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purchasing power parity (PPP), and 43th largest in terms of nominal gross domestic product.

Pakistan has a population of over 190 million (the world's 6th-largest), giving it a nominal GDP
per capita of $1,429, which ranks 140th in the world. However, Pakistan's undocumented
economy is estimated to be 36% of its overall economy, which is not taken into consideration
when calculating per capita income.[20] Pakistan is a developing country[21][22][23] and is one of the
Next Eleven, the eleven countries that, along with the BRICS, have a potential to become one of
the world's large economies in the 21st century.[24] However, after decades of war and social
instability, as of 2013, serious deficiencies in basic services such as railway transportation and
electric power generation had developed.[25] The economy is semi-industrialized, with centres of
growth along the Indus River.[26][27][28] Primary export commodities include textiles, leather goods,
sports goods, chemicals and carpets/rugs.[29]

Growth poles of Pakistan's economy are situated along the Indus River;[27][30] the diversified
economies of Karachi and major urban centers in the Punjab, coexisting with lesser developed
areas in other parts of the country.[27] The economy has suffered in the past from internal political
disputes, a fast-growing population, mixed levels of foreign investment.[25] Foreign exchange
reserves are bolstered by steady worker remittances, but a growing current account deficit
driven by a widening trade gap as import growth outstrips export expansion could draw down
reserves and dampen GDP growth in the medium term.[31] Pakistan is currently undergoing a
process of economic liberalization, including privatization of all government corporations, aimed
to attract foreign investment and decrease budget deficit.[32] In 2014, foreign currency reserves
crossed $18.4 billion[33] which has led to stable outlook on the long-term rating by Standard &
Poor's.[34][35] In 2016, BMI Research report named Pakistan as one of the ten emerging economies
with a particular focus on of its manufacturing hub.[36]

In October 2016, the IMF chief Christine Lagarde confirmed her economic assessment in
Islamabad that Pakistan's economy was 'out of crisis'[37] The World Bank predicts that by 2018,
Pakistan's economic growth will increase to a "robust" 5.4% due to greater inflow of foreign
investment, namely from the China-Pakistan Economic Corridor.[38] According to the World
Bank, poverty in Pakistan fell from 64.3% in 2002 to 29.5% in 2014.[39] Pakistan's fiscal position
continues to improve as the budget deficit has fallen from 6.4% in 2013 to 4.3% in 2016.[40][41]
The country's improving Macroeconomic position has led to Moody's upgrading Pakistan's debt
outlook to "stable".[42]

1 Economic history

o 1.1 First five decades

o 1.2 Recent decades

o 1.3 Economic resilience

1.3.1 Background
o 1.4 Macroeconomic reform and prospects

1.4.1 Doing business

2 The economy today

o 2.1 Stock market

o 2.2 Middle class

o 2.3 Poverty alleviation expenditures

2.3.1 Employment

o 2.4 Tourism

o 2.5 Revenue

3 Currency system

o 3.1 Rupee

o 3.2 Foreign exchange rate

o 3.3 Foreign exchange reserves

4 Structure of economy

5 Major Sectors

o 5.1 Primary

5.1.1 Agriculture

5.1.2 Mining

o 5.2 Secondary

5.2.1 Industry

5.2.2 Construction material

5.2.3 Information Communication Technology Industry

5.2.4 Defence Industry

5.2.5 Textiles

5.2.6 Other

o 5.3 Services

5.3.1 Communication

5.3.2 Transportation

5.3.3 Finance

5.3.4 Housing

5.3.5 Minor Sectors

5.3.6 Energy

5.3.7 Chemicals and pharmaceuticals

6 Foreign trade, remittances, aid, and investment

o 6.1 Investment

6.1.1 Foreign acquisitions and mergers

o 6.2 Foreign trade

6.2.1 Exports

o 6.3 External imbalances

o 6.4 Economic aid

o 6.5 Remittances

7 Government finances

o 7.1 Revenues and taxation

o 7.2 Expenditures (and the economic costs of War on Terror)

o 7.3 Sovereign bonds

8 Income distribution
9 See also

10 Further reading

11 References

12 External links

Economic history
Main article: Economic history of Pakistan

First five decades

Pakistan was a very poor and predominantly agricultural country when it gained independence in
1947. Pakistan's average economic growth rate in the first five decades (19471997) has been
higher than the growth rate of the world economy during the same period. Average annual real
GDP growth rates[43] were 6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in the 1980s. Average
annual growth fell to 4.6% in the 1990s with significantly lower growth in the second half of that

Recent decades

This is a chart of trend of gross domestic product of Pakistan at market prices estimated[45] by the
International Monetary Fund with figures in millions of Pakistani Rupees. See also[44]

Inflation Index Per Capita Income

Year Gross Domestic Product US Dollar Exchange
(2000=100) (as % of US)
1960 20,058 4.76 Pakistani Rupees 3.37
1965 31,740 4.76 Pakistani Rupees 3.40
1970 51,355 4.76 Pakistani Rupees 3.26
1975 131,330 9.91 Pakistani Rupees 2.36
1978 283,460 9.97 Pakistani Rupees 21 2.83
1985 569,114 16.28 Pakistani Rupees 30 2.07
1990 1,029,093 21.41 Pakistani Rupees 41 1.92
1995 2,268,461 30.62 Pakistani Rupees 68 2.16
2000 3,826,111 51.64 Pakistani Rupees 100 1.54
2005 6,581,103 59.86 Pakistani Rupees 126 1.71
2014 22,032,565 105.95 Pakistani Rupees 260
2016 45,680,351 104.55 Pakistani Rupees 370 2.71

Economic resilience
GDP Rate of Growth 19512009


Historically, Pakistan's overall economic output (GDP) has grown every year since a 1951
recession. Despite this record of sustained growth, Pakistan's economy had, until a few years
ago, been characterised as unstable and highly vulnerable to external and internal shocks.
However, the economy proved to be unexpectedly resilient in the face of multiple adverse events
concentrated into a four-year (19982002) period

the Asian financial crisis;

economic sanctions according to Colin Powell, Pakistan was "sanctioned to the


The global recession of 20012002;

a severe drought the worst in Pakistan's history, lasting about four years;

the post-9/11 military action in neighbouring Afghanistan, with a massive influx of

refugees from that country;

Macroeconomic reform and prospects

National Highways, Motorways & Strategic Roads of Pakistan.

According to many sources, the Pakistani government has made substantial economic reforms
since 2000,[47] and medium-term prospects for job creation and poverty reduction are the best in
nearly a decade.

In 2005, the World Bank reported that

"Pakistan was the top reformer in the region and the number 10 reformer globally
making it easier to start a business, reducing the cost to register property, increasing
penalties for violating corporate governance rules, and replacing a requirement to license
every shipment with two-year duration licences for traders."[48]

Doing business

The World Bank (WB) and International Finance Corporation's flagship report Ease of Doing
Business Index 2015 ranked Pakistan 138 among 189 countries around the globe. The top five
countries were Singapore, New Zealand, the United States, Hong Kong and United Kingdom.[49]

Many Western companies refuse to do business with Pakistan and cite problems of courrption,
lack of resources and lack of infrastructure as key problems.[50]

The economy today

Today the Nominal GDP of Pakistan is 270.96 billion USD which is better than its last decades
performance due to high growth rate.[51]

Economic comparison of Pakistan 19992008

A view of I. I. Chundrigar Road of Karachi(Financial Capital of Pakistan)

Main Industries by Region - Pakistan. Source:[52]
Indicator 1999 2007 2008 2009 2015
GDP $75 billion $160 billion $170 billion $185 billion $270.96 billion
GDP Purchasing $928.43 billion
$270 billion $475.5 billion $504 billion $545.6 billion
Power Parity (PPP) (PPP,2015)
GDP per Capita
$450 $925 $1085 $1250 $1560.7
Rs. 305 Rs. 708 Rs. 990 Rs. 1.05
Revenue collection Rs 2.65 trillion
billion billion billion trillion
Foreign reserves $16.4 billion $8.89 billion $17.21 billion $20 billion
$19.22 $30.414 billion
Exports $8.5 billion $18.5 billion $18.45 billion
billion (201314 est.)
Textile Exports $5.5 billion $11.2 billion
$26.5 billion
KHI stock exchange $5 billion at $75 billion at $46 billion at
at 9,000
(100-Index) 700 points 14,000 points 9,300 points
Foreign Direct $0.709 billion
$1 billion $8.4 billion $5.19 billion $4.6 billion
Investment [21]
External Debt &
$39 billion $40.17 billion $45.9 billion $50.1 billion $56 billion
Poverty level 60% 43% 37% 29% 17%
Literacy rate 45% 53% 59% 61% 65%[22]
Development Rs. 80 Rs. 520 Rs. 549.7 Rs. 621
Rs758 billion
programs billion billion billion billion

In 2016 the Atlantic Media Company (AMC) of the United States has ranked Pakistan as a
relatively stronger economy in the South Asian markets and expected that it will grow rapidly
during days ahead. AMC said that during the period JanuaryJuly this year, Indian 100 point
index was 6.67% while Karachi Stock Exchange (KSE) had achieved 100 point index of 17
percent. [23]

Stock market

Main articles: Karachi Stock Exchange, Lahore Stock Exchange, Islamabad Stock Exchange, and
Sialkot Trading Floor

