Pakistan/Economy

Economy - overview: Pakistan is a poor, heavily populated country, suffering from internal political disputes, lack of foreign investment, and a costly confrontation with neighboring India. Pakistan's economic outlook continues to be marred by its weak foreign exchange position, notably its continued reliance on international creditors for hard currency inflows. The MUSHARRAF government faces $32 billion in external debt and has nearly completed rescheduling with Paris Club members and other bilateral creditors. Foreign loans and grants provide approximately 25% of government revenue, but debt service obligations total nearly 50% of government expenditure. The IMF has remained silent on future disbursements from its $1.56 billion bailout package initiated in 1999, and other international financial institutions are gauging the current administration's resolve to implement necessary fiscal reforms. MUSHARRAF's ambitious economic agenda includes measures to widen the tax net, privatize public sector assets, and improve its balance of trade position. Pakistan has made privatization a cornerstone of economic revival, but may have difficulty attracting new investors until it receives positive endorsement from the World Bank. The Bank has withheld its approval pending resolution of the pricing dispute between the government and independent power producers.

GDP: purchasing power parity - $282 billion (1999 est.)

GDP - real growth rate: 3.1% (1999 est.)

GDP - per capita: purchasing power parity - $2,000 (1999 est.)

GDP - composition by sector:
agriculture: 25.2%
industry: 26.6%
services: 48.2% (1998 est.)

Population below poverty line: 34% (1991 est.)

Household income or consumption by percentage share:
lowest 10%: 4.1%
highest 10%: 27.7% (1996)

Inflation rate (consumer prices): 6% (1999 est.)

Labor force: 38.6 million (1999)
note: extensive export of labor, mostly to the Middle East, and use of child labor

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

Unemployment rate: 7% (FY98/99 est.)

Budget:
revenues: $10 billion
expenditures: $11.7 billion, including capital expenditures of $NA (FY98/99)

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

Industrial production growth rate: 3.8% (1999 est.)

Electricity - production: 59.262 billion kWh (1998)

Electricity - production by source:
fossil fuel: 63.05%
hydro: 36.31%
nuclear: 0.64%
other: 0% (1998)

Electricity - consumption: 55.114 billion kWh (1998)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 0 kWh (1998)

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

Exports: $8.4 billion (f.o.b., 1999)

Exports - commodities: cotton, fabrics, and yarn, rice, other agricultural products

Exports - partners: US 22%, Hong Kong 7%, UK 7%, Germany 7%, UAE 5% (FY98/99)

Imports: $9.8 billion (f.o.b., 1999)

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

Imports - partners: US 8%, Japan 8%, Malaysia 7%, Saudi Arabia 7%, UAE 7% (FY98/99)

Debt - external: $32 billion (1999 est.)

Economic aid - recipient: $2 billion (FY97/98)

Currency: 1 Pakistani rupee (PRe) = 100 paisa

Exchange rates: Pakistani rupees (PRs) per US$1 - 51.90 (December 1999), 44.550 (1998), 40.185 (1997), 35.266 (1996), 30.930 (1995)

Fiscal year: 1 July - 30 June