| Economy - overview | Decades 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; 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% in 2017, 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 2015-17. 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 longstanding 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) | $1.056 trillion (2017 est.) $1.003 trillion (2016 est.) $960.2 billion (2015 est.) note: data are in 2017 dollars data are for fiscal years |
| GDP (official exchange rate) | $278.9 billion (2015 est.) |
| GDP - real growth rate | 5.3% (2017 est.) 4.5% (2016 est.) 4.1% (2015 est.) note: data are for fiscal years |
| GDP - per capita (PPP) | $5,400 (2017 est.) $5,200 (2016 est.) $5,100 (2015 est.) note: data are in 2017 dollars data are for fiscal years |
| Gross national saving | 11.8% of GDP (2017 est.) 13.8% of GDP (2016 est.) 14.7% of GDP (2015 est.) note: data are for fiscal years |
| GDP - composition, by end use | household consumption: 81.8% government consumption: 11.9% investment in fixed capital: 14.2% investment in inventories: 1.6% exports of goods and services: 8.3% imports of goods and services: -17.8% (2017 est.) |
| GDP - composition by sector | agriculture: 24.7% industry: 19.1% services: 56.3% (2017 est.) |
| Population below poverty line | 29.5% (FY2013 est.) |
| Labor force | 63.89 million note: extensive export of labor, mostly to the Middle East, and use of child labor (2017 est.) |
| Labor force - by occupation | agriculture: 42.3% industry: 22.6% services: 35.1% (FY2015 est.) |
| Unemployment rate | 6% (2017 est.) 6% (2016 est.) note: substantial underemployment exists |
| Unemployment, youth ages 15-24 | total: 8.6% male: 8% female: 10.6% (2014 est.) |
| Household income or consumption by percentage share | lowest 10%: 4% highest 10%: 26.1% (FY2013) |
| Distribution of family income - Gini index | 30.7 (FY2013) 30.9 (FY2011) |
| Budget | revenues: $45.64 billion expenditures: $59.28 billion note: data are for fiscal years (2017 est.) |
| Taxes and other revenues | 14.9% of GDP (2016 est.) |
| Budget surplus (+) or deficit (-) | -4.5% of GDP (2016 est.) |
| Public debt | 59.4% of GDP (2017 est.) 59.5% of GDP (2016 est.) |
| Inflation rate (consumer prices) | 4.1% (2017 est.) 2.9% (2016 est.) |
| Central bank discount rate | 5.75% (15 November 2016) 6% (15 November 2015) |
| Commercial bank prime lending rate | 7% (31 December 2017 est.) 6.94% (31 December 2016 est.) |
| Stock of narrow money | $117.2 billion (31 December 2017 est.) $103.5 billion (31 December 2016 est.) |
| Stock of broad money | $142 billion (31 December 2017 est.) $126.8 billion (31 December 2016 est.) |
| Stock of domestic credit | $165.2 billion (31 December 2017 est.) $145.2 billion (31 December 2016 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 - products | cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs |
| Industries | textiles and apparel, food processing, pharmaceuticals, surgical instruments, construction materials, paper products, fertilizer, shrimp |
| Industrial production growth rate | 5% (2017 est.) |
| Current Account Balance | -$11.67 billion (2017 est.) -$4.867 billion (2016 est.) |
| Exports | $21.7 billion (2017 est.) $21.71 billion (2016 est.) |
| Exports - commodities | textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sporting goods, chemicals, manufactures, surgical instruments, carpets and rugs |
| Exports - partners | US 16.3%, China 7.6%, UK 7.4%, Afghanistan 6.5%, Germany 5.7% (2016) |
| Imports | $48.21 billion (2017 est.) $41.62 billion (2016 est.) |
| Imports - commodities | petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea |
| Imports - partners | China 29.1%, UAE 13.2%, Indonesia 4.4%, US 4.3%, Japan 4.2% (2016) |
| Reserves of foreign exchange and gold | $20.02 billion (31 December 2017 est.) $22.05 billion (31 December 2016 est.) |
| Debt - external | $75.66 billion (31 December 2017 est.) $70.45 billion (31 December 2016 est.) |
| Stock of direct foreign investment - at home | $41.56 billion (31 December 2017 est.) $39.06 billion (31 December 2016 est.) |
| Stock of direct foreign investment - abroad | $2.175 billion (31 December 2017 est.) $2.094 billion (31 December 2016 est.) |
| Exchange rates | Pakistani rupees (PKR) per US dollar - 105.1 (2017 est.) 104.769 (2016 est.) 104.769 (2015 est.) 102.769 (FY2014 est.) 101.1 (FY2013 est.) |
| Fiscal year | 1 July - 30 June |
Source: CIA World Factbook
This page was last updated on January 20, 2018
