Can anybody explain the reason for the slow economic growth in Pakistan?
Terrorism: It is a huge stumbling-block for economic generation in Pakistan. Since 2002 we are a war-torn country. The State Bank of Pakistan report (2016) says that war on terrorism has cost $118 billion. According to Global Terrorism Index (2016), out of 163 countries, Pakistan stands 4th worst hit. This has long been a reason for Pakistan’s negative international image which has limited the foreign investment in the country.
Pakistan has plenty of natural resources such as large reserves of oil and gas, great quantity of copper and ore deposits, in addition huge coal and salt pits, and gemstones. Likewise, it possesses sound manufacturing industries of textiles and clothing, steel fabricating, cotton ginning factories, sugarcane mills, sports goods and leather manufacturing etc But the slow economy because of Incorrect tax policies , Inefficiencies within the micro-economy, Tax evasion, The deficit in the trade balance , Imbalances in the structure of the economy, A rapidly growing or declining population, heavy foreign debt, Lack of financial capital, The lack of a strong financial market , Poor governance and corruption, Lack of justice in the distribution of wealth, Over-exploitation of environmental capital, Barriers to trade.