When many people participates combined in effort of economic and social system it is called economic system. There is very Inflation in the country.

 

There is a very In Pakistan the main problem of economic system is what to produce. It the main problem to decide what should produce.

Allocation of resource is main problem in Pakistan. Every economic system have their own methods to solve this problem. In mixed economy this problem is solved according to the price mechanism. The second problem of economy in Pakistan that how much to produce.

In every economy, before production. It has decided that how much produce. Otherwise over production will occur. The third problem is how to produce. This decision us based on three method like Labour intensive method, Land intensive method, Capital intensive method.

The Forth main problem is For whom to produce. This problem is very important that the goods and services made for specific group or for all consumers. Our country is divided into many groups likes Hindu Muslims. For example Alcohol is not allowed in Islam but non-Muslim drink alcohol that's why it is produce in Pakistan on short scale.