In the first four years of the twenty-first century, Pakistan's KSE 100 Index was the best-
performing stock market index in the world as declared by the international magazine "Business
Week".[53][citation needed] The stock market capitalisation of listed companies in Pakistan was valued at
$5,937 million in 2005 by the World Bank.[54] But in 2008, after the General Elections, uncertain
political environment, rising militancy along western borders of the country, and mounting
inflation and current account deficits resulted in the steep decline of the Karachi Stock
Exchange. As a result, the corporate sector of Pakistan has declined dramatically in recent times.
However, the market bounced back strongly in 2009 and the trend continues in 2011. By 2014
the stock market burst into uncharted territories as the benchmark KSE 100 Index rose 907
points (3.1%) and shot past the 30,000-point barrier to close at a new record high, this came days
after Moody's announced that it was upgrading the outlook of 5 major Pakistani banks from
Negative to Stable, resulting in heavy buying in the banking sector. The rally was supported by
heavy buying in the oil and gas and cement sectors.[55] An article published in The Journal of
Developing Areas of Tennessee State University in the US, economist Mete Feridun investigates
the exchange rate movements in the Pakistani foreign exchange market using the market micro
structure approach, shedding more lights on the dynamics of the Pakistani Stock Exchange.[56]

Middle class

See also: Labour force of Pakistan

As of 2013, according to Macro Economic Insights, a research firm in Islamabad, the size of the
Pakistani middle class is conservatively estimated at approximately 70 million, out of a total
population of about 186 million. This represents 40% of the population of the country.[57]

On measures of income inequality, the country ranks slightly better than the median. In late
2006, the Central Board of Revenue estimated that there were almost 2.8 million income-tax
payers in the country.[58] However, by 2013, the number of taxpayers was drastically reduced to
just 768,000 out of a total population of 190 million, meaning that only 0.57% of the population
pay taxes[59]

Poverty levels have decreased by 10% since 2001[60] Foreign Companies which provide for
Pakistani middle classes have been very successful. For example, demand for Unilever products
have recently been so high that even after doubling production the Anglo-Dutch company
struggled to meet demand and its chairman stated "Pakistanis cant seem to have enough".[61]

Poverty alleviation expenditures

Main article: Poverty in Pakistan

Socio-Economic Status of Pakistanis, source:[62]

Pakistan government spent over 1 trillion Rupees (about $16.7 billion) on poverty alleviation
programmes during the past four years, cutting poverty from 35% in 200001 to 29.3% in 2013.
Rural poverty remains a pressing issue, as development there has been far slower than in the
major urban areas.


The high population growth in the past few decades has ensured that a very large number of
young people are now entering the labor market. Even though it is among the six most populous
Asian nations. In the past, excessive red tape made firing from jobs, and consequently hiring,
difficult.[64] Significant progress in taxation and business reforms has ensured that many firms
now are not compelled to operate in the underground economy.[65]

In late 2006, the government launched an ambitious nationwide service employment scheme
aimed at disbursing almost $2 billion over five years.[66][67]

Mean wages were $0.98 per man-hour in 2009. Rate of unemployment is 15%.

High inflation and limited wage growth have drawn more women into the workforce to feed their

Government sector is also contributing in employment and according to estimate 4.5 million
people are employed by federal, provincial and local governments in different sectors from
Armed forces to education and health.[69]


Main article: Tourism in Pakistan

Malam Jabba Ski Resort, Swat, Kyber Pakhtunkhwa, Pakistan

Faisal Mosque in the capital Islamabad.

Tourism in Pakistan has been stated as being the tourism industry's "next big thing". Pakistan,
with its diverse cultures, people and landscapes, has attracted 90 million tourists to the country,
almost double to that of a decade ago. Due to threat of terrorism the number of foreigner tourists
has gradually declined and the shock of 2013 Nanga Parbat tourist shooting has terribly
adversely effected the tourism industry.[70] As of 2016 tourism has begun to recover in Pakistan,
albeit gradually.[71]


Although the country is a Federation with constitutional division of taxation powers between the
Federal Government and the four provinces, the revenue department of the Federal Government,
the Federal board of Revenue, collects almost 95% of the entire national revenue. The Federal
Board of Revenue collected nearly two trillion rupees ($24 p .1 billion) in taxes in the 2007
2008 financial year,[72] while it collected about 1558 billion ($18.3 billion) during FY 20102011.

Currency system
Main article: Pakistani rupee


The basic unit of currency is the Rupee, ISO code PKR and abbreviated Rs, which is divided into
100 paisas. Currently the newly printed 5,000 rupee note is the largest denomination in
circulation. Recently the SBP has introduced all new design notes of Rs. 10, 20, 50, 100, 500,
1000 and 5000.
Dollar-Rupee exchange rate

The Pakistani Rupee was pegged to the Pound sterling until 1982, when the government of
General Zia-ul-Haq, changed it to managed float. As a result, the rupee devalued by 38.5%
between 1982/83 many of the industries built by his predecessor suffered with a huge surge in
import costs. After years of appreciation under Zulfikar Ali Bhutto and despite huge increases in
foreign aid the Rupee depreciated.

Foreign exchange rate

The Pakistani rupee depreciated against the US dollar until around the start of the 21st century,
when Pakistan's large current-account surplus pushed the value of the rupee up versus the dollar.
Pakistan's central bank then stabilised by lowering interest rates and buying dollars, in order to
preserve the country's export competitiveness

PKR per US dollar 19952008

Highest Lowest
Date Rate Date Rate
1996 PKR 30.930
1997 PKR 35.266
1998 PKR 40.185
1999 PKR 44.550
2000 PKR 51.90
2001 PKR 53.6482
2002 PKR 61.9272
2003 PKR 59.7238
2005 PKR 57.752
2006 PKR 58.000
2009 05 Aug PKR 60.75 01 Nov PKR 60.50
2010 October 10 PKR 80.00 01 Apr PKR 63.50
Source: PKR exchange rates in USD, SBP

Foreign exchange reserves

Pakistan maintains foreign reserves with State Bank of Pakistan. The currency of the reserves
was solely US dollar incurring speculated losses after the dollar prices fell during 2005, forcing
the then Governor SBP Ishrat Hussain to step down. In the same year the SBP issued an official
statement proclaiming diversification of reserves in currencies including Euro and Yen,
withholding ratio of diversification.
Following the international credit crisis and spikes in crude oil prices, Pakistan's economy could
not withstand the pressure and on October 11, 2008, State Bank of Pakistan reported that the
country's foreign exchange reserves had gone down by $571.9 million to $7749.7 million.[73] The
foreign exchange reserves had declined more by $10 billion to a level of $6.59 billion.

Structure of economy
The economy of the Islamic Republic of Pakistan is suffering with high inflation rates well above
26%. Over 1,081 patent applications were filed by non-resident Pakistanis in 2004 revealing a
new-found confidence.[74] Agriculture accounted for about 53% of GDP in 1947. While per-capita
agricultural output has grown since then, it has been outpaced by the growth of the non-
agricultural sectors, and the share of agriculture has dropped to roughly one-fifth of Pakistan's
economy. In recent years, the country has seen rapid growth in industries (such as apparel,
textiles, and cement) and services (such as telecommunications, transportation, advertising, and

Major Sectors
See also: List of Pakistani companies



Main article: Agriculture in Pakistan

Agriculture by Province

Mango Orchard in Multan, Pakistan

The most important crops are wheat, sugarcane, cotton, and rice, which together account for
more than 75% of the value of total crop output. Pakistan's largest food crop is wheat. In 2005,
Pakistan produced 21,591,400 metric tons of wheat, more than all of Africa (20,304,585 metric
tons) and nearly as much as all of South America (24,557,784 metric tons), according to the
FAO.[75] The country is expected to harvest 47 to 64 million tons of wheat in 2015. Pakistan has
also cut the use of dangerous pesticides dramatically.[76]

Pakistan is a net food exporter, except in occasional years when its harvest is adversely affected
by droughts. Pakistan exports rice, cotton, fish, fruits (especially Oranges and Mangoes), and
vegetables and imports vegetable oil, wheat, pulses and consumer foods. The country is Asia's
largest camel market, second-largest apricot and ghee market and third-largest cotton, onion and
milk market. The economic importance of agriculture has declined since independence, when its
share of GDP was around 53%. Following the poor harvest of 1993, the government introduced
agriculture assistance policies, including increased support prices for many agricultural
commodities and expanded availability of agricultural credit. From 1993 to 1997, real growth in
the agricultural sector averaged 5.7% but has since declined to about 4%. Agricultural reforms,
including increased wheat and oilseed production, play a central role in the government's
economic reform package.

Majority of the population, directly or indirectly, dependent on this sector. It contributes about 24
percent of Gross Domestic Product (GDP) and accounts for half of employed labor force and is
the largest source of foreign exchange earnings.[77]

Pakistan's Top Ten commodities by export value in 2011 were:[78]

Commodity Value [1000 USD]

Wheat 674424
Cotton lint 359341
Flour of Wheat 352014
Tangerines, mandarins, clem. 120893
Potatoes 102185
Cattle meat 71729
Maize 70028
Cotton Waste 65707
Dates 64081
Vegetables fresh nes 53136

Pakistan's principal natural resources are arable land and water. About 25% of Pakistan's total
land area is under cultivation and is watered by one of the largest irrigation systems in the world.
Pakistan irrigates three times more acres than Russia. Pakistan agriculture also benefits from year
round warmth. Agriculture accounts for about 23% of GDP and employs about 44% of the labour
force. Zarai Taraqiati Bank Limited is the largest financial institution geared towards the
development of agriculture sector through provision of financial services and technical expertise.
Pakistan is one of the world's largest producers of the following commodities according to
FAOSTAT, the statistical arm of the Food and Agriculture Organisation of The United Nations,
given here with the 2008 ranking:

Name Global rank

Apricot 3rd
Buffalo Milk 2nd
Chickpea 3rd
Cotton, lint 4th
Cotton, Seed 3rd
Dates 5th
Mango 6th
Onion, dry 4th
Oranges 11th
Rice, paddy 11th
Sugarcane 5th
Tangerines 9th
Wheat 8th


Main article: Mining in Pakistan

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Pakistan is endowed with significant mineral resources and is emerging as a very promising area
for prospecting/exploration for mineral deposits. Based on available information, the country's
more than 6,00,000 km of outcrops area demonstrates varied geological potential for metallic
and non-metallic mineral deposits. Except oil, gas and nuclear minerals regulated at federal level,
minerals are a provincial subject, under the constitution of the Islamic Republic of Pakistan.
Provincial governments are responsible for development and exploitation of minerals, besides,
enforcing regulatory regime. In line with the constitutional framework the federal and provincial
governments have jointly set out Pakistan's first National Mineral Policy in 1995, duly
implemented by the provinces, providing appropriate institutional and regulatory framework and
equitable and internationally competitive fiscal regime.

