Abstract:
Although the economy is still growing but it is a crucial stage, Interest rates
are increasing which might attract foreign capital but domestic investment
will as a result decrease. A current account deficit pushes the government to
borrow from the state bank which in turn leaves little money for the private
sector and this is the cause of the increase in interest rates. Due to high
inflation rates locally produced good are becoming less competitive but at the
same time due to depreciation of the exchange rate of Pak rs, imports are
costing more and consumer are caught in a spiral. The per capita income
increase is mainly due to the inflation rate while purchasing power still
remains low. For the industries the energy crisis is heavily affecting output, on
the other hand the stock market seems to be in its bullish phase and investors
can continue to keep hopes from it in future, In conclusion Pakistan promises
good returns provided it can work on the energy crisis, make its exports more
competitive support industries such as the textile industry which have
suffered majorly in the energy crisis. At the end all of this downward spiral
was provided a boost by the western recession from 2008 onwards and since
then Pakistan’s economy has been caught in a vertigo.
