Economy of Pakistan 2025 |Current Affairs Lecture | CSS ,PMS & UPSC |GDP & Budget| #gdp

0:01 Today our economy means of country in terms of production, production, consumption, supply and consumption and

0:48 supply of money is to check the financial condition of a country. How much power does a country have? If we want to see its economy then we will have to see how many things are produced there. How many things are consumed and how much capital is circulated in a year. How much money, how many dollars, how many euros, how many pounds circulate inside the country. This state is not a princely state. It means condition. Check the condition of a country in terms of production, I don't know from where, the state of a country in terms of

1:33 production, consumption and supply of money, the condition of a country, the things produced within it, how many things are consumed and how much is the supply of money, so what do we read this, economy, mass, isadiyat, whatever you understand, whatever word name you want to give to it, give it that. It is alright sir. We have to see how we further divide the economy. We will discuss some terms in this which you have to understand very carefully. This will form the base for your entire CSS within CSSMS. Therefore, you should understand these in great detail, like for example, the first one is

2:20 GDP, we read it as Gross Metric Product, yes Gross Metric Product, what is the first term that we should understand to understand the economy in the economy ? GDP Gross Domestic Product. Here, please pay attention towards me. What is GDP? For example, in any country, you have four members of your family. There are four members in your house. At home you are earning 25-25,000. So how much will it be if we add all four ? ₹1 Lakh. That one lakh is the GDP of that house. Grass

3:07 is a domestic product. Listen to it again, there are two members in a household, both of them are earning 50,000 rupees, what was the GDP of that household? One lakh. Do you understand? GDP is how many domestic things were produced in a country within a given time; for example, how many fans were produced, how many cameras were produced? How many boards have been produced? How many new houses have been built? How many new laptops, how many new mobiles have been made? So many new clothes and shoes have been made. The cost of all these is added together. So what happens to that school?

3:53 Well how is this calculated now? Please understand this very carefully. First, it is calculated for a house. Then a locality is calculated. Then a city is calculated. Then the calculation for one state is done. Then calculate for an entire country. It goes step by step. So what is a grass domestic product? Understand this in simple words. A country produced or consumed so much valuable goods in a year. If their assets are collected then what will we call it? what will you say? GDP Gross Domestic means how many things are produced domestically, we have understood how to calculate that within a year, within a 12 month time period; like for example,

4:38 children, for example, goods worth 350 billion dollars are produced in Pakistan, how many billion dollars worth of goods are produced in a year, Pakistan produces things worth 350 billion dollars in a year, remember yesterday I told you that America produces things worth 31000 billion dollars in a year. China earns approximately 19000 billion dollars in every year of 1000 and Pakistan earns only 3 dollars, which means that America has 31000 billion dollars in its pocket. China has 18-19 thousand and you have only 300 Sir, just to

5:26 understand GD GDP, what are the things considered for calculating the economy, you will remember the GDP of that country, this is for sure, see, it should not happen that you reach there and you will be wondering what is GDP, Sir, tell me the last thing, I have come to know about it, explain it to me, what does it mean within a year Sir, whatever things are produced or consumed in a country, what do we call it, what do you call GD, you will remember that, see this, then you will not forget, it is for sure, think about it, you will remember it, okay, after GDP, the second thing that we need to

6:12 understand is that we have seen some basic of our economic problems in a very easy manner, what can be there in these economic problems ? The first is our trade deficit. Which one is it? Trade deficit. Take a note. Then I will explain one by one. Second is our physical deficit. Which other one is ours? Physical deficit. This makes two. Third is our low tax to GDP ratio. Which was the first? Trade deficit.