In the recent past, exploration by government agencies as well as by multinational mining

companies presents ample evidence of the occurrences of sizeable minerals deposits. Recent
discoveries of a thick oxidised zone underlain by sulphide zones in the shield area of the Punjab
province, covered by thick alluvial cover have opened new vistas for metallic minerals
exploration. Pakistan has a large base for industrial minerals. The discovery of coal deposits
having over 175 billion tones of reserves at Thar in the Sindh province has given an impetus to
develop it as an alternate source of energy. There is vast potential for precious and dimension
The enforcement of Mineral Policy (1995) has paved the way to expand mining sector activities
and attract international investment in this sector. International mining companies have
responded favorably to the NMP and presently at least four are engaged in mineral projects

Currently about 52 minerals are under exploitation although on small scale. The major
production is of coal, rock salt and other industrial and construction minerals. The current
contribution of the mineral sector to the GDP is about 0.5% and likely to increase considerably
on the development and commercial exploitation of Saindak & Reco Diq copper and gold
deposits (world's largest gold mine), Duddar zinc lead, Thar coal and gemstone deposits.



Main article: Industry of Pakistan

Manufacturing by Province

Pakistan's industrial sector accounts for about 24% of GDP. Cotton textile production and
apparel manufacturing are Pakistan's largest industries, accounting for about 66% of the
merchandise exports and almost 40% of the employed labour force.[79] Other major industries
include cement, fertiliser, edible oil, sugar, steel, tobacco, chemicals, machinery, and food

The government is privatizing large-scale industrial units, and the public sector accounts for a
shrinking proportion of industrial output, while growth in overall industrial output (including the
private sector) has accelerated. Government policies aim to diversify the country's industrial base
and bolster export industries. Large Scale Manufacturing is the fastest-growing sector in
Pakistani economy[80] Major Industries include textiles, fertiliser, cement, oil refineries, dairy
products, food processing, beverages, construction materials, clothing, paper products and

In Pakistan SMEs have a significant contribution in the total GDP of Pakistan, according to
SMEDA and Economic survey reports, the share in the annual GDP is 40% likewise SMEs
generating significant employment opportunities for skilled workers and entrepreneurs. Small
and medium scale firms represent nearly 90% of all the enterprises in Pakistan and employ 80%
of the non-agricultural labor force. These figures indicate the potential and further growth in this
Pakistan's largest corporation are mostly involved in utilities like oil, gas and telecommunication:

Rank[81] Name Headquarters
(Mil. $)
1. Pakistan State Oil Karachi 13,094[82]
2. Pak-Arab Refinery Qasba Gujrat 3,000
3. Sui Northern Gas Pipelines Limited Lahore 2,520
4. Shell Pakistan Karachi 2,380
5. Oil and Gas Development Company Islamabad 2,230
6. National Refinery Karachi 1,970
7. Hub Power Company Hub, Balochistan 1,970
8. K-Electric Karachi 1,951[83]
9. Attock Refinery Rawalpindi 1,740
10. Attock Petroleum Rawalpindi 1,740
11. Pakistan Telecommunication Company Islamabad 1,326
12. Engro Corporation Karachi 1,012[84]
13. Fauji Fertilizer Company Limited Rawalpindi 754

Construction material

In 1947, Pakistan had inherited four cement plants with a total capacity of 0.5 million tons. Some
expansion took place in 195666 but could not keep pace with the economic development and
the country had to resort to imports of cement in 197677 and continued to do so till 199495.
The cement sector consisting of 27 plants is contributing above Rs 30 billion to the national
exchequer in the form of taxes. However, by 2013, Pakistan's cement is fast-growing mainly
because of demand from Afghanistan and countries boosting real estate sector, In 2013 Pakistan
exported 7,708,557 metric tons of cement.[85] Pakistan has installed capacity of 44,768,250 metric
tons of cement and 42,636,428 metric tons of clinker. In the 20122013 cement industry in
Pakistan became the most profitable sector of economy.[86]

Information Communication Technology Industry

Main article: Information technology in Pakistan

Information Communication Technology (ICT) industry grossed over $4.8 billion in 2013.
However, it is expected to exceed the $13 billion mark by 2018.[87] A marked increase in software
export figures are an indication of this booming industry's potential. The total number of IT
companies increased to 1306 and the total estimated size of IT industry is $2.8 billion. In 2007,
Pakistan was for the first time featured in the Global Services Location Index by A.T. Kearney
and was rated as the 30th best location for offshoring.[88] By 2009, Pakistan had improved its rank
by ten places to reach 20th.[89] According to Pakistan Startup report, there are about 1 million
freelancers working from Pakistan mainly via elance, oDesk and freelancer world's famous
online market places that count Pakistan among top 5 freelancing nations.

Defence Industry
The defence industry of Pakistan, under the Ministry of Defence Production, was created in
September 1951 to promote and coordinate the patchwork of military production facilities that
have developed since independence.It is currently actively participating in many joint production
projects such as Al Khalid 2, advance trainer aircraft, combat aircraft, navy ships and
submarines. Pakistan is manufacturing and selling weapons to over 40 countries, bringing in $20
million annually.The country's arms imports increased by 119 per cent between the 20042008
and 200913, with China providing 54pc and the USA 27pc of Pakistan's imports.


Main article: Textile industry in Pakistan

Countries which have either free or preferential trading agreements with Pakistan.

Most of the Textile Industry is established in Punjab. 10% of United States imports regarding
clothing and other form of textiles is covered by Pakistan.[90]


As of 2010, Pakistan is one of the largest users of CNG (compressed natural gas) in the world.
Presently, more than 3,000 CNG stations are operating in the country in 99 cities and towns, and
1000 more would be set up in the next two years. It has provided employment to over 50,000
people in Pakistan, but the CNG industry is struggling to survive the 2013 energy crisis.[91][92]


PRC Towers, Karachi.

Pakistan's service sector accounts for about 53.3% of GDP.[93] Transport, storage,
communications, finance, and insurance account for 24% of this sector, and wholesale and retail
trade about 30%. Pakistan is trying to promote the information industry and other modern service
industries through incentives such as long-term tax holidays.

Main article: Communications in Pakistan

PTCL's One Stop Shop in Islamabad

After the deregulation of the telecommunication industry, the sector has seen an exponential
growth. Pakistan Telecommunication Company Ltd has emerged as a successful Forbes 2000
conglomerate with over US $1 billion in sales in 2005. The mobile telephone market has
exploded fourteen-fold since 2000 to reach a subscriber base of 91 million users in 2008, one of
the highest mobile teledensities in the entire world.[94] In addition, there are over 6 million
landlines in the country with 100% fibre-optic network and coverage via WLL in even the
remotest areas.[95] As a result, Pakistan won the prestigious Government Leadership award of
GSM Association in 2006.[96]

The World Bank estimates that it takes about 3 days to get a phone connection in Pakistan.[97]

In Pakistan, the following are the top mobile phone operators:

1. Mobilink (Parent: VimpelCom Ltd., Netherland)

2. Ufone (Parent: PTCL (Etisalat), Pakistan/UAE)

3. Telenor (Parent: Telenor, Norway)

4. Zong (Parent: China Mobile, China)

By March 2009, Pakistan had 91 million mobile subscribers 25 million more subscribers than
reported in the same period in 2008. In addition to the 3.1 million fixed lines, while as many as
2.4 million are using Wireless Local Loop connections. Sony Ericsson, Nokia and Motorola
along with Samsung and LG remain the most popular brands among customers.[94]

Since liberalisation, over the past four years,[when?] the Pakistani telecom sector has attracted more
than $9 billion in foreign investments.[98] During 200708, the Pakistani communication sector
alone received $1.62 billion in Foreign Direct Investment (FDI) about 30% of the country's
total foreign direct investment.
Present growth of state-of-the-art infrastructures in the telecoms sector during the last four years
has been the result of the PTA's vision and implementation of the deregulation policy. Paging and
mobile (cellular) telephones were adopted early and freely. Cellular phones and the Internet were
adopted through a rather laissez-faire policy with a proliferation of private service providers that
led to the fast adoption. With a rapid increase in the number of Internet users and ISPs, and a
large English-speaking population, Pakistani society has seen an unparalleled revolution in

According to the PC World,[99] a total of 6.37 billion text messages were sent through Acision
messaging systems across Asia Pacific over the 2008/2009 Christmas and New Year period.
Pakistan was amongst the top five ranker with one of the highest SMS traffic with 763 million

Pakistan is ranked 4th in terms of broadband Internet growth in the world, as the subscriber base
of broadband Internet has been increasing rapidly. The rankings are released by Point Topic
Global broadband analysis, a global research centre.[100]

Pakistan has more than 20 million Internet users in 2009.[101] The country is said to have a
potential to absorb up to 50 million mobile phone Internet users in the next 5 years thus a
potential of nearly 1 million connections per month.

Almost all of the main government departments, organisations and institutions have their
own websites.

The use of search engines and instant messaging services is also booming. Pakistanis are
some of the most ardent chatters on the Internet, communicating with users all over the
world. Recent years have seen a huge increase in the use of online marriage services, for
example, leading to a major re-alignment of the tradition of arranged marriages.

