What Is Economy? An economy consists of the economic system of a country or other area, the labor, capital and land-resources, and the economic agents that socially participate in the production, exchange, distribution, and consumption of goods and services of that area.
Economy of Pakistan The economy of Pakistan is the 27th largest economy in the world in terms of purchasing power, and the 45th largest in absolute dollar terms. Pakistan has a semi-industrialized economy, which mainly encompasses textiles, chemicals, food processing, agriculture and other industries.
Statistics: (Continued...) Population below poverty line: 23% (2007) Labor force: 55.88 million (2009 est.) Unemployment: 15.2% (2009 est.) Main industries: textiles, chemicals, food processing, steel, transport equipment, automobiles, machinery, beverages, construction, materials, clothing, paper products
External: Exports :$17. 87 billion (2009 est.) (67th in rank) Export goods: textile goods (garments, bed linen, cotton cloths, and yarn), rice, leather goods, sports goods, chemicals, manufactures, carpets and rugs Main export partners: United States 22.4%, UAE 8.3%, UK 6%, China 15.4%, Germany 4.7% (2006 est.)
External (continued…) Imports: $28.31 billion f.o.b. (2009 est.) Import goods: Petroleum products, Machinery, Plastics, Transportation equipment, Edible oils, Paper and paperboard, Iron and steel, Tea Main import partners: China 14.7%, Saudi Arabia 10.1%,UAE 8.7%, Japan 6.5%, United States5.3%, Germany 5%, Kuwait 4.9% (2006 est.)
Public Finances: Public debt: $50 billion (2009) Revenues: $23.21 billion (2009 est.) Expenses: $30.05 billion (2009 est.)
Crisis In Economy The economy has suffered in the past from decades of internal political disputes, a fast growing population, mixed levels of foreign investment, and a costly, ongoing confrontation with neighboring India. Inflation remains the biggest threat to the economy, jumping to more than 9% in 2005 before easing to 7.9% in 2006. In recent few years, load-shedding has destroyed industrial growth in Pakistan.
Foreign Exchange Reserves By October 2007, at the end of Prime Minister Shaukat Aziz’s tenure, Pakistan raised back its Foreign Reserves to $16.4 billion. But On October 11, 2008 State Bank of Pakistan reported that country's foreign exchange reserves had gone down by $571.9 Million to $7749.7 Million. The foreign exchange reserves had declined more by $10 billion to an alarming rate of $6.59 billion.
The ECONOMY today Due to inflation and economic crisis worldwide, Pakistan's economy reached a state of Balance of Payment crisis. "The International Monetary Fund bailed out Pakistan in November 2008 to avert a balance of payments crisis and in July last year increased the loan to $11.3 billion from an initial $7.6 billion. Since the beginning of 2008, Pakistan's economic outlook has taken stagnation. Security concerns stemming from the nation's role in the War on Terror have created great instability and led to a decline in FDI from a height of approximately $8 bn to $3.5bn for the current fiscal year