Pakistan officially the Islamic Republic of Pakistan is a sovereign country in South Asia. It has a semi-industrialised economy which is the 27th largest in the world in terms of purchasing power and 47th largest in terms of nominal GDP. Pakistan is a rapidly developing country and is one of the Next Eleven, the eleven countries that, along with the BRICs, have a high potential to become the world's largest economies in the 21st century. The economy is semi-industrialized, with centres of growth along the Indus River. The diversified economies of Karachi and Punjab's urban centres coexist with less developed areas in other parts of the country. Pakistan's estimated nominal GDP as of 2011 is US$202 billion. The estimated nominal per capita GDP is US$1,197, GDP (PPP) per capita is US$2,851 (international dollars), and debt-to-GDP ratio is 55.5%. A 2010 report by RAD-AID positioned Pakistan's economy at 27th largest in the world by purchasing power and 45th largest in absolute dollars. It is South Asia's second largest economy, representing about 15 percent of regional GDP.

Pakistan's economic growth since its inception has been varied. It has been slow during periods of civilian rule, but excellent during the three periods of military rule, although the foundation for sustainable and equitable growth was not formed. The early to middle 2000s was a period of rapid reform; the government raised development spending, which reduced poverty levels by 10% and increased GDP by 3%. The economy cooled again from 2007. Inflation reached 25% in 2008 and Pakistan had to depend on an aggressive fiscal policy backed by the International Monetary Fund to avoid possible bankruptcy. A year later, the Asian Development Bank reported that Pakistan's economic crisis was easing. The inflation rate for the fiscal year 2010–11 was 14.1%. Pakistan is one of the largest producers of natural commodities, and its labour market is the 10th largest in the world. Around 600,000 Pakistanis went abroad to work in 2009. Expatriate workers send remittances of close to US$8 billion annually—the largest source of foreign exchange apart from exports. According to the World Trade Organization Pakistan's share of overall world exports is declining; it contributed only 0.128% in 2007.The trade deficit in the fiscal year 2010–11 was US$11.217 billion.

The structure of the Pakistani economy has changed from a mainly agricultural to a strong service base. Agriculture now accounts for only 21.2% of the GDP. Even so, according to the United Nations Food and Agriculture Organization, Pakistan produced 21,591,400 metric tons of wheat in 2005, more than all of Africa (20,304,585 metric tons) and nearly as much as all of South America (24,557,784 metric tons). The service and industrial sectors account for 52.4% and 26.4% of GDP respectively. Between 2002 and 2007 there was substantial foreign investment in Pakistan's banking and energy sectors. Other important industries include clothing and textiles (accounting for nearly 60% of exports), food processing, chemicals manufacture, iron and steel. There is great potential for tourism in Pakistan, but it is severely affected by the country's instability.

Source: Invesment Support and Promotion Agency, Pakistan.


General Information
Official Name Islamic Republic of Pakistan
Capital Islamabad
Main Cities Islamabad, Karachi, Lahore, Faisalabad, Rawalpindi
Languages Urdu (official) 8%, English (official; lingua franca of Pakistani elite and most government ministries), Punjabi 48%, Sindhi 12%, Siraiki (a Punjabi variant) 10%, Pashtu 8%, Balochi 3%, Hindko 2%, Brahui 1%, Burushaski and other 8%
Government Federal Republic
Independence Day 14 August 1947 (from British India)
Area total: 803,940 sq km (land:778,720 sq km; water: 25,220 sq km)
Population 189 million (2013)
Currency Pakistani Rupee (PKR)
Climate Generally arid; hot summers, cool or cold winters; wide variations of temperature in given locale and between coastal area on Arabian Sea and glacial regions of northern areas; little rainfall.
