Economy - overview Pakistan continues to suffer through a damaging foreign exchange crisis. The crisis stems from years of loose fiscal policies that exacerbated inflation and allowed the public debt, money supply, and current account deficit to explode. In April 1997, Prime Minister SHARIF introduced a stimulus package of tax cuts intended to boost failing industrial output and spur export growth. At that time, the IMF endorsed the program, paving the way for a $1.5 billion Enhanced Structural Adjustment Facility. Although the economy showed signs of improvement following the measures, SHARIF has refused to implement the tough structural reforms necessary for sustained, longer-term growth. As a consequence, at yearend 1997, industrial production continued to flag, foreign exchange reserves continued to teeter around $1 billion - only four weeks of imports - and borrowing to support the budget deficit already exceeded the amount allocated for the entire fiscal year. At the same time, the government must cope with long-standing economic vulnerabilities - inadequate infrastructure, low levels of literacy, and increasing sectarian, ethnic, and tribal violence.

GDP purchasing power parity - $344 billion (1997 est.)

GDP - real growth rate 3.1% (1997 est.)

GDP - per capita purchasing power parity - $2,600 (1997 est.)

GDP - composition by sector
agriculture: 24.2%
industry: 26.4%
services: 49.4% (1997)

Inflation rate - consumer price index 11.8% (FY96/97)

Labor force
total: 37.8 million (1998)
by occupation: agriculture 47%, mining and manufacturing 17%, services 17%, other 19%
note: extensive export of labor, mostly to the Middle East, and use of child labor

Unemployment rate NA%

Budget
revenues: $9.6 billion
expenditures: $13.6 billion, including capital expenditures of $NA (FY96/97)

Industries textiles, food processing, beverages, construction materials, clothing, paper products, shrimp

Industrial production growth rate 3.3% (FY96/97 est.)

Electricity - capacity 13.169 million kW (1995)

Electricity - production 58.1 billion kWh (1997)

Electricity - consumption per capita 436 kWh (1997)

Agriculture - products cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs

Exports
total value: $8.2 billion (FY96/97)
commodities: cotton, textiles, clothing, rice, leather, carpets
partners: EU, US, Hong Kong, Japan

Imports
total value: $11.4 billion (FY96/97)
commodities: petroleum, petroleum products, machinery, transportation equipment, vegetable oils, animal fats, chemicals
partners: EU, Japan, US, China

Debt - external $33 billion (1997 est.)

Economic aid
recipient: $2.2 billion from all bilateral and multilateral sources (FY96/97)

Currency 1 Pakistani rupee (PRe) = 100 paisa

Exchange rates Pakistani rupees (PRs) per US$1 - 44.050 (January 1998), 41.112 (1997), 36.079 (1996), 31.643 (1995), 30.567 (1994), 28.1 (1993); note - annual average of official rate; parallel market rate is higher

Fiscal year 1 July - 30 June

NOTE: The information regarding Pakistan on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Pakistan Economy 1998 information contained here. All suggestions for corrections of any errors about Pakistan Economy 1998 should be addressed to the CIA.