Pakistan has a population of over 200 million with a GDP of $283.7 billion in 2016 and average GDP growth of 5.7% that year. Its largest exports are textiles like cotton and rice while its biggest imports are fuel and vehicles. Pakistan has experienced steady economic growth since gaining independence in 1947 but faces challenges like an overreliance on agriculture and remittances, as well as trade deficits with countries like China.
3. STATISTICS:
Fiscal year: July 1 to June 30.
GDP: 283.7b USD. ( 2016 )
GDP Growth rate: 5.7 % ( 2016 )
Avg. Inflation rate : 4.15 % ( 2017 )
Labour force: According to data produced by the CIA World Fact book, the total number
of Pakistan's labour force is 57.2 million, making it the ninth largest country by available
human workforce. About 43% of this labour is involved in agriculture
Unemployment: Avg. 5.47% ( 1985 – 2016 ). Highest: 7.80% in 2002.
4. • Exports :
The top exports of Pakistan are
House Linens ($2.99B),
Rice ($1.7B),
Non-Knit Men's Suits ($1.48B),
Non-Retail Pure Cotton Yarn ($1.18B)
• Main Export partners:
the United States ($3.43B),
China ($1.59B),
the United Kingdom ($1.56B),
Afghanistan ($1.37B) and
Germany ($1.19B).
5. ECONOMIC HISTORY:
• First five decades:
• Pakistan was a poor and predominantly agricultural country when it gained
independence in 1947.
• Annual Avg. GDP Growth. 1947 to 1997.
• 6.8 % in 1960s.
• 4.8 % in 1970s.
• 6.5 % in 1980s.
• 4.6 % in 1990s.
6. • Imports:
Its top imports are
Refined Petroleum ($5.74B),
Crude Petroleum ($1.98B),
Palm Oil ($1.7B),
Petroleum Gas ($1.06B) and
Cars ($1B).
• Main import partners:
The top import origins are
China ($17.2B),
The United States ($2.11B),
Indonesia ($2.02B),
Japan ($1.93B) and
India ($1.59B).
8. • The serious issue facing Pakistan is that its cotton crops yield has
drastically decreased recently and Pakistani textile industry has to import
cotton from India at a higher rate.
•
• Pakistan reported imports from China in 2016 of USD 13.68 Billion while China reported
exports to Pakistan of USD 17.23 Billion – a gap of USD 3.5 Billion in 2016 alone.
• Home remittances and money sent back by Pakistanis working abroad have financed the bulk
of Pakistan’s trade deficit for the last many years.
•
• Some experts say Pakistani exporters also need to explore Chinese markets proactively because
the second largest economy of the world is expected to import products and services valuing
at more than $10 trillion a year.
9. A string of badly negotiated and poorly monitored Free Trade Agreements (FTA)
has seen Pakistan run-up increasing trade deficits post-signing of FTA with its
major FTA partners.
10. • . With Textiles contributing nearly 61% to exports and the Food Group
another 18%, 79% of Pakistan’s exports are dangerously dependent on
the weather.
11. • Tax policy in Pakistan is skewed in favour of the undocumented
sectors, manufacturing which contributes 13.5% to the GDP
contributes 58% to tax collection.
13. Exports after hitting a peak of USD 25.34 Billion in 2011 dropped to USD 20.53
Billion in calendar year 2016. With Textiles contributing nearly 61% to exports and
the Food Group another 18%, 79% of Pakistan’s exports are dangerously dependent
on the weather.
14. GDP growth has improved but growth is driven by consumption with
unsustainably low levels of investment:
