Economy of Pakistan

 

Economy - overview

Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes and low levels of foreign investment. Between 2001-07, however, poverty levels decreased by 10%, as Islamabad steadily raised development spending. Between 2004-07, GDP growth in the 5-8% range was spurred by gains in the industrial and service sectors - despite severe electricity shortfalls - but growth slowed in 2008-09 and unemployment rose. Inflation remains the top concern among the public, climbing from 7.7% in 2007 to more than 13% in 2010. In addition, the Pakistani rupee has depreciated since 2007 as a result of political and economic instability. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 in response to a balance of payments crisis, but during 2009-10 its current account strengthened and foreign exchange reserves stabilized - largely because of lower oil prices and record remittances from workers abroad. Record floods in July-August 2010 lowered agricultural output and contributed to a jump in inflation, and reconstruction costs will strain the limited resources of the government. Textiles account for most of Pakistan's export earnings, but Pakistan's failure to expand a viable export base for other manufactures has left the country vulnerable to shifts in world demand. Other long term challenges include expanding investment in education, healthcare, and electricity production, and reducing dependence on foreign donors.

GDP (purchasing power parity)

$451.2 billion (2010 est.)
$439.4 billion (2009 est.)
$421.2 billion (2008 est.)
note: data are in 2010 US dollars

GDP (official exchange rate)

$174.8 billion (2010 est.)

GDP - real growth rate

2.7% (2010 est.)
4.3% (2009 est.)
3.6% (2008 est.)

GDP - per capita (PPP)

$2,400 (2010 est.)
$2,400 (2009 est.)
$2,400 (2008 est.)
note: data are in 2010 US dollars

GDP - composition by sector

agriculture: 21.8%
industry: 23.6%
services: 54.6% (2010 est.)

Population below poverty line

24% (FY05/06 est.)

Labor force

55.77 million
note: extensive export of labor, mostly to the Middle East, and use of child labor (2010 est.)

Labor force - by occupation

agriculture: 43%
industry: 20.3%
services: 36.6% (2005 est.)

Unemployment rate

15% (2010 est.)
14% (2009 est.)
note: substantial underemployment exists

Household income or consumption by percentage share

lowest 10%: 3.9%
highest 10%: 26.5% (2005)

Distribution of family income - Gini index

30.6 (FY07/08)
41 (FY98/99)

Investment (gross fixed)

15% of GDP (2010 est.)

Budget

revenues: $25.33 billion
expenditures: $36.24 billion (2010 est.)

Public debt

49.9% of GDP (2010 est.)
49.3% of GDP (2009 est.)

Inflation rate (consumer prices)

13.4% (2010 est.)
13.6% (2009 est.)

Central bank discount rate

12.5% (31 December 2009)
15% (31 December 2008)

Commercial bank prime lending rate

NA%

Stock of domestic credit

$71.45 billion (31 December 2010 est.)
$63.1 billion (31 December 2009 est.)

Industries

textiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimp

Industrial production growth rate

4.9% (2010 est.)

Electricity - production

90.8 billion kWh (2007 est.)

Electricity - consumption

72.2 billion kWh (2007 est.)

Electricity - exports

0 kWh (2008 est.)

Electricity - imports

0 kWh (2008 est.)

Oil - production

59,140 bbl/day (2009 est.)

Oil - consumption

373,000 bbl/day (2009 est.)

Oil - imports

319,500 bbl/day (2007 est.)

Oil - exports

30,090 bbl/day (2007 est.)

Oil - proved reserves

436.2 million bbl (1 January 2010 est.)

Natural gas - production

37.5 billion cu m (2008 est.)

Natural gas - consumption

37.5 billion cu m (2008 est.)

Natural gas - exports

0 cu m (2008 est.)

Natural gas - imports

0 cu m (2008 est.)

Natural gas - proved reserves

840.2 billion cu m (1 January 2010 est.)

Current Account Balance

-$2.641 billion (2010 est.)
-$3.583 billion (2009 est.)

Agriculture - products

cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs

Exports

$20.29 billion (2010 est.)
$18.33 billion (2009 est.)

Exports - commodities

textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sports goods, chemicals, manufactures, carpets and rugs

Exports - partners

US 15.87%, UAE 12.35%, Afghanistan 8.48%, UK 4.7%, China 4.44% (2009)

Imports

$32.71 billion (2010 est.)
$28.53 billion (2009 est.)

Imports - commodities

petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea

Imports - partners

China 15.35%, Saudi Arabia 10.54%, UAE 9.8%, US 4.81%, Kuwait 4.73%, Malaysia 4.43%, India 4.02% (2009)

Reserves of foreign exchange and gold

$16.1 billion (31 December 2010 est.)
$13.77 billion (31 December 2009 est.)

Debt - external

$57.21 billion (31 December 2010 est.)
$53.62 billion (31 December 2009 est.)

Stock of direct foreign investment - at home

$30.09 billion (31 December 2010 est.)
$28.09 billion (31 December 2009 est.)

Stock of direct foreign investment - abroad

$1.047 billion (31 December 2010 est.)
$1.017 billion (31 December 2009 est.)

Market value of publicly traded shares

$33.24 billion (31 December 2009)
$23.49 billion (31 December 2008)
$70.26 billion (31 December 2007)

Exchange rates

Pakistani rupees (PKR) per US dollar - 85.27 (2010), 81.7129 (2009), 70.64 (2008), 60.6295 (2007), 60.35 (2006)