Economy of Pakistan

Economy - overview
Decades of internal political disputes and low levels of foreign investment have led to slow growth and underdevelopment in Pakistan. Agriculture accounts for more than one-fifth of output and two-fifths of employment. Textiles account for most of Pakistan's export earnings, and Pakistan's failure to expand a viable export base for other manufactures has left the country vulnerable to shifts in world demand. Official unemployment is 6%, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Over the past few years, low growth and high inflation, led by a spurt in food prices, have increased the amount of poverty - the UN Human Development Report estimated poverty in 2011 at almost 50% of the population. Inflation has worsened the situation, climbing from 7.7% in 2007 to more than 13% for 2011, before declining to 9.3% at year-end. As a result of political and economic instability, the Pakistani rupee has depreciated more than 40% since 2007. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 in response to a balance of payments crisis. Although the economy has stabilized since the crisis, it has failed to recover. Foreign investment has not returned, due to investor concerns related to governance, energy, security, and a slow-down in the global economy. Remittances from overseas workers, averaging about $1 billion a month since March 2011, remain a bright spot for Pakistan. However, after a small current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to deficit in the second half of 2011, spurred by higher prices for imported oil and lower prices for exported cotton. Pakistan remains stuck in a low-income, low-growth trap, with growth averaging 2.9% per year from 2008 to 2011. Pakistan must address long standing issues related to government revenues and energy production in order to spur the amount of economic growth that will be necessary to employ its growing population. Other long term challenges include expanding investment in education and healthcare, and reducing dependence on foreign donors.
GDP (purchasing power parity)
$494.8 billion (2011 est.)
$465.8 billion (2009 est.)
data are in 2011 US dollars
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GDP (official exchange rate)
$210.6 billion (2011 est.)
GDP - real growth rate
2.4% (2011 est.)
1.7% (2009 est.)
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GDP - per capita (PPP)
$2,800 (2011 est.)
$2,800 (2009 est.)
data are in 2011 US dollars
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GDP - composition by sector
agriculture:
20.9%
industry:
25.8%
services:
53.3% (2011 est.)
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Labor force
58.41 million
rank:
10
extensive export of labor, mostly to the Middle East, and use of child labor (2011 est.)
Labor force - by occupation
agriculture:
45%
industry:
20.1%
services:
34.9% (2010 est.)
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Unemployment rate
5.6% (2011 est.)
5.6% (2010 est.)
substantial underemployment exists
Population below poverty line
22.3% (FY05/06 est.)
Household income or consumption by percentage share
lowest 10%:
9.9%
highest 10%:
39.3% (FY07/08)
Distribution of family income - Gini index
30.6 (FY07/08)
41 (FY98/99)
Investment (gross fixed)
11.8% of GDP (2011 est.)
rank:
144
Budget
revenues:
$26.3 billion
expenditures:
$40.2 billion (2011 est.)
Taxes and other revenues
12.5% of GDP (2011 est.)
rank:
204
Budget surplus (+) or deficit (-)
-6.6% of GDP (2011 est.)
rank:
179
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Public debt
60.1% of GDP (2011 est.)
61.4% of GDP (2010 est.)
Inflation rate (consumer prices)
11.9% (2011 est.)
12.9% (2010 est.)
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Central bank discount rate
12% (31 January 2012 est.)
14% (31 December 2010 est.)
Commercial bank prime lending rate
14.42% (31 December 2011 est.)
14.12% (31 December 2010 est.)
Stock of narrow money
$56.34 billion (31 December 2011 est.)
$62.02 billion (30 June 2010)
Stock of broad money
$76.16 billion (31 December 2011 est.)
$85.22 billion (31 December 2010 est.)
Stock of domestic credit
$75.06 billion (31 December 2011 est.)
$64.53 billion (31 December 2010 est.)
Market value of publicly traded shares
$32.76 billion (31 December 2011)
$33.24 billion (31 December 2009)
Agriculture - products
cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs
Industries
textiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimp
Industrial production growth rate
3% (2011 est.)
rank:
98
Electricity - production
93.35 billion kWh (2010 est.)
rank:
33
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Electricity - consumption
74.35 billion kWh (2010 est.)
rank:
37
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Electricity - exports
0 kWh (2011 est.)
Electricity - imports
0 kWh (2009 est.)
Oil - production
64,950 bbl/day (2010 est.)
rank:
57
Oil - consumption
410,000 bbl/day (2010 est.)
rank:
34
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Oil - exports
29,840 bbl/day (2009 est.)
rank:
83
Oil - imports
346,400 bbl/day (2009 est.)
rank:
30
Oil - proved reserves
313 million bbl (1 January 2011 est.)
rank:
55
Natural gas - production
42.9 billion cu m (2011 est.)
rank:
21
Natural gas - consumption
42.9 billion cu m (2011 est.)
rank:
22
Natural gas - exports
0 cu m (2009 est.)
rank:
157
Natural gas - imports
0 cu m (2009 est.)
rank:
108
Natural gas - proved reserves
840.2 billion cu m (1 January 2011 est.)
rank:
28
Current account balance
$268 million (2011 est.)
-$3.94 billion (2010 est.)
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Exports
$25.35 billion (2011 est.)
$21.47 billion (2010 est.)
Exports - commodities
textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sports goods, chemicals, manufactures, carpets and rugs
Exports - partners
US 14.3%, UAE 7.7%, Afghanistan 7.6%, China 7.6%, Germany 5%, UK 4.1% (2011)
Imports
$35.82 billion (2011 est.)
$32.92 billion (2010 est.)
Imports - commodities
petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea
Imports - partners
China 17.9%, Saudi Arabia 11.2%, UAE 11.1%, Kuwait 5.8%, Malaysia 5.7%, India 4.9%, US 4.3% (2011)
Reserves of foreign exchange and gold
$18.09 billion (31 December 2011 est.)
$17.21 billion (31 December 2010 est.)
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Debt - external
$61.83 billion (31 December 2011 est.)
$56.77 billion (31 December 2010 est.)
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Stock of direct foreign investment - at home
$31.36 billion (31 December 2011 est.)
$30.06 billion (31 December 2010 est.)
Stock of direct foreign investment - abroad
$1.419 billion (31 December 2011 est.)
$1.362 billion (31 December 2010 est.)
Exchange rates
60.6295 (2007)
Fiscal year
1 July - 30 June
Data source 1: All Above textual data, maps and flags were extracted from The World Factbook which was prepared by the Central Intelligence Agency and made available on the following link: The World Factbook. Lebanese Economy Forum is not sponsered or affiliated, in any way, by the US Central Intelligence Agency
Data source 2: Plots and Charts are constructed using the world bank public data catalog which can be viewed by visiting the following link: World Bank Data Catalog. Lebanese Economy Forum is not sponsored or affiliated, in any way, by the worldbank

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