Pakistan Economy Profile 2012

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. During 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)

$464.9 billion (2010 est.)
$443.6 billion (2009 est.)
$429.2 billion (2008 est.)
note: data are in 2010 US dollars

GDP (official exchange rate)

$174.9 billion (2010 est.)

GDP - real growth rate

4.8% (2010 est.)
3.4% (2009 est.)
1.6% (2008 est.)

GDP - per capita (PPP)

$2,500 (2010 est.)
$2,400 (2009 est.)
$2,400 (2008 est.)
note: data are in 2010 US dollars

GDP - composition by sector

agriculture: 21.2%
industry: 25.4%
services: 53.4% (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

15.4% (2010 est.)
14.4% (2009 est.)
note: substantial underemployment exists

Unemployment, youth ages 15-24

total: 7.7%
male: 7%
female: 10.5% (2008)

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)

13.8% of GDP (2010 est.)

Budget

revenues: $24.75 billion
expenditures: $35.67 billion (2010 est.)

Taxes and other revenues

14.2% of GDP (2010 est.)

Budget surplus (+) or deficit (-)

-6.2% of GDP (2010 est.)

Public debt

50.6% of GDP (2010 est.)
50.2% of GDP (2009 est.)

Inflation rate (consumer prices)

13.9% (2010 est.)
13.6% (2009 est.)

Central bank discount rate

0.07% (31 December 2010 est.)
12.5% (31 December 2009 est.)

Commercial bank prime lending rate

13.462% (31 December 2010 est.)
14.189% (31 December 2009 est.)

Stock of narrow money

$53.08 billion (31 December 2010 est.)
$45.8 billion (31 December 2009 est.)

Stock of money

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

Stock of broad money

$85.22 billion (31 December 2010 est.)
$65.13 billion (31 December 2009 est.)

Stock of quasi money

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

Stock of domestic credit

$61.39 billion (31 December 2010 est.)
$56.11 billion (31 December 2009 est.)

Market value of publicly traded shares

$38.17 billion (31 December 2010)
$33.24 billion (31 December 2009)
$23.49 billion (31 December 2008)

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

4.6% (2010 est.)

Electricity - production

89.23 billion kWh (2009 est.)

Electricity - production by source

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

Electricity - consumption

68.55 billion kWh (2008 est.)

Electricity - exports

0 kWh (2009 est.)

Electricity - imports

0 kWh (2009 est.)

Oil - production

63,580 bbl/day (2010 est.)

Oil - consumption

410,000 bbl/day (2010 est.)

Oil - exports

29,840 bbl/day (2009 est.)

Oil - imports

346,400 bbl/day (2009 est.)

Oil - proved reserves

313 million bbl (1 January 2011 est.)

Natural gas - production

38.41 billion cu m (2009 est.)

Natural gas - consumption

38.41 billion cu m (2009 est.)

Natural gas - exports

0 cu m (2009 est.)

Natural gas - imports

0 cu m (2009 est.)

Natural gas - proved reserves

840.2 billion cu m (1 January 2011 est.)

Current Account Balance

-$1.585 billion (2010 est.)
-$3.993 billion (2009 est.)

Exports

$21.46 billion (2010 est.)
$18.35 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 15.8%, Afghanistan 8.1%, UAE 7.9%, China 7.3%, UK 4.3%, Germany 4.2% (2010)

Imports

$32.88 billion (2010 est.)
$28.62 billion (2009 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 10.7%, UAE 10.6%, Kuwait 5.5%, US 4.9%, Malaysia 4.8% (2010)

Reserves of foreign exchange and gold

$17.21 billion (31 December 2010 est.)
$13.77 billion (31 December 2009 est.)

Debt - external

$56.12 billion (31 December 2010 est.)
$53.6 billion (31 December 2009 est.)

Stock of direct foreign investment - at home

$30.06 billion (31 December 2010 est.)
$28.04 billion (31 December 2009 est.)

Stock of direct foreign investment - abroad

$1.148 billion (31 December 2010 est.)
$1.102 billion (31 December 2009 est.)

Exchange rates

Pakistani rupees (PKR) per US dollar -
85.27 (2010)
81.71 (2009)
70.64 (2008)
60.6295 (2007)
60.35 (2006)