Economic Performance of Three Governments Chapter 1: Economic Performance of Three Governments The previous Prime Minister had asked for a comparison of the economic performance of his government with that of previous governments. Further, the PTI has recently disseminated a White Paper on State of Pakistan’s economy . This chapter documents the performance of the economy from FY 2013 to FY 2018 when PML(N) was in power and compared with the performance of the economy from 2019 to 2022 during the tenure of the PTI government. The objective of this special chapter is to undertake an objective and unbiased comparison of the last three governments. Analysis is undertaken of the change in key macroeconomic indicators during the tenure of three governments. The first government is the PPP government which was in power from 2008-09 to 2012-13. The second government is that of the PML(N) which held office in Islamabad from 2013-14 to 2017-18. The third government is of the PTI which was in the federal government since 2018-19 and its tenure came to an end in late 2021-22. The assessment of economic performance is a complex and difficult exercise. There is need first to recognize the role of exogenous factors like trends in the world economy and global trade which impact on individual economies. In particular, the role of international commodity prices, especially of oil, must be fully allowed for. There are also several domestic factors which affect performance during the tenure of a particular government. In the Pakistani context, this particularly includes the impact of power loadshedding, acts of terrorism and natural disasters. Also, Pakistan has witnessed major constitutional changes like the 18 th Amendment and the 7 th NFC Award after 2010 which have changed the roles and distribution of resources between federal and provincial governments. Consequently, the report is organized as follows. Section 1.1 focuses on trends in the world economy from 2007-08 to 2021-22. Section 1.2 highlights the change during these years in domestic factors like the incidence of acts of terrorism, power outages and natural disasters. Section 1.3 onwards focus respectively on economic growth, investment, employment, inflation, public finances, balance of payments and the international rankings of Pakistan. The analysis has been undertaken with the help of a Macro economic Model of Pakistan developed by the author with 60 equations. 3