Pakistan

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

The GDP growth rate remained positive despite the international economic crisis, thanks to the positive results of the agricultural sector.

In recent years, the government made significant macro-economic reforms, which include privatizing state-subsidized services, instituting an anti-money laundering law, increasing the harshness of punishment against the piracy of intellectual property and the quick resolution of disputes between investors. In the fight against terrorism, the country has received substantial financial aid from the United States, a significant factor for growth and economic stability. However, at the end of the payments in October, Pakistan asked the IFM's help in November, and adopted a stabilization plan whose results are limited. Despite a slight improvement, the country remains confronted by a number of difficulties: the slowing down of the economy, the budget deficit and insufficient growth of tax receipts. High international oil barrel prices, inflation, prices of raw materials, a deficit balance of payments and political insecurity and uncertainty remain some of the biggest threats to the economy.

The main country indicators are in the red. Approximately 30% of the population lives below the poverty line. The unemployment level is estimated at around 7.5% and the level of under-employment is very high. Life expectancy is only 64 years and only 55% of the population is literate. Extreme poverty and under-development are major problems in Pakistan, and especially in rural areas.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	127.49	144.03	167.64e	162.63	170.19
GDP (constant prices, annual % change)	6.2	6.0	6.0e	2.5	3.5e
GDP per capita (USD)	820	912	1,044	998e	1,029
Inflation rate (%)	7.9	7.8	12.0e	20.0	6.0
Unemployment rate (% of the labor force)	-	-	7.4	-	-
Current Account (billions USD)	-4.99	-6.88	-14.04	-9.64e	-8.26
Current Account (in % of GDP)	-3.9	-4.8	-8.4	-5.9e	-4.9

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

The agricultural sector is the main pillar of the Pakistani economy. It contributes around 22% of the GDP and employs approximately 42% of the active population. Wheat, rice, cotton, sugarcane, fruits, vegetables and tobacco are the chief crops. Livestock farming is also very important. Pakistan is the 4th biggest cotton producer in the world and has abundant natural resources, mainly copper, oil and gas.

The industrial sector contributes around 25% of the GDP. The major industries are textile production (the biggest earner of foreign exchange), oil refining, metal processing, and the production of cement and fertilizer. Maritime transport is also a significant activity.

The tertiary sector contributes around half of the GDP. Remittances from Pakistanis working abroad are a considerable financial godsend for the country.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	43.0	20.3	36.6
Value added (in % of GDP)	20.6	26.6	52.8
Value added (annual % change)	3.7	8.0	7.6

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Pakistani Rupee (PKR) - Average annual exchange rate for 1 USD	58.26	59.51	60.27	60.74	70.41

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 57/100
Position:: mostly unfree
World Rank:: 102 out of 179
Regional Rank:: 19 out of 42

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Despite its economic and political difficulties, Pakistan has taken steps to liberalize its trade and investments in the context of commitments made with the WTO, IMF, and the World Bank. The share of foreign trade in the country’s GDP is around 35%. The drop in global demand has resulted in a high trade deficit.

In the 2008/09 budget year, the trade volume decreased by 9%. After having more than doubled between 2001/02 and 2007/08, Pakistani exports declined by 6% in 2008/09, compared to the same period of the previous year. Imports, which were multiplied by three between 2003 and 2008, declined by 10.5% in 2008/09, compared to 2007/08. The fall in imports led to a 17% reduction of the trade deficit in 2008/09, compared to 2007/08.

