The power crisis has plagued the economy of Pakistan for the past five years now and

this has adversely affected its growth, decreasing the annual GDP growth by 2%. The economic growth calls for restricting the public sector enterprises which would result in sustainable growth. The economy made progressed at a slow pace. Many sectors of the economy (agriculture, commodity producing, service, large scale manufacturing) improved but lagged behind in achieving the targets. The real GDP for 2012-2013 is recorded at 3.6% (based on nine months data) as compared to 4.4% during 2011-2012 after rebasing the national accounts at constant prices of 2005-06. The global financial crisis that arose in 2007 has impacted the world economy whereby the growth of developing countries is improving but sluggishly. Asian countries are showing economic growth where China is leading as its expected growth rate for 2013 is 8%. The economy of Pakistan is dependent on other countries in terms of exports/imports, foreign remittances and FDI thus the economic crises in the global market also affects the economy of Pakistan. The contribution of service sector (59.61%) towards the economic growth is more as compared to commodity producing sector (40.39%). The agriculture and industrial sectors made roughly the same contributions i.e. 20.06% and 20.33% respectively. Pakistan is a consumption oriented society where in the present fiscal year the consumption expenditure has declined by 1.2% of GDP which could be viewed as positive if it meant that there is more investment expenditure. Natural calamities causing higher risk in the agricultural sector, the share of this sector towards the overall GDP is declining. The per capita income has increased over the last eight years reaching $1368 in 2012-13. This is mainly attributable to the accelerating real growth in GDP, relatively lower growth in population and stable exchange rate. Total investment has shown a downward trend whereby it decreased to 14.22% of GDP in 2012-13. National and domestic savings have also declined reaching to 13.5% of GDP and 8.7% of GDP in 2012-13. Pakistan is taking steps to attract FDI into the country which was adversely affected due to terrorism, war against extremism, energy crisis, law and order situation in the country. The capital market showed improvement where it crossed 21000 plus points. During July-April of FY12-13 the FDI was $853.5 million compared to $658.2 million last year depicting an increase of 29.7%. Workers remittance has shown an increase of 6.37 % in July-April of 2012-13.