Pakistan - Coal rents (% of GDP)

Coal rents (% of GDP) in Pakistan was 0.053 as of 2017. Its highest value over the past 46 years was 0.153 in 2008, while its lowest value was 0.026 in 1971.

Definition: Coal rents are the difference between the value of both hard and soft coal production at world prices and their total costs of production.

Source: Estimates based on sources and methods described in "The Changing Wealth of Nations: Measuring Sustainable Development in the New Millennium" (World Bank, 2011).

See also:

Year Value
1971 0.026
1972 0.032
1973 0.053
1974 0.076
1975 0.132
1976 0.093
1977 0.097
1978 0.071
1979 0.073
1980 0.100
1981 0.130
1982 0.137
1983 0.081
1984 0.067
1985 0.092
1986 0.064
1987 0.042
1988 0.058
1989 0.063
1990 0.076
1991 0.072
1992 0.060
1993 0.044
1994 0.042
1995 0.069
1996 0.057
1997 0.044
1998 0.040
1999 0.028
2000 0.032
2001 0.060
2002 0.041
2003 0.043
2004 0.121
2005 0.093
2006 0.063
2007 0.088
2008 0.153
2009 0.062
2010 0.086
2011 0.097
2012 0.056
2013 0.049
2014 0.045
2015 0.039
2016 0.043
2017 0.053

Development Relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future.

Limitations and Exceptions: This definition of economic rent differs from that used in the System of National Accounts, where rents are a form of property income, consisting of payments to landowners by a tenant for the use of the land or payments to the owners of subsoil assets by institutional units permitting them to extract subsoil deposits.

Statistical Concept and Methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the world price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs (including a normal return on capital). These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Environment Indicators

Sub-Topic: Natural resources contribution to GDP