Pakistan's Economy Preview

[khuhro]

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, jumping from 7.7% in 2007 to 20.8% in 2008, and 14.2% in 2009. 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 its current account strengthened and foreign exchange reserves stabilized - largely because of lower oil prices and record remittances from workers abroad. Textiles account for most of Pakistan's export earnings, but Pakistan's failure to expand a viable export base for other manufactures have 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)
$448.1 billion (2009 est.)
$436.4 billion (2008 est.)
$422 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate)
$166.5 billion (2009 est.)

GDP - real growth rate
2.7% (2009 est.)
3.4% (2008 est.)
6% (2007 est.)

GDP - per capita (PPP)
$2,600 (2009 est.)
$2,500 (2008 est.)
$2,500 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector
agriculture: 20.8%
industry: 24.3%
services: 54.9% (2009 est.)

Population below poverty line
24% (FY05/06 est.)

Labor force
55.88 million
note: extensive export of labor, mostly to the Middle East, and use of child labor (2009 est.)

Labor force - by occupation
agriculture: 43%
industry: 20.3%
services: 36.6% (2005 est.)

Unemployment rate
15.2% (2009 est.)
13.6% (2008 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)
18.1% of GDP (2009 est.)

Budget
revenues: $23.21 billion
expenditures: $30.05 billion (2009 est.)

Public debt
45.3% of GDP (2009 est.)
51.2% of GDP (2008 est.)

Inflation rate (consumer prices)
14.2% (2009 est.)
20.3% (2008 est.)

Central bank discount rate
15% (31 December 2008)
10% (31 December 2007)

Commercial bank prime lending rate
NA% (31 December 2008)

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
-3.6% (2009 est.)

Electricity - production
90.8 billion kWh (2007 est.)

Electricity - production by source
fossil fuel: 68.8%
hydro: 28.2%
nuclear: 3%
other: 0% (2001)

Electricity - consumption
72.2 billion kWh (2007 est.)

Electricity - exports
0 kWh (2008 est.)

Electricity - imports
0 kWh (2008 est.)

Oil - production
61,870 bbl/day (2008 est.)

Oil - consumption
383,000 bbl/day (2008 est.)

Oil - imports
319,500 bbl/day (2007 est.)

Oil - exports
30,090 bbl/day (2007 est.)

Oil - proved reserves
339 million bbl (1 January 2009 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
885.3 billion cu m (1 January 2009 est.)

Current Account Balance
-$2.42 billion (2009 est.)
-$15.68 billion (2008 est.)

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

Exports
$17.87 billion (2009 est.)
$21.09 billion (2008 est.)

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

Exports - partners
US 16.1%, UAE 11.7%, Afghanistan 8.6%, UK 4.5%, China 4.2% (2008)

Imports
$28.31 billion (2009 est.)
$38.19 billion (2008 est.)

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

Imports - partners
China 14.3%, Saudi Arabia 12.2%, UAE 11.3%, Kuwait 5.5%, US 4.8%, Malaysia 4.1% (2008)

Reserves of foreign exchange and gold
$15.68 billion (31 December 2009 est.)
$8.903 billion (31 December 2008 est.)

Debt - external
$52.12 billion (31 December 2009 est.)
$46.39 billion (31 December 2008 est.)

Stock of direct foreign investment - at home
$27.95 billion (31 December 2009 est.)
$25.44 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad
$1.078 billion (31 December 2009 est.)
$1.017 billion (31 December 2008 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)

Currency (code)
Pakistani rupee (PKR)

Exchange rates
Pakistani rupees (PKR) per US dollar - 81.41 (2009), 70.64 (2008), 60.6295 (2007), 60.35 (2006), 59.515 (2005)

Fiscal year
1 July - 30 June