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After the [[Packilvanian Communist Party]] under the leadership of [[Gideon Muktan]] took over Packilvania from the [[Demirite dynasty]] under Sultana [[Zerah Demir IV]] in 1918, the economy of Packilvania was restructured a state-run command economy based in part on the ideology and writings of [[Nikobar Luden]]. The government controlled most of the economy, owned most of the land, set all the prices and wages, and limited private ownership and entrepreneurship. The [[w:Communism|communist]] government limited imports of foreign goods and a large black market emerged.
The economy of Packilvania functions as a middle way between socialism and capitalism. The state controls key economic sectors such as transport, water, power and healthcare. Moreover, it heavily regulates business activity in many sectors and has average to above-average tax rates on its citizens and businesses. On the other hand, regulations on medium to small businesses are virtually non-existent, property rights are protected by relatively modern legal systems and contracts are dearly respected and upheld by the law. The intrusion of state institutions in many economic areas has, however, led to mismanagement and misallocation of resources, growth-stifling macroeconomic ineffiencies and the entrenchment of disproportionate wealth and prosperity in the 3 metropolitan areas and 2 special economic zones. Packilvania has a GDP of 11,187,680,000,000 [[Kirib|KRB]], the third largest on the planet. It grew by 12% in 2022 from 9.989 trillion [[Kirib|KRB]] in 2021. It is larger than the economies of [[Kuthernburg]], [[Norgsveldet]] and [[Tretrid]] combined. Nevertheless, it has a relatively low GDP per capita of 9549.66 [[Kirib|KRB]], making it a developing country. Despite its flaws, the economies of its provinces individually rival the most wealthy and powerful nations in the world. In fact, Bingol is one of the richest metropolitan areas in the world by total GDP despite falling short of major metropolitan areas such as [[Aura]] and [[Sani Bursil]]. However, the median income of the country lies around 5,300 [[Kirib|KRB]], which reveals that the wealth of the nation is very unevenly distributed. This highlights another major issue with the Packilvanian economy: gaping caste and geographic structural inequalities. Regardless, compared to most developing countries incomes, especially among its province is surprisingly evenly spread.
When the [[Carriers of Mercy]] defeated and replaced the [[Packilvanian Communist Party]] with the [[Bedonite dynasty]], they began to privatise state-owned enterprises, allow private ownership and entrepreneurship, and open the economy to foreign investment and trade. The government retained some elements of the Communist system such as quintennial economic planning and large state-owned companies, however it has loosed restrictions on private commerce As such, taken together with abundant labour and natural resources, the country began to grow exponentially.
Packilvania has an unemployment rate of 14% and a labour participation rate of 93%. This difference in unemployment versus labour participation arises because people are allowed and often work as soon as they reach the age of 15. Moreover, most people are not able to access higher education, thus they opt for low-skilled and informal work. Furthermore most families are large and cannot afford to have many of their members at home or in school for long periods. Thus, most people will actively seek work. Although the unemployment rate seems high by developed-country standards, it is surprisingly healthy especially given that it does not fully account for informal and seasonal labour. Some academics believe that unemployment could sit as low as 8%, comparing favourably with most nations. This ability to attract high rates of employment lies in the incredibly low cost of labour. Coupled with the poor worker protection policies and one of the youngest populations in the world, the country is able to outcompete almost every country in the world on labour costs vs productive output. Moreover, Packilvania benefits from access to the biggest and busiest waterway on the planet: the Packilvanian Ocean. Coupled with highly affordable access to power, close and easily accessible supply of abundant natural resources, poor environmental regulations and a decent level of infrastructure, the country is the locus of low-cost and low-value-added manufacturing on Urth.
Part of its policies involved leveraging the massive industrial capacity that the Communist regime cultivated and convert it into manufacturing of consumer goods. Packilvania became the leading outsource centre of manufactured goods from richer countries. Coupled with the economies of scale and agglomeration that such a large concentrated population provided, Packilvania became the foremost exporter of manufactured goods in the world. This happened alongside continued exportation of raw materials and foodstuffs.
Packilvania is the most resource-rich nation on Urth. It is a major producer and exporter of coal, natural gas and petroleum. It is among the biggest producers of rare earth metals, gold, platinum, chromium, uranium, palladium, iron, nickel, copper, boron, titanium, vanadium, phosphorus, potassium and silicon on Urth. Its strengths also lie in its ability to process these resources, being a major producer of chemical and plastic products and materials which come from petroleum such as hydrogen and helium. Although it is misleadingly known as a desert country (as it contains both the largest cold and hot deserts in the world), it is one of the largest sources of timber and wood products in the world. Moreover, it has arguably the highest amount of agricultural land in the world, especially on its coasts and east. It is a major producer of grains such as millet, sorghum, maize, wheat. It is the largest exporter of spices such as cinnamon, cardamom, coriander, saffron, tumeric, ginger and aniseed. Meat products are regarded as a specialty with the nation producing about 100 million tonnes of beef, veal, pork, mutton, lamb, chicken and other poultry annually. Furthermore, it produces 180 million litres of milk annually, coming from a range of animals such as camels, cattle, goats and sheep. It is internationally renowned for its cheese and butter, among its foremost exports. In the area of fabrics, it leads the world in the production of jute, sisal, flax, cotton and other plant-fibre based textiles. The nation is also notorious for the production of opium, catnip and tobacco, and estimates suggest it is the largest producer of these substances. With its incredibly lush southern coast, the nation is also a major producer of tropical fruits such as durians, jackfruit, dragon fruit, passionfruit, bananas, mangosteen, and tamarind.
[[File:Packilvanian dinar banknote 48.png|left|thumb|250x250px|The front of the 48 Packilvanian dinar banknote featuring [[Iktan the Devout]]. {{As of|2022|08|25}}, the currency is worth 120 PXD to 1 [[Kirib]] or SHD]]
In the service sector, the nation does not fail to disappoint. It has incredibly massive financial services, shipment and logistics, telecommunications and information communication technology services and tourist sectors. Notwithstanding travel warnings and animosity by other nations, Packilvania attracts at least 25 million tourists annually who flock to the sand dune rallies, underground markets, ancient temples, museums and ruined cities, and the incredibly diverse and delicious cuisine. Despite the challenges in the legal system, the financial services sector has benefit from the rise of average wealth as many people have invested their income in property that has raised one of the most attractive mortgage market in the world. Sadly, the stock exchanges of the country struggle against restrictive laws against foreign investment. Nevertheless, the largest stock exchange in the country, the Bingol Stock Exchange remains formidable and comes in the top 10 largest on Yasteria. The Packilvanian Central Bank controls the nations gold and foreign exchange reserves which sit around 340 billion KRB, some of the largest in the world. Along with an annual economic growth rate of 12% in 2022, one would expect the Packilvanian currency, the dinar, to be worth more. However, the PCB has kept the currency artificially low and has used capital controls to restrict the exchangeability of the [[Packilvanian dinar]], thus critics argue that the currency is undervalued and has led to Packilvania enjoying massive trade surpluses against most of its trading partners. Nevertheless the [[Union of Commonwealth Alliances]] and the [[Auroran Central Bank|Kirib Monetary Union]] successfully got the PCB to raise its value which inadvertently raised the GDP (PPP) to 20,546,400,000,000 [[Kirib|KRB]].
The government felt that Packilvania was losing ground in research and development and gradually began to transition the country from an export-oriented low-cost manufacturing hub to a consumption-led high-value added manufacturing and services hub. The country is gradually and steadily moving in this direction. Although raw materials, foodstuffs and fossil fuels as well as low cost manufactured and semi-manufactured goods continue to make up about half of export value, the exportation of higher value goods such as chemicals, pharmaceuticals, electronics, and industrial machinery have grown to make up the other half of exports.
Due to the [[Pax Drone|DRONE policy]], Packilvania is the largest exporter of sapient labour in the world. The DRONE policy is a debt relief policy that has enabled millions of poor people who have defaulted on their debt repayments to be put into virtual slavery (known as drones). system has resulted in over 50 million Pax Drones serving as mercenaries, domestic labourers, miners, construction workers and other low wage, high risk in both Packilvania and foreign countries. Packilvania is also the largest source of sapient organs in the world as people on death row as well as Pax Drones have their organs harvested for sale domestically and overseas. Packilvania is also the largest exporter of sapient bodies for medical, pharmaceutical, cosmetic and other scientific research and education. Packilvania is also the largest importer of trash and recycler of materials in the world.
In 2023, Packilvania has a [[w:GDP (nominal)|nominal GDP]] per capita of 10,700 KRB which was 9,500 [[Kirib|KRB]] in 2022. In 2023, Packilvania has a nominal GDP of 12.53 trillion [[Kirib|KRB]] which grew by 12% from 11.19 trillion KRB in 2022. {{As of|2022|12|31}}, Packilvania is the [[List of countries by nominal GDP|3rd largest economy]] in the world after [[Great Morstaybishlia]] and [[South Hills]].
