Basic Economoy

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It deals with the issues of a particular firm or industry like, price of product, wages or salary of employees, income of the firm, etc.

If we talk about the economic activities of Pakistan, it possesses the entire activities take place in Pakistan. Micro activities are controllable because these are internal activities.

Pakistan offers finance to promote its different sectors through microfinance bank. It is helpful for those people who are willing to work but don’t have finance to start the business or to expand the business. The Aga Khan Rural Support Program (AKRSP) brought the concept of microfinance in 1982 in Pakistan. The First Micro Finance Bank Ltd. of Pakistan (FMFB-P) started operations in March 2002 as the first microfinance bank. Microfinance serves poor household as majority of the people of Pakistan live below poverty line.

Pakistan’s another main micro activity is managing its agriculture sector to meet the requirements of its population and earn wealth for its people by exporting food items (from agriculture) to other countries. Pakistan’s main problem is lack of knowledge and educational backwardness, that’s why it could not even get advancement in its important sector which is agriculture. Pakistan has so many industries like textile industries, sugar mills, garments industries, etc. which are beneficial for the development of Pakistan. We also talk about the workforce of Pakistan in micro activities. Pakistan has young generation with creative and innovative mind which is an asset for the country.

MACROECONOMICS

Macroeconomics means involving all the outside factors. If we talk about the macro activities of Pakistan means we are relating Pakistan with all over the world. Macro is about the external factor which is uncontrollable.

Pakistani rupee is continuously depreciating against the US dollar since more than 10 years which has become a burden for Pakistan while importing or exporting goods to other countries. Foreign exchange rate directly affects the performance of a country in terms of income (while exporting) and expenses (while importing). One dollar is equal to 101 rupees of Pakistan. Pakistan's central bank lowered its interest rates in order to preserve the country's export competitiveness.

Pakistan’s main exports are foods, tobacco, technologies, clothes, carpet, leather, Pakistani-assembled Suzuki, war or defend equipment, salt,engineering goods, and many other items. Pakistan produces and exports cements to Asia and the Middle East. Pakistan started exporting cement to India since August 2007, to fill in the shortage. Pakistan’s exports is around US $25 billion.

Pakistan’s imports increased to 339123 PKR Million in February 2015. Main import are mineral, oil , petrol, animal fats, metal, article material, chemical, and machine. Pakistan export raw material and cheap products like sugar cane, rice, wheat while it imports manufactured goods like electronic items which are much more expensive. That’s why its balance of trade is always negative which is Exports-Imports.