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Business Cycle of Pakistan since 1947

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syeda ushba

on 1 December 2014

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Transcript of Business Cycle of Pakistan since 1947

Thank You!
Business Cycle Definition
The business cycle is the periodic but irregular ups-n-down movements in economic activitiy, measured by fluctuations in real GDP and other macroeconomics variables.
Business Cycle of Pakistan
Recovery (Growing)
Peak (Boom)
Recession (Depression)
Trough (Bottom)

Business Cycle of Pakistan
Pakistan Business Cycle
First Cycle (1949-1965)
Pakistan Business Cycle
First Cycle (1949-1965) cont....
Phases of the Business Cycle

Causes of Fluctuation:

Political Events
Random Events
Level of Consumer Spending
Seasonal Fluctuation
Cyclical Impacts - durable and non-durable
Business Cycle of Pakistan since 1947
Presented By:
Ushba Mansoor
Amon Khan

Second Cycle (1966-1985)
In 1966, GDP fell down to 3.1%
But continue to grow till 9.8% in 1970.
In 1971 loss of East-Pakistan.
Economy and Jute affected.
Bhutto became Prime Minister.
All major industries were Nationalized.
Industrialists were not interested investing in Pakistan
GDP fell down to 1.2% in 1972.
Average growth rate was 7.5% till 1974.
Second Cycle (1966-1985) cont...
Pakistan GDP fell to 3.6% from 1974-1977.
Then second recovery phase started.
GDP grows to 6.5% during 1980-1988.
second economy boom in 1985.
Third Cycle (1986-2005)
Third Cycle (1986-2005)
The economy of Pakistan slowed to an average annual growth of 3.8 percent during the 1990s.
Most highly uncertain period of Pakistan.
Factors contributing to the sluggishgrowth included corruption and mismanagement at the highest levels of government.
The rise of ethnic and sectarian violence in Karachi and other urban centers.
Affect on production of Pakistan after exploded a nuclear device in May 1998.
During the time of General Pervez Musharraf, the economy grew at an average rate of 6.3 per cent a year.
3rd recovery phase started.
After Pakistan joined in the war against terror it received foreign aid of billions of dollars.
Heavy development projects were launched and ignited the growth rate.
In 2005 Pakistan faced economical boom.
Fourth Cycle (2006-2014)
Tax collection increased by 18 percent during July-April 2007.
Exports increased by 18.3 percent and imports up by 8.9 percent.
Services sector grew significantly.
No major industries were set up and in 2008 when there was aworldwide recession, Pakistan’s economy suffered heavily.
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