Asset bubble bust, price instability, debt crises, commodity shocks, livelihood crisis, extreme weather, weapons of mass destruction (WMD), digital power concentration, and digital inequality are among the hazards and threats that the globe may face in 2021, according to the research. After a year, it is clear that, in addition to the Delta form of Covid-19, the world economies have been plagued by the majority of the threats listed by the WEF.
The good news is that, despite these dangers, Pakistan’s economy grew at a respectable rate in 2021. Pakistan avoided the deadly impacts of the Delta strain that wreaked havoc in India because to a well-coordinated vaccination program led by the National Command Operation Center.
What is Pakistan’s current GDP?
According to Trading Economics global macro models and analysts, Pakistan’s GDP is predicted to reach 280.00 USD billion by the end of 2021. According to our econometric models, Pakistan’s GDP will trend around 292.00 USD billion in 2022 and 310.00 USD billion in 2023 in the long run.
Is Bangladesh a wealthier country than Pakistan?
This not only contributed to internal stability, but also to strong relations with India, the country’s powerful neighbor. As a result, Bangladesh might reduce its defense budget and put public funds to better use.
It’s important to look back at how Bangladesh’s core attitude differed from that of its former ruler, Pakistan. Bangladesh was the poorer of the two portions of Pakistan prior to independence, with the western section being 70% richer. The tables have been turned today.
Bangladesh, once a poor, disease-ridden backwater, is now wealthier than Pakistan, both in absolute and relative terms. With a per capita income of $2,554 compared to Pakistan’s meager $1,543, it is projected to be 45 percent wealthier.
Is Pakistan developing?
PAKISTAN, ISLAMABAD (September 22, 2021) As commercial activity progressively restarts in the second year of the coronavirus disease (COVID-19) pandemic, Pakistan’s economic growth rebounded to 3.9 percent in fiscal year (FY) 2021 (ending 30 June 2021) and is predicted to reach 4.0 percent in FY2022, according to the Asian Development Bank (ADB).
Bankrupt certainly
Despite the State Bank of Pakistan’s (SBP)’sunny side up’ attitude, the numbers speak for themselves. Pakistan’s overall debts and liabilities have surpassed PKR 50.5 trillion, representing a PKR 20 trillion growth under the current Imran Khan administration. According to SBP data, the current account deficit has risen to 4.7% of GDP, well beyond the objective of 2-3% for 2021. The State Bank’s foreign exchange reserves wobble from crisis to crisis, stabilizing considerably after a recent $3 billion loan from Saudi Arabia, part of a total of $4.3 billion in aid. Pakistan’s currency rate was predicted to improve as a result of this. It didn’t work. The rupee fell much further against the dollar, reaching 179, reflecting weak economic fundamentals.
The State Bank attributes the fiscal strain on heavy debt servicing as well as food imports such as wheat, sugar, and vegetables. The high cost of cotton imports to keep Pakistan’s textile sector afloat has depleted the country’s foreign exchange reserves. Previously, Pakistan had agreed to import all of these from India owing to trade pressure, but the effort was thwarted due to political pressure. Former FBR head Syed Shabbar Zaidi has declared explicitly that Pakistan’s debt levels are unsustainable. He claimed that ‘bankruptcy’ is a condition in which loans cannot be paid from expected revenues in a lengthy Twitter debate. That is a logical viewpoint that is difficult to refute. However, there is clear evidence of Pakistan’s deteriorating creditworthiness in terms of the Saudi financing for the argumentative. The new loan has a higher interest rate, with Pakistan paying $120 million in interest – up $24 million from the previous identical arrangement in 2018. Other clauses are considerably more draconian. Any time Saudi Arabia makes a written request, the loan must be returned within 72 hours. Any delay in interest payments or servicing public debts, as well as a withdrawal from the International Monetary Fund, would be considered breaches of the agreement (IMF).