As of 2007 there were six cell phone companies operating in the country with nearly 90
million mobile phone users in the country.

There were 140 million mobile phone users in Pakistan in 2014, eighth largest in the

Wireless local loop and the landline telephony sector has also been liberalised and private
sector has entered thus increasing the teledensity rate. In mid-2008, the Local Loop
installed capacity reached around 5.5 million.[102]

Telecom industry created of 80,000 jobs directly and 500,000 jobs indirectly.

The Federal Bureau of Statistics provisionally valued this sector at Rs.982,353 million in 2005
thus registering over 91% growth since 2000.[103]

Main article: Transportation in Pakistan
See also: Pakistan Railways and List of airlines of Pakistan

A PIA B747-367 at the Domestic Satellite of Jinnah International Airport

Pakistan International Airlines, the flagship airline of Pakistan's civil aviation industry, has
turnover exceeding $25 billion in 2015.[104] The government announced a new shipping policy in
2006 permitting banks and financial institutions to mortgage ships.[105] Private sector airlines in
Pakistan include Airblue, which serves the main cities within Pakistan in addition to destinations
in the Gulf and Manchester in the United Kingdom. The other private carrier is Shaheen Air
International whose network covers the main cities of Pakistan and the Gulf.

A massive rehabilitation plan worth $1 billion over five years for Pakistan Railways has been
announced by the government in 2005.[106] A new rail link trial has been established from
Islamabad to Istanbul, via the Iranian cities of Zahedan, Kerman and Tehran. It is expected to
promote trade, tourism, especially for exports destined for Europe (as Turkey is part of Europe
and Asia).[107][108]


Main articles: Banking in Pakistan and Insurance in Pakistan

See also: List of banks in Pakistan

Pakistan's banking sector has remained remarkably strong and resilient during the world
financial crisis in 200809, a feature which has served to attract a substantial amount of FDI in
the sector. Stress tests conducted on June 2008 data indicate that the large banks are relatively
robust, with the medium and small-sized banks positioning themselves in niche markets.
Banking sector turned profitable in 2002. Their profits continued to rise for the next five years
and peaked to Rs 84.1 ($1.1 billion) billion in 2006.

The credit card market continued its strong growth with sales crossing the 1 million mark in mid-
2005.[109] Since 2000 Pakistani banks have begun aggressive marketing of consumer finance to
the emerging middle class, allowing for a consumption boom (more than a 7-month waiting list
for certain car models) as well as a construction bonanza.

The Federal Bureau of Statistics provisionally valued this sector at Rs.311,741 million in 2005
thus registering over 166% growth since 2000.[103]
An article published in Journal of the Asia Pacific Economy by Mete Feridun of University of
Greenwich in London with his Pakistani colleague Abdul Jalil presents strong econometric
evidence that financial development fosters economic growth in Pakistan.[110]


Main article: Housing in Pakistan

Houses in Bahria Town is the largest private housing society in Asia.

The property sector has expanded twenty-threefold since 2001, particularly in metropolises like
Lahore.[111] Nevertheless, the Karachi Chamber of Commerce and Industry estimated in late 2006
that the overall production of housing units in Pakistan has to be increased to 0.5 million units
annually to address 6.1 million backlog of housing in Pakistan for meeting the housing shortfall
in next 20 years. The report noted that the present housing stock is also rapidly aging and an
estimate suggests that more than 50% of stock is over 50 years old. It is also estimated that 50%
of the urban population now lives in slums and squatter settlements. The report said that meeting
the backlog in housing, besides replacement of out-lived housing units, is beyond the financial
resources of the government. This necessitates putting in place a framework to facilitate
financing in the formal private sector and mobilise non-government resources for a market-based
housing finance system.[112]

The Federal Bureau of Statistics provisionally valued this sector at Rs.185,376 million in 2005
thus registering over 49% growth since 2000.[103]

Minor Sectors

The Federal Bureau of Statistics provisionally valued this sector at Rs.389,545 million in 2005
thus registering over 65% growth since 2000.[103] The Federal Bureau of Statistics provisionally
valued this sector at Rs.631,229 million in 2005 thus registering over 78% growth since 2000.[103]
The Federal Bureau of Statistics provisionally valued this sector at Rs.1,358,309 million in 2005
thus registering over 96% growth since 2000. The wholesale and retail trade is the largest sub-
sector of the services. Its share in the overall services sector is estimated at 31.5 percent. The
wholesale and retail trade sector is based on the margins taken by traders on the transaction of
commodities traded. In 201213, this sector grew at 2.5 percent as compared to 1.7 percent in the
last year.

Main article: Electricity sector in Pakistan

For years, the matter of balancing Pakistan's supply against the demand for electricity has
remained a largely unresolved matter. Pakistan faces a significant challenge in revamping its
network responsible for the supply of electricity. While the government claims credit for
overseeing a turnaround in the economy through a comprehensive recovery, it has just failed to
oversee a similar improvement in the quality of the network for electricity supply. Most cities in
Pakistan receive substantial sunlight throughout the year, which would suggest good conditions
for investment in solar energy. If the rich people in Pakistan are shifted to solar energy that they
should be forced to purchase solar panels, the shortfall can be controlled. this will make the
economy boost again as before 2007. According to an econometric analysis published in Quality
& Quantity by Mete Feridun of University of Greenwich and his colleague Muhammad Shahbaz,
economic growth in Pakistan leads to electricity consumption but not vice versa.[113]


Chemicals and pharmaceuticals

Main article: Pharmaceutical industry in Pakistan

Foreign trade, remittances, aid, and investment


Foreign direct investment (FDI) in Pakistan soared by 180.6 percent year-on-year to US$2.22
billion and portfolio investment by 276 per cent to $407.4 million during the first nine months of
fiscal year 2006, the State Bank of Pakistan (SBP) reported on 24 April. During JulyMarch
200506, FDI year-on-year increased to $2.224 billion from only $792.6 million and portfolio
investment to $407.4 million, whereas it was $108.1 million in the corresponding period last
year, according to the latest statistics released by the State Bank.[115] Pakistan has achieved FDI of
almost $8.4 billion in the financial year 06/07, surpassing the government target of $4 billion.[116]
Foreign investment had significantly declined by 2010, dropping by 54.6% due to Pakistan's
political instability and weak law and order, according to the Bank of Pakistan.[117]

Business regulations have been overhauled along liberal lines, especially since 1999. Most
barriers to the flow of capital and international direct investment have been removed. Foreign
investors do not face any restrictions on the inflow of capital, and investment of up to 100% of
equity participation is allowed in most sectors. Unlimited remittance of profits, dividends,
service fees or capital is now the rule. Business regulations are now among the most liberal in the
region. This was confirmed by the World Bank's Ease of Doing Business Index report published
in September 2009 ranking Pakistan (at 85th) well ahead of neighbours like China (at 89th) and
India (at 133rd).[118]

Pakistan is attracting private equity and was the ranked as number 20 in the world based on the
amount of private equity entering the nation. Pakistan has been able to attract a portion of the
global private equity investments because of economic reforms initiated in 2003 that have
provided foreign investors with greater assurances for the stability of the nation and their ability
to repatriate invested funds in the future.[119]

Tariffs have been reduced to an average rate of 16%, with a maximum of 25% (except for the car
industry). The privatization process, which started in the early 1990s, has gained momentum,
with most of the banking system privately owned, and the oil sector targeted to be the next big
privatization operation.

The recent improvements in the economy and the business environment have been recognised by
international rating agencies such as Moody's and Standard and Poor's (country risk upgrade at
the end of 2003). 47.1% increase in Net FDI in 20142015 (JulyOctober) as compared to 2013
14 (JulyOctober).[120]

Foreign acquisitions and mergers

With the rapid growth in Pakistan's economy, foreign investors are taking a keen interest in the
corporate sector of Pakistan. In recent years, majority stakes in many corporations have been
acquired by multinational groups.

PICIC by Singapore-based Temasek Holdings for $339 million

Union Bank by Standard Chartered Bank for $487 million

Prime Commercial Bank by ABN Amro for $228 million

PakTel by China Mobile for $460 million

PTCL by Etisalat for $1.8 billion

Additional 57.6% shares of Lakson Tobacco Company acquired by Philip Morris

International for $382 million

The foreign exchange receipts from these sales are also helping cover the current account deficit.

Foreign trade

Main article: Foreign trade of Pakistan

Pakistani exports in 2005

Pakistan's hard currency reserves have grown rapidly. Improved fiscal management, greater
transparency and other governance reforms have led to upgrades in Pakistan's credit rating.
Together with lower global interest rates, these factors have enabled Pakistan to prepay, refinance
and reschedule its debts to its advantage. Despite the country's current account surplus and
increased exports in recent years, Pakistan still has a large merchandise-trade deficit. The budget
deficit in fiscal year 199697 was 6.4% of GDP. The budget deficit in fiscal year 200304 is
expected to be around 4% of GDP.

In the late 1990s Pakistan received about $2.5 billion per year in loan/grant assistance from
international financial institutions (e.g., the IMF, the World Bank, and the Asian Development
Bank) and bilateral donors.[122] Increasingly, the composition of assistance to Pakistan shifted
away from grants toward loans repayable in foreign exchange. All new U.S. economic assistance
to Pakistan was suspended after October 1990, and additional sanctions were imposed after
Pakistan's May 1998 nuclear weapons tests. The sanctions were lifted by president George W.
Bush after Pakistani president Musharraf allied Pakistan with the U.S. in its war on terror.
Having improved its finances, the government refused further IMF assistance, and consequently
the IMF programme was ended.[123] The government is also reducing tariff barriers with bilateral
and multilateral agreements. The government is also reducing tariff barriers with bilateral and
multilateral agreements.

