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Pakistan Economy Profile 2017

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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. Pakistan has a large English-speaking population. Nevertheless, a challenging security environment, electricity shortages, and a burdensome investment climate have deterred investors. Agriculture accounts for one-fifth of output and two-fifths of employment. Textiles and apparel account for most of Pakistan's export earnings, and Pakistan's failure to diversify its exports has left the country vulnerable to shifts in world demand. Pakistan’s GDP growth has gradually increased since 2012. Official unemployment was 6.1% in 2016, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Human development continues to lag behind most of the region.

In 2013, Pakistan embarked on a $6.3 billion IMF Extended Fund Facility, which focused on reducing energy shortages, stabilizing public finances, increasing revenue collection, and improving its balance of payments position. The program concluded in September 2016. Although Pakistan missed several structural reform criteria, it restored macroeconomic stability, improved its credit rating, and boosted growth. The Pakistani rupee, after heavy depreciation in 2013, remained relatively stable against the US dollar in 2016. Low global oil prices in 2016 contributed to a narrowing current account deficit and lower inflation. Remittances from overseas workers continued to be a key revenue source, also mitigating the impact of the lack of foreign investment and a growing trade deficit on the country’s current account.

Pakistan must continue to address several long-standing issues, including expanding investment in education and healthcare, adapting to the effects of climate change and natural disasters, improving the country’s business environment, reducing dependence on foreign donors, and widening the country’s tax base. Given demographic challenges, Pakistan’s leadership will be pressed to implement economic reforms, promote further development of the energy sector, and attract foreign investment to support sufficient economic growth necessary to employ its growing and rapidly urbanizing population, much of which is under the age of 25.

In an effort to boost development, Pakistan and China are implementing the “China-Pakistan Economic Corridor”, a $46 billion investment program targeted towards the energy sector and other infrastructure projects that Islamabad and Beijing had agreed on in early 2013.
GDP (purchasing power parity)$988.2 billion (2016 est.)
$943.9 billion (2015 est.)
$905.8 billion (2014 est.)
note: data are in 2016 dollars
data are for fiscal years
GDP (official exchange rate)$298.1 billion (2015 est.)
GDP - real growth rate4.7% (2016 est.)
4.2% (2015 est.)
4.1% (2014 est.)
note: data are for fiscal years
GDP - per capita (PPP)$5,100 (2016 est.)
$4,900 (2015 est.)
$4,800 (2014 est.)
note: data are in 2016 dollars
data are for fiscal years
Gross national saving14.3% of GDP (2016 est.)
14.5% of GDP (2015 est.)
13.4% of GDP (2014 est.)
note: data are for fiscal years
GDP - composition, by end usehousehold consumption: 80.1%
government consumption: 11.8%
investment in fixed capital: 13.6%
investment in inventories: 1.6%
exports of goods and services: 8.7%
imports of goods and services: -15.8% (2016 est.)
GDP - composition by sectoragriculture: 25.2%
industry: 19.2%
services: 55.6% (2016 est.)
Population below poverty line29.5% (FY2013 est.)
Labor force65.1 million
note: extensive export of labor, mostly to the Middle East, and use of child labor (2016 est.)
Labor force - by occupationagriculture: 42.3%
industry: 22.6%
services: 35.1% (FY2015 est.)
Unemployment rate6.1% (2016 est.)
6.5% (2015 est.)
note: substantial underemployment exists
Unemployment, youth ages 15-24total: 10.4%
male: 9.4%
female: 12.9% (2014 est.)
Household income or consumption by percentage sharelowest 10%: 4%
highest 10%: 26.1% (FY2013)
Distribution of family income - Gini index30.7 (FY2013)
30.9 (FY2011)
Budgetrevenues: $42.3 billion
expenditures: $54.63 billion
note: data are for fiscal years (2016 est.)
Taxes and other revenues14.2% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-4.1% of GDP (2016 est.)
Public debt69.8% of GDP (30 September 2016 est.)
69.9% of GDP (30 September 2015 est.)
Inflation rate (consumer prices)2.9% (FY2016 est.)
4.5% (FY2015 est.)
Central bank discount rate5.75% (15 November 2016)
6% (15 November 2015)
Commercial bank prime lending rate6.46% (10 December 2015 est.)
9.74% (10 December 2014 est.)
Stock of narrow money$100.2 billion (31 December 2016 est.)
$89.3 billion (31 December 2015 est.)
Stock of broad money$122.3 billion (31 December 2016 est.)
$109.8 billion (31 December 2015 est.)
Stock of domestic credit$142.2 billion (31 December 2016 est.)
$127.5 billion (31 December 2015 est.)
Market value of publicly traded shares$43.68 billion (31 December 2012 est.)
$32.76 billion (31 December 2011 est.)
$38.17 billion (31 December 2010 est.)
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 rate6.8% (2016 est.)
Current Account Balance-$3.262 billion (2016 est.)
-$2.709 billion (2015 est.)
Exports$20.96 billion (2016 est.)
$28.51 billion (2015 est.)
Exports - commoditiestextiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sporting goods, chemicals, manufactures, carpets and rugs
Exports - partnersUS 13%, UAE 9%, Afghanistan 9%, China 8.7%, UK 5.3%, Germany 4.9% (2015)
Imports$38.25 billion (2016 est.)
$47.53 billion (2015 est.)
Imports - commoditiespetroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea
Imports - partnersChina 28.3%, Saudi Arabia 11%, UAE 10.9%, Kuwait 5.7% (2015)
Reserves of foreign exchange and gold$20.53 billion (31 December 2016 est.)
$20.05 billion (31 December 2015 est.)
Debt - external$64.04 billion (31 December 2016 est.)
$62.18 billion (31 December 2015 est.)
Stock of direct foreign investment - at home$33.82 billion (31 December 2016 est.)
$31.82 billion (31 December 2015 est.)
Stock of direct foreign investment - abroad$2.059 billion (31 December 2016 est.)
$2.009 billion (31 December 2015 est.)
Exchange ratesPakistani rupees (PKR) per US dollar -
103.768 (2016 est.)
101.89 (2015 est.)
102.769 (FY2014 est.)
101.1 (FY2013 est.)
93.4 (2012 est.)
Fiscal year1 July - 30 June

Source: CIA World Factbook
This page was last updated on July 9, 2017

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