ISLAMABAD: The World Data Atlas has released the World Economic Report which reveals that Pakistan economy has improved over the years and has become the 25th largest economy in the world.
Pakistan’s gross domestic product (GDP) based on purchasing power parity (PPP) just crossed $1 trillion. By PPP ranking, Pakistan is now the 25th largest economy in the world.
According to the World Data Atlas, Pakistan’s GDP PPP in 2017 is $1,060 billion, with an year-on-year growth of 7.32%. This is the highest-ever increase in a decade.
Over the last 20 years, the GDP based on PPP of Pakistan grew substantially from $313.7 billion in 1997 to $1,060.75 billion in international dollars, rising at an increasing annual rate that reached 7.32% in 2017, according to the World Data Atlas’s new ranking.
According to economists, the GDP purchasing-power-parity compares different countries’ currencies through a market ‘basket of goods’ approach. Two currencies are in PPP when a market basket of goods (taking into account the exchange rate) is priced the same in both countries. For example, what goods 10 dollars can buy in the US, in the UK, or in Pakistan. Or, how much does a burger cost in the US versus its price in Pakistan?
In 1980, Pakistan’s PPP was $71.81 billion. In 2012, the last year of Zardari government, it was $793.85 billion. Following Musharraf’s last year resulting in country bleeding, GDP PPP’s growth hit its worst in Zardari’s first year in government when it reached 1% in 2009.