Capital City: Islamabad
	It is %T:%M %A in Islamabad

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Economic trends

The government of Pakistan has been making significant macroeconomic reforms for several years now, which includes privatizing of the state-subsidized utilities, instituting an anti-money laundering law, cracking down on piracy of intellectual property, and quickly resolving investor disputes. Pakistan has been receiving substantial financial aid from the USA after 11th September 2001 for its support to fight terrorism which is becoming an important factor in country's economic growth. The GDP growth rate was 6.9 in 2006 and 6.4% in 2007. It will remain to 6.5% in 2008. High international oil prices, inflation (estimated at 7.8% in 2007) and a widening current-account deficit remain the biggest threats to the economy. Military tensions between India and Pakistan, and terrorist attack risks are the main hurdles to attract foreign investors. Nearly 30% of the population lives below the poverty line.

Main branches of industry

Agriculture sector is the main pillar of Pakistan’s economy. It contributes nearly 22% to GDP and employs roughly 42% of active population. Wheat, rice, cotton, sugarcane, and tobacco are the chief crops, and cattle & sheep are also raised in large numbers. Pakistan is the 4th largest cotton producer in the world. The country has abundant natural resources; mainly copper, oil and gas. The industrial sector contributes nearly 25% to the GDP. The major industries are textile production (the biggest earner of foreign exchange), oil refining, metal processing, and cement & fertilizer production. Maritime transport is also a sizeable activity. The services sector contributes nearly 53% to GDP. Remittances from Pakistanis working abroad constitute the second largest source of foreign exchange.

International trade

Despite its economic and political difficulties, Pakistan has taken steps to liberalize its trade and investment in the context of commitments made with the WTO, IMF, and the World Bank. Weak global demand for its exports has resulted into high trade deficit. The share of foreign trade in country’s GDP is around 35%. The top three export partners of Pakistan are: the USA, the UAE, and Afghanistan. The commodities mainly exported are cotton, textiles, apparel, and cereals. The top three import partners are: Saudi Arabia, the UAE and China. Pakistan mainly imports mineral fuels & oils, machinery, electric & electronic equipment, vehicles, and iron & steel.