Time Zone PST (UTC +5), Summer PDT (UTC +6)
Main Airports Jinnah Int’l Airport (KHI, Karachi), Allama Iqbal Int’l Airport (LHE, Lahore), Islamabad Int’l Airport (ISB, Rawalpindi)
Main Harbors Karachi, Port Muhammad Bin Qasim
Source: National sources,2013
Economic Information
  2005 2006 2007 2008 2009 2010 2011 2012
GDP  
Nominal GDP (US$bn) 109.9 127.3 143.0 165.1 166.5 169.1 120 238.7
Real GDP Growth (%) 7.7 6.2 5.7 2.0 3.7 2.9 3.7 2.4
Expenditure on GDP (% real change)
Private Consumption 12.9 1.0 4.7 -1.3 5.2 3.5 4.5 5.0
Government Consumption 1.7 48.3 -9.6 39.0 -13.5 5.0 7.5 8.0
Gross fixed Investment 13.5 19.9 13.6 3.8 -6.5 1.5 2.1 3.2
Export of goods & Services 9.6 9.9 2.3 -5.3 9.0 0.2 0.5 0.8
Import of goods & Services 40.5 18.7 -3.5 3.6 -9.2 2.6 3.1 3.8
Origin of GDP (%real change)
Agriculture 6.5 6.3 4.1 1.1 4.7 3.5 4.1 4.5
Industry 12.1 4.1 8.8 1.7 -3.6 1.0 2.5 3.0
Services 8.5 6.5 7.0 6.6 3.6 3.5 3.8 4.1
GDP per capita(US$ at PPP) 2,051 2,201 2,341 2,383 2,447 2,496 2,501 2,530
Recorded Unemployment(av,%) 7.7 7.7 11.5 12.6 14.0 15.0 14.8 14.7
Fiscal Indicator (% of GDP)
Central Government Revenue 13.3 14.0 12.8 15.0 14.3 16.7 17.1 17.5
Central Government Expenditure 16.5 18.2 17.3 22.8 19.7 22.3 23.1 23.4
Central Government Balance -3.2 -4.2 -4.5 -7.8 -5.4 -5.6 -6 -5.9
Net Public Debt 53.9 51.5 50.9 51.7 46.7 49.3 56.22 60.52
Prices and financial indicators
Exchange Rates PRs:US$ (end-period) 59.83 60.92 61.22 79.10 84.26 86.72 86.5 95.6
Consumer Prices (end-period; % change) 8.5 8.9 8.8 24 11.5 7.7 10.5 8.1
Stock of money M2 (end-period; % change) 16.5 14.6 19.5 19.0 20.4 13.0 15.1 18.3
Lending interest rate(av.;%) 8.2 9.9 10.2 12.4 13.3 12.5 12.1 12.5
Current Account(US$m)
Trade Balance -6,340 -9,647 -10,640 -16,769 -9,419 -16,374 -18,250 -24,490
Goods: exports fob 15,433 17,049 18,188 21,328 18,962 21,409 25,790 26,369
Goods: imports fob -21,773 -26,696 -28,775 -38,097 -28,380 -37,787 44,040 50,859
Services Balance -3,830 -4,912 -5,044 -5,363 -2,701 -2,601 -3,015 -3,465
Income Balance -2,514 -3,131 -3,740 -4,163 -3,467 -3,080 -3,216 -3,492
Current-account Balance -3,605 -6,750 -8,286 -15,402 -2,440 -2,961 -3,016 -3,546
External Debt (US$m)
Debt Stock 33,173 35,909 40,680 46,335 51,812 56,094 58,648 60,137
Debt service paid 2,425 2,281 2,600 3,917 3,425 4,112 4,139 4,324
Principal repayments 1,698 1,427 1,504 2,891 2,456 2,828 2,867 2,726
Interest 727 854 1,067 1,026 970 1,284 1,147 1,098
Debt service due(US$m) 2,425 2,281 2,600 3,917 3,425 4,112 3,549 3,567
International reserves(US$m)
Total international reserves 10,948 12,816 15,689 8,903 13,770 16,029 17,156 17,876
Source: IMF, International Financial Statistics 2013
Pakistan Trade with World
US$ Mn. 2005 2006 2007 2008 2009 2010 2011 2012
Export (fob) 16,052 16,714 19,019 21,640 19,604 21,409 25,790 26,369