While the country has a current account surplus and both imports and exports have grown
rapidly in recent years, it still has a large merchandise-trade deficit. This deficit amounted to over
15 billion in 2010.[124] The budget deficit in fiscal year 20042005 was 3.4% of GDP. The
budget deficit in fiscal year 200506 is expected to be over 4% of GDP. Economists believe that
the soaring trade deficit would have an adverse impact on Pakistani rupee by depreciating its
value against dollar (1 US $ = 60 Rupees (March 2006) ) and other currencies.

One of the main reasons that contributed to the increase in trade deficit is the increased imports
of earthquake relief related items, especially tents, tarpaulin and plastic sheets to provide
temporary shelter to the survivors of earthquake of October 8, 2005, in Azad Jammu and
Kashmir and parts of Khyber-Pakhtunkhwa, an official said. The rise in the trade gap was also
fuelled by high oil import prices, food items, machinery and automobiles.

The Petroleum Ministry says that this year the bill of oil imports was expected to reach $6.5
billion against $4.6 billion in the last fiscal year, which is the main reason behind the all-time
high trade deficit.

The EU is the single largest trading partner of Pakistan absorbing over one-third of the exports in
2003. In 2010, the EU accounted for 12.4% of Pakistani imports and 22.6% of its exports.[124]

The public debt of the country has surged by almost 100% to Rs12.024 trillion as of 31 March
2011 2012 from Rs6.055 trillion in 20072008. The trade deficit has increased by 14.5% and
current account deficit has swelled by $3.39 billion despite the fact that the country received
$10.8 billion in workers remittances in 10 months of the current financial.[125]

Graphical depiction of Pakistan's product exports in 28 colour-coded categories.

Pakistan's exports increased more than 100% from $7.5 billion in 1999 to stand at $18 billion in
the financial year 20072008.[126]

Pakistan exports rice, oranges, mangoes, furniture, cotton fiber, cement, tiles, marble, textiles,
clothing, leather goods, sports goods (renowned for footballs/soccer balls), cutlery, surgical
instruments, electrical appliances, software, carpets and rugs, ice cream, livestock meat, chicken,
powdered milk, wheat, seafood (especially shrimp/prawns), vegetables, processed food items,
Pakistani-assembled Suzukis (to Afghanistan and other countries), defence equipment
(submarines, tanks, radars), salt, onyx, engineering goods, and many other items. Pakistan
produces and exports cements to Asia and the Middle East. In August 2007, Pakistan started
exporting cement to India to fill in the shortage there caused by the lack of Cement Industry.[127]
Russia is a growing market for Pakistani exporters. In 2009/2010 the export target of Pakistan
was US $20 billion.[128] As of April 2011, Pakistans exports stand at US $25 billion.

External imbalances

Pakistan suffered a merchandise trade deficit of $13.528 billion for the financial year 200607.
The gap has considerably widened since 200203 when the deficit was only $1.06 billion.[129]
Services sector deficit for 20062007 stood at $4.125 billion which equals the services export of
$4.125 billion for the same year.[130]

The combined deficit in services and goods stand at $17.653 billion which is approx 83.5% of
country's total export of $21.136 (Goods and services). The rise in the trade gap has been
attributed to high oil import bill, and rise in the prices of food items, machinery and automobiles.

Current account Current account deficit for 200607 reached $7.016 billion up by 41% over
previous year's $4.490 billion.

Since the beginning of 2008, Pakistan's economic outlook has taken a dramatic downturn.
Security concerns stemming from the nation's role in the War on Terror have created great
instability and led to a decline in FDI from a height of approximately $8 bn to $3.5bn for the
current fiscal year. Concurrently, the insurgency has forced massive capital flight from Pakistan
to the Gulf. Combined with high global commodity prices, the dual impact has shocked
Pakistan's economy, with gaping trade deficits, high inflation and a crash in the value of the
Rupee, which has fallen from 601 USD to over 80-1 USD in a few months. For the first time in
years, it may have to seek external funding as Balance of Payments support. Consequently, S&P
lowered Pakistan's foreign currency debt rating to CCC-plus from B, just several notches above a
level that would indicate default. Pakistan's local currency debt rating was lowered to B-minus
from BB-minus. Credit agency Moody's Investors Service cut its outlook on Pakistan's debt to
negative from stable due to political uncertainty, though it maintained the country's rating at B2.
The cost of protection against a default in Pakistan's sovereign debt trades at 1,800 basis points,
according to its five-year credit default swap, a level that indicates investors believe the country
is already in or will soon be in default.[131]

The middle term, however, may be less turbulent, depending on the political environment. The
EIU hsd estimated that inflation should drop back to single digits in 2010, and that growth would
pick up to over 5% per annum by 2011. However, the unprecedented floods of 2010 which
encapsulated 20% of Pakistan's land area, have caused a monetary damage estimated to be in
excess of $10bn, as a result of which real growth is almost flat and EIU's original targets will
have to be revised. Much like previous natural disasters which have afflicted Pakistan, the floods
of 2010 inflicted damage of epic proportions. However, the philanthropic nature of Pakistani
people and widespread coverage by a fiercely independent and established media has proven yet
again that Pakistan is an incredibly resilient nation.[51]

Economic aid

Main article: Foreign aid to Pakistan

Pakistan receives economic aid from several sources as loans and grants. The International
Monetary Fund (IMF), World Bank (WB), Asian Development Bank (ADB), etc. provides long-
term loans to Pakistan. Pakistan also receives bilateral aid from developed and oil-rich countries.

The Asian Development Bank will provide close to $6 billion development assistance to
Pakistan during 20069.[132] The World Bank unveiled a lending programme of up to $6.5 billion
for Pakistan under a new four-year, 20062009, aid strategy showing a significant increase in
funding aimed largely at beefing up the country's infrastructure.[133] Japan will provide $500
million annual economic aid to Pakistan.[134] In November 2008, the International Monetary Fund
(IMF) has approved a loan of 7.6 Billion to Pakistan, to help stabilise and rebuild the country's

More recently the government of Pakistan received an economic aid of US $5bn dollars out of
which the US pledge of $1bn was described as a down-payment on the previously announced
$1.5bn already promised to Pakistan for each of the next five years. The European Union
promised $640m over four years, while reports said Saudi Arabia had pledged $700m over two
years.[135] Overall Friends of Pakistan had pledged $1.6 billion in aid, which would help Pakistan
move forward on its way to self-reliance.

The ChinaPakistan Economic Corridor is being developed with $46 billion of Chinese loans
and grants.

The remittances of Pakistanis living abroad has played important role in Pakistan's economy and
foreign exchange reserves. The Pakistanis settled in Western Europe and North America are
important sources of remittances to Pakistan. Since 1973 the Pakistani workers in the oil rich
Arab states have been sources of billions dollars of remittances.

The 7 million-strong Pakistani diaspora, contributed US$11.2 billion to the economy in FY2011.
The major source countries of remittances to Pakistan include UAE, US, Saudi Arabia, GCC
countries (including Bahrain, Kuwait, Qatar and Oman), Australia, Canada, Japan, UK and EU
countries like Norway, Switzerland, etc.[137]

The State Bank of Pakistan (SBP) has announced that remittances sent home by overseas
Pakistani workers have crossed the $10 billion mark for the first time in the country's history as
the figure reached $10.1 billion in 11 months (JulyMay) of the current financial year. The 11-
month figure was $2.07 billion or 25 per cent more than $8.09 billion worth of remittances
received in the same period of the previous year. In May, overseas workers remitted over $1
billion, which was the third consecutive month that remittances crossed this mark. The country
received $1.05 billion, $1.03 billion and $1.05 billion in March, April and May respectively.
Citing reasons for the sharp increase in remittances, analysts say that a crackdown on the illegal
Hundi and Hawala money transfer systems, swift processing and transfer of money by the
banking channel and incentives for overseas Pakistanis have encouraged them to utilise legal
channels. The flow of charity money after last summer floods has also given a boost to the
remittances this year, they say. In the JulyMay period, remittances from Saudi Arabia, UAE,
US, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries were
$2.38 billion, $2.33 billion, $1.86 billion, $1.18 billion, $1.09 billion and $320.93 million
respectively. In comparison, remittances stood at $1.72 billion, $1.84 billion, $1.61 billion, $1.13
billion, $793.91 million and $229.74 million respectively in JulyMay 200910. Remittances
received from Norway, Switzerland, Australia, Canada, Japan and other countries during the 11
months amounted to $926.86 million against $740.96 million in the same period last year.[138]
Governor, State Bank of Pakistan (SBP) Yaseen Anwar said during first ten months of
FY2011/12, remittances from overseas Pakistanis rose by 20.2% to $10.88 billion, which helped
Balance of Payments (BoP) despite widening of trade deficit. Pakistan's fiscal challenges are
well known and documented. The Pakistani diaspora of around 10 million sent home around $7.9
billion in the first six months of FY2014 and remittances are expected to touch around $16
billion at the end of FY 2014 thus help easing balance of payment crisis.[139] This spillover to the
rest of economy is equally clear. He explained that at start of year (July 2011), external
conditions appeared daunting due to rising oil prices and lack of external financing.[140]

Government finances
Fiscal budget summary

Fiscal year: 1 July 30 June

Budget outlay: Rs 3.259 trillion (FY2010/11)

Revenues: $19.8 billion


Debt external: $50 billion (2010 est.)

Economic aid recipient: $1.2 billion (FY2010/11)

Revenues and taxation

Main article: Taxation in Pakistan

Pakistan has a low tax/GDP ratio, which it is trying to improve. The current tax-to-GDP ration is
estimated to be between 8%9% which is far below developing other countries of the region
such as India (15%) and Sri Lanka (18%). Recently, Pakistan's coalition government proposed
the idea of imposing a Reformed General Sales tax which was modelled along the lines of VAT.
However, with the war on terror having engulfed Pakistan's economy, the politically unpopular
bill was not approved in the senate/parliament and has afforded some respite to the people of
Pakistan who are already suffering from a stagnant economy and rampant inflation.[141]

Expenditures (and the economic costs of War on Terror)

Government expenditures were $25 billion (2006 est.)

