Pakistan Economy Profile - November 2013 Decades of internal political disputes and low levels of foreign investment have led to slow growth and underdevelopment in Pakistan. Agriculture accounts for more than one-fifth of output and two-fifths of employment. Textiles account for most of Pakistans export earnings, and Pakistans failure to expand a viable export base for other manufactures has left the country vulnerable to shifts in world demand. Official unemployment is under 6%, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Over the past few years, low growth and high inflation, led by a spurt in food prices, have increased the amount of poverty - the UN Human Development Report estimated poverty in 2011 at almost 50% of the population. Inflation has worsened the situation, climbing from 7.7% in 2007 to almost 12% for 2011, before declining to 10% in 2012. As a result of political and economic instability, the Pakistani rupee has depreciated more than 40% since 2007. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 in response to a balance of payments crisis. Although the economy has stabilized since the crisis, it has failed to recover. Foreign investment has not returned, due to investor concerns related to governance, energy, security, and a slow-down in the global economy. Remittances from overseas workers, averaging over $1 billion a month since March 2011, remain a bright spot for Pakistan. However, after a small current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistans current account turned to deficit in fiscal year 2012, spurred by higher prices for imported oil and lower prices for exported cotton. Pakistan remains stuck in a low-income, low-growth trap, with growth averaging about 3% per year from 2008 to 2012. Pakistan must address long standing issues related to government revenues and energy production in order to spur the amount of economic growth that will be necessary to employ its growing population. Other long term challenges include expanding investment in education and healthcare, and reducing dependence on foreign donors. Per Capita annual income crosses $1,120 Exports $24.66 billion (2012 est.) $26.3 billion (2011 est.) Exports - commodities Textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sports goods, chemicals, manufactures, carpets and rugs Exports - partners US 15%, UAE 9.7%, Afghanistan 9.5%, China 9.2%, UK 5%, Germany 4.5% (2012 est.) Imports $40.82 billion (2012 est.) $38.93 billion (2011 est.) Imports - commodities Petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea Imports - partners UAE 17.2%, China 15%, Saudi Arabia 11.2%, Kuwait 8.9%, Malaysia 5.4%, Japan 4.3% (2012 est.) GDP (purchasing power parity) $514.6 billion (2012 est.) $496.3 billion (2011 est.) $481.7 billion (2010 est.) Note: data are in 2012 US dollars GDP (official exchange rate) $230.5 billion (2012 est.) GDP - real growth rate 3.7% (2012 est.) 3% (2011 est.) 3.1% (2010 est.) GDP - per capita (PPP) $2,900 (2012 est.) $2,800 (2011 est.) $2,800 (2010 est.) Note: data are in 2012 US dollars GDP - composition by sector Agriculture: 20.1% Industry: 25.5% Services: 54.4% (2012 est.) Population below poverty line 22.3% (FY05/06 est.) Labor force 60.36 million Note: extensive export of labor, mostly to the Middle East, (2012 est.) Labor force - by occupation Agriculture: 45.1% Industry: 20.7% Services: 34.2% (2010 est.) Unemployment rate 5.6% (2012 est.) 5.6% (2011 est.) Note: substantial underemployment exists Unemployment Youth ages 15-24 Total: 7.7% Male: 7% Female: 10.5% (2008) Household income or consumption by percentage share Lowest 10%: 9.9% Highest 10%: 39.3% (FY07/08) Distribution of family income - Gini index 30.6 (FY07/08) 41 (FY98/99) Investment (gross fixed) 10.9% of GDP (2012 est.) Budget Revenues: $29.51 billion Expenditures: $44.19 billion (2012 est.) Taxes and other revenues 12.8% of GDP (2012 est.) Budget surplus (+) or deficit (-) -6.4% of GDP (2012 est.) Public debt 50.4% of GDP (2012 est.) 60.1% of GDP (2011 est.) Inflation rate (consumer prices) 11.3% (2012 est.) 11.9% (2011 est.) Central bank discount rate 12% (31 January 2012 est.) 14% (31 December 2010 est.) Commercial bank prime lending rate 12.2% (31 December 2012 est.) 14.12% (31 December 2011 est.) Stock of narrow money $60.68 billion (31 December 2012 est.) $56.34 billion (31 December 2011 est.) Stock of money $NA (31 December 2008) $52.76 billion (31 December 2007) Stock of quasi money $NA (31 December 2008) $18.42 billion (31 December 2007) Stock of broad money $76.16 billion (31 December 2011 est.) $71.36 billion (31 December 2010 est.) Stock of domestic credit $92.06 billion (31 December 2012 est.) $86.19 billion (31 December 2011 est.) Market value of publicly traded shares $32.76 billion (31 December 2011) $38.17 billion (31 December 2010) $33.24 billion (31 December 2009) Agriculture - products Cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs Industries Textiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimp Industrial production growth rate 3% (2011 est.) Current Account Balance -$4.632 billion (2012 est.) $268 million (2011 est.) Reserves of foreign exchange and gold $13.5 billion (30 November 2012 est.) $18.09 billion (31 December 2011 est.) Debt – external $55.98 billion (31 December 2012 est.) $58.27 billion (31 December 2011 est.) Stock of direct foreign investment - at home $22.38 billion (31 December 2012 est.) $21.88 billion (31 December 2011 est.) Stock of direct foreign investment - abroad $1.482 billion (31 December 2012 est.) $1.432 billion (31 December 2011 est.) Pakistan Current Economy is in very bad Shape, people are loosing faith in govenment for last 6 years. It is time that all Pakistani leader take a joint action for the economy. Remittances from OVERSEAS PAHISTANIS of about $20 billion per year is keeping the Pakistan meeting his international obligation and keep the country running. Pakistan Govenment should thankful for their support of Pakistan and should give them the full right to vote and run for the public office in Pakistan. Pakistan should fellow Turkey for Economy reform and Development. Turkey Economic Reforms working well, Legal Reform law was adopted and working well, Social Reform law was adopted and working well, Government Reform process moving in the right direction. Turkey rapid economical development present Prime Minister Recep Tayyip Erdogan & President Abdullah Gul Honest and Good Economic Management in Turkey. Best Regards, Habib Syed, President, Karachi to Istanbul Free Trade Area Business Council Montreal, Canada. November 23, 2013. Note ======= Karachi to Istanbul Free Trade Area Business council group is also working on the same idea of establishing a borderless area of economic unity, much like the EU, in which goods, people and capital can move freely among their countries. It will create millions of new Jobs. Over 17,500 members and 585 on Facebook + 525 Members Linkedin. It is a open group every one is welcome to join the group
Posted on: Sat, 23 Nov 2013 18:08:08 +0000
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