Answer :
Pakistan is an underdeveloped country located in South Asia, bordering India to the east and Afghanistan to the west.
The country's economic performance has been marred by a series of challenges over the years, such as high inflation, low productivity, corruption, and political instability. The government has taken several measures in recent years to stabilize the economy and boost economic growth.
One of the major macroeconomic indicators of Pakistan is Gross Domestic Product (GDP), which measures the total value of goods and services produced within the country's borders. Pakistan's GDP growth rate in fiscal year 2021 was estimated to be 3.9%, which is a significant improvement from the negative growth rate of -0.5% in the previous year.
Another macroeconomic indicator is inflation, which measures the rate at which prices of goods and services are rising in the economy. Pakistan has been facing high inflation rates for the past few years, with the inflation rate standing at 8.8% in fiscal year 2021. The government has implemented several measures to control inflation, such as reducing interest rates and increasing agricultural productivity.
The balance of payments is another important macroeconomic indicator that measures the country's international transactions with other countries. Pakistan has been running a trade deficit for the past few years, which means that the value of imports is greater than the value of exports. The government has taken measures to reduce the trade deficit by promoting exports and reducing imports.
The fiscal deficit is another important macroeconomic indicator that measures the gap between the government's revenue and expenditure. Pakistan has been facing a fiscal deficit for the past few years, which has led to high levels of debt. The government has taken measures to reduce the fiscal deficit by increasing revenue through taxation and reducing non-development expenditure.
In conclusion, Pakistan's economic performance has been improving in recent years, as indicated by the growth in GDP and the reduction in the trade deficit. However, the country still faces several challenges, such as high inflation and fiscal deficit, which need to be addressed by the government through effective policies and measures.
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