About

A successful economic development strategy must focus on improving the skills of the area’s workforce, reducing the cost of doing business and making available the resources business needs to compete and thrive in today’s global economy- Rod Blagojevich  

The Economy of Pakistan is 47th largest in the world (in nominal terms) and 27th largest in the world (in absolute dollar terms). Pakistan has a semi-industrialized economy, which mainly encompasses textiles, chemicals, food processing, agriculture and other industries. Growth poles of Pakistan’s economy are situated along the Indus River; diversified economies of Karachi and Punjab‘s urban centers coexist with lesser developed areas in other parts of the country. 

IMF-approved government policies, bolstered by foreign investment and renewed access to global markets, have generated solid macroeconomic recovery the last decade. Substantial macroeconomic reforms since 2000, most notably at privatizing the banking sector have helped the economy.

GDP growth, spurred by gains in the industrial and service sectors, remained in the 6-8% range in 2004-06 due to economic reforms in the year 2000 by the Musharraf government. In 2005, the World Bank named Pakistan the top reformer in its region and in the top 10 reformers globally.

In 2005, the World Bank reported that

Pakistan was the top reformer in the region and the number 10 reformer globally — making it easier to start a business, reducing the cost to register property, increasing penalties for violating corporate governance rules, and replacing a requirement to license every shipment with two-year duration licenses for traders.”[27]

The World Bank (WB) and International Finance Corporation’s flagship report Ease of Doing Business Index 2010 ranked Pakistan 85 among 181 countries around the globe. Pakistan comes highest in South Asia but also ranks higher than China, Russia and India which is at 133. The top five countries are Singapore, New Zealand, the United States, Hong Kong and United Kingdom.

Economy of Pakistan

 
Rank 25th(PPP)47th(Nominal)(IMF)
Currency 1 Pakistani Rupee(PKR)Rs. = 100 Paisas
Fiscal year July 1–June 30
Trade organisations ECO, SAFTA, ASEAN, WIPO and WTO

Statistics

GDP $174.8 billion (nominal)(2010) [1]$464 billion (GDP-PPP) (2009)[2]
GDP growth 4.2% (2009)
GDP per capita $2400 (2010)[3]
GDP by sector agriculture: 19.6%, industry: 26.8%, services: 53.7% (2007)
Inflation (CPI) 14.17% (2009-2010)[4]
Population
below poverty line
40% (2010)[5]
Labour force 55.88 million (2009 est.)
Unemployment 11.2% (2009 est.)
Main industries textiles, chemicals, food processing, steel, transport equipment, automobiles, telecommunications, machinery, beverages, construction, materials, clothing, paper products
Ease of Doing Business Rank 83rd[6]

External

Exports $19.55 billion (2010 est.)(67th[7][8]
Export goods textile goods (garments, bed linen, cotton cloths, and yarn), rice, leather goods, sports goods, chemicals manufactures, carpets and rugs
Main export partners United States 22.4%, UAE 8.3%, UK 6%, China 15.4%, Germany 4.7% (2006 est.)
Imports $28.31 billion f.o.b. (2009 est.)
Import goods Petroleum, Petroleum products, Machinery, Plastics, Transportation equipment, Edible oils, Paper and paperboard, Iron and steel, Tea
Main import partners China 14.7%, Saudi Arabia 10.1%, UAE 8.7%, Japan 6.5%, United States 5.3%, Germany 5%, Kuwait 4.9% (2006 est.)

Public finances

Public debt $58 billion (2010)
Revenues $23.21 billion (2009 est.)
Expenses $30.05 billion (2009 est.)
Credit rating Standard & Poor’s:[9]
B- (Domestic)
B- (Foreign)
B- (T&C Assessment)
Outlook: Stable[10]
Moody’s:[10]
B3
Outlook: Stable

The Government of Pakistan has granted numerous incentives to technology companies wishing to do business in Pakistan. A combination of decade-plus tax holidays, zero duties on computer imports, government incentives for venture capital and a variety of programs for subsidizing technical education, are intended there.

By October 2007, Pakistan raised back its Foreign Reserves to a handsome $16.4 billion. Exceptional policies kept Pakistan’s trade deficit controlled at $13 billion, exports boomed to $18 billion, revenue generation increased to become $13 billion and attracted foreign investment of $8.4 billion.

Pakistan’s manufacturing sector has experienced double-digit growth in recent years, from 2000 to 2007, with large-scale manufacturing growing from a minimal 1.5% in 1999 to a record 19.9% in 2004-05 and averaged 8.8% by end of 2007.

Measured by purchasing power, Pakistan has a 35 million strong middle class, according to Dr. Ishrat Husain, Ex-Governor (2 December 1999 – 1 December 2005) of the State Bank of Pakistan. It is a figure that correlates with research by Standard Chartered Bank which estimates that Pakistan possesses a “a middle class of 30 million people that Standard Chartered estimates now earn an average of about $10,000 a year.

Pakistan is one of the world’s largest producers of the following commodities according to FAOSTAT, the statistical arm of the Food and Agriculture Organization of The United Nations, given here with the 2008 ranking:

In Pakistan SMEs have a significant contribution in the total GDP of Pakistan, according to SMEDA and Economic survey reports, the share in the annual GDP is 40% likewise SMEs generating significant employment opportunities for skilled workers and entrepreneurs. Small and medium scale firms represent nearly 90% of all the enterprises in Pakistan and employ 80% of the non-agricultural labour force. These figures indicate the potential and further growth in this sector.

Pakistan’s service sector accounts for about 53.3% of GDP. Transport, storage, communications, finance, and insurance account for 24% of this sector, and wholesale and retail trade about 30%. Pakistan is trying to promote the information industry and other modern service industries through incentives such as long-term tax holidays.