7:01 Second is physical deficit. Third, low tax to GDP ratio. And write the fourth one. Just now in corruption, first there has been a slip, low tax ratio, low foreign reserves, trade, I will get it written, low foreign reserves, trade deficit and the fifth is high rate of

7:46 inflation. It is alright sir. You have to remember these five points. I will explain these to you one by one. Low foreign reserves. Low foreign reserves. Second is physical deficit. What is the definition of GDP in English? A definition? Is there a formula? Is there a definition of a formula? Correctly, I will give you the formula, but we do not need to calculate it. It contains c plus i plus b * x -

8:32 but we need to go towards it. The topic is a little technical, a little difficult, but leave it. I am saying leave it. There is no need for it. It will be needed when I feel that your character is complete. You all will understand it later. Let me explain it to you. For now, just tell me whether you have understood GDP or not. What is GDP? How much valuable things are produced and consumed in a country in a year? What is it called GDP? That's all. I will write all its definitions in English and send it to you. Let's go ahead. Now, let's look at some problems of Pakistani economy. The

9:18 first problem I have written is trade. What is meant by trade? It is called tajartaar in Urdu. My Urdu is a little weak, but what would be the meaning of trade deficit? The first problem is or is it not trade? What does deficit deficit mean? Trade means trade and deficit means hasara or reduction. What I mean to say is, what is our biggest economic issue? Lack of tajarat. What is? Lack of tajarat. We import more things from outside and sell fewer things outside. We will focus on hard work here. We import more items from outside and sell less outside.

10:05 What happens with that? There is a risk of trader. Now understand this a little in English and leave it here. Look children, there is no oil in Pakistan. Pakistan does n't even have that much gas. There is no technology in Pakistan. We import these things from outside. What do you do? Let's import it. Our import bill for approximately one year is worth approximately 60 billion dollars. How many billion dollars is it worth? We import goods worth 60 billion dollars. So, children, how much do we have to pay to foreign countries ? Listen,

10:53 how much is the payment we have to make to foreign countries in dollars? Seven, well we imported things from abroad, for example, we imported machinery from China, the machinery has arrived in Pakistan, now they are paying the bill, China says it will not accept it in rupees, pay me in dollars, because which currency is recognised in the whole world, which dollar, so we said we should check how many dollars we have, we saw that, how many things did we order, for 60 rupees we sell, for how much are the things that we sell to other countries, for 30 billion dollars we import, for how much do we get, for 60 rupees and for

11:38 how much do we sell abroad, for 30 rupees, so we know how to pay the fee or take or give, so when we give, there will be a decrease in business, then what will we call it, what will we call it, depreciation, how can I explain its heading completely to you. I will write it all for you. No problem at all kids. Tell them to give you a new marker. How do I explain this whole heading ? I will write the whole thing to you. I will complete the question and explain it completely so that you do not face any kind of issue. ok sir. Yes sir. You import good Is there a trade deficit or trade surplus in Pakistan? Deficit. Okay Sir, how will the surplus come? If our exports increase, meaning we start

12:25 selling more things to foreign countries, then we will have a surplus, but if we sell less things, then we have to ask for extra 30 billion dollars from some other country, from IMF, from World Bank and they should give it to us. Do you understand this or not? Trade deficit is the biggest reason for the bad economic condition of Pakistan ? Sir, why is trade deficit the biggest issue? There are other issues as well. Children, trade deficit is the biggest issue because we import goods worth 60 billion dollars and sell them abroad for only 30 billion dollars. That 30 billion dollar gap is that we take loan from abroad, when we take that loan, we have to pay the

13:12 amount as well as the loan return, because of which the money which should be invested in the country Pakistan, we do not invest it in loan repayment, therefore Pakistan does not progress in that way. Will remember this now. Now how do we explain this heading? Let me tell you in the paper. One minute first and the farm

13:58 economic problem, I am explaining this in a simple way, level one, in some other lecture, I will explain the heading to you in some other way. First and the first economic problem of Pakistan is trade deficit. Pakistan's import bill is around 60 billion dollars. However, the

14:45 country only exports are 30 billion dollars. There are many problems with this issue of trade deficit. I have explained everything to you, I have written it on the board. I told you something new,

15:32 some new point, tell me children, I explained that very thing, I explained that very point. I said, yes, the biggest and the first issue is the trade deficit. How much worth of goods does Pakistan import? Around 60 million dollars. How much worth of goods does it sell? 30 million dollars. The difference that remains is what is called trade. Okay, now I want to make a graph of it. See, because this is also mandatory to do in CSS. Look here, I want to graph this. I said yes 10 20 30