Pakistan has sustained immense socio-economic costs of being a partner in the international
counter terrorism campaign. According to government estimates, the war on terror cost the
Pakistani economy nearly US$8 billion a year in terms of lost exports, foreign investment,
privatisation, industrial output, tax collection (see table below for the government's estimation of
the cost of War on Terror to Pakistan as published in an IMF report).[142]

(Rs billion) 2004/05 2005/06 2006/07 2007/08 2008/09

Direct Cost 67.103 78.060 82.499 108.527 114.033
Indirect Cost* 192.000 222.720 278.400 375.840 563.760
Total 259.103 300.780 360.899 484.367 677.793

'*On account of loss of exports, foreign investment, privatisation, industrial output, tax
collection, etc.

According to the IMF, the anti-terrorist campaign following the 9/11 attacks in the United States
strained Pakistan's budget, as allocations for law enforcement agencies had to be increased
significantly, eroding resources for development in the country. In addition to human sufferings
and resettlement costs, development projects are afflicted with delays which ultimately resulted
in large cost over-runs. The heightened sense of uncertainty has contributed to capital flight and
slowed down domestic economic activity, creating unease among foreign investors. There has
also been massive unemployment in the terror-inflicted regions, as frequent bombings and
worsening law and order situation have taken a toll on the socio-economic fabric of the country.
Sovereign bonds

Pakistan is expected to sell a dual-tranche sovereign bond worth $750 million on 23 March 2006
that analysts said should ensure a favourable reception in the bond market. The 10-year tranche
would be $500 million and the 30-year portion $250 million. Pricing is expected during New
York trading hours on 23 March 2006. The sources said that the 10-year tranche was expected to
be priced at around 100125%, while the longer-dated tranche was expected to be sold at around
70.875%, the top end of the indicative yield range of 3.75 to 10.875%.

The bonds, consisting of 10-year and 30-year tranches, had generated $1.5 billion in orders and a
total size of as much as $1.25 billion had been anticipated for what is Pakistan's third foray into
the international debt market since 2004.[143]

The Government of Pakistan has been raising money from the international debt market from
time to time.

The details of amount raised in various issues are as follows:

1999 $6230 million

2004 $5000 million @ 6.75%[144]

2005 $6000 million worth Islamic bonds[143][145]

2007 $7500 million @ 6.875% worth Euro Bonds which were highly over subscribed[146]

Income distribution
Gini Index: 41

Household income or consumption by percentage share:

o lowest 10%: 4.1%

o highest 10%: 27.7% (1996)

o middle 10%: 10.4%

See also
Pakistan portal

Economics portal
By province and administrative unit:

Economy of Azad Kashmir

Economy of Balochistan, Pakistan

Economy of the Federally Administered Tribal Areas

Economy of Islamabad

Economy of Khyber Pakhtunkhwa

Economy of Punjab, Pakistan

Economy of Sindh

Economy of Karachi

Economy of Lahore

Economy of Faisalabad

Economy of Rawalpindi


2011 Pakistan federal budget

Agriculture in Pakistan

Economic effects of 2010 Pakistan floods

Economic history of Pakistan

Economy of the OIC

Industry of Pakistan

List of Pakistani Districts by Human Development Index

List of Pakistani provinces by gross domestic product

List of Pakistanis by net worth

List of tariffs in Pakistan

Ministry of Commerce (Pakistan)

Ministry of Finance (Pakistan)

Pakistan Board of Investment

Prize Bonds[147]

Science and technology in Pakistan

Trade Development Authority of Pakistan

Trading Corporation of Pakistan

Further reading
Gabol, Nasir (1990). Privatisation in Pakistan,. Paris, France: Organisation for
Economic Cooperation and Development. ISBN 92-64-15310-1.

Ahmad, Viqar and Rashid Amjad. 1986. The Management of Pakistan's Economy, 1947
82. Karachi: Oxford University Press.

Ali, Imran. 1997. Telecommunications Development in Pakistan, in E.M. Noam (ed.),

Telecommunications in Western Asia and the Middle East. New York: Oxford University

Ali, Imran. 2001a. The Historical Lineages of Poverty and Exclusion in Pakistan. Paper
presented at Conference on Realm, Society and Nation in South Asia. National University
of Singapore.

Ali, Imran. 2001b. Business and Power in Pakistan, in A.M. Weiss and S.Z. Gilani
(eds), Power and Civil Society in Pakistan. Karachi: Oxford University Press.

Ali, Imran. 2002. Past and Present: The Making of the State in Pakistan, in Imran Ali, S.
Mumtaz and J.L. Racine (eds), Pakistan: The Contours of State and Society. Karachi:
Oxford University Press.

Ali, Imran, A. Hussain. 2002. Pakistan National Human Development Report. Islamabad:

Ali, Imran, S. Mumtaz and J.L. Racine (eds). 2002. Pakistan: The Contours of State and
Society. Karachi: Oxford University Press.

Amjad, Rashid. 1982. Private Industrial Investment in Pakistan, 196070. London:

Cambridge University Press.
Andrus, J.R. and A.F. Mohammed. 1958. The Economy of Pakistan. Stanford: Stanford
University Press.

Bahl, R., & Cyan, M. (2009). Local Government Taxation in Pakistan (No. paper0909).
International Center for Public Policy, Andrew Young School of Policy Studies, Georgia
State University.

Barrier, N.G. 1966. The Punjab Alienation of Land Bill of 1900. Durham, NC: Duke
University South Asia Series.

Jahan, Rounaq. 1972. Pakistan: Failure in National Integration. New York: Columbia
University Press.

Kessinger, T.G. 1974. Vilyatpur, 18481968. Berkeley and Los Angeles: University of
California Press.

Kochanek, S.A. 1983. Interest Groups and Development: Business and Politics in
Pakistan. New Delhi: Oxford University Press.

LaPorte, Jr, Robert and M.B. Ahmad. 1989. Public Enterprises in Pakistan. Boulder,
Colorado: Westview Press.

Latif, S.M. 1892. Lahore. Lahore: New Imperial Press, reprinted 1981, Lahore: Sandhu

Low, D.A. (ed.). 1991. The Political Inheritance of Pakistan. London: Macmillan.

Noman, Omar. 1988. The Political Economy of Pakistan. London: KPI.

Papanek, G.F. 1967. Pakistan's Development: Social Goals and Private Incentives.
Cambridge, Massachusetts: Harvard University Press.

Raychaudhuri, Tapan and Irfan Habib (eds). 1982. The Cambridge Economic History of
India, 2 vols. Cambridge: Cambridge University Press

White, L.J. 1974. Industrial Concentration and Economic Power. Princeton, N.J.:
Princeton University Press.

Ziring, Lawrence. 1980. Pakistan: The Enigma of Political Development. Boulder,

Colorado: Folkestone.

Ali, Imran. 1987. Malign Growth? Agricultural Colonisation and the Roots of
Backwardness in the Punjab, Past and Present, 114
Ali, Imran. August 2002. The Historical Lineages of Poverty and Exclusion in Pakistan,
South Asia, XXV(2).

Ali, Imran and S. Mumtaz. 2002. Understanding PakistanThe Impact of Global,

Regional, National and Local Interactions, in Imran Ali, S. Mumtaz and J.L. Racine
(eds), Pakistan: the Contours of State and Society. Karachi: Oxford University Press.

Hasan, Parvez. 1998. Pakistan's Economy at the Crossroads: Past Policies and Present
Imperatives. Karachi: Oxford University Press.

Hussain, Ishrat. 1999. Pakistan: The Economy of an Elitist State. Karachi: Oxford
University Press.

Khan, Shahrukh Rafi. 1999. Fifty Years of Pakistan's Economy: Traditional Topics and
Contemporary Concerns. Karachi: Oxford University Press.

Kibria, Ghulam. 1999. Shattered Dream: Understanding Pakistan's Development.

Karachi: Oxford University Press.

Kukreja, Veena. 2003. Contemporary Pakistan: Political Processes, Conflicts and Crises.
New Delhi: Sage Publications.

