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Pakistan Economy Profile 2013

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Economy - overviewDecades of internal political disputes and low levels of foreign investment have led to slow growth and underdevelopment in Pakistan. Agriculture accounts for more than one-fifth of output and two-fifths of employment. Textiles account for most of Pakistan's export earnings, and Pakistan's failure to expand a viable export base for other manufactures has left the country vulnerable to shifts in world demand. Official unemployment is under 6%, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Over the past few years, low growth and high inflation, led by a spurt in food prices, have increased the amount of poverty - the UN Human Development Report estimated poverty in 2011 at almost 50% of the population. Inflation has worsened the situation, climbing from 7.7% in 2007 to almost 12% for 2011, before declining to 10% in 2012. As a result of political and economic instability, the Pakistani rupee has depreciated more than 40% since 2007. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 in response to a balance of payments crisis. Although the economy has stabilized since the crisis, it has failed to recover. Foreign investment has not returned, due to investor concerns related to governance, energy, security, and a slow-down in the global economy. Remittances from overseas workers, averaging about $1 billion a month since March 2011, remain a bright spot for Pakistan. However, after a small current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to deficit in fiscal year 2012, spurred by higher prices for imported oil and lower prices for exported cotton. Pakistan remains stuck in a low-income, low-growth trap, with growth averaging about 3% per year from 2008 to 2012. Pakistan must address long standing issues related to government revenues and energy production in order to spur the amount of economic growth that will be necessary to employ its growing and rapidly urbanizing population, more than half of which is under 22. Other long term challenges include expanding investment in education and healthcare, adapting to the effects of climate change and natural disasters, and reducing dependence on foreign donors.
GDP (purchasing power parity)$523.9 billion (2012 est.)
$505.3 billion (2011 est.)
$490.4 billion (2010 est.)
note: data are in 2012 US dollars
GDP (official exchange rate)$231.9 billion (2012 est.)
GDP - real growth rate3.7% (2012 est.)
3% (2011 est.)
3.1% (2010 est.)
GDP - per capita (PPP)$2,900 (2012 est.)
$2,900 (2011 est.)
$2,900 (2010 est.)
note: data are in 2012 US dollars
Gross national saving11.1% of GDP (2012 est.)
11.9% of GDP (2011 est.)
14.6% of GDP (2010 est.)
GDP - composition, by end usehousehold consumption: 87.3%
government consumption: 8.3%
investment in fixed capital: 10.9%
investment in inventories: 1.6%
exports of goods and services: 12.5%
imports of goods and services: -20.6%
(2012 est.)
GDP - composition by sectoragriculture: 20.1%
industry: 25.5%
services: 54.4% (2012 est.)
Population below poverty line22.3% (FY05/06 est.)
Labor force59.21 million
note: extensive export of labor, mostly to the Middle East, and use of child labor (2012 est.)
Labor force - by occupationagriculture: 45.1%
industry: 20.7%
services: 34.2% (2010 est.)
Unemployment rate6.2% (2012 est.)
5.6% (2011 est.)
note: substantial underemployment exists
Unemployment, youth ages 15-24total: 7.7%
male: 7%
female: 10.5% (2008)
Household income or consumption by percentage sharelowest 10%: 3.9%
highest 10%: 39.3% (FY05/06)
Distribution of family income - Gini index30.6 (FY07/08)
41 (FY98/99)
Investment (gross fixed)10.9% of GDP (2012 est.)
Budgetrevenues: $27.48 billion
expenditures: $42.15 billion (2012 est.)
Taxes and other revenues11.9% of GDP (2012 est.)
Budget surplus (+) or deficit (-)-6.3% of GDP (2012 est.)
Public debt50.7% of GDP (2012 est.)
49.4% of GDP (2011 est.)
Inflation rate (consumer prices)9.7% (2012 est.)
11.9% (2011 est.)
Central bank discount rate12% (31 January 2012 est.)
14% (31 December 2010 est.)
Commercial bank prime lending rate12.41% (31 December 2012 est.)
14.12% (31 December 2011 est.)
Stock of narrow money$62.29 billion (31 December 2012 est.)
$56.34 billion (31 December 2011 est.)
Stock of broad money$76.16 billion (31 December 2011 est.)
$71.36 billion (31 December 2010 est.)
Stock of domestic credit$94.65 billion (31 December 2012 est.)
$86.76 billion (31 December 2011 est.)
Market value of publicly traded shares$32.76 billion (31 December 2011)
$38.17 billion (31 December 2010)
$33.24 billion (31 December 2009)
Agriculture - productscotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs
Industriestextiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimp
Industrial production growth rate3.4% (2012 est.)
Current Account Balance-$4.632 billion (2012 est.)
$268 million (2011 est.)
Exports$24.63 billion (2012 est.)
$26.31 billion (2011 est.)
Exports - commoditiestextiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sports goods, chemicals, manufactures, carpets and rugs
Exports - partnersUS 13.3%, China 10.9%, UAE 8.6%, Afghanistan 8.5% (2012)
Imports$39.81 billion (2012 est.)
$38.85 billion (2011 est.)
Imports - commoditiespetroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea
Imports - partnersChina 19.8%, Saudi Arabia 12%, UAE 11.9%, Kuwait 6.2% (2012)
Reserves of foreign exchange and gold$13.8 billion (31 December 2012 est.)
$18.09 billion (31 December 2011 est.)
Debt - external$56.19 billion (31 December 2012 est.)
$60.18 billion (31 December 2011 est.)
Stock of direct foreign investment - at home$22.72 billion (31 December 2012 est.)
$21.88 billion (31 December 2011 est.)
Stock of direct foreign investment - abroad$1.495 billion (31 December 2012 est.)
$1.432 billion (31 December 2011 est.)
Exchange ratesPakistani rupees (PKR) per US dollar -
93.3952 (2012 est.)
86.3434 (2011 est.)
85.194 (2010 est.)
81.71 (2009)
70.64 (2008)
Fiscal year1 July - 30 June

Source: CIA World Factbook
Unless otherwise noted, information in this page is accurate as of February 21, 2013