Economy - overview Pakistan, an impoverished and underdeveloped country, suffers from internal political disputes, lack of foreign investment, and a costly confrontation with neighboring India. Pakistan's economic prospects, marred by poor human development indicators, low levels of foreign investment, and reliance on international creditors for hard currency inflows, were nonetheless on an upswing through most of 2001. The MUSHARRAF government made significant inroads in macroeconomic reform - it completed an IMF short-term loan program for the first time and improved its standing with international creditors by increasing revenue collection and restraining the fiscal deficit in the 2001/02 budget. While Pakistan has capitalized on its international standing after the 11 September terrorist attacks on the US by garnering substantial assistance from abroad - including $1.3 billion in IMF Poverty Reduction and Growth Facility aid and $12.5 billion in Paris Club debt rescheduling - long-term prospects remain uncertain. GDP growth will continue to hinge on crop performance; dependence on foreign oil leaves the import bill vulnerable to fluctuating oil prices; and foreign and domestic investors remain wary of committing to projects in Pakistan. Pakistani trade levels - already in decline due to the global economic downturn - worsened in the aftermath of the September 11 attacks.

GDP purchasing power parity - $299 billion (2001 est.)

GDP - real growth rate 3.3% (2001 est.)

GDP - per capita purchasing power parity - $2,100 (2001 est.)

GDP - composition by sector
agriculture: 26%
industry: 24%
services: 50% (2001 est.)

Population below poverty line 35% (2001 est.)

Household income or consumption by percentage share
lowest 10%: 4.1%
highest 10%: 27.7% (1997)

Distribution of family income - Gini index 31.2 (1996-97)

Inflation rate (consumer prices) 4% (2001 est.)

Labor force 40.4 million
note: extensive export of labor, mostly to the Middle East, and use of child labor (2000)

Labor force - by occupation agriculture 44%, industry 17%, services 39% (1999 est.)

Unemployment rate 6.3% (2001 est.)

Budget
revenues: $8.9 billion
expenditures: $11.6 billion, including capital expenditures of $NA (FY00/01 est.)

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

Industrial production growth rate 7% (2001 est.)

Electricity - production 62.687 billion kWh (2000)

Electricity - production by source
fossil fuel: 64.09%
hydro: 35.31%
other: 0% (2000)
nuclear: 0.6%

Electricity - consumption 58.299 billion kWh (2000)

Electricity - exports 0 kWh (2000)

Electricity - imports 0 kWh (2000)

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

Exports $8.8 billion (f.o.b., 2001)

Exports - commodities textiles (garments, cotton cloth, and yarn), rice, other agricultural products

Exports - partners US 24.8%, UK 6.5%, UAE 6.2%, Hong Kong 5.9%, Germany 5.6%, (2000)

Imports $9.2 billion (f.o.b., 2001)

Imports - commodities machinery, petroleum, petroleum products, chemicals, transportation equipment, edible oils, grains, pulses, flour

Imports - partners Kuwait 11.7%, UAE 10.7%, Saudi Arabia 10.5%, US 6%, Japan 5.6% (2000)

Debt - external $31.5 billion (2001 est.)

Economic aid - recipient $2 billion (FY99/00)

Currency Pakistani rupee (PKR)

Currency code PKR

Exchange rates Pakistani rupees per US dollar - 60.719 (January 2002), 61.927 (2001), 53.648 (2000), 49.118 (1999), 44.943 (1998), 40.918 (1997)

Fiscal year 1 July - 30 June

NOTE: The information regarding Pakistan on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Pakistan Economy 2002 information contained here. All suggestions for corrections of any errors about Pakistan Economy 2002 should be addressed to the CIA.