Pakistan Economy 2001

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, which relies on international creditors for hard currency inflows. The MUSHARRAF government will face an estimated $21 billion in foreign debt coming due in 2000-03, despite having rescheduled nearly $2 billion in debt with Paris Club members. Foreign loans and grants provide approximately 25% of government revenue, but debt service obligations total nearly 50% of government expenditure. Although Pakistan successfully negotiated a $600 million IMF Stand-By Arrangement, future loan installments will be jeopardized if Pakistan misses critical IMF benchmarks on revenue collection and the fiscal deficit. MUSHARRAF has complied largely with IMF recommendations to raise petroleum prices, widen the tax net, privatize public sector assets, and improve the balance of trade. However, Pakistan's economic prospects remain uncertain; too little has changed despite the new administration's intentions. Foreign exchange reserves hover at roughly $1 billion, GDP growth hinges on crop performance, the import bill has been hammered by high oil prices, and both foreign and domestic investors remain wary of committing to projects in Pakistan.

GDP: purchasing power parity - $282 billion (2000 est.)

GDP - real growth rate: 4.8% (2000 est.)

GDP - per capita: purchasing power parity - $2,000 (2000 est.)

GDP - composition by sector:
agriculture: 25.4%
industry: 24.9%
services: 49.7% (1999 est.)

Population below poverty line: 40% (2000 est.)

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

Inflation rate (consumer prices): 5.2% (2000 est.)

Labor force: 40 million
note: extensive export of labor, mostly to the Middle East, and use of child labor (2000 est.)

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

Unemployment rate: 6% (FY99/00 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: 3.8% (1999 est.)

Electricity - production: 62.078 billion kWh (1999)

Electricity - production by source:
fossil fuel: 63.38%
hydro: 36.51%
nuclear: 0.11%
other: 0% (1999)

Electricity - consumption: 57.732 billion kWh (1999)

Electricity - exports: 0 kWh (1999)

Electricity - imports: 0 kWh (1999)

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

Exports: $8.6 billion (f.o.b., FY99/00)

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

Exports - partners: US 24%, Hong Kong 7%, UK 7%, Germany 6%, UAE 6% (FY99/00)

Imports: $9.6 billion (f.o.b., FY99/00)

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

Imports - partners: Saudi Arabia 8%, UAE 8%, US 6%, Japan 6%, Malaysia 4% (FY99/00)

Debt - external: $38 billion (2000 est.)

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

Currency: Pakistani rupee (PKR)

Currency code: PKR

Exchange rates: Pakistani rupees per US dollar - 59.152 (January 2001), 52.814 (2000), 49.118 (1999), 44.943 (1998), 40.918 (1997), 35.909 (1996)

Fiscal year: 1 July - 30 June

NOTE: The information regarding Pakistan on this page is re-published from the 2001 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Pakistan Economy 2001 information contained here. All suggestions for corrections of any errors about Pakistan Economy 2001 should be addressed to the CIA.