Pakistan Economy Profile 2009

Economy - overview

Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes, low levels of foreign investment, and declining exports of manufactures. Faced with untenable budgetary deficits, high inflation, and hemorrhaging foreign exchange reserves, the government agreed to an International Monetary Fund Standby Arrangement in November 2008. Between 2004-07, GDP growth in the 6-8% range was spurred by gains in the industrial and service sectors, despite severe electricity shortfalls. Poverty levels decreased by 10% since 2001, and Islamabad steadily raised development spending in recent years. In 2008 the fiscal deficit - a result of chronically low tax collection and increased spending - exceeded Islamabad's target of 4% of GDP. Inflation remains the top concern among the public, jumping from 7.7% in 2007 to 20.8% in 2008, primarily because of rising world fuel and commodity prices. In addition, the Pakistani rupee has depreciated significantly as a result of political and economic instability.

GDP (purchasing power parity)

$427.3 billion (2008 est.)
$416 billion (2007 est.)
$392.5 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$167.6 billion (2008 est.)

GDP - real growth rate

2.7% (2008 est.)
6% (2007 est.)
6% (2006 est.)

GDP - per capita (PPP)

$2,500 (2008 est.)
$2,500 (2007 est.)
$2,400 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 20.4%
industry: 26.6%
services: 53% (2008 est.)

Population below poverty line

24% (FY05/06 est.)

Labor force

50.58 million
note: extensive export of labor, mostly to the Middle East, and use of child labor (2008 est.)

Labor force - by occupation

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

Unemployment rate

7.4% (2008 est.)
5.6% (2007 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)

20% of GDP (2008 est.)

Budget

revenues: $22.3 billion
expenditures: $32.35 billion (2008 est.)

Public debt

49.8% of GDP (2008 est.)
71.4% of GDP (2004 est.)

Inflation rate (consumer prices)

20.3% (2008 est.)
7.6% (2007 est.)

Central bank discount rate

15% (31 December 2008)
10% (31 December 2007)

Stock of money

$NA (31 December 2008)
$52.76 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$18.42 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$65.05 billion (31 December 2007)

Industries

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

Industrial production growth rate

4.6% (2008 est.)

Electricity - production

93.26 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 68.8%
hydro: 28.2%
nuclear: 3%
other: 0% (2001)

Electricity - consumption

68.4 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

68,670 bbl/day (2007 est.)

Oil - consumption

345,000 bbl/day (2006 est.)

Oil - imports

290,600 bbl/day (2005)

Oil - exports

28,060 bbl/day (2005)

Oil - proved reserves

395.6 million bbl (1 January 2008 est.)

Natural gas - production

30.8 billion cu m (2007 est.)

Natural gas - consumption

30.8 billion cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

792.8 billion cu m (1 January 2008 est.)

Current Account Balance

-$14.99 billion (2008 est.)
-$8.297 billion (2007 est.)

Agriculture - products

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

Exports

$21.9 billion (2008 est.)
$18.12 billion (2007 est.)

Exports - commodities

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

Exports - partners

US 16%, UAE 11.7%, Afghanistan 8.6%, UK 4.4%, China 4.4% (2008)

Imports

$38.3 billion (2008 est.)
$28.76 billion (2007 est.)

Imports - commodities

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

Imports - partners

China 15.4%, Saudi Arabia 12.2%, UAE 11.3%, Kuwait 5.5%, US 4.8% (2008)

Reserves of foreign exchange and gold

$8.903 billion (31 December 2008 est.)
$15.69 billion (31 December 2007 est.)

Debt - external

$44.15 billion (31 December 2008 est.)
$38.8 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$25.44 billion (31 December 2008 est.)
$20.01 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$1.032 billion (31 December 2008 est.)
$982 million (31 December 2007 est.)

Market value of publicly traded shares

$23.49 billion (31 December 2008)
$70.26 billion (31 December 2007)
$45.52 billion (31 December 2006)

Economic aid - recipient

$1.666 billion (2005)

Currency (code)

Pakistani rupee (PKR)

Currency (code)

PKR

Exchange rates

Pakistani rupees (PKR) per US dollar - 70.64 (2008 est.), 60.6295 (2007), 60.35 (2006), 59.515 (2005), 58.258 (2004)

Fiscal year

1 July - 30 June