Pakistan Human Resources, Economy

 

  • Decades of internal political disputes and low levels of foreign investment have led to underdevelopment in Pakistan. Pakistan has a large English-speaking population, with English-language skills less prevalent outside urban centers. Despite some progress in recent years in both security and energy, a challenging security environment, electricity shortages, and a burdensome investment climate have traditionally deterred investors. Agriculture accounts for one-fifth of output and two-fifths of employment. Textiles and apparel account for more than half of Pakistan’s export earnings; Pakistan’s failure to diversify its exports has left the country vulnerable to shifts in world demand. Pakistan’s GDP growth has gradually increased since 2012, and was 5.3% in 2017. Official unemployment was 6% in 2017, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Human development continues to lag behind most of the region.
    In 2013, Pakistan embarked on a $6.3 billion IMF Extended Fund Facility, which focused on reducing energy shortages, stabilizing public finances, increasing revenue collection, and improving its balance of payments position. The program concluded in September 2016. Although Pakistan missed several structural reform criteria, it restored macroeconomic stability, improved its credit rating, and boosted growth. The Pakistani rupee has remained relatively stable against the US dollar since 2015, though it declined about 10% between November 2017 and March 2018. Balance of payments concerns have reemerged, however, as a result of a significant increase in imports and weak export and remittance growth.
    Pakistan must continue to address several longstanding issues, including expanding investment in education, healthcare, and sanitation; adapting to the effects of climate change and natural disasters; improving the country’s business environment; and widening the country’s tax base. Given demographic challenges, Pakistan’s leadership will be pressed to implement economic reforms, promote further development of the energy sector, and attract foreign investment to support sufficient economic growth necessary to employ its growing and rapidly urbanizing population, much of which is under the age of 25.
    In an effort to boost development, Pakistan and China are implementing the “China-Pakistan Economic Corridor” (CPEC) with $60 billion in investments targeted towards energy and other infrastructure projects. Pakistan believes CPEC investments will enable growth rates of over 6% of GDP by laying the groundwork for increased exports. CPEC-related obligations, however, have raised IMF concern about Pakistan’s capital outflows and external financing needs over the medium term.
    $1.057 trillion (2017 est.)
    $1.011 trillion (2016 est.)
    $972 billion (2015 est.)
    note: data are in 2017 dollars
    data are for fiscal years
    country comparison to the world: 26
    $304 billion (2017 est.)
    5.3% (2017 est.)
    4.5% (2016 est.)
    4.1% (2015 est.)
    note: data are for fiscal years
    country comparison to the world: 42
    $5,400 (2017 est.)
    $5,200 (2016 est.)
    $5,100 (2015 est.)
    note: data are in 2017 dollars
    data are for fiscal years
    country comparison to the world: 172
    11.7% of GDP (2017 est.)
    13.8% of GDP (2016 est.)
    14.7% of GDP (2015 est.)
    note: data are for fiscal years
    country comparison to the world: 146
    household consumption: 81.8%
    government consumption: 11.9%
    investment in fixed capital: 14.2%
    investment in inventories: 1.6%
    exports of goods and services: 8.3%
    imports of goods and services: -17.8% (2017 est.)
    agriculture: 24.7%
    industry: 19.1%
    services: 56.3% (2017 est.)
    cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs
    textiles and apparel, food processing, pharmaceuticals, surgical instruments, construction materials, paper products, fertilizer, shrimp
    5% (2017 est.)
    country comparison to the world: 47
    63.89 million
    note: extensive export of labor, mostly to the Middle East, and use of child labor (2017 est.)
    country comparison to the world: 10
    agriculture: 42.3%
    industry: 22.6%
    services: 35.1% (FY2015 est.)
    6% (2017 est.)
    6% (2016 est.)
    note: Pakistan has substantial underemployment
    country comparison to the world: 89
    29.5% (FY2013 est.)
    lowest 10%: 4%
    highest 10%: 26.1% (FY2013)
    30.7 (FY2013)
    30.9 (FY2011)
    country comparison to the world: 130
    revenues: $45.64 billion
    expenditures: $59.28 billion
    note: data are for fiscal years (2017 est.)
    16.4% of GDP (2017 est.)
    country comparison to the world: 187
    -4.9% of GDP (2017 est.)
    country comparison to the world: 165
    67.2% of GDP (2017 est.)
    67.6% of GDP (2016 est.)
    country comparison to the world: 55
    1 July – 30 June
    4.1% (2017 est.)
    2.9% (2016 est.)
    country comparison to the world: 162
    5.75% (15 November 2016)
    6% (15 November 2015)
    country comparison to the world: 71
    7% (31 December 2017 est.)
    6.94% (31 December 2016 est.)
    country comparison to the world: 118
    $117.2 billion (31 December 2017 est.)
    $103.5 billion (31 December 2016 est.)
    country comparison to the world: 35
    $142 billion (31 December 2017 est.)
    $126.8 billion (31 December 2016 est.)
    country comparison to the world: 51
    $165.2 billion (31 December 2017 est.)
    $145.2 billion (31 December 2016 est.)
    country comparison to the world: 49
    $43.68 billion (31 December 2012 est.)
    $32.76 billion (31 December 2011 est.)
    $38.17 billion (31 December 2010 est.)
    country comparison to the world: 55
    -$12.44 billion (2017 est.)
    -$4.867 billion (2016 est.)
    country comparison to the world: 189
    $21.94 billion (2017 est.)
    $21.97 billion (2016 est.)
    country comparison to the world: 70
    textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sporting goods, chemicals, manufactures, surgical instruments, carpets and rugs
    US 17.7%, UK 7.7%, China 6%, Germany 5.8%, Afghanistan 5.2%, UAE 4.5%, Spain 4.1% (2017)
    $48.51 billion (2017 est.)
    $41.26 billion (2016 est.)
    country comparison to the world: 52
    petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea
    China 27.4%, UAE 13.7%, US 4.9%, Indonesia 4.3%, Saudi Arabia 4.2% (2017)
    $20.02 billion (31 December 2017 est.)
    $22.05 billion (31 December 2016 est.)
    country comparison to the world: 60
    $75.66 billion (31 December 2017 est.)
    $70.45 billion (31 December 2016 est.)
    country comparison to the world: 57
    $41.56 billion (31 December 2017 est.)
    $39.06 billion (31 December 2016 est.)
    country comparison to the world: 61
    $2.175 billion (31 December 2017 est.)
    $2.094 billion (31 December 2016 est.)
    country comparison to the world: 81
    Pakistani rupees (PKR) per US dollar –
    105.1 (2017 est.)
    104.77 (2016 est.)
    104.77 (2015 est.)
    102.77 (FY2014 est.)
    101.1 (FY2013 est.)