16:17 40 50 60 70 80 I said this is my import. This is my export. My import is 60 but my export is only 30. Let me show you the graph also. Look at the import, it is going up. He is scaring me. This will form a circle. We import a lot. What happens if we reduce exports? What happens? Which deficit is which

17:03 ? What does deficit mean? Asar Asar see, I cannot teach it in an easier way than this. Do you understand, dear children? Ali Sher, I understand. Yes, my son, I understand. Let's discuss another problem later. Now I ask you, everyone asks you what is the biggest issue of Pakistan's economy? What will you answer? Let's move on to another bigger issue. The second big issue was at the individual level as well as at the country level. Yes, the second big issue of Pakistan is that

17:51 individuals should not do anything, what are you doing, I will raise it, not let them sit together, the second big issue of Pakistan is trade slips, depsing, Sir, what does this fiscal mean? Never heard the name before. What do we learn from deficit then about what is of one kind or another? He is trapping me. We came to know one thing. We have to remember the deficit. Well if there is deficit then there is shortage and if there is surplus then there is more. If there is a deficit or a surplus, we will remember this as well. Now listen carefully to the next thing. Mostly all of you are

18:36 outsiders, at most one or two people living outside Lahore, you call home and say that my monthly budget is, my monthly expenditure is ₹00, I am giving you an example, what is my monthly budget, ₹00, but my family members say, son, we only have ₹00 this month, so what will happen? How much? When you need Rs. 50 but you have come from home, how much do you have? What does fiscal fiscal mean? Fiscal is basically

19:23 budget. Just like our monthly budget is prepared at individual level. The budget of the entire country is not calculated in this manner. For example, Pakistan said, how much do we have to spend from July 2024 to June 2025? What is our budget ? Estated 18,000 billion, how much do we want to spend, tell me children 18000 1800, salaries are also included in it, loan

20:08 repayment is also there, it is also for the army, it is also a development budget, all the small expenses like building roads, schools, colleges, salaries, all these things are included in it, see, this budget is made, how much is the budget of Pakistan, 2000 July, ok, remember there is a fiscal year, there is a calendar year, see, this is a calendar year, sir, what is this calendar year, calendar year is from 1st January to 31st December, what do we call it, the calendar

20:56 runs according to this, right, new year, old year, new year, but the country runs, it does not run according to this, your country runs according to the fiscal and when does the fiscal year start, please tell me, it starts from 1st July and goes on till 30th June of the next year, this is also for 12 months, win July, August, September, October, November, December, January, February, March, April, May, June, the whole year, ok, there is one sir, It is calendar year and what is fiscal? Which is the fiscal year in which a country makes its budget?

21:42 How much budget did Pakistan make last year? The fiscal year is about to end right now, we are standing in April, me and sir, how much budget has Pakistan made? 18000, well, where will this ₹18500 be spent, understand this, this 18500 billion includes salaries, in this, the repayment of the loans that we have taken has to be returned, roads have to be built, in this, the budget that the army needs, one and a half to two thousand billion, that is their salary, further there are new projects, roads, your buildings, colleges, schools, hospitals, under whom will all this come, did you understand this budget? Well, where will the government get the money for this budget

22:30 ? This is a question to think about. Where will the treasure be and how will it become a treasure? Taxes. Well done. You are absolutely right. Taxes. Well, I thought let's just say no and spend Rs 18,000. This is our expense. But the tax that our FDR, Federal Board of Revenue will collect is only Rs 14,000. Then just how much does it cost? Meaning, this is your monthly expense. How much will come from home? So where will you get Rs 4000 from? We will do this immediately.