Zaidi, S. Akbar. 1999. Issues in Pakistan's Economy. Karachi: Oxford University Press

Faheem, Khan. 2010. Issues in Pakistan's Economy. Peshawar:


Dawn Newspaper
"Pakistan Economy, IMF". Retrieved 2015-11-10.
"World Bank forecasts for Pakistan, June 2016" (PDF). World Bank. Retrieved 27
September 2016.
"Labor Force Survey 2012-13" (PDF). Pakistan Bureau of Statistics. Retrieved 23 June
"The World Factbook". cia.gov.
. World Bank http://www.doingbusiness.org/data/exploreeconomies/pakistan/. Retrieved
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"Export Partners of Pakistan". CIA World Factbook. 2012. Retrieved 2013-07-23.
"Import Partners of Pakistan". The Observatory of Economic Complexity. 2014.
Retrieved 2013-07-23.
Zaman, Qamar (2013-06-12). "Sinking in: Pakistan to be in Rs14t debt quagmire by end
of fiscal 2013 The Express Tribune". Tribune.com.pk. Retrieved 2014-01-11.
"Sovereigns rating list". Standard & Poor's. Retrieved 31 October 2016.
Mangi, Faseeh (5 May 2015). "S&P Follows Moody's to Raise Pakistan Outlook as
Growth Quickens". bloomberg.com.
"The Secret Strength of Pakistan's Economy". Bloomberg.
Faryal Leghari (3 January 2007). "GCC investments in Pakistan and future trends". Gulf
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"Quid Pro Quo 45 Tales of Success" (PDF). Muslim Commercial Bank of Pakistan.
2007. p. 2. Archived from the original (PDF) on 16 February 2008. Retrieved 12 February 2008.
Malcolm Borthwick (1 June 2006). "Pakistan steels itself for sell-offs". BBC News.
Retrieved 12 February 2008.
Tavia Grant (8 December 2011). "On 10th birthday, BRICs poised for more growth". The
Globe and Mail. Toronto. Retrieved 4 January 2012.
Declan Walsh (18 May 2013). "Pakistan, Rusting in Its Tracks". The New York Times.
Retrieved 19 May 2013. natural disasters and entrenched insurgencies, abject poverty and
feudal kleptocrats, and an economy near meltdown
Henneberry, S. (2000). "An analysis of industrialagricultural interactions: A case study
in Pakistan". Agricultural Economics. 22: 1727. doi:10.1016/S0169-5150(99)00041-9.
"World Bank Document" (PDF). 2008. p. 14. Retrieved 2 January 2010.
"Pakistan Country Report" (PDF). RAD-AID. 2010. pp. 3, 7. Archived from the original
(PDF) on 12 January 2012. Retrieved 26 December 2011.
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Pakistan | Economic Forecasts | 2016-2020 Outlook

Overview Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

GDP Growth Rate 4.24 4.7 4.8 4.9 4.19 2.8 percent [+]

5.90 5.8 6.1 6.1 6.1 5.7 percent [+]

Inflation Rate 3.81 4.5 4.8 4.7 4.5 3.3 percent [+]

Interest Rate 5.75 5.75 5.75 5.75 5.5 4 percent [+]

Balance of Trade -260969.00 -236979 -243397 -245113 -244656 PKR Million [+]

64.80 64.2 64 64 63.8 60.9 percent [+]
Debt to GDP

MARKETS Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Currency 104.70 106 107 108 109 126 [+]

Stock Market 46699.78 42000 41600 41100 40700 33900 points [+]

8.03 8.11 8.19 8.27 8.35 9.64 percent [+]
Bond 10Y

GDP Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

GDP Growth
4.24 4.7 4.8 4.9 4.19 2.8 percent [+]

GDP Annual
4.24 4.7 4.8 4.9 5 2.8 percent [+]
Growth Rate

GDP 269.97 302 305 315 325 386 USD Billion [+]

GDP Constant
11229656.00 11750000 12300000 12300000 12300000 13800000 PKR Million [+]
Overview Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

GDP Growth Rate 4.24 4.7 4.8 4.9 4.19 2.8 percent [+]

5.90 5.8 6.1 6.1 6.1 5.7 percent [+]

Inflation Rate 3.81 4.5 4.8 4.7 4.5 3.3 percent [+]

Interest Rate 5.75 5.75 5.75 5.75 5.5 4 percent [+]

Balance of Trade -260969.00 -236979 -243397 -245113 -244656 PKR Million [+]

64.80 64.2 64 64 63.8 60.9 percent [+]
Debt to GDP

MARKETS Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Currency 104.70 106 107 108 109 126 [+]

Stock Market 46699.78 42000 41600 41100 40700 33900 points [+]

8.03 8.11 8.19 8.27 8.35 9.64 percent [+]
Bond 10Y

Gross National
12465443.00 13100000 13700000 13700000 13700000 15400000 PKR Million [+]

Gross Fixed
Capital 1503731.00 1736925 1797460 1857996 1900000 2500000 PKR Million [+]

GDP per capita 1152.14 1194 1228 1228 1228 1388 USD [+]

GDP per capita

4744.85 4938 5159 5279 5279 5778 USD [+]

GDP From
2222337.00 2267737 2281414 2295091 2308768 2494195 PKR Million [+]

GDP From
259271.00 270272 285688 287105 287104 312486 PKR Million [+]

GDP From
1412453.00 1439383 1447497 1455611 1463725 1528482 PKR Million [+]

GDP From 311095.00 296026 296236 296447 301012 312961 PKR Million [+]
Overview Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

GDP Growth Rate 4.24 4.7 4.8 4.9 4.19 2.8 percent [+]

5.90 5.8 6.1 6.1 6.1 5.7 percent [+]

Inflation Rate 3.81 4.5 4.8 4.7 4.5 3.3 percent [+]

Interest Rate 5.75 5.75 5.75 5.75 5.5 4 percent [+]

Balance of Trade -260969.00 -236979 -243397 -245113 -244656 PKR Million [+]

64.80 64.2 64 64 63.8 60.9 percent [+]
Debt to GDP

MARKETS Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Currency 104.70 106 107 108 109 126 [+]

Stock Market 46699.78 42000 41600 41100 40700 33900 points [+]

8.03 8.11 8.19 8.27 8.35 9.64 percent [+]
Bond 10Y


GDP From
6261314.00 6471360 6514758 6558155 6601553 7157902 PKR Million [+]

GDP From
1421737.00 1477320 1491771 1506221 1520672 1726362 PKR Million [+]

LABOUR Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

5.90 5.8 6.1 6.1 6.1 5.7 percent [+]

57420.00 58487 58797 59107 59727 63022 Thousand [+]

3620.00 3660 3800 3800 3880 3590 Thousand [+]

Population 189.87 193 194 195 195 206 Million [+]

Living Wage 49600.00 52000 53000 54000 55000 64000 PKR/Month [+]
Overview Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

GDP Growth Rate 4.24 4.7 4.8 4.9 4.19 2.8 percent [+]

5.90 5.8 6.1 6.1 6.1 5.7 percent [+]

Inflation Rate 3.81 4.5 4.8 4.7 4.5 3.3 percent [+]

Interest Rate 5.75 5.75 5.75 5.75 5.5 4 percent [+]

Balance of Trade -260969.00 -236979 -243397 -245113 -244656 PKR Million [+]

64.80 64.2 64 64 63.8 60.9 percent [+]
Debt to GDP

MARKETS Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Currency 104.70 106 107 108 109 126 [+]

Stock Market 46699.78 42000 41600 41100 40700 33900 points [+]

8.03 8.11 8.19 8.27 8.35 9.64 percent [+]
Bond 10Y


Living Wage
17600.00 18500 18700 19000 19200 24000 PKR/Month [+]

Wages High
43600.00 44000 44100 44500 45000 54000 PKR/Month [+]

PRICES Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Inflation Rate 3.81 4.5 4.8 4.7 4.5 3.3 percent [+]

Consumer Price
212.01 212 213 215 218 236 Index Points [+]
Index CPI

Core Inflation
5.30 4.9 5.3 5.2 5 3.7 percent [+]

GDP Deflator 243.85 250 252 252 254 268 Index Points [+]

Producer Prices 214.07 214 215 216 217 221 Index Points [+]

Export Prices 702.30 721 722 722 721 740 Index Points [+]
Overview Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

GDP Growth Rate 4.24 4.7 4.8 4.9 4.19 2.8 percent [+]

5.90 5.8 6.1 6.1 6.1 5.7 percent [+]

Inflation Rate 3.81 4.5 4.8 4.7 4.5 3.3 percent [+]

Interest Rate 5.75 5.75 5.75 5.75 5.5 4 percent [+]

Balance of Trade -260969.00 -236979 -243397 -245113 -244656 PKR Million [+]

64.80 64.2 64 64 63.8 60.9 percent [+]
Debt to GDP

MARKETS Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Currency 104.70 106 107 108 109 126 [+]

Stock Market 46699.78 42000 41600 41100 40700 33900 points [+]

8.03 8.11 8.19 8.27 8.35 9.64 percent [+]
Bond 10Y

Import Prices 1224.40 1220 1230 1230 1178 1500 Index Points [+]

Inflation Rate
0.21 -0.5 0.3 0.3 0 0.2 percent [+]

170.65 170 169 169 168 165 Index Points [+]

Food Inflation 2.50 2 2.1 2.1 2.92 1.5 percent [+]

Producer Prices
2.56 4.5 0.7 0.7 1.46 1.61 percent [+]

MONEY Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Interest Rate 5.75 5.75 5.75 5.75 5.5 4 percent [+]

Interbank Rate 5.90 5.95 5.85 5.7 5.5 3.1 percent [+]
Overview Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

GDP Growth Rate 4.24 4.7 4.8 4.9 4.19 2.8 percent [+]

5.90 5.8 6.1 6.1 6.1 5.7 percent [+]

Inflation Rate 3.81 4.5 4.8 4.7 4.5 3.3 percent [+]

Interest Rate 5.75 5.75 5.75 5.75 5.5 4 percent [+]

Balance of Trade -260969.00 -236979 -243397 -245113 -244656 PKR Million [+]

64.80 64.2 64 64 63.8 60.9 percent [+]
Debt to GDP

MARKETS Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Currency 104.70 106 107 108 109 126 [+]

Stock Market 46699.78 42000 41600 41100 40700 33900 points [+]

8.03 8.11 8.19 8.27 8.35 9.64 percent [+]
Bond 10Y

Money Supply
4166451.87 4134407 4150255 4371023 4580000 6340000 PKR Million [+]

Money Supply
10447771.00 10770287 11176254 11597466 12034496 19460407 PKR Million [+]

Money Supply
12685007.00 13406737 13529630 14087455 14800000 20000000 PKR Million [+]

Money Supply
15966506.00 16500000 16800000 17200000 17400000 21900000 PKR Million [+]

Deposit Interest
6.00 5.8 5.5 5.5 5.5 4 percent [+]

Foreign Exchange
23619.40 25034 25806 26423 28900 46429 USD Million [+]

TRADE Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Balance of Trade -260969.00 -236979 -243397 -245113 -244656 -244557 PKR Million [+]
Overview Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

