Pakistan Economy
Is Pakistan a wealthy country?
Overview of the Pakistan economy:
Growth and GDP: Pakistan is classified as a developing economy with a GDP growth rate that has shown variability in recent years. Prior to the COVID-19 pandemic, Pakistan's GDP growth was around 5% to 5.8% annually. However, like many other countries, Pakistan experienced a slowdown due to the pandemic. In the fiscal year 2020-2021, Pakistan's GDP growth rate was around 3.9%, showing signs of recovery but still below pre-pandemic levels.
Agriculture: Agriculture plays a significant role in Pakistan's economy, employing a large portion of the workforce and contributing to GDP. Major crops include wheat, rice, sugarcane, and cotton. However, the agricultural sector faces challenges such as water scarcity, outdated farming practices, and lack of modernization.
Industry: Pakistan's industrial sector includes manufacturing, construction, and mining. Textiles, cement, and food processing are among the key sectors. The government has been taking steps to promote industrial growth through incentives and infrastructure development.
Services Sector: The services sector is the largest contributor to Pakistan's GDP, accounting for over half of economic output. Key components include telecommunications, finance, retail, and transportation. The IT and outsourcing industries have also seen growth in recent years, with Pakistan becoming a destination for software development and call center services.
Trade and Investment: Pakistan engages in both exports and imports with major trading partners, including China, the United States, and the European Union. Exports primarily consist of textiles, apparel, leather products, and agricultural goods. Foreign direct investment (FDI) has been increasing in energy, telecommunications, and infrastructure sectors, although challenges such as security concerns and bureaucratic hurdles remain.
Fiscal Challenges: Pakistan faces fiscal challenges such as a high fiscal deficit, public debt, and budgetary constraints. The government has implemented reforms to improve revenue collection, reduce subsidies, and enhance fiscal discipline. However, more efforts are needed to achieve sustainable fiscal stability.
Infrastructure and Energy: Infrastructure development is crucial for economic growth in Pakistan. The government has been investing in transportation infrastructure, including road and rail networks, to improve connectivity within the country and with neighboring regions. Energy shortages have been a persistent issue, with efforts underway to address power generation and distribution challenges.
Challenges: Pakistan's economy faces various challenges, including political instability, security concerns, corruption, inflation, and unemployment. Addressing these challenges requires sustained government, private sector, and civil society efforts to promote economic development, improve governance, and enhance social welfare.
Pakistan Economy Data
What is the GDP of Pakistan?
| Currency Name and Code | Pakistan Rupee (PKR) |
| GDP - Gross Domestic Product (PPP) | $1,021,130,000,000 (USD) |
| GDP - official exchange rate | $247,800,000,000 (USD) |
| GDP - real growth rate | 4.2% |
| GDP Per Capita | $4,900.00 (USD) |
| GDP by Sector- agriculture | 25.5% |
| GDP by Sector- Industry | 19% |
| GDP by Sector- services | 55.5% |
| GDP - composition, by end use |
household consumption: 79.2% 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% |
| Population Below Poverty Line | 24% |
| Inflation Rate | 13.4% |
| Labor Force | 55,770,000 |
| Labor Force By Occupation- agriculture | 45.1% |
| Labor Force By Occupation- industry | 20.7% |
| Labor Force By Occupation- services | 34.2% |
| Unemployment Rate | 15% |
| Unemployment - note | substantial underemployment exists |
| Fiscal Year | 1 July - 30 June |
| Annual Budget | $25,330,000,000 (USD) |
| Budget Surplus or Deficit - percent of GDP | -7.7% |
| Public Debt (% of GDP) | 54.3% |
| Taxes and other revenues - percent of GDP | 12.6% |
| Major Industries | textiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimp |
| Industrial Growth Rate | 4.9% |
| Agriculture Products | cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs |
| Exchange Rate per US Dollar | Pakistani rupee (PKR) |
| Commercial Bank Prime Lending Rate | 11.5% |