Import (cif) 25,412 34,325 40,134 46,136 36,511 37,787 44,040 50,859
Trade Volume 41,464 51,039 59,153 67,776 56,115 52,192 69,830 77,228
Trade Balance -9,360 -17,611 -21,115 -24,496 -16,907 -16,374 -18,250 -24,490
World Trade (US$ Bn) - 24,294 27,845 32,215 24,948 28,143 35,397 36,355
Share 0.19% 0.21% 0.21% 0.21% 0.22% 0.18% 0.19% 0.21%
Source: IMF, International Financial Statistics 2013
Pakistan Trade with D-8 Countries
US$ Mn. 2005 2006 2007 2008 2009 2010 2011 2012
Export (fob) 950.58 856.68 1,080.69 1,345.62 1,329.34 1,817 2,496 2,171
Import (cif) 2,169.74 2,570.19 3,430.95 4,149.68 3,259.76 4,601 4,364 5,980
Trade Volume 3,120.32 3,426.87 4,511.64 5,495.3 4,589.1 6,418 6,860 8,151
Trade Balance -1,219.16 -1,713.51 -2,350.26 -2,804.06 -1,930.42 -2,784 -1,868 -3,809
D-8 Intra Trade (US$ Mn) - - 66,828.03 78,382.2 66,947.63 101,139 129,493 148,191
Share 7.5% 6.9% 6.75% 7.01% 6.8% 6.34% 5.29% 5.5%
Source: IMF, International Financial Statistics 2013
Pakistan Trade By 10 Main Commodities
Export by 10 Principal Commodities, (million US$)
No. Commodity 2006 2007 2008 2009 2010 2011 2012
1. Cotton 3,601.0 3,439.5 3,595.6 3,203.8 4,013.4 5,097 5,225.7
2. Other made textile articles, sets, worn clothing etc 3,242.5 3,179.5 3,145.5 2,917.5 3,284.5 3,570.3 3,285.5
3. Cereals 1,152.3 1,244.1 2,507.9 1,823.2 2,279.5 2,807.3 2,060.8
4. Articles of apparel, accessories, knit or crochet 1,902.2 1,851 1,888.5 1,680.7 1,982.4 2,238.8 2,006.3
5. Articles of apparel, accessories, not knit or crochet 1,348.3 1,371.04 1,361.1 1,206.5 1,461.6 1,774.6 1,694.4
6. Mineral fuels, oils, distillation products, etc 841.2 994.4 1,229.7 714.5 1,202.6 1,312.4 330.7
7. Articles of leather, animal gut, harness, travel goods 680.3 691.6 766.8 577.9 618.8. 618.3 673.8
8. Pearls, precious stones, metals, coins, etc 24.1 120.3 239.8 478.9 590.2 469.3 1,634.1
9. Salt, sulphur, earth, stone, plaster, lime and cement 127.4 251.7 601 563.4 514.4 570.6 714.1
10. Manmade staple fibres 234.5 386.1 284.8 300.06 511.2 606 449.2
Import by 10 Principal commodities, (million US$)
No. Commodity 2006 2007 2008 2009 2010 2011 2012
1. Mineral fuels, oils, distillation products, etc. 7,680.3 8,350.3 14,054.2 8,837.7 11,398.5 14,860 15,946
2. Machinery, nuclear reactors, boilers, etc. 3,343.9 3,262.4 3,923.9 3,119.7 2,953.2 2,950.6 3,060.5
3. Electrical, electronic equipment 3,081.3 3,448.2 3,782.3 2,618.8 2,441.5 2,430.3 2,751.6
4. Animal, vegetable fats and oils, cleavage products, etc 878.8 1,301.2 1,879.8 1,411.7 1,852.3 2,588.8 2,313.2
5. Organic chemicals 1,177.9 1,569.8 1,761.3 1,518.2 1,721.1 2,213.2 2,037.8
6. Iron and steel 1,392.8 1,543 1629.4 1,683.5 1,695.2 1,680.5 1,847.7
7. Plastics and articles thereof 1,128.6 1,280.7 1,360 1,184.9 1,458 1,697.5 1,501.3
