Economy - overview Pakistan is a poor, highly populated Third World country strugglingto make the difficult transition to the modern world of high technology andinternational markets. Even though GDP growth has remained strong, at roughly5% annually, international confidence in Prime Minister Benazir BHUTTO's governmentdeclined in 1996. The IMF suspended a Standby Agreement in the spring; foreigninvestment declined; and the budget and trade deficits rose substantially.In October 1996, BHUTTO responded to IMF pressure to implement reforms, devaluingthe rupee by about 8% and raising petroleum prices in an attempt to slow thedrain on foreign exchange reserves. But Islamabad still failed to meet IMFrevenue and borrowing targets. Pakistan's interim government - in power sincePresident LEGHARI sacked BHUTTO on 5 November 1996 - agreed to slash the budgetdeficit, push down bank borrowing, implement an agricultural tax; and speedup reforms in the financial sector; accordingly, the Standby Agreement wasreinstated in December 1996 and a tranche of $80 million released; but Pakistanfell out of compliance in February 1997. For the long run, Pakistan must dealwith serious problems of deteriorating infrastructure, low literacy levels,and persistent sectarian and political violence.

GDP purchasing power parity - $296.5 billion (1996 est.)

GDP - real growth rate 5.5% (1996 est.)

GDP - per capita purchasing power parity - $2,300 (1996 est.)

GDP - composition by sector
agriculture: 24.8%
industry: 26.5%
services: 48.7% (1996)

Inflation rate - consumer price index 10.8% (FY95/96)

Labor force
total: 36.7 million (1997)
by occupation: agriculture 47%, mining and manufacturing 17%, services 17%, other 19%
note : extensive export of labor, mostly to the Middle East, and use of childlabor

Unemployment rate NA%

Budget
revenues : $12.5 billion
expenditures: $14 billion, including capital expenditures of $2.8 billion (FY95/96est.)

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

Industrial production growth rate 6.1% (FY95/96 est.)

Electricity - capacity 13.17 million kW (1994)

Electricity - production 46.1 billion kWh (FY95/96)

Electricity - consumption per capita 403 kWh (1995 est.)

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

Exports
total value: $8.3 billion (FY95/96)
commodities: cotton, textiles, clothing, rice, leather, carpets
partners: US, Japan, Hong Kong, Germany, UK, UAE, France

Imports
total value: $12 billion (FY95/96)
commodities : petroleum, petroleum products, machinery, transportation equipment,vegetable oils, animal fats, chemicals
partners: Japan, US, Germany, UK, Saudi Arabia, Malaysia, South Korea

Debt - external $28.6 billion (1996 est.)

Economic aid
recipient: $2.6 billion from all bilateral and multilateral sources (FY95/96)

Currency 1 Pakistani rupee (PRe) = 100 paisa

Exchange rates Pakistani rupees (PRs) per US$1 - 40.120 (January 1997), 36.078 (1996),31.643 (1995), 30.567 (1994), 28.1 (1993), 25.1 (1992); note - annual averageof official rate; parallel market rate is higher

Fiscal year 1 July - 30 June

NOTE: The information regarding Pakistan on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Pakistan Economy 1997 information contained here. All suggestions for corrections of any errors about Pakistan Economy 1997 should be addressed to the CIA.