Pakistan's three main customers are the United States, the United Arab Emirates and Afghanistan. The main export commodities are cotton, textiles, clothing and cereals. Its three import partners are Saudi Arabia, the United Arab Emirates and China. Pakistan mainly imports fuels, oil, vehicles, iron and steel.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	11,978	16,693	21,773	26,696	28,761
Exports of goods (millions USD)	11,869	13,297	15,432	17,049	18,121
Imports of services (millions USD)	3,294	5,333	7,508	8,418	8,764
Exports of services (millions USD)	2,968	2,749	3,678	3,506	3,758
Imports of goods and services (annual % change)	11.2	-8.6	40.5	18.7	-2.8
Exports of goods and services (annual % change)	28.4	-1.5	9.6	9.9	2.3
Imports of goods and services (in % of GDP)	16.1	14.6	19.6	23.2	21.2
Exports of goods and services (in % of GDP)	16.7	15.7	15.7	15.2	14.1
Trade Balance (millions USD)	-109	-3,396	-6,341	-9,647	-10,640
Trade Balance (including service) (millions USD)	-435	-5,980	-10,171	-14,559	-15,646
Foreign trade (in % of GDP)	32.8	30.3	35.3	38.5	35.3

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
United States	18.0%
United Arab Emirates	9.9%
Afghanistan	7.1%
United Kingdom	4.9%
Germany	4.3%
China	3.6%
Italy	3.5%
Netherlands	2.8%
Spain	2.4%
Turkey	2.3%
Hong Kong	2.3%
Saudi Arabia	2.2%
Belgium	2.1%
Iran	2.1%
Bangladesh	2.1%
France	1.8%
India	1.7%
Oman	1.4%
South Africa	1.4%
Sri Lanka	1.1%
See more countries	55.7%

Main suppliers (% of imports)	2008
Saudi Arabia	14.1%
China	11.2%
United Arab Emirates	8.9%
Kuwait	8.1%
United States	4.9%
Japan	4.1%
Malaysia	4.0%
India	4.0%
Germany	3.5%
Indonesia	2.8%
United Kingdom	2.0%
Qatar	2.0%
Singapore	1.9%
Italy	1.8%
Iran	1.7%
South Korea	1.7%
Thailand	1.4%
Canada	1.4%
Russia	1.4%
Morocco	1.2%
See more countries	52.8%

Source: Comtrade

Main products

Main exports (% of exports)	2008
CottonCotton	17.7%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	15.5%
CerealsCereals	12.4%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	9.3%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	6.7%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	6.1%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	3.8%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	3.0%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	1.9%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	1.6%
Plastics and articles thereofPlastics and articles thereof	1.5%
Man-made staple fibresMan-made staple fibres	1.4%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.4%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.2%
Sugars and sugar confectionerySugars and sugar confectionery	1.2%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.1%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	1.1%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	1.1%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.9%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.8%
Ores, slag and ashOres, slag and ash	0.8%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.7%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.7%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	0.6%
Articles of iron or steelArticles of iron or steel	0.6%
Pharmaceutical productsPharmaceutical products	0.6%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	0.5%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.3%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.3%
Meat and edible meat offalMeat and edible meat offal	0.3%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.3%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.3%
Copper and articles thereofCopper and articles thereof	0.3%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.2%
Lac; gums, resins and other vegetable saps and...Lac; gums, resins and other vegetable saps and extracts	0.2%
Iron and steelIron and steel	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Man-made filamentsMan-made filaments	0.2%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
Works of art, collectors' pieces and antiquesWorks of art, collectors' pieces and antiques	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.1%
Aluminium and articles thereofAluminium and articles thereof	0.1%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.1%
Explosives; pyrotechnic products; matches;...Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations	0.1%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.1%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.1%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.1%
Products of animal origin, not elsewhere specified...Products of animal origin, not elsewhere specified or included	0.1%
Glass and glasswareGlass and glassware	0.1%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.1%
See more products	38.4%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	33.2%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	9.3%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	8.9%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	4.4%
Organic chemicalsOrganic chemicals	4.2%
CerealsCereals	4.0%
Iron and steelIron and steel	3.8%
Plastics and articles thereofPlastics and articles thereof	3.2%
CottonCotton	2.9%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	2.8%
FertilizersFertilizers	1.7%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.6%
Articles of iron or steelArticles of iron or steel	1.5%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.2%
Miscellaneous chemical productsMiscellaneous chemical products	1.1%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.0%
Pharmaceutical productsPharmaceutical products	1.0%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.9%
Rubber and articles thereofRubber and articles thereof	0.9%
Man-made staple fibresMan-made staple fibres	0.8%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.8%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.8%
Man-made filamentsMan-made filaments	0.7%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.7%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.7%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.5%
Ores, slag and ashOres, slag and ash	0.4%
Aluminium and articles thereofAluminium and articles thereof	0.4%
Ships, boats and floating structuresShips, boats and floating structures	0.4%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.3%
Copper and articles thereofCopper and articles thereof	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.3%
Ceramic productsCeramic products	0.3%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.3%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.2%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.2%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.2%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.2%
Other vegetable textile fibres; paper yarn and...Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn	0.2%
Glass and glasswareGlass and glassware	0.1%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.1%
Lead and articles thereofLead and articles thereof	0.1%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.1%
See more products	40.0%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Government ministries and departments
Ministry of Commerce
Ministry of Finance
Ministry of Economic Affairs & Statistics
Statistical Office: Statistics office
Central Bank: State Bank of Pakistan
Stock Exchange: Islamabad Stock Exchange
Karachi Stock Exchange
Lahore Stock Exchange
Search Engines: Google Pakistan
Yahoo Pakistan
Paki Search
Pakistan Services
Pakistan Webs Directory
Pak Avenue
Pak.org
OPD - Pakistan
Economic portals

