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The Economy of Pakistan

Pakistani Economy

Pakistan's map

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 24.4% 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:

GDP - real growth rate: 5.8% (2008 est.) 5.8% (2007 est.) 6.4% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 20.4% industry: 26.6% services: 53% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 4% highest 10%: 26.3% (2002)

Distribution of family income - Gini index: 30.6 (FY07/08)

Inflation rate (consumer prices):

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% plus substantial underemployment (2008 est.)

Budget: revenues: $22.14 billion expenditures: $32.09 billion (2008 est.)

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:

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 - exports: 28,060 bbl/day (2005)

Oil - imports: 290,600 bbl/day (2005)

Oil - proved reserves: 289.2 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.)

Agriculture - products: cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs

Exports: $20.62 billion f.o.b. (2008 est.)

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

Exports - partners: US 18%, UAE 10.4%, Afghanistan 8.4%, China 5.2%, UK 4.7% (2007)

Imports: $35.38 billion f.o.b. (2008 est.)

Imports - commodities: petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea

Imports - partners: China 16.2%, Saudi Arabia 10.9%, UAE 10.1%, US 5.7%, Kuwait 4.9%, Japan 4.4% (2007)

Debt - external: $43.23 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

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: