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The Economic Activity of Pakistan

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The Pakistani economy in terms of purchasing power is ranked 27th in the world and 48th in absolute dollar terms. Purchasing power, in simple terms, pertains to the ability to buy and sell goods at current market prices and standards; this would mean that the Pakistani economy is relatively large and stable given its ranking in the global scale of a country’s purchasing power. Absolute dollar terms, on the other hand, refer to the exchange rate of a country’s money since nowadays the value of all things in the global market is almost always predicated to the dollar. Currently, the exchange rate for the Pakistani rupee is 84.40 (PKR) Pakistani rupees to USD $1. This would posit that the Pakistani economy is weaker than that of the U.S.’; this however is not the case since the dollar equivalent of a country’s money is not the sole determinant of a country’s economic stability and strength.

Pakistan’s economy is one of the few economies that managed to survive the recent “Financial Crisis” with little or no economic damage and remain stable and productive at the same time. Like any other economy, the greatest enemy is inflation. Inflation is the rapid rise of costs of products domestically for both imported goods and goods which are produced domestically. Nonetheless, due to numerous economic and monetary reforms Pakistan’s economy still experiences medium growth rates. It has been said that Pakistan stands as the top reformer in the Asian region and number 10 globally, as according to the World Bank.