Definition and scale of sector

    * Legal, accountancy,
    * Market research,
    * Management consultancy,
    * General business services,
    * Advertising,
    * General research

Education - Sector Report from UKTI - February 2008

Pakistan is a rapidly developing country that boasts the world’s sixth largest population. While new technology gives rise to improved communications systems and business growth, the literacy rate is one of the lowest in the world and educational facilities are sorely deficient.

Education is one of the emerging needs facing the country. Four percent of GDP is spent on education. Average student-teacher ratio in public schools is frequently in excess of 40-1. Teachers work in a less competitive environment and often hired for their availability and political push rather than for their proficiency and experience.

The Ministry of Education is responsible for formal and informal education in Pakistan. The Education departments in the provinces control the administration of primary to college level education, while the Higher Education Commission takes up matters related to higher education at the universities. Universities have their own curricula and examination system.

The Governments mandate is to strengthen the educational infrastructure by training teachers, administrators, create awareness in low income households, emphasising on teaching children to read at an early age, aim to raise the literacy rate, improve overall educational standards, help alleviate poverty and to build a knowledge based society.

Financial, legal services & PPP - A Report from UKTI - January 2008

Pakistan’s economic performance in the last few years has been unprecedented, with the 5- year real GDP growth averaging at 7 percent. During this period of economic transformation, the financial sector has evolved into a more progressive and dynamic module of the economy, both in response to the ongoing financial sector reforms and to the mounting financing needs of a rapidly expanding economy. Predominantly bank-based in performing its basic function of financial intermediation, it also includes a wide range of financial institutions operating as Non-Bank Financial Institutions (NBFIs), Insurance companies, Micro finance banks, Islamic banks and the Central directorate of national savings (CDNS), in addition to swiftly evolving financial markets. Financial sector assets amounted to Rs 6.9 trillion at end June 2007, whereas market capitalisation of the Karachi stock exchange grew by 38 percent in FY07 to reach 46 percent of GDP. Strong economic fundamentals and structural transformation of the financial sector due to the dedicated implementation of the reform process were the major contributing factors in the current composition of the financial sector and its growth in recent years. Furthermore, in response to the growing demands of financial globalisation, the financial system is starting to integrate with international financial markets, albeit at a gradual pace. Financial integration was particularly expedited in FY07 in which record high foreign portfolio investment was made in equity securities, both through the issuance of Global Depository receipts (GDRs) and in the stock market.

Economic Performance 2006-07: An Update

Pakistan’s economy continues to gain traction as it experiences the longest spell of its strongest growth in years. The outcomes of the recently concluded fiscal year indicate that Pakistan’s upbeat economic momentum remains on track. Economic growth accelerates to 7.0 percent in 2006-07 at the back of robust growth in agriculture, manufacturing and services. Economic growth has been notably stable and resilient.

With economic growth at 7.0 percent in 2006-07, Pakistan’s real GDP has grown at an average rate of 7.0 percent per annum during the last five years (2003-07) and over 7.5 percent in the last four year (2004-07) in running. Compared with other emerging economies in Asia, this puts Pakistan as one of the fastest growing economies in the region along with China, India, and Vietnam. The good performance has resulted from a combination of generally sound economic policies, on-going structural reforms and a benign international economic environment. Based on the performance of half-a-decade of strong, stable, resilient and broad-based economic growth it appears that Pakistan’s economy will continue to be a high mean, low variance economy over the medium-term.

Overview of the Economy - Pakistani Ministry of Finance - 2006/07 - December 2007

Pakistan’s economy continues to gain traction as it experiences the longest spell of its strongest growth in years. The outcomes of the outgoing fiscal year indicate that Pakistan’s upbeat economic momentum remains on track. Economic growth accelerates to 7.0 percent in 2006-07 at the back of robust growth in agriculture, manufacturing and services. Pakistan’s growth performance over the last five years has been striking. Average real GDP growth during 2003-07 was the best performance since many decades, and it now seems that Pakistan has decisively broken out of the low growth rut that it was in for more than one decade. Economic growth has been notably stable and resilient. With economic growth at 7.0 percent in 2006-07, Pakistan’s real GDP has grown at an average rate of 7.0 percent per annum during the last five years (2003-07) and over 7.5 percent in the last four year (2004-07) in running. Compared with other emerging economies in Asia, this puts Pakistan as one of the fastest growing economies in the region along with China, India, and Vietnam. The good performance has resulted from a combination of generally sound economic policies, on-going structural reforms and a benign international economic environment. Based on the performance of half-a-decade of strong, stable, resilient and broad-based economic growth it appears that Pakistan’s economy will continue to be a high mean, low variance economy over the medium-term.

Investment trend and Sector analysis:  Bangladesh, Pakistan, and Sri Lanka - November 2006

The impact of Foreign Direct Investment (FDI) can be examined by using different parameters such as capital formation, backward linkages, employment, technology transfer, market access and knowledge spillovers. FDI is increasingly becoming a preferred form of capital flows to developing countries in recent years.

The analysis shows that although the impact was found mixed, Bangladesh’s performance was on the positive side. As in major emerging economies such as India and China, it appears that even in the case of Pakistan there exists a direct and positive relationship between FDI and Economic Growth. The Sri Lanka economy has undergone fundamental changes with its per capita nominal income rising from US$ 719 in 1995 to US$ 1,197 in 2005.

Budget & Trade Policy 2006-07 - July 2006

National Assembly rejected opposition challenge that the Finance Bill is not fit to be treated as a money bill and neither it is pro-rich and antipoor.

The opposition had objected to several bill clauses such as those seeking \'anti-worker\' changes in labour laws and appointment of special price control magistrates by amending the Criminal Procedure Code (CrPC). Most of them branded the Budget pro-rich and anti-poor. The 36 recommendations made by the Senate but a few were accommodated in the Finance Bill.