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flag Pakistan Pakistan: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

The GDP's 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 the privatization of state-subsidized services, the institution of an anti-money laundering law, an increase in the harshness of punishment against the piracy of intellectual property and quick settlements for the disputes between investors. In the context of  the fight against terrorism, the country has received substantial financial aid from the United States, an important factor for growth and economic stability. However, when this payments reached their end in October 2008, Pakistan asked aid from the IMF in November, and adopted a stabilization plan which has obtained limited results. Despite a slight improvement, the country remains confronted with several difficulties: economic slowdown, budgetary deficit and insufficient growth of tax receipts. Some of the major threats to Pakistan's economy are: international high prices in oil barrels, inflation, raw materials prices, a deficit on the balance of payments and political insecurity and uncertainty.

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

The perspectives of growth for 2011 are expected to be low due to the strong floods that devastated the country in 2010. Thousands of agricultural workers lost their jobs and the cost of reconstruction is estimated at USD 15 billion.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 161.82176.87204.08233.76248.02
GDP (Constant Prices, Annual % Change) 1.73.8e2.63.84.5
GDP per Capita (USD) 9621,030e1,1641,3071,359
General Government Gross Debt (in % of GDP) 57.456.857.6e57.356.5
Inflation Rate (%) 20.811.7e13.9e14.012.0
Unemployment Rate (% of the Labor Force) 6.26.26.26.26.2
Current Account (billions USD) -9.26-3.95e0.44-3.88-5.18
Current Account (in % of GDP) -5.7-2.20.2-2.1-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

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

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

The tertiary sector contributes to around half of the GDP.  Money transfers from Pakistanis working abroad create a considerable godsend financial income for the country.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 44.7 20.1 35.2
Value Added (in % of GDP) 21.8 23.6 54.6
Value Added (Annual % Change) 2.0 4.9 4.6

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Pakistani Rupee (PKR) - Average Annual Exchange Rate For 1 USD 60.2760.7470.4181.7185.19

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Pakistan on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
55.1/100
Position:
Mostly unfree
World Rank:
118/179
Regional Rank:
23/38

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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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 fiscal year, the trade volume decreased by 9%. After having more than doubled between 2007 and 2008, Pakistani exports declined by 6% in 2008/09. Imports declined by 10.5% in 2008/09 compared to 2007/08. The fall in imports led to a reduction of 17% on the trade deficit in 2008/09, compared to 2007/08. During the fiscal year 2009/2010, exports reached the amount of USD 15.9 billion and its main trade partner was the United States.

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 main import partners are Saudi Arabia, the United Arab Emirates and China. Pakistan mainly imports fuels, oil, vehicles, iron and steel.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 29,82532,59042,32931,66837,810
Exports of Goods (million USD) 16,93017,83820,32317,52321,515
Imports of Services (million USD) 8,0948,4269,2865,9026,414
Exports of Services (million USD) 2,2452,2242,5312,5482,757
Imports of Goods and Services (Annual % Change) 18.7-3.53.5-15.211.2
Exports of Goods and Services (Annual % Change) 9.92.3-5.3-3.314.1
Imports of Goods and Services (in % of GDP) 23.221.323.920.419.0
Exports of Goods and Services (in % of GDP) 15.214.212.912.812.9
Trade Balance (million USD) 9,64710,587-17,00310,27011,416
Trade Balance (Including Service) (million USD) -14,55915,631-22,457-12,83812,094
Foreign Trade (in % of GDP) 38.535.536.733.231.9

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
United States 17.2%
United Arab Emirates 8.6%
Afghanistan 7.9%
China 6.7%
United Kingdom 5.2%
See More Countries 54.5%
Main Suppliers
(% of Imports)
2010
United Arab Emirates 14.0%
China 14.0%
Saudi Arabia 10.2%
Kuwait 6.9%
Malaysia 5.5%
See More Countries 49.4%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Bed-linen, table linen, toilet linen and kitchen...Bed-linen, table linen, toilet linen and kitchen linen of all types of textile materials (excl. floor-cloths, polishing-cloths, dish-cloths and dusters) 12.3%
RiceRice 10.6%
Cotton yarn other than sewing thread, containing >...Cotton yarn other than sewing thread, containing >= 85% cotton by weight (excl. that put up for retail sale) 7.6%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 5.6%
Men's or boys' suits, ensembles, jackets, blazers,...Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (excl. knitted or crocheted, wind-jackets and similar articles, separate waistcoats, track suits, ski suits and swimwear) 4.0%
See More Products 59.9%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 19.3%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 9.4%
Palm oil and its fractions, whether or not refined...Palm oil and its fractions, whether or not refined (excl. chemically modified) 4.4%
Cane or beet sugar and chemically pure sucrose, in...Cane or beet sugar and chemically pure sucrose, in solid form 2.2%
Cotton, neither carded nor combedCotton, neither carded nor combed 2.0%
See More Products 62.7%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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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

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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
National Assembly: 2013
 

Indicator of Freedom of the Press

World Rank:
151/178
Evolution:
8 places up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Partly Free
Political Freedom:
4/7
Civil Liberties:
5/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012