Some of the largest companies in the world originate from Packilvania including the following: [[Export-Import Bank of Packilvania]], [[Packilvanian Steel and Construction Corporation]], [[Packilvanian Agricultural Bank]], [[Packilvanian Development Bank]], [[Packilvanian Industrial and Commercial Bank]] and [[Packilvanian Coal and Gas Corporation]].
In 2023, unemployment rate is 12% down from 14%. The [[w:Labour participation|labor participation rate]] declined from 93% to 91% as more people between 18 and 15 remained in the education system instead of going to work. In Packilvania, people are allowed to work starting at the age of 15. In 2022, the government introduced laws that limited the types of jobs that people between the age of 15 and 18 could do. The country has increased the proportion of is population with a formal education by rates of 15% to 18% annually. When coupled with a hardworking and highly energetic and youthful population, the country is set to experience a substantial population dividend over the next 10 years.
The services sector has grown to make up over half of the economy. This includes internet services, telecommunications, media and entertainment, finance, tourism and consulting. The manufacturing sector makes up about two fifths of the economy. This includes consumer goods, consumer electronics, industrial machinery, steel, chemicals, cement, pharmaceuticals and armaments. The mining sector makes up about 8% of the economy and produces oil, coal, natural gas, ferrous metals, rare earth metals, precious metals, quarried stone and precious, construction sand and semi-precious stones. Agriculture makes up about 2% of the economy and produces rice, meat, wine, tropical fruits and crops, animal feed, fish, and lumber.
There are some industries that the country is a leading producer of that it is not proud of. It is a leading producer of illegal intoxicating substances and counterfeit goods. The country is one of the last in history to ban bonded labour. Bonded Labour was a system whereby heavily indebted people could enter into contracts whereby their labour was exploited by the creditor. This policy was formalised by the [[DRONE policy]] with a view to granting people some protections and enabling debt relief through bonded labour but the policy tarnished the country’s image and the government eventually disbanded the policy in the 2010s.
The country has produced some of the largest companies in the world. This is usually because industries are highly consolidated under a oligopology. The largest four banks in the country are the [[Industrial and Commercial Bank of Packilvania]] (the largest bank in the world by total assets under management), [[Agricultural Bank of Packilvania]], the [[Export-Import Bank of Packilvania]] and the [[Packilvanian Development Bank]]. The country is also home to arguably the largest energy company in the world, the [[Packilvanian Coal and Gas Corporation]], and one of the largest engineering firms in the world, the [[Packilvanian Steel and Construction Corporation]]. Other than these predominantly state-owned entities, there are large private companies such as [[Chatter]] (one of the largest mobile communications companies), [[Buddy]] (one of the largest taxi hailing and food delivery applications), and [[Debby]] (one of the largest mobile payment companies).
The country's largest sources of imports and exports are the [[United Nations of the Auroran Continent]] (especially [[Great Morstaybishlia]]), [[League of Novaris]], [[Union of Commonwealth Alliances]], [[Peregrinia]], [[Vekaiyu]] and [[Volkia]]. Packilvania imports a lot of manufactured goods from foreign nations especially high-end luxury goods, foodstuffs, automobiles, aircraft, semi-conductors and scientific equipment, refrigeration equipment, chemicals and medical equipment.
The country has maintained a substantial trade surplus over the past 30 years compared to its trade partners as such it has raised over 2 trillion KRB of foreign exchange and gold reserves. Coupled with control over the exchange rate of the national legal tender, [[Packilvanian dinar]], and control of capital movement, Packilvania has achieved monetary independence. The government struggles with tax collection and relies on substantial borrowing as such the country has over 7 trillion KRB in public debt and over 5 trillion KRB in private debt, over 80% of which is owed to domestic lenders. The country attracts 500 billion KRB of foreign direct investment annually and it in turn invests over 400 billion KRB abroad.
===Infrastructure and energy===
Infrastructure in Packilvania is administered largely by the [[Administrative divisions of Packilvania|provincial and local governments]] under the national government via the Ministers of Housing and Urban Development, Mining and Energy, and Transport in the [[Council of Ministers of Packilvania]]. When the [[Bedonite dynasty]] took over from the [[Packilvanian Communist Party]] they continued and amplified the reliance on infrastructure and real estate expenditure to encourage economic growth.
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