in the world. The index scores each country on five indicators. Pakistan is ranked 138th out of 150 in the overall rankings.
Primary energy sources
In Pakistan, the demand for electricity is growing at a fast pace and there is an increasing demand for clean, abundant renewable energy. Pakistan is currently undertaking a substantial expansion of its power sector to meet this growing demand. The country is also in need of clean energy for transportation, heat, and desalination.
Energy from renewable sources such as solar photovoltaics can be a major part of Pakistan’s energy supply. The country is a prime candidate for solar resource exploration because of its location in the Sun Belt. Several studies have estimated the potential of renewable resources in Pakistan. This aggregated renewable energy potential is then examined to determine whether it will be feasible to meet the energy demand of Pakistan.
Pakistan is experiencing a growing demand for energy as the population continues to grow. The energy sector has evolved to meet this demand. In 2012, natural gas and oil represented over half of Pakistan’s energy consumption. In addition, nuclear energy and fossil gas contribute about a tenth of that amount.
In Pakistan, the industrial sector is a large contributor to the economy and is the second largest consumer of energy. This sector is expected to continue growing in the future. The industrial sector uses natural gas for its heating processes and coal for its electricity generation. Coal demand in Pakistan was initially limited to the cement and brick industries, but over the past decade, the use of coal for power generation has increased. As a result, the country has increased its import of coal.
Agriculture sector
Agriculture is one of the largest sectors in the country and contributes approximately 24 percent of GDP. It also employs half of the workforce and is the largest source of foreign exchange. In addition, it supplies food to the country’s urban and rural population. Therefore, it is important to have reliable and timely production and area statistics. As prices have skyrocketed in recent years, staples such as onions, garlic, potatoes, chillies, and tomatoes have taken on greater economic importance.
Pakistan is home to the third largest livestock population in the world. Small farmers dominate the livestock sector, which contributes around 12 percent to the country’s GDP. Livestock production produces major products such as meat, eggs, and animal products, and the demand for meat continues to grow at a rate of six percent annually.
The agriculture sector employs a large portion of the country’s labor force and accounts for about 18 percent of Pakistan’s GDP. However, the sector is lagging behind in productivity, partly due to the low investment in modern farming techniques and partly because the farmers lack access to extension services and financial support. In addition, land fragmentation is another problem. Small pieces of land are owned by different people, making it difficult to efficiently farm them.
Despite Pakistan’s impressive agricultural production, the country faces widespread food insecurity. Organizations such as the FAO, WHO, and UNICEF, among others, report that twenty-three percent of the population is undernourished. Children are particularly vulnerable to malnutrition and stunting. Among children six-59 months, nearly forty-one percent are stunted or underweight. As a result, nearly one-fourth of the population lives below the national poverty line, and another three-quarters of the population is poor.
Corruption perceptions index
The Corruption Perceptions Index (CPI) is an international ranking of public sector corruption. It measures perceptions of government corruption in 180 countries. The CPI is based on surveys and expert assessments. Pakistan ranks 141st on the list, which is below the average. However, Pakistan has made progress in combating corruption in recent years.
While the perception of corruption is not directly related to the economy, it is correlated with several economic variables. The LTFF (long-term fixed-asset financial liabilities) was 11.4 percent between the years 2006 and 2010, while the LTFF was six percent in 2010. Although the economy of Pakistan has been improving in recent years, the perception of corruption is rising, and this could hinder the development of the oil sector.
Corruption has been an issue for Pakistan for some time. The corruption perceptions index was originally in the 70s, but recently dropped to the 130s. The information minister FYAD CHAUDHRY said that the decline was due to factors that contribute to state capture and rule of law. Despite this, Pakistan is home to the fourth largest IT workforce in the world. As a result, it is important to implement policies to improve the country’s IT sector.
The index is updated every year. In 2021, the Transparency International has calculated the index for 179 countries. The lower the corruption, the higher the score. The official score for Pakistan is 28.
Exports of weapons
Chinese companies have sold Pakistan sophisticated optical tracking systems that can detect nuclear missiles with multiple warheads. These purchases highlight the close cooperation between the Chinese and Pakistani militaries. The Chinese have also co-developed the Type 054AP frigate and the JF-17 fighter jet.
Pakistan’s defence industry is governed by the Ministry of Defence Production. Its primary role is to coordinate and promote military production facilities in the country. The ministry also actively participates in joint production projects with other countries. The country is currently manufacturing and exporting weapons to over 40 countries and is earning $20 million annually. The country’s imports of weapons increased by 119 percent between 2004 and 2008 and from 2009 to 2013, with the US and China providing the bulk of the country’s weapons imports.
China and Pakistan have close military ties and cooperate on counter-terrorism initiatives. In 2009, China and Pakistan exported 586.9 million TIV worth of weapons and ammunition. The countries are now focusing on developing local production capabilities to reduce their dependence on foreign arms. The number of arms Pakistan imports is likely to rise in the next five years. The country has large outstanding orders for arms, including 50 combat aircraft, eight submarines, and four frigates.
Pakistan’s military considers the economy a critical component of national security. Its top brass has a role in choosing the de facto finance minister and the governor of SBP. The chief of the army is also a member of the National Development Council, which gives him a voice in economic decision-making. As a result, the army is increasingly aggressive in trying to take control of the economy.