Political outline

Executive Power: President is the chief of state and is elected by the parliament for a five-year term. President is the commander-in-chief of the armed forces. Though President is supposed to have a largely ceremonial role but military Presidents have played an influential role in country's mainstream politics throughout Pakistan's history. Prime Minister is elected by the lower house of the parliament through a vote for a five-year term. Prime Minister is the head of the government and enjoys the executive powers which include implementation of the law and running the day-to-day affairs of the country. The council of ministers (cabinet) is appointed by the President on the advice of the Prime Minister.
Legislative Power: The legislature in Pakistan is bicameral. The parliament consists of: Senate (the upper house) having 100 seats, with its members indirectly elected by provincial assemblies to serve six-year terms; and National Assembly (the lower house) having 342 seats, with its members elected by popular vote to serve five-year terms. President can be impeached and removed from its office by two-third majority vote of the National Assembly, but the constitution of the country also gives the President the unique power to dissolve the National Assembly and also to dismiss the Prime Minister. Prime Minister cannot dissolve the parliament . The people of Pakistan still have limited political rights.
Main political parties: Pakistan has a multi-party system in which no one party often has a chance of gaining power alone, and parties work with each other to form coalition governments. Some of the major political parties in the country are:
- PML(Q) (Pakistan Muslim League-Quaid-e-Azam) - centrist conservative political party derived from the original Pakistan Muslim League which had laid foundation of the state of Pakistan;
- PPPP(Pakistan People's Party Parliamentarian) – a mainstream political party derived out of Pakistan Peoples Party, MMA (Muttahhida Majlis-e-Amal Pakistan) - a coalition of Islamic religious parties;
- PLM-N (Pakistan Muslim League - Nawaz group) – also derived from the original Pakistan Muslim League;
- MQM (Muhajir Qaumi Movement) - originally an ethnic student’s organization but now more known for its terrorist activites.
Note: Name and alliances of political parties in Pakistan keep on changing frequently.
Current political leaders: President: Asif Ali ZARDARI (since September 2008)
Prime Minister: Syed Yousuf Raza GILANI (since March 2008)
Next election dates: Presidential: Year 2013
Senate: Year 2009
National Assembly: 2013

Indicator of freedom of the press

World Rank:: 152/173
Evolution:: Same rank in relation to 2007

Source: Worldwide Press Freedom Index 2008, Reporters Without Borders

Indicator of political freedom

Ranking:: Partly Free
Political freedom:: 4/7
Civil liberties:: 5/7

Map of freedom 2008
Source: Freedom House

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