23:15 One went ahead. One hand behind so what will we face in this also? What is Physical Deficit ? Explain in easy words. Sir, physical deficit is the difference between our expenses and our income. Difference of our difference between expenses and revenues Revenue how much are we collecting

24:00 approximately 14300 billion and how much are we spending 18500 Are the people of Explain Online able to understand this heading as well dear children, are they able to understand it, I cannot explain it in simpler words than this keep explaining more than this keep explaining the economy children you have to study to understand it apart from this we have no solution there is no session we don't have any option yes sir today do this difficult topic from Monday just children we will tell you such stories stories how did World War One happen why did Hitler kill Hitler how did Hitler become what he is why did he kill Jas

24:47 how did World War Two happen how can the lives of 6 crore people be lost due to the death of one man we have to start all these stories from Monday we have to do more stories from Monday we will keep giving notes together we will keep building a concept along with the story it's done okay tell me what is this what is the fiscal deficit sir difference between our income and our Expenses what is our income what is our estimated income sir it is around 1400 14500 however our expense estimated expenses are around 18500 so we are facing deficit of 4000 now I stocked a little bit of English that I have spoken and

25:32 wrote it down at home and then opened the recording again and all the children listened to this recording again. At least you should listen to the recording again for the first four weeks so that the concept can be improved from there onwards. Ok sir. It is a sure thing that we will move forward. To GD is a bit tricky. I will not explain this. Instead, let me add one more point.

26:20 Less trend of savings. What is this saving trend ? Or what impact does it have on the economy ? Can make it. Exactly yooh now son you make it like this. You have at least made it like that. Next you will make it like this. You will say that this is our expense and this is our income. Do n't make them all in the same shape. Keep changing your appearance little by little. I try to improve its appearance a little bit. Look, this is our

27:06 income and this is our expense. Ok, the third one is this. Sir, how is this savings an economic issue ? The World Bank says pay attention here. What does the World Bank say?

27:52 Children are two big boxes in the world. One IMF and one world. The World Bank provides the loan. If you write down why does the World Bank provide loans? Write it down. We have to go ahead and study the complete topic separately from the World Bank. World Bank provides Sir G Loan for loan re for development purpose. You want to build a road, you want to build a dam , you want to build a building, what will you do for that ? The World Bank will provide the loan and then what will it do later? Take it back with that suit. World

28:39 Bank. Sir what does IMF do? IMF, for example, your economic problems are on territory basis, for example, I told Halat that these Halat brothers sitting here, I have to give them ₹100 right now, I don't have time right now, if I don't give it to Halat then maybe Halat will throw me out of the country, drive me away, send me somewhere else, throw me out of the village, throw me out of the city, so IMF said to IMF, brother, do n't leave the country, they might kill you after Rs. 10, so you take Rs. 10,000 from me and give me Rs. 12,000 after a year. I said, okay,

29:26 I gave whatever ₹100 I had to him. Now how much do I owe the IMF? 12,000 One year passed. IMF says two paise. I said I don’t have it. Mother says you do this, take ₹1,000 from me and then return it to me, take the loan from me and return it to me but give me 15,000 next year. By the next year your condition became a little better. I said give it to me. I took it from him. Now how much do I have to give him? 15,000. When the time will come to give me those 15,000 rupees, I will say that whatever I have is only 5,000. I earned a little but I have five. He will say okay I will give him the loan and give me Rs. 12,000 more.

30:12 What have I become, a circus, by doing this ? I got stuck. How does the World Bank give? If we have to build a building, make a model or build a road, the World Bank says take a loan. Later, take back to me whatever profit comes from there. Why does IMF give loan to Sur so that your temporary work can be done? IMF also puts this condition that I will tell you from where to earn money. You gave money to Pakistan like they said to Pakistan brother, if you do n't have money to give to the people, to other countries. But you are providing cheap electricity in your country. Make electricity expensive. Take a loan from us. We made electricity expensive.

