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ECONOMICS401 GDB question Wednesday, June 20, 2012 to Friday, June 22, 2012

The Case:

Pakistan’s finance minister Dr. Abdul Hafiz Sheikh presented federal budget 2012-13 on June 01, 2012. The total outlay of budget 2012-13 is Rs. 3,203 billion which is 15.8% higher than the size of previous budget 2011-12. Comparison of two budgets reveals that the total government expenditures have increased by 15.20% from Rs. 2,835,373 million to Rs. 3,266,307 million out of which development expenditures have increased by 25.83% from Rs. 354,872 million to Rs. 446,539 million.  According to Economic theory, if government expenditures increase, generally economy flourishes but Pakistan is an exception to the rule. In every budget, government expenditures increase but our economy is not showing any positive response. This budget has also been presented in a situation when the condition of our economy is not at a satisfactory level. Despite increase in government expenditures, Pakistan economy has been facing unemployment, acute energy crisis, inflation, poverty and trade deficit for many years.



Think as an economist and discuss the reasons why is Pakistan economy not showing any positive change despite the increase in government expenditures?


(Write "to the point" answer, avoid irrelevant or extra details.)

Important Instructions:


1. Your discussion must be based on logical facts.

2. Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.

3. Obnoxious or ignoble answer should be strictly avoided.

4. Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.


For Detailed Instructions please see the GDB Announcement.

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Replies to This Discussion

plzzzzzzzzzzz discuss here    


i also need solution idea..

plz dicuse gdb

Me too

Please Discuss here about this GDB.Thanks

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plzz sol ka idea dy dain kia kia points mention karain jo reason hain...

Honestly speaking this is very easy GDB.

Dear Friends,

Please keep in mind the following points when you are solving this GDB.
1. Political instability in our country
2. Energy crises
3. Law and order situation
4. Inflationary pressure
5. World bank and IMF loans
6. International influence in our economic polices.

and many other relevant points that exist in our mind regarding the bad economic condition.


hmmm gud sibtain 

is gdb main us nay yaha ki chore bazari ka pucha ha t


hahahahaha........... hnsaaa dia  tobaa hai... bulbulay...................... chor bazaaari hehehehe


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