Pakistan Economy - 2004

Economy - overview:
Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes, low levels of foreign investment, and a costly, ongoing confrontation with neighboring India. However, IMF-approved government policies, bolstered by generous foreign assistance and renewed access to global markets since late 2001, have generated solid macroeconomic recovery the last two years. The government has made substantial inroads in macroeconomic reform since 2000, although progress on more politically sensitive reforms has slowed. For example, in the third and final year of its $1.3 billion IMF Poverty Reduction and Growth Facility, Islamabad has continued to require waivers for energy sector reforms. While long-term prospects remain uncertain, given Pakistan's low level of development, medium-term prospects for job creation and poverty reduction are the best in nearly a decade. Islamabad has raised development spending from about 2% of GDP in the 1990s to 4% in 2003, a necessary step towards reversing the broad underdevelopment of its social sector. GDP growth is heavily dependent on rain-fed crops, and last year's end to a four-year drought should support moderate agricultural growth for the next few years. Foreign exchange reserves continued to reach new levels in 2003, supported by robust export growth and steady worker remittances.

GDP:
purchasing power parity - $317.7 billion (2003 est.)

GDP - real growth rate:
5.4% (2003 est.)

GDP - per capita:
purchasing power parity - $2,100 (2003 est.)

GDP - composition by sector:
agriculture: 23.6%
industry: 25.1%
services: 51.3% (2003 est.)

Population below poverty line:
35% (2001 est.)

Household income or consumption by percentage share:
lowest 10%: 4.1%
highest 10%: 27.6% (FY96/97)

Distribution of family income - Gini index:
41 (FY98/99)

Inflation rate (consumer prices):
3.1% (FY02/03 est.)

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

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

Unemployment rate:
7.7% plus substantial underemployment (2003 est.)

Budget:
revenues: $12.2 billion
expenditures: $12.3 billion, including capital expenditures of $NA (FY02/03 est.)

Industries:
textiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimp

Industrial production growth rate:
5.4% (FY02/03 est.)

Electricity - production:
66.96 billion kWh (2001)

Electricity - production by source:
fossil fuel: 68.8%
hydro: 28.2%
other: 0% (2001)
nuclear: 3%

Electricity - consumption:
62.27 billion kWh (2001)

Electricity - exports:
0 kWh (2001)

Electricity - imports:
0 kWh (2001)

Oil - production:
62,870 bbl/day (2001 est.)

Oil - consumption:
365,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Oil - proved reserves:
297.1 million bbl (1 January 2002)

Natural gas - production:
23.4 billion cu m (2001 est.)

Natural gas - consumption:
23.4 billion cu m (2001 est.)

Natural gas - exports:
0 cu m NA (2001 est.)

Natural gas - imports:
0 cu m (2001 est.)

Natural gas - proved reserves:
695.6 billion cu m (1 January 2002)

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

Exports:
$11.7 billion f.o.b. (2003 est.)

Exports - commodities:
textiles (garments, bed linen, cotton cloth, and yarn), rice, leather goods, sports goods, chemicals, manufactures, carpets and rugs

Exports - partners:
US 24.5%, UAE 8.4%, UK 7.2%, Germany 4.9%, Hong Kong 4.8% (2002)

Imports:
$12.51 billion f.o.b. (2003 est.)

Imports - commodities:
petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea

Imports - partners:
Saudi Arabia 11.8%, UAE 11.1%, Kuwait 6.8%, US 6.5%, China 6.3%, Japan 6%, Malaysia 4.6%, Germany 4.4% (2002)

Debt - external:
$33.2 billion (2003 est.)

Economic aid - recipient:
$2.4 billion (FY01/02)

Currency:
Pakistani rupee (PKR)

Currency code:
PKR

Exchange rates:
Pakistani rupees per US dollar - 57.75 (2003), 59.72 (2002), 61.93 (2001), 53.65 (2000), 49.12 (1999)