After the deregulation of the telecommunication industry, the sector has seen an exponential growth. Pakistan Telecommunication Company Ltd has emerged as a successful Forbes 2000 conglomerate with over US $1 billion in sales in 2005. The mobile telephone market has exploded fourteen-fold since 2000 to reach a subscriber base of 91 million users in 2008, one of the highest mobile teledensities in the entire world. In addition, there are over 6 million landlines in the country with 100% fibre-optic network and coverage via WLL in even the remotest areas. As a result, Pakistan won the prestigious Government Leadership award of GSM Association in 2006.

The contribution of the telecom sector to the national exchequer increased to Rs 110 billion in the year-end 2007-08 on account of the general sales tax, activation charges and other steps as compared to Rs 100 billion in the year-end 2006-07.

The World Bank estimates that it takes about 3 days to get a phone connection in Pakistan.

In Pakistan, the following are the top mobile phone operators:

  1. Mobilink (Parent: Orascom Telecom Holding, Egypt)
  2. Ufone (Parent: PTCL (Etisalat), Pakistan/UAE)
  3. Telenor (Parent: Telenor, Norway)
  4. Warid (Parent: Abu Dhabi Group / SingTel, UAE/Singapore)
  5. Zong (Parent: China Mobile, China)

By March 2009, Pakistan had 91 million mobile subscribers – 25 million more subscribers than reported in the same period in 2008. In addition to the 3.1 million fixed lines, while as many as 2.4 million are using Wireless Local Loop connections.

  • Pakistan’s economy grew by 100% — to become $ 160 billion
    Revenue grew by 100% — to become $ 11.4 billion
  • Per Capita Income grew by 100% — to become $ 925
  • Foreign Reserves grew by 500% — to become $ 17 billion
    Exports grew by 100% — to become $ 18.5 billion
    Textile exports grew by 100% — to become $ 11.2 billion
    Karachi Stock Exchange grew by 500% — to become $ 75 billion
    Foreign Direct Investment grew by 500% — to become $ 8 billion
    Annual Debt servicing decreased by 35% — to become 26%
    Poverty decreased by 10% — to become 24%
    literacy rate grew by 10% — to become 54%
    Public development Funds grew by 100% — to become Rs 520 billion

Part of protecting our homeland means being less dependent on foreign countries for our energy – Rod Blagojevich

 

This website is maintained by: Mirza Rohail B  and  Afreen Baig

8 responses to “About

  1. ahmed raza

    This website is very well drafted, concise and to-the-point relevent. It helped me in my assignment. please post on pharma industry as well. Thankxxx

  2. Administrator

    Soon we’ll be updating on Pharma industry and CNG sector as well. Looking forward to more suggestions. Thanks & Regards

  3. Musharraf Supporter

    Friends! Enough is enough. We remained silent and tolerated all this non sense for long. We suffered the tragic resignation of President Musharraf with heavy hearts, but did not protest. Now they are planning to hang him on the account of treason, and still we are silent! Why? How can allow this to happen? We remained silent, but its time to speak now… Speak and speak with power.

    President Musharraf worked all his life for Pakistan. He served Pakistan army for about 45 years. He fought wars for the country. He revived the Economy of Pakistan. He gave Pakistan a dignified place in international community. He safeguarded the interests of Pakistan under the most horrible and nerve stressing environment post 9/11. He protected the nuclear and missile program of Pakistan when every one was blaming Pakistan of the nuclear proliferation. He gave every one full liberty and freedom to express views openly. He always stood for idea of ‘Pakistan First’. Unlike other rotten politicians, he has no palaces or bank accounts etc. abroad. He is a true son of soil of Pakistan. He lived here and would remain in Pakistan forever.

    Here we are pleased to announce that under the platform of ‘Pasdar-e-Pakistan’, we can show our loyalty towards Pakistan and we can express our support for President Musharraf. Let us join hands together. Send us your suggestions how to activate this forum. We have few ideas in our minds. We are planning to come into action with great force, before it gets too late. We need your help. Please contact us if you are willing to show your support for a man, who struggled for us, and who needs us in such a crucial time. Please spread this message as chain we need everyone of you to send atleast send us 500 email addresses (like minded appreciated so that we able to accumulate as much supporters as we can under one umbrella of pasdarepakistan@yahoogroups.com)

    http://www.pasdarepakistan.org

    pasdarepakistan@gmail.com
    longlivepervezmusharraf@hotmail.com

  4. My compliments and congratulations to the administrator of this blog. Facts speak LOUD and CLEAR. The contents of this blog must be circulated and must be published for better awareness of the Pakistani nation. We have potential, we have resources… We are just missing honest and visionary leadership with clear vision and courage. We are missing President Musharraf.
    Long Live Pakistan.
    Long Live Pervez Musharraf.

  5. A book I recently published is available for free download.

    The book is here at http://www.scribd.com/doc/18370078/Pakistan-Manifest-Destiny

    I hope you will comment and let me know what you think?

  6. Sa'ad Abbasi

    Great effort, I chanced upon the website rather accidentally and im impressed, being a layman about economics found quite a few entries informative. I have been trying to subscribe to this web journal but was unable to do it. Is the facility available?

  7. PIDC

    Thorough knowledge is provided here about Pakistan Industries.

  8. Muhammad Hasnain

    slm…
    I m Msc Economic student. I m getting a lot of knowledge about economy from this site. At this time i need last 10 year pakistan and indian’s economy data(GNP,GDP,PER CAPITA,Diff sector of economy data etc…..
    At last thnk u very much 4 giving us such facilities……

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s