Employment in Pakistan

Out of a population of about 190,000,000 Pakistan has a labor force of about 55,770,000, which is tenth in the world.

Labor force - by occupation:

agriculture: 43% industry: 20.3% services: 36.6% (2005 est.)   Unemployment Rate: 15% (2010 est.) The unemployment rate is very high in Pakistan and is partly contributed to how most of the labor revolves around agriculuture in a mostly rural country. Since weather and many factors are able to change that rate so easily, the unemployment rate is changing and has increased since the recent drought has killed about half of Pakistan's rice crops.   https://www.cia.gov/library/publications/the-world-factbook/geos/pk.html

Inequalities in Pakistan

"The significantly to inequality are self-employment other than agriculture, profits, interests, gifts/assistance and property in urban areas and self-employment in agriculture as well as other than agriculture and property income in the rural areas. The analysis further shows that inequality in non-food consumption expenditures is more severe as compared to the inequality in food consumption expenditures.
There is a presence of high degree of earnings inequality in Pakistan, especially in urban Pakistan. The analysis further shows that earnings inequality is relatively higher among youngest and eldest groups of earners, female earners, earners with low level of education, earners working as employers and members of producer's cooperatives, and the earners employed in services industries other than social & personal services. On the other hand, the degree of inequality is lower among the middle-age groups, the highly educated workers, paid workers and the workers employed in the primary products industries namely agriculture, forestry, hunting & fishing.

The decomposition analysis indicates that age of the earners in an important factor contributing to earning inequality in urban Pakistan but not in rural Pakistan. In urban Pakistan the earnings inequality between employment statuses, especially between employers and paid employees, is also quite high. Contrary to the popular belief, the inequality between earners with different levels of education is not much high, though the inequality within the groups of earners having higher levels of education is less than the inequality within the groups of earners with low levels of education."

http://eprints.hec.gov.pk/2065/1/1984.htm

Conclusion

Conclusion

Through all of my research and work done on Pakistan, I have found the enormous potential for Pakistan's economy.  Currently, Pakistan has the world's 7th biggest population and 28th in the world in GDP.  Pakistan is a more rural country it should be with most of its labor force being devoted to agriculture (43%).  Pakistan is trying to urbanize but is doing so at a very slow rate.  One of the biggest problem is about 30% of the workforce is coming from children 14 and younger.  With kids having to work at such a young age that they are not getting the proper education with only a 7 year education expectancy.  With most of the country's labor being agriculture, it is not even being done efficiently, since a lot of the farmers are not very well educated so that they do not know how to use the technology available to farm more efficiently and cannot afford to learn.  When Pakistan can better solve this problem and the people be used more efficiently in other lines of work Pakistan can become a major world power.  As of right now, Pakistan has struggled recently with the recent drought killing a lot of the corn crop and causing them to have to import more corn since they cannot produce enough.  Also the military conflict on the Pakistan-Afghanistan border has caused unrest in that part of the country and forced some people to move from their homes.  Even after all of this, Pakistan has all of the potential for a promising future.

Pakistan's Monetary Policy

Pakistan's Fiscal and Monetary Policy

"Public, businesses and market needs to develop understanding that monetary

policy does indeed, over the long run, determine the behavior of the price level.

While inflation is precipitated by supply shocks, hoarding, official restrictions, import

prices, and so on, but these influence

monetary policy that can prevent an effect on the rate of inflation over a more

extended period. That is, following the initial price level shock, an appropriate

adjustment of the interest rate (if necessary) can stop a potential

repercussions on wages and prices.

Specialists use measures of core inflation, which exclude volatile prices, as a

way to see through one-off shocks. Core inflation is very useful to the central bank

itself, as a guide to the appropriate setting of its monetary policy stance.

Unexpectedly low (high) core inflation usually indicates the need for easing

(tightening) in the policy stance.

The ultimate objective of a central bank, and the measure of success of its

policy, is in terms of overall (i.e. headline) inflation. In this context, the way to deal

with price level shocks is to stress their

rate. This involves: ensuring that the effect on inflation

or may not require a policy action, and realizing that as monetary policy influences

the trend of prices with a lag of at least a year and a half, headline inflation should

return to its pre-shock rate not within not 1 year but 2 years.

Price signals in a market economy operate less effectively when the price

level is unstable; in addition, resources are diverted to unproductive speculation and

hedging. Thus, countries with unstable price levels—high inflation or deflation—

almost always experience weak output and growth. Thus, low inflation is not merely

an end in itself, but also a means to good overall economic performance.

The main cause of high interest rates is high inflation, through the expectedinflation

premium. Conversely, the best prospect for low interest rates is a stable

environment of low inflation. In this context, the relatively high interest rates that may

be necessary to achieve a desired disinflation represent “short-term pain for longterm

gain.” SBP, therefore, has a current focus on anti-inflation policy which will

ensure steady growth in the long run."

http://www.docstoc.com/docs/19956341/Monetary-Policy-in-Pakistan

International Trade

International Trade

Pakistan has suffered a weak trade position since the early 1970s, as the cost of oil imports have risen while prices for the country's main exports have declined on the international market. Exports fell 2.5% and imports dropped 20% in 1998, but by 2000 they were back on the upswing, growing at 8.3% and 19%, respectively. Pakistan's commerce ministry estimates that up to $1.5 billion of unregistered trade occurs annually, mostly from smuggled imports.
The important commodity exports for Pakistan are cotton, textiles, and clothes. Other major exports include rice and leather.


http://www.nationsencyclopedia.com/Asia-and-Oceania/Pakistan-FOREIGN-TRADE.html

Pakistan's Real GDP in Billions of U.S. Dollars

Government

Government

Islamic Republic of Pakistan

Government Type: federal republic

Administrative Divisions: 4 provinces, 1 territory, and 1 capital territory; Balochistan, Federally Administered Tribal Areas, Islamabad Capital Territory, Khyber Pakhtunkhwa (formerly North-West Frontier Province), Punjab, Sindh

Independence: 14 August 1947 (from British India)

Elections: the president elected by secret ballot through an Electoral College comprising the members of the Senate, National Assembly, and the provincial assemblies for a five-year term; election last held on 6 September 2008 (next to be held not later than 2013); note - any person who is a Muslim and not less than 45 years of age and is qualified to be elected as a member of the National Assembly can contest the presidential election; the prime minister selected by the National Assembly; election last held on 24 March 2008

Legal System: based on English common law with provisions to accommodate Pakistan's status as an Islamic state; accepts compulsory ICJ jurisdiction with reservations

Constitution: 12 April 1973; suspended 5 July 1977, restored 30 December 1985; suspended 15 October 1999, restored in stages in 2002; amended 31 December 2003; suspended 3 November 2007; restored on 15 December 2007; amended 19 April 2010

https://www.cia.gov/library/publications/the-world-factbook/geos/pk.html