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Pakistan Economy Profile 2016

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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 more than one-fourth 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 6.5% in 2015, 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 coordination with the International Monetary Fund (IMF), Pakistan embarked on an economic reform program in 2013. While the reform process has been mixed, and issues like privatization of state-owned enterprises remain unresolved, Pakistan has restored macroeconomic stability, improved its credit rating, and boosted growth. The Pakistani rupee, after heavy depreciation, remained relatively stable against the US dollar in 2014-15. Remittances from overseas workers, averaging more than $1.5 billion a month, are a key revenue source for Pakistan, partly compensating for a lack of foreign investment and a slowdown in portfolio investment. Falling global oil prices in 2015 contributed to a narrowing current account deficit and lower inflation, despite weak export performance. Pakistan’s program with the IMF – a three-year, $6.7 billion Extended Fund Facility focusing on reducing energy shortages, stabilizing public finances, expanding revenue, and improving the external balance – is slated to conclude in September 2016. While passing most quantitative targets, Pakistan has missed targets on structural reforms and performance criteria throughout the program.

Pakistan remains stuck in a low-income, low-growth trap, with growth averaging about 3.5% per year from 2008 to 2013. Pakistan must address long-standing issues related to government revenues, with the tax base being narrow at 11% of GDP. 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. Other long-term challenges include expanding investment in education and healthcare, adapting to the effects of climate change and natural disasters, improving the country’s business climate, and reducing dependence on foreign donors. Pakistan and China are implementing the “China-Pakistan Economic Corridor”, a $46 billion investment program targeted towards the energy sector and other infrastructure project that Islamabad and Beijing had agreed on in early 2014.
GDP (purchasing power parity)$931 billion (2015 est.)
$893.1 billion (2014 est.)
$858.5 billion (2013 est.)
note: data are in 2015 US dollars
GDP (official exchange rate)$270 billion (2015 est.)
GDP - real growth rate4.2% (2015 est.)
4% (2014 est.)
3.7% (2013 est.)
GDP - per capita (PPP)$5,000 (2015 est.)
$4,900 (2014 est.)
$4,800 (2013 est.)
note: data are in 2015 US dollars
Gross national saving14.1% of GDP (2015 est.)
13.7% of GDP (2014 est.)
13.9% of GDP (2013 est.)
GDP - composition, by end usehousehold consumption: 79.2%
government consumption: 11.8%
investment in fixed capital: 13.5%
investment in inventories: 1.6%
exports of goods and services: 10.9%
imports of goods and services: -17.1% (2015 est.)
GDP - composition by sectoragriculture: 25.5%
industry: 19%
services: 55.5% (2015 est.)
Population below poverty line22.3% (FY2005 est.)
Labor force63.34 million
note: extensive export of labor, mostly to the Middle East, and use of child labor (2015 est.)
Labor force - by occupationagriculture: 43.7%
industry: 22.4%
services: 33.9% (FY2013 est.)
Unemployment rate6.5% (FY2015 est.)
6.7% (FY2014 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%: 4.2%
highest 10%: 25.6% (FY2011)
Distribution of family income - Gini index29.6 (FY2011)
31.4 (FY2008)
Budgetrevenues: $38.75 billion
expenditures: $53.11 billion (FY2015 est.)
Taxes and other revenues15.6% of GDP (FY2015 est.)
Budget surplus (+) or deficit (-)-5.8% of GDP (FY2015 est.)
Public debt64.8% of GDP (FY2015 est.)
65.1% of GDP (FY2014 est.)
Inflation rate (consumer prices)4.5% (2015 est.)
8.6% (2014 est.)
Central bank discount rate6% (15 November 2015)
9.5% (18 December 2014)
Commercial bank prime lending rate6.46% (10 December 2015 est.)
9.74% (10 December 2014 est.)
Stock of narrow money$87.01 billion (31 October 2015 est.)
$77.03 billion (31 December 2014 est.)
Stock of broad money$107 billion (31 October 2015 est.)
$97.95 billion (31 December 2014 est.)
Stock of domestic credit$112 billion (31 October 2015 est.)
$100 billion (31 December 2014 est.)
Market value of publicly traded shares$43.68 billion (31 December 2012 est.)
$32.76 billion (31 December 2011)
$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 rate3.6% (2015 est.)
Current Account Balance-$2.627 billion (2015 est.)
-$3.13 billion (2014 est.)
Exports$23.67 billion (FY2015 est.)
$25.11 billion (FY2014 est.)
Exports - commoditiestextiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sporting goods, chemicals, manufactures, carpets and rugs
Exports - partnersUS 13.1%, UAE 9.1%, Afghanistan 9.1%, China 8.8%, UK 5.3%, Germany 4.9% (2015)
Imports$45.83 billion (FY2015 est.)
$45.07 billion (FY2014 est.)
Imports - commoditiespetroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea
Imports - partnersChina 28.2%, Saudi Arabia 10.9%, UAE 10.8%, Kuwait 5.6% (2015)
Reserves of foreign exchange and gold$18.68 billion (FY2015 est.)
$14.41 billion (FY2014 est.)
Debt - external$63.58 billion (FY2015 est.)
$61.97 billion (FY2014 est.)
Stock of direct foreign investment - at home$31.17 billion (31 December 2015 est.)
$29.37 billion (31 December 2014 est.)
Stock of direct foreign investment - abroad$1.897 billion (31 December 2015 est.)
$1.847 billion (31 December 2014 est.)
Exchange ratesPakistani rupees (PKR) per US dollar -
101.45 (FY2015 est.)
102.89 (FY2014 est.)
101.1 (FY2013 est.)
93.4 (2012 est.)
86.3434 (2011 est.)
Fiscal year1 July - 30 June

Source: CIA World Factbook
This page was last updated on October 8, 2016

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