2011 Reviews,Problems, Forecast, Outlook, Indicators

**Rapunzel** · 06-23-2011,09:26 AM

Will 2011 be better year for Pakistan economy? How Pakistan economy will perform in 2011? These are vital questions and their answers depend upon many factors. As a whole, 2010 is the worst year in economic history of Pakistan. The poor performance of the economy in year 2010 was caused by floods in summer and poor economic and financial management. Followings are the facts about Pakistan Economic Problems 2011/Pakistan economic outlook 2011/Pakistan economic forecast 2011 and Pakistan Economic future in 2011.
One thing is sure there will not be any increase in the income of ordinary man. The number of the poor in Pakistan will also increase. If in 2011, population is 175 million this means that some 70 million people will live in absolute poverty. It also means that more than 40 percent of population of Pakistan will be in absolute poverty. The main problem is that most of these poor lives in urban cities and towns and they have less opportunities as compared with country side poor.

There is no prospect that economy of Pakistan in 2011 will grow with rapid pace and there are serious apprehensions that foreign assistance will not be available in 2011. This mean the government will borrow more from central bank and market. In that case it means more higher inflation in the country. Another bad impact of this borrowing will be less investments and slow economic activities. The only positive point in this dark and gloomy scenario will Pakistan’s textile exports because EU and USA pledge to give special access to Pakistani exports in their markets.

So far Pakistan fails to adopt the RGST as recommended by IMF and hence there are chances that IMF will stop the remaining loan money which means more problems for Pakistan economy in year 2011.

Recent floods of 2010 in Pakistan also played havoc with infrastructure and agriculture. Pakistan needs billions of rupees for the rehabilitation of affected people and for the reconstruction of infrastructure but shot of money government is handicapped. It will definitely put negative impacts on the Pakistan economic growth rate in 2011 and especially on agricultural growth in year 2011.
The gap between expenditure and revenue is increasing in Pakistan. It increased with rapid pace during 2010 and it will further increase in 2011. To bridge the gap between expenditure and revenue government will have to borrow money from foreign lenders which means more burden on exchequer in shape of interests. Internal borrowing means more rapid inflation in country. Pakistan economy challenges are huge and Pakistan economic indicators 2011 are also not good.

All above discussed factors are signaling towards gloomy picture of Pakistan economy in year 2011. It does not mean that nothing can be done to make economic situation better in Pakistan because sincere efforts of our leaders and better planning can change the gloomy looking year into bright year for economy of Pakistan.