30:58 Earlier the government used to give support price for wheat. There used to be a sport price for wheat. The government itself used to purchase wheat. So this time he said that if you purchase it then it means you have money. We do n't have money. We said no, we did not have them. He said okay its okay. Eliminate that sport price. Stop buying from the dirty public. save the money. Wherever you can save money. IMF also gives loans and IMF also gives this that if you come to your way of earning money, what should you do with that as well, let's go ahead kids, well remember in a country where savings are less, the chances of progress in that country are

31:45 very less. The World Bank says that if you earn ₹1 then you should save ₹1. If you earn Rs. 1 lakh then you should save Rs. 1.25 lakh. If you earn Rs 1 crore then you should save Rs 25 lakh. If you earn one billion then you should save 25 crores. Okay Sir, what should be done with that 25 crores or 25 lakhs ? That Rs 25 crore or 25 lakh was invested in some business. Made profit from there. So, the country where there is more savings has higher chances of progress. The savings trend in Pakistan is only 14%. It is 20% in India.

32:33 In China it is 25%. It means that the Chinese people get ₹5 from ₹100, Indians get ₹5 and Pakistanis get only ₹ 14. If you do not save well then there will be no business, if there is no business, then the country will not progress, you will not understand, no, if you write from there son, if you do not look at me then how will you understand, what is it, even if you don't write, understand it, go home and write it again, it is not an issue but get the concept, yes sir why is savings important for someone, some crisis will come or you will save and

33:27 make some second or third business for him, you will make a business, you know what financial management says, management of rupees money, do you know what it says? The management of money says that you should not spend the entire salary that is waived off. Save approximately Rs 25 as fees. When it becomes a reasonable amount, after four, five, six months or one year, invest it in some small business and keep investing it until it earns you as much as your salary. On one side, your salary would be coming, on the other side, money would be coming from that business as well. Now save again, invest in a third business

34:13 and keep growing that third business until it earns as much as the first two. Then of course, leave the job just to grow the business. You said that starting a business and growing it means that you take money out of it. If for example, you set up a small stall, keep it cheap but keep the quality good, more people will purchase it, keep the taste good, use good spices, make it healthy, your name will go well in the market, you will grow by leaps and bounds day and night, people will know you. You will go from the same stall to the shop, from the shop then in the market. If this business is not like this, then what will happen, earlier you were on salary, then what will happen, you have become a

34:59 businessman. Business was built, second branch was built, third branch was built, fourth branch was built, now now you need to do a job, your business will grow, how to make KFC, you will find it on the second road of Lahore, how do I make McDonald's, did any guy ever start this in his life, did he have millions of dollars on the first day, no, but what did he do, the place where he started, the food quality was very good, very good arrangements were made for the people, you come here, there is no cleanliness, no school, no fan, no AC, you will come for two-four days because then you will not come, you were looking for something else from your side,

35:46 but if you come, your class starts on time, you get a good environment, if you explain, then why would you go, you will also tell your friends, that which is a fruit academy, come there, this is what happens with us normally, 80% of our admission is referral base, from where someone is coming, bring that friend, this is how it is being understood because you talk to people in a good way, then you take in a good way, the fees are very reasonable, very high fees, then you see how you are explaining to me, you will not even mind one If you ask 15 times then no tension I know that till your base is not built we have to work hard with you people, no one will do it, once the base is built then there is no issue ahead, now you know why saving is natural,

36:34 well if you will build a business by saving then Sir ji if I will build a business by saving then what will be the benefit to the government, no tax to the government, what is tax, revenue for the government, how can the fiscal deficit be reduced ? So, a job is good, isn't the business good? Now you understand why saving is necessary, let's move ahead, take the foreign reserve point number four,

37:22 what are foreign reserves, sir, what do they have to do with the economy, foreign reserves, like children, if you have money in your account, right now keep money in the account, those who have money in their accounts, they sleep very well. They would not be looking at Instagram at night, they will also place an order or they would be looking at Facebook and will also order something, they will not have any tension, now those who do not have it in their account, they just keep looking, well okay, when I have it then I will clear it, children, the calculation of the country also is the same, nothing can be made with your own rupees, the amount of

38:08 gold and currency of other countries you may have, do you know how many dollars Pakistan has? India only has 10-12 billion dollars, while China has approximately 500 billion dollars in its account. China can buy whatever it wants and invest wherever it wants. What do we do? Sir, we can't pay the bill right now. We have ordered oil from you, we will pay the bill for it next month. We have less than that 10 billion dollars, all of us, come on, you guys, it might be someone's account, I have kept fresh hold in my account, the money should not go below this,

38:54 fresh hold of 20,000, I am giving you an example, I am saying it should not go less than 2000, should not go less than two lakhs, should not go less than two, there should be that much so that even if in a month the income is slightly less, the classes can run smoothly, so children, the country which has less foreign reserves, its economy is poor because it cannot import things from outside. They cannot buy things from outside. For example, right now we have 10 billion dollars, I am giving you an example. Our monthly expenditure for importing goods from abroad is approximately $5 billion. How much is it?