GDP Growth Rate 4.24 4.7 4.8 4.9 4.19 2.8 percent [+]

5.90 5.8 6.1 6.1 6.1 5.7 percent [+]

Inflation Rate 3.81 4.5 4.8 4.7 4.5 3.3 percent [+]

Interest Rate 5.75 5.75 5.75 5.75 5.5 4 percent [+]

Balance of Trade -260969.00 -236979 -243397 -245113 -244656 PKR Million [+]

64.80 64.2 64 64 63.8 60.9 percent [+]
Debt to GDP

MARKETS Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Currency 104.70 106 107 108 109 126 [+]

Stock Market 46699.78 42000 41600 41100 40700 33900 points [+]

8.03 8.11 8.19 8.27 8.35 9.64 percent [+]
Bond 10Y

Exports 184497.00 175258 174501 168101 169000 185029 PKR Million [+]

Imports 445466.00 423816 425735 428296 427357 427396 PKR Million [+]

Current Account -1368.00 -570 -741 -593 -300 119 USD Million [+]

Current Account
-1.20 -0.3 -0.7 -0.7 -0.7 0.3 percent [+]
to GDP

External Debt 72978.00 75538 77095 78222 79348 87053 USD Million [+]

Terms of Trade 57.40 56.29 56.57 56.78 56.8 49 Index Points [+]

Remittances 4698.00 4687 5204 5269 5700 5029 USD Million [+]

Gold Reserves 64.51 64.51 64.51 64.51 64.5 64.51 Tonnes [+]

Capital Flows -1319.00 -1661 -290 -1418 -1248 -1298 USD Million [+]

Crude Oil
87.00 87.13 87.13 87.13 87 79 BBL/D/1K [+]

Foreign Direct 2677.90 2787 2787 2926 2926 3200 USD Million [+]
Overview Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

GDP Growth Rate 4.24 4.7 4.8 4.9 4.19 2.8 percent [+]

5.90 5.8 6.1 6.1 6.1 5.7 percent [+]

Inflation Rate 3.81 4.5 4.8 4.7 4.5 3.3 percent [+]

Interest Rate 5.75 5.75 5.75 5.75 5.5 4 percent [+]

Balance of Trade -260969.00 -236979 -243397 -245113 -244656 PKR Million [+]

64.80 64.2 64 64 63.8 60.9 percent [+]
Debt to GDP

MARKETS Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Currency 104.70 106 107 108 109 126 [+]

Stock Market 46699.78 42000 41600 41100 40700 33900 points [+]

8.03 8.11 8.19 8.27 8.35 9.64 percent [+]
Bond 10Y


Terrorism Index 8.61 9.3 9.1 9.1 8.52 8.38 [+]

GOVERNMENT Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

64.80 64.2 64 64 63.8 60.9 percent [+]
Debt to GDP

Government percent of
-5.30 -4.3 -3.8 -3.8 -3.8 -1.5 [+]
Budget GDP

-1349300.00 -1408678 -1396851 -1390937 -1385024 -1370124 PKR Million [+]
Budget Value

3242656.00 3558099 3635956 3713813 3791671 4888207 PKR Million [+]

4446979.00 4113713 4396761 4538285 4679809 5771005 PKR Million [+]

Military 9247.70 9690 10165 10164 10165 14539 USD Million [+]
Overview Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

GDP Growth Rate 4.24 4.7 4.8 4.9 4.19 2.8 percent [+]

5.90 5.8 6.1 6.1 6.1 5.7 percent [+]

Inflation Rate 3.81 4.5 4.8 4.7 4.5 3.3 percent [+]

Interest Rate 5.75 5.75 5.75 5.75 5.5 4 percent [+]

Balance of Trade -260969.00 -236979 -243397 -245113 -244656 PKR Million [+]

64.80 64.2 64 64 63.8 60.9 percent [+]
Debt to GDP

MARKETS Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Currency 104.70 106 107 108 109 126 [+]

Stock Market 46699.78 42000 41600 41100 40700 33900 points [+]

8.03 8.11 8.19 8.27 8.35 9.64 percent [+]
Bond 10Y


5796302.00 5740696 5968654 6082633 6196612 7409761 [+]

BUSINESS Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

1.72 4.7 1.8 5.5 5.1 2.8 percent [+]

1.49 4.1 1.9 6.2 4.7 2.1 percent [+]

Changes in
179674.00 187885 190418 192951 195484 224826 PKR Million [+]

-2.74 0.34 0.41 0.41 0.39 0.35 percent [+]
Production Mom

3.49 3.45 3.3 3.3 3.3 3.8 Points [+]
Overview Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

GDP Growth Rate 4.24 4.7 4.8 4.9 4.19 2.8 percent [+]

5.90 5.8 6.1 6.1 6.1 5.7 percent [+]

Inflation Rate 3.81 4.5 4.8 4.7 4.5 3.3 percent [+]

Interest Rate 5.75 5.75 5.75 5.75 5.5 4 percent [+]

Balance of Trade -260969.00 -236979 -243397 -245113 -244656 PKR Million [+]

64.80 64.2 64 64 63.8 60.9 percent [+]
Debt to GDP

MARKETS Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Currency 104.70 106 107 108 109 126 [+]

Stock Market 46699.78 42000 41600 41100 40700 33900 points [+]

8.03 8.11 8.19 8.27 8.35 9.64 percent [+]
Bond 10Y

122.00 126 125 125 125 122 [+]

Cement Thousands
2897.00 3600 3500 3570 3600 4990 [+]
Production of Tonnes

Ease of Doing
144.00 137 137 137 138 134 [+]

Electricity Gigawatt-
7487.00 6727 7253 7211 8420 8362 [+]
Production hour

Corruption Index 30.00 30 31 31 31 34 Points [+]

Corruption Rank 117.00 117 116 116 116 113 [+]

CONSUMER Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

174.19 172 168 171 173 180 [+]

Consumer 8584834.00 8990000 9300000 9300000 9300000 10295146 PKR Million [+]
Overview Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

GDP Growth Rate 4.24 4.7 4.8 4.9 4.19 2.8 percent [+]

5.90 5.8 6.1 6.1 6.1 5.7 percent [+]

Inflation Rate 3.81 4.5 4.8 4.7 4.5 3.3 percent [+]

Interest Rate 5.75 5.75 5.75 5.75 5.5 4 percent [+]

Balance of Trade -260969.00 -236979 -243397 -245113 -244656 PKR Million [+]

64.80 64.2 64 64 63.8 60.9 percent [+]
Debt to GDP

MARKETS Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Currency 104.70 106 107 108 109 126 [+]

Stock Market 46699.78 42000 41600 41100 40700 33900 points [+]

8.03 8.11 8.19 8.27 8.35 9.64 percent [+]
Bond 10Y


Gasoline Prices 0.63 0.61 0.65 0.65 0.67 0.98 USD/Liter [+]

TAXES Actual Q4/16 Q1/17 Q2/17 Q3/17 2020

Personal Income
20.00 20 20 20 20 20 percent [+]
Tax Rate

Corporate Tax
32.00 33 33 33 33 32 percent [+]

Sales Tax Rate 17.00 17 17 17 17 17 percent [+]

Pakistan Economic Outlook

December 13, 2016

Although Pakistan continues to suffer from security and corruption problems as well as from power
outages, the IMF has indicated that the government has succeeded in pulling the country out of the
crisis and stabilizing the economy by sticking to the guidelines included in the Funds bailout program.
On 1 November trade activity began under the USD 51 billion China-Pakistan Economic Corridor (CPEC),
which is a further sign of confidence in the improved stability of the country on the part of its neighbors.
Moreover, in both September and October fixed investment accelerated, showing signs of reversing the
downward trend in the first half of the year.

Pakistan Economy Data

2011 2012 2013 2014 2015

Population (million) 175 179 183 186 190

GDP per capita (USD) 1,218 1,254 1,266 1,313 1,427

GDP (USD bn) 214 224 231 245 271

Economic Growth (GDP, annual variation in %) 3.6 3.8 3.7 4.1 4.0

Consumption (annual variation in %) 4.6 5.0 2.1 5.6 3.2

Investment (annual variation in %) -7.7 2.4 2.6 2.5 14.1

Industrial Production (annual variation in %) 4.5 2.6 0.6 4.7 4.8

Unemployment Rate 6.0 6.0 6.0 6.0 5.9

Fiscal Balance (% of GDP) -6.7 -6.8 -8.2 -5.5 -5.3

Public Debt (% of GDP) 60.1 64.5 65.2 65.1 64.6

Money (annual variation in %) 16.8 13.4 16.6 12.8 12.7

Inflation Rate (CPI, annual variation in %, eop) 13.3 11.3 5.9 8.2 3.2

Inflation Rate (CPI, annual variation in %) 13.7 11.0 7.4 8.6 4.6

Policy Interest Rate (%) 14.00 12.00 9.00 10.00 7.00

Exchange Rate (vs USD) 86.05 94.65 99.6 98.68 101.9

Exchange Rate (vs USD, aop) 85.59 89.37 96.82 102.9 101.4
2011 2012 2013 2014 2015

Current Account (% of GDP) 0.1 -2.1 -1.1 -1.3 -1.0

Current Account Balance (USD bn) 0.2 -4.7 -2.5 -3.1 -2.7

Trade Balance (USD billion) -15.6 -15.7 -15.4 -16.6 -17.2

Exports (USD billion) 24.8 24.7 24.8 25.1 24.1

Imports (USD billion) 40.5 40.4 40.2 41.7 41.3

Exports (annual variation in %) 28.8 -0.5 0.3 1.1 -3.9

Imports (annual variation in %) 16.6 -0.2 -0.5 3.8 -0.9

International Reserves (USD) 17.9 14.1 8.5 11.8 16.0

External Debt (% of GDP) 29.9 28.1 25.0 25.3 22.7