The Economic Enviroment

The economic environmentCustomer Inserts His /Her NameCustomer Inserts Grade CourseCustomer Inserts Tutor s NameSeptember 16 , 2008The economic environmentEconomy of PakistanThe Moslem Republic of Pakistan has a diverse delivery and it consists of more industries much(prenominal) as HYPERLINK http /en .wikipedia .org /wiki /Textiles \o Textiles textiles HYPERLINK http /en .wikipedia .org /wiki /Chemicals \o Chemicals chemicals , HYPERLINK http /en .wikipedia .org /wiki /Food_ uprise on \o Food touch on food processing , HYPERLINK http /en .wikipedia .org /wiki /Agriculture \o Agriculture agriculture , etc . and is the fortieth largest thriftiness in the domain of a function . hitherto , the economy of Pakistan has been suffering in the past many geezerhood from some of the factors much(prenominal) as internal p olicy-making disputes , an tack magnitude population , different levels of foreign investment , and an on-going clash with its neighboring state i .e . HYPERLINK http /en .wikipedia .org /wiki /India \o India IndiaBalance of paymentPakistan has been veneer the business of balance of payments since 1970 s basically imputable to the cost of the rock oil as it is one of the major outcome that have created an unstableness in the balance of payments However , this problem was met by the emersion of exports and withal from the subsidence that Pakistan got . Later in the 1980 s the percentage of remittance that Pakistan has been receiving declinedThe segments that have caused the current deficit to moreover increase atomic number 18 Pakistan s textiles and apparel markets . The position of balance of payments except got affected in 1995 and 1996 due to the increase in imports by 16 , thus far , the exports just increased by 6 . Other than this , pull down the rupee wa s devalued by 11 in the category 1995 and 1! 996 .

This was done to encourage the exports in to correct the balance of paymentsIn 2000 and 2001 , the exports of the commodities such as rice , raw cotton wool , angle , and manufactured items such as leather , carpets , fresh goods , and functional instruments increased ( HYPERLINK http /www .amazon .com /exec /obidos /search-handle-url 5Fencoding UTF8 se arch-type ss office books field-author S 20Akbar 20Zaidi Zaidi ,2000 In the same year , however the exports of crude oil products , and machinery withal rose . According to the CIA , Pakistan s exports in 2001 were 8 .8 one honey oil trillion and the imports were 9 .2 billion and this created a trade deficit of 399 .9 mil lion ( HYPERLINK http /www .amazon .com /exec /obidos /search-handle-url 5Fencoding UTF8 se arch-type ss index books field-author S 20Akbar 20Zaidi Zaidi ,2000 thereof , the balance of payments shows a bad picture about the economy of PakistanInterest rateThe State Bank of Pakistan (SBP ) increased the interest rates by 12 and this was done by increase 150 do-nothing points in a bid in to reduce the increasing inflation and reduce the imports . Currently , the discount rate that is cosmos offered by the SBP is 10 .5 per cent . Other than this , the local banks were also asked by the SBP to maximize the rate of return on PLS deposits...If you invite to get a full essay, order it on our website: OrderEssay.net

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