Pakistan's Economic Potential and Gdp
What is economic potential?
In economics, potential output (also referred to as "natural gross domestic product") refers to the highest level of real gross domestic product (output) that can be sustained over the long term. The existence of a limit is due to natural and institutional constraints. If actual GDP rises and stays above potential output, then (in the absence of wage and price controls) inflation tends to increase as demand for factors of production exceeds supply. This is because of the limited supply of workers and their time, capital equipment, and natural resources, along with the limits of our technology and our management skills. Graphically, the expansion of output beyond the natural limit can be seen as a shift of production volume above the optimum quantity on the average cost curve. Likewise, if GDP is below natural GDP, inflation will decelerate as suppliers lower prices to fill their excess production capacity.
Pakistan and Natural Resources:
Pakistan has important strategic endowments and development potential. The country is located at the crossroads of South Asia, Central Asia, China and the Middle East and is thus at the fulcrum of a regional market with a vast population, large and diverse resources, and untapped potential for trade. The increasing proportion of Pakistan’s working-age population provides the country with a potential demographic dividend but also with the critical challenge to provide adequate services and increase employment.
Pakistan faces significant economic, governance and security challenges to achieve durable development outcomes. The persistence of conflict in the border areas and security challenges throughout the country is a reality that affects all aspects of life in Pakistan and impedes development. A range of governance and business environment indicators suggest that deep improvements in governance are needed to unleash Pakistan's growth potential. God blessed Pakistan with great resources but why Pakistan's Gdp(gross domestic product) get low day by day ?The only one reason is that we have lack of management system . In total, GDP of Pakistan is 4.4% in 2015 but GDP through natural resources we gain is 0.7%.
Current Condition :
By this graph we assume that Pakistan;s just nearly increases by 2010 onwards, The only and only problem is that we cannot use our resources ,our man power .We have a large amount of coal at Thar,Sindh but we cannot use it for power . we have also lack of man power . Population of Pakistan is about 18 crores but, our most population is uneducated.about 10 % of people are educated but they went to foreign because of unemployment. we have a lack of industries .Corruption is increasing day by day.Every leader want to fill his pocket . He can't thinks about country or people.
How we improve our Gdp?
These are the following steps that helps us to improve our Gdp:
By Investment:
In investment of Pakistan we have to launched mega factories,mega structures and trade with other countries.In case if other country launched mega project in our country we have to use our man power not others.
By stopping corruption :
We have to choose a leader who is honest who not only saying but also do this that he speaks.And anyone who is corrupt he should be hanged.
By Promoting Education:
We have to promote education and stopping our child labour.
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