The document provides an overview of Pakistan's economy including key facts such as population, GDP growth rate, inflation rate, and economic sectors. It summarizes Pakistan's past economic performance with GDP growth over 5% for 9 of the last 18 years, with growth led by the services sector at 53% of GDP. It also notes trends in foreign investment, monetary assets growth, budget deficits, trade balances, remittances, debt levels, inflation, subsidies, reserves, and per capita income.

1. Pakistan Review of Economic Performance

2. Pakistan : Quick FACTS ISLAMIC REPUBLIC OF PAKISTAN Area: 796,095 sq km Population : 165 mln Capital City: Islamabad Religion: 97% Muslim, 3% Christian and Hindu Government: Federal Republic Head of State: Mr. Asif Ali Zardari Real GDP Growth rate – FY08: 5.8% Annual Per Capita Income: US $ 1085 Inflation: 12.0%% Legal System: Common Law Major Industries: Textiles, sugar, vegetable oils, agricultural products, cement, fertilizers, steel, chemicals, sporting goods, light engineering Major trade partners for exports: U.S., U.A.E, U.K, Germany, and Hong Kong Major trade partners for imports: U.A.E, Saudi Arabia, Kuwait, U.S, and Japan

3. PAKISTAN: PAST ECONOMIC PERFORMANCE

4. Real GDP Growth GDP growth of over 5% has been witnessed 9 times during the last 18 years period (FY91 to FY08).Out of this, the most consistent pattern of high GDP growth was experienced during the Musharraf era. Other instances of high GDP growth were seen during the 90s, under the government of Nawaz Sharif (FY91 & FY92) and Benazir Bhutto (FY95 and FY96). A slowdown in economic activity was experienced during the period FY97 to FY02 due to the deteriorating economic condition of the country during this period.

5. Sectoral Share in GDP Our economy is heavily dependent on the service sector, which has a share of about 53% in the GDP of Pakistan Agriculture remains the second important contributor in GDP, with a share of 21% (FY08). The share of manufacturing sector, the third largest contributor, has increased from 15% to 19% during the same period, which can partly be attributed to the rising consumerism during this period which led to increased production and sales by manufacturing sector (e.g. Automobile sector)

6. Sectoral & GDP Growth 3.5% 4.2% 3.9% 2.0% 3.1% 4.7% 7.5% 9.0% 5.8% 6.8% 5.8%

7. Foreign Private Investment - (US Mln $)

8. Monetary Assets(M2) Growth M2, which includes cash in circulation and deposits, has experienced high growth FY02 onwards with a average growth of 17.4% during the period. The high M2 growth has resulted in excess demand and is partly responsible for the high inflationary pressures currently being experienced by our country The high interest rates prevalent in the economy will however result in controlling the M2 growth going forward, which is targeted to be curtailed to 10% in the FY09 as per the agreement with IMF.

9. BREAK OF BUDGET DEFICIT FINANCING Privatization Proceeds Non-Bank Bank External Financing (in Billions) FY08P FY07 FY06 FY05 FY04 FY03 FY02 FY01 FY00 FY99 - 71 97 28 11 4 8 - - - 100 57 8 8 61 120 85 92 97 156 464 102 71 60 64 (56) 14 (33) 40 (74) 119 147 149 120 (6) 113 83 121 70 97

10. Trade Balance The trade balance of Pakistan has grown by more than 7 times during the 10 year period FY98 to FY08. The imports of the country picked up pace from FY05 onwards The increased imports during the last year are largely to Petroleum products, Edible Oil and import of Wheat and Fertilizer. * Source: State Bank Of Pakistan

11. Remittances - (us mln $) 1490 1060 984 1,087 2,389 3,872 4,237 4,169 4,600 5,494 6,451 2,966

12. Current Account Deficit Source: State Bank of Pakistan, Economic Survey 2007-08

13. External Debt - (US mln $) * Source: SBP website

14. Inflation

15. Subsidies - (PKR mln)

16. Reserves - (US mln $)

17. Per Capita Income ($)

18. Exchange Rate The devaluation of Rupee, esp. in the later half of the FY08, has resulted in significant increase in PKR to other currency exchange rates. Among PKR/USD, PKR/GBP and PKR/EUR exchange rates, the latter has experienced steepest increase of about 36%, whereas PKR/USD and PKR/GBP have increased by 13% and 16% respectively .

19. SECTOR-WISE PERFORMANCE

20. AUTO SECTOR

22. Fertilizer sector

24. Cement Sector

25. ENERGY SECTOR * Source: Economic Survey 2007-08 and ADB website

27. BANKING SECTOR

28. Lending Rate Deposit Rate Spread