8. Vehicles other than railway, tramway 1,732.6 1,418.8 1,184.2 969.4 1,307.5 1,502.3 1,595.5
9. Ships, boats and other floating structures 72 573.3 183.2 398.8 838.8 526.9 544.2
10. Sugars and sugar confectionery 717.4 40 27.7 200.8 834.9 106.7 29.1
Source: WTO, International Trade Centre 2011
Export and Import by Main Destination Country
Export by Main Destination Country (% of total)
2005 2006 2007 2008 2009 2010 2011 2012
United States of America 24.8 25.7 21.6 18 18.3 17.2 15.1 14.9
United Arab Emirates 7.8 7.3 11.9 9.9 8.8 8.6 7.6 11.7
Afghanistan 6.6 5.9 4.7 7.1 7.8 7.9 10.5 8.5
China 2.7 3 3.4 3.6 5.7 6.7 6.6 10.6
United Kingdom 5.7 5.5 5.4 4.9 5.4 5.2 5 5.1
Others 37.6 52.6 53 56.5 54 54.4 55.2 49.2
Source: WTO, International Trade Centre 2013
Import by Main Origin Country (% of total)
2005 2006 2007 2008 2009 2010 2011 2012
China 9.4 9.8 12.8 11.2 12 14 14.8 15.3
Saudi Arabia 10.6 10.2 12.3 14.1 11.1 10.2 10.7 9.8
United Arab Emirates 9.9 11.4 8.5 8.9 10.6 14 15.6 16.5
Kuwait 5 6.3 5.7 8.1 5.7 6.9 8.9 9.6
United States of America 6.1 6.3 8 4.9 5.7 4.3 4 3.4
Others 59 56 52.7 52.8 54.9 50.6 46 45.4
Source: WTO, International Trade Centre 2013
Foreign Direct Investment (Overview, selected years)
US$(Mn.) FDI Flows FDI Stocks
2005 2006 2007 2008 2009 2010 2011 2012 2005 2006 2007 2008 2009 2010 2011 2012
Inward 2,201 4,273 5,590 5,438 2,387 2,022 1,327 846.7 5,408 6,919 25,621 31,059 17,789 19,828 20,916 25,395
Outward 44 109 99 46 -14 47 62 73 266 489 1,238 1,284 2,201 1,362 1,401 1,524
Source: UNCTAD, 2013
Agriculture: Food Commodities
US$ Mn 2008 2009 2010 2011 2012
Export 3,110.5 2,264.7 2,708.8 2,821.1 3,012.5
Import 4,076.1 2,521.2 3,557 3,659 3,846
Trade Volume 7,186.6 4,785.9 6,265.8 6,480.1 6,858.5
Trade Balance -965.6 -256.5 -848,2 -837.9 -833.5
Pakistan's Total Trade 54,867.7 56,115 52,192 69,830 77,228
Share to Pakistan's Total Trade 13.1% 8.5% 12% 9.23% 8.8%
Source: WTO,FAO 2013
Energy
Oil
Petroleum(Thousand Barrels per Day) 2006 2007 2008 2009 2010 2011 2012
Total Oil Production 67.98 68.39 69.10 69.55 69.55 69.6 69.6
Consumption 359 390 390 390 390 391 391
Refinery 269 269 269 269 269 270 270
Proved Reserved(Billion barrels) 0.289 0.289 0.289 0.289 0.289 0.289 0.289
Natural Gas
Natural Gas(Billion Cubic Feet/Day) 2006 2007 2008 2009 2010 2011 2012
Total Production 3.5 3.5 3.6 3.7 3.8 3.8 3.9
Consumption 3.5 3.5 3.6 3.7 3.8 3.8 3.9
Proved Reserved(Trillion cubic meters,TCM) 0.85 0.85 0.85 0.8 0.8 0.8 0.8
Others Energy
Energy Year
2008 2009 2010 2011 2012
Biofuels production (Thousand barrels daily) 0.6 0.62 0.62 0.62 0.62
Electricity Generation (Terawatt-hours) 27.73 27.73 27.73 28.01 28.21
Renewable Energy (Installed Capacity) Geothermal (mega-watts) - - - - -
Solar (maga-watts) - - - - -
Wind (mega-watts) 50 50 50 50 50
Source: BP statistics, 2013