Meanwhile, Pakistan is said to have paid China PKR 26 billion in interest for a $4.5 billion credit facility that was diverted to reimburse the Saudis, among others, instead of promoting commerce. Pakistan turns to the IMF to bail it out of loans that are three times the amount borrowed in order to pay China. In other words, Islamabad has created a typical debt trap for itself, which is only becoming worse over time as it flits from one loan to the next. It’s past the point of bankruptcy. It’s on the verge of collapsing.
In 2021, what would India’s GDP be?
In its second advance estimates of national accounts released on Monday, the National Statistical Office (NSO) forecasted the country’s growth for 2021-22 at 8.9%, slightly lower than the 9.2% estimated in its first advance estimates released in January.
Furthermore, the National Statistics Office (NSO) reduced its estimates of GDP contraction for the coronavirus pandemic-affected last fiscal year (2020-21) to 6.6 percent. The previous projection was for a 7.3% decrease.
In April-June 2020, the Indian economy contracted 23.8 percent, and in July-September 2020, it contracted 6.6 percent.
“While an adverse base was expected to flatten growth in Q3 FY2022, the NSO’s initial estimates are far below our expectations (6.2 percent for GDP), with a marginal increase in manufacturing and a contraction in construction that is surprising given the heavy rains in the southern states,” said Aditi Nayar, Chief Economist at ICRA.
“GDP at constant (2011-12) prices is estimated at Rs 38.22 trillion in Q3 of 2021-22, up from Rs 36.26 trillion in Q3 of 2020-21, indicating an increase of 5.4 percent,” according to an official release.
According to the announcement, real GDP (GDP) or Gross Domestic Product (GDP) at constant (2011-12) prices is expected to reach Rs 147.72 trillion in 2021-22, up from Rs 135.58 trillion in the first updated estimate announced on January 31, 2022.
GDP growth is expected to be 8.9% in 2021-22, compared to a decline of 6.6 percent in 2020-21.
In terms of value, GDP in October-December 2021-22 was Rs 38,22,159 crore, up from Rs 36,22,220 crore in the same period of 2020-21.
According to NSO data, the manufacturing sector’s Gross Value Added (GVA) growth remained nearly steady at 0.2 percent in the third quarter of 2021-22, compared to 8.4 percent a year ago.
GVA growth in the farm sector was weak in the third quarter, at 2.6 percent, compared to 4.1 percent a year before.
GVA in the construction sector decreased by 2.8%, compared to 6.6% rise a year ago.
The electricity, gas, water supply, and other utility services segment grew by 3.7 percent in the third quarter of current fiscal year, compared to 1.5 percent growth the previous year.
Similarly, trade, hotel, transportation, communication, and broadcasting services expanded by 6.1 percent, compared to a decline of 10.1 percent a year ago.
In Q3 FY22, financial, real estate, and professional services growth was 4.6 percent, compared to 10.3 percent in Q3 FY21.
During the quarter under examination, public administration, defense, and other services expanded by 16.8%, compared to a decrease of 2.9 percent a year earlier.
Meanwhile, China’s economy grew by 4% between October and December of 2021.
“India’s GDP growth for Q3FY22 was a touch lower than our forecast of 5.7 percent, as the manufacturing sector grew slowly and the construction industry experienced unanticipated de-growth.” We have, however, decisively emerged from the pandemic recession, with all sectors of the economy showing signs of recovery.
“Going ahead, unlock trade will help growth in Q4FY22, as most governments have eliminated pandemic-related limitations, but weak rural demand and geopolitical shock from the Russia-Ukraine conflict may impair global growth and supply chains.” The impending pass-through of higher oil and gas costs could affect domestic demand mood, according to Elara Capital economist Garima Kapoor.
“Strong growth in the services sector and a pick-up in private final consumption expenditure drove India’s real GDP growth to 5.4 percent in Q3.” While agriculture’s growth slowed in Q3, the construction sector’s growth became negative.
“On the plus side, actual expenditure levels in both the private and public sectors are greater than they were before the pandemic.
“Given the encouraging trends in government revenues and spending until January 2022, as well as the upward revision in the nominal GDP growth rate for FY22, the fiscal deficit to GDP ratio for FY22 may come out better than what the (federal) budget projected,” said Rupa Rege Nitsure, group chief economist, L&T Financial Holdings.