39:40 So how many things do we have to buy ? For how many months has the money been lying? only two. Look, calculate it yourself. How many things do we order together? Worth 60 million dollars. So divide 60 into 12. Let's order 5 million dollars per month. But what if we had $10 billion lying around. You have ₹1 lying there. If our bill is for five months then only bills for two months are pending. Meaning, if you do not do anything for two months then what will we do after that ? This is the only issue. So, for how many months should the bill be? It should have been there for at least one year. It must be 60-70 million dollars. But how much do we have? Just $10 billion. How much should it be?

40:28 At least 60 to 70 so that there is no tension for a year. We can also talk openly with America. Go ahead, you can impose terror, we don't do it, talk to you, whatever you want to do, America imposed terror, we said ok sorry sir, we will come and talk to you, we will request you to explain what terror is, let me explain what terror is, till date you must have heard that Trump imposed terror, he imposed terror, what is terror, listen, you know Pakistan sells things worth 5 billion dollars to America through that.

41:15 How many things do we sell outside for how many rupees? 30 billion dollars. To whom do we sell the most out of that ? To America. Well Sir, what do we have that we could sell to America? America needs us, children, the Pakistani community there purchases Pakistani local dresses from Pakistan, people like us have Junaid J. Dot, Almirah, their stores there as well, now no matter how many they are, they purchase local dresses for weddings or Eid, no matter how many mule squads there are

42:01 in America, but they make local purchases, and Pakistan is the fourth or fifth best country in manufacturing jeans, that too the best there, what does terror mean, children, terror means that America said 29% we are going to spread terror in Pakistan, what percentage, 29%, it means that the Pakistani suit which used to be sold for ₹1 in America earlier, will be sold for ₹19, out of that, American government will keep ₹29 and we will get only ₹1. Those who were meeting earlier should meet earlier but what difference will that make? The

42:47 impact will be that the thing which was earlier available in America for ₹100 will now be available for ₹129. People will purchase less. When they will purchase less, then at least we should first reduce exports from here, listen again, what are they, not people, not people, but government, for example we say that we should reduce imports, what should we do, we should reduce imports so that our bill is reduced, well if we should reduce imports, other countries also want the same thing, that their imports should be less and exports should be more. America said that Pakistan, I will impose 29% tax on everything coming from you.

43:32 Now if Pakistan gets 29% or so then it will be a huge benefit. But who will get it? God willing, tomorrow one of you becomes Assistant Collector Customs. You must be sitting in the court in Karachi. A truck will arrive from outside with the goods. You will not put any value on it. You will say one billion. The cost of this truck is one billion. But the Government of Pakistan will pay Rs 50 crore tax on it. That guy must have given one billion to Dubai. He will get Rs 50 crore deposited with the government and then sell the goods worth Rs 1.5 billion for Rs 2 billion and earn the Rs 50 crore himself. But government after government says that we have to reduce imports. To reduce imports, we started installing terraces so that

44:19 people do not have to import things from outside. Make things from within the country. So other countries also think the same about their children, America thought why should I also import these things from abroad, hence it imposed a 29% tax on Pakistan, now our thing which used to be sold for ₹ 100 in America earlier, how much will it be sold for now, now suddenly children it happens like this, today you are buying a thing worth ₹ 100, tomorrow you buy a suit worth ₹ 132, dad will not be tensed, let's buy a little less. Earlier I used to buy two or four suits. Now I should buy two, they have become expensive friend. This is four points fine for today kids. Teref means tax.

45:07 Teref is second name of tax.