What Are The Main Features Or Characteristics Of The Economy Of Pakistan?

1 Answers

Mahwash Marcel Profile
Mahwash Marcel answered
The economy of Pakistan, despite having almost six decades of development planning experience, is yet an under developed economy. In this regard, it has almost all those characteristics, which can also be focused in the other underdeveloped economies of the world. Some of the most prominent characteristics of the economy of Pakistan are of the following nature:

The economy in general is poverty ridden. Poverty is reflected vividly in its low per capita income. Poverty does not reflect only by low per capita income but also by many other indicators; such as poor health, clothing, shelter and lack of education and medical facilities. Majority of the population is living in extremely bad conditions, 60% of population, particularly in rural areas, does not have access to clean drinking water, an more than 30% has no sanitary disapproval facility.

The economy, instead of playing any uniform character in different parts of the country, is playing a dualistic character. In urban areas it is functioning as market economy. Real money and credit money are playing freely their due role. Contrarily, in rural areas it is functioning as a subsistence economy; backward in nature, mainly suitable to agriculture-oriented activities. Barter system is playing a substitute role for monetary system. This dualistic character of the economy is not conducive to healthy economic progress.

According to economic point of view, the economy is backward almost in all its sectors. Agricultural sector, the backbone of the economy, is yet in developing state. Only, so far, service sector has shown reasonable progress. The natural resources sector of the economy is also under-developed for most of the resources are either non-utilized or under-utilized. The contribution of natural resources towards GDP hardly comes to 1.4 %. Country is not deficient in natural resources in the absolute sense.

Answer Question