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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.

 

Requirement:

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

 Nayar Mudasar  blank file..kuch b nai hai is ma

ap down load kr k dekahin ye blank file nai hain main aj apka reply dekha hia so pehlai mian nai download kr k dekhi hia phir apku reply kr rahi. ap down load phir mujha batana

ECO401_GDB_Solution-spring_2012

See the attached file please

Attachments:

ec0401 gdb solution 2012 

GDB of ECO 401,
Plz don't copy and paste 

Make by = MC100202607

IN our country there is many problem for the Government of Pakistan. 

1st,The main probalm is the corruption not in Government but also with in the people, 

2nd ly , Our Politician are also not concern with the peoples. 

3rd ly, The inflation rate is major issue for the problem. 

4th, The difference between the dollar and the rupees. 

5th, The law and order situation is not good in our country, 

6th, The energy crisis is create huge problem not only for the people of Pakistan but also for the Government of Pakistan . 

7th, When the Government of Pakistan get lons from the “IMF” or “ WB” the huge money goes to the institution in sense of interest. 

8th, When dollar goes up = 1 rupee, the lone goes upto 80 billion. 

9th , Sometime our politicians would choos hedge funds for their people but don’t spend on the people .

eco401 gdb solution

See the attached file pleas

Attachments:

the main point of the gdb lies in the real budget and nominal budget. As Real Budget is a budget of year A with respect to the prices of the year B. Year A is the current year and year B is the year to which we want to compare the current budget.

Similarly Nominal govt. expenditure and Real Govt. expenditure.

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.

requird final term solved papers  with refrence please attach file as soon as possible

Plz Don’t Copy Paste Just Take
Idea from It. Thanks
By Prince Ali
Despite increase in government expenditures, Pakistan
economy has been facing unemployment, acute energy crisis,
inflation, and poverty and trade deficit for many years though
government expenditures increases from the previous year
budget but the position of the economy stays on the base and
not showing any positive approach towards the betterment or
improvement. There are a lot of reasons behind this due to
which the economy is declined day by day and the economic
positioning is becoming worst and worst.
There are some major factors involving this entire problem.
1. The first major cause is the loan which government
usually obtained for running its day-to-day expenses
from the IMF and World Bank on greater interest rate
along with sanctions.
2. The other main cause of this is the lack of proper
planning and utilizing the best available resources of the
country.
3. The other main cause is the political instability of our
country. Because it has a major effect on KSE.
4. The other reason also included the power crisis of our
country.
5. International community also play a very influential role
in our country’s political and internal matters and there
involvement also disturb the country situation.
6. Government is also failed to provide proper ways and
gate to the intentional investors. They feel instability to
invest in Pakistan due to all these factors. The situation in
becoming so worst that some of the Pakistani Investors
also start to invest in other countries specially in
Bangladesh due to better available conditions.
7. Government is also not fully utililizing all the available
resources to overcome the situation. Corruption is also
one of the problems. No one is fair to its post.
8. These are all the factors that are responsible for the
worst economic condition of Pakistan.

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