“The growth number is pretty disappointing,” Sujan Hajra, chief economist of Mumbai-based Anand Rathi Securities, said, citing weaker rural consumer demand and investments as reasons.
After crude prices soared beyond $100 a barrel, India, which imports virtually all of its oil, might face a wider trade imbalance, a weaker rupee, and greater inflation, with a knock to GDP considered as the main concern.
“We believe the fiscal and monetary policy accommodation will remain, given the geopolitical volatility and crude oil prices,” Hajra added.
According to Nomura, a 10% increase in oil prices would shave 0.2 percentage points off India’s GDP growth while adding 0.3 to 0.4 percentage points to retail inflation.
Widening sanctions against Russia are likely to have a ripple impact on India, according to Sakshi Gupta, senior economist at HDFC Bank.
“We see a 20-30 basis point downside risk to our base predictions,” she said. For the time being, HDFC expects the GDP to rise 8.2% in the coming fiscal year.
What will Pakistan’s GDP be in 2025?
Pakistan’s GDP (gross domestic product) is expected to reach US$261.70 billion in 2025. By 2025, Pakistan’s real total GDP (gross domestic product) is predicted to expand by 1.89 percent. Pakistan’s GNI (gross national income) is expected to reach US$255.61 billion in 2025.
Is Pakistan’s GDP greater than that of India?
With a GDP of $2,709 billion dollars in 2020, India’s GDP will be about ten times that of Pakistan’s $263 billion dollars. The disparity is larger in nominal terms (almost ten times) than in ppp terms (8.3 times). In nominal terms, India is the world’s fifth largest economy, while in ppp terms, it is the third largest. Pakistan has a nominal ranking of 48 and a PPP ranking of 24. Maharashtra, India’s most economically powerful state, has a GDP of $398 billion, far exceeding Pakistan’s. Tamil Nadu, India’s second-largest economy ($247 billion), is relatively close. The gap between these two countries was at its narrowest in 1993, when India’s nominal GDP was 5.39 times that of Pakistan, and at its widest in 1973. (13.4x).
In terms of gdp per capita, the two countries have been neck and neck. For only five years between 1960 and 2006, India was wealthier than Pakistan. In 1970, Pakistan’s GDP per capita was 1.54 times that of India. Since 2009, the margin has widened in India’s favor. On an exchange rate basis, India’s per capita income was 1.56 times more than Pakistan’s in 2020, with an all-time high of 1.63x in 2019. The previous year, Pakistan was wealthier than India. Both countries rank near the bottom of the world in terms of GDP per capita. India is ranked 147 (nominal) and 130 (absolute) (PPP). Pakistan is ranked 160 (nominal) and 144 in the world (PPP). There are 28 Indian states/UTs that are wealthier than Pakistan.
In 2020, India’s gdp growth rate (-7.97) will be lower than Pakistan’s (-0.39) after 19 years. India’s GDP growth rate reaches a high of 9.63 percent in 1988 and a low of -5.24 percent in 1979. Pakistan’s inflation rate peaked at 11.35 percent in 1970 and peaked at 0.47 percent in 1971. Pakistan expanded by more than 10% in three years from 1961 to 2017, while India never did. India’s GDP growth rate has been negative for four years, whereas Pakistan’s growth rate has never been negative.
According to the CIA Fackbook, India’s GDP composition in 2017 was as follows: agriculture (15.4%), industry (23%), and services (23%). (61.5 percent ). Agriculture (24.7 percent), Industry (19.1 percent), and Services account for the majority of Pakistan’s GDP in 2017. (56.3 percent ).
How may Pakistan’s economy be improved?
Infrastructure spending, deregulation, tax cuts, and tax refunds are among the measures employed to stimulate economic growth. The following are some of the most notable aspects of Pakistan’s economic history: Pakistan is self-sufficient in most food production. In US Dollar terms, per capita income has increased by more than sixfold.