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GDP

(Gross Domestic Product):

The gross domestic product (GDP) or gross domestic income (GDI) is a basic
measure of a country's economic performance and is the market value of all final
goods and services made within the borders of a nation in a year. It is a fundamental
measurement of production and is very often positively correlated with the standard
of living. [1]. GDP can be defined in three ways, all of which are conceptually
identical. First, it is equal to the total expenditures for all final goods and services
produced within the country in a stipulated period of time (usually a 365-day year).
Second, it is equal to the sum of the value added at every stage of production (the
intermediate stages) by all the industries within a country, plus taxes less subsidies
on products, in the period. Third, it is equal to the sum of the income generated by
production in the country in the period—that is, compensation of employees, taxes
on production and imports less subsidies, and gross operating surplus (or profits).[

(Gross Domestic Product):


GDP Rate of Growth 1951-2007

GDP Purchasing Power Parity $ 270 $ 475.5 $ 504.3 $ 580.6


(PPP) billion billion billion billion
GDP per Capita Income $ 450 $ 925 $1085 $1250
Foreign Direct Investment $ 1 billion $ 8.4 billion $ 5.19 billion $ 4.6 billion
65% of
Debt servicing 26% of GDP - -
GDP
$ 19.22 $ 18.45
Exports $ 7.5 billion $ 18.5 billion
billion billion

INFLATION

In economics, inflation is a rise in the general level of prices of goods and services in an
economy over a period of time.[1] When the price level rises, each unit of currency buys
fewer goods and services; consequently, inflation is also an erosion in the purchasing
power of money – a loss of real value in the internal medium of exchange and unit of
account in the economy…Inflation can have positive and negative effects on an
economy. Negative effects of inflation include loss in stability in the real value of money
and other monetary items over time; uncertainty about future inflation may discourage
investment and saving, and high inflation may lead to shortages of goods if consumers
begin hoarding out of concern that prices will increase in the future. Positive effects
include a mitigation of economic recessions,[5] and debt relief by reducing the real level
of debt.
Employment

The high population growth in the past few decades has ensured that a very large number
of young people are now entering the labor market. Even though it is among the seven
most populous Asian nations, Pakistan has a lower population density than Bangladesh,
Japan, India, and the Philippines. In the past, excessive red tape made firing from jobs,
and consequently hiring, difficult. Significant progress in taxation and business reforms
has ensured that many firms now are not compelled to operate in the underground
economy.

In late 2006, the government launched an ambitious nationwide service employment


scheme aimed at disbursing almost $2 billion over five years.

Poverty in Pakistan

Pakistan government spent over 1 trillion Rupees (about $16.7 billion) on poverty
alleviation programs during the past four years, cutting poverty from 35 percent in 2000-
01 to 24 percent in 2006.[22] Rural poverty remains a pressing issue, as development there
has been far slower then in the major urban areas.

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