Economy of Pakistan📶
Economy Of Pakistan📶
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The economy of Pakistan is categorized as a developing economy. It ranks as the 24th-largest based on GDP using purchasing power parity (PPP) and the 46th largest in terms of nominal GDP. With a population of 241.5 million people as of 2023, Pakistan's position at per capita income ranks 161st by GDP (nominal) and 138th by GDP (PPP) according to the International Monetary Fund (IMF).[4]
In its early years, Pakistan's economy relied heavily on private industries. The nationalization of a significant portion of the sector, including financial services, manufacturing, and transportation, began in the early 1970s under Zulfikar Ali Bhutto. During Zia-ul Haq's regime in the 1980s, an "Islamic" economy was adopted, outlawing economic practices forbidden in Sharīʿah and mandating traditional religious practices. The economy started privatizing again in the 1990s.
The economic growth centers in Pakistan are located along the Indus River;[37][38] these include the diversified economies of Karachi and major urban centers in Punjab (such as Faisalabad, Lahore, Sialkot, Rawalpindi, and Gujranwala), alongside less developed areas in other parts of the country.[37] Pakistan was classified as a semi-industrial economy for the first time in the late 1990s, albeit an underdeveloped country[39] with a heavy dependence on agriculture, particularly the textile industry relying on cotton production.[40][37][41] Primary export commodities include textiles, leather goods, sports equipment, chemicals, and carpets/rugs.[42][43]
Pakistan is presently undergoing economic liberalization, including the privatization of all government corporations, aimed at attracting foreign investment and reducing budget deficits.[44] However, the country continues to grapple with challenges such as a rapidly growing population, high illiteracy, political instability, a hostile neighborhood, and heavy foreign debt.
Export goods
Textiles: $16,301 million
Food: $7,082 million
Chemicals and Pharmaceuticals: $1,421 million
Leather goods: $877 million
Sports goods: $439 million
Petroleum: $553 million[20]
Main export partners
 United States 17.5%
 China 8.7%
 United Arab Emirates 6.7%
 United Kingdom 6.5%
 Germany 4.9%
 Spain 4.7%
 Netherlands 4.4%
 Italy 3.6%
(2024 est.)[21]
Imports $63.286 billion (FY 2024)[19]
Import goods
Petroleum: 15,162 million
Agriculture and other chemicals: $8,944 million
Machinery: $7,406 million
Food: $7,111 million
Metal: $4,668 million
Textile: $3,890 million
Transport: $1,621 million[22]
Main import partners
 China 25.4%
 United Arab Emirates 11.9%
 Saudi Arabia 8.5%
 Singapore 4.6%
 Indonesia 4.5%
 United States 3.6%
 Kuwait 3.4%
 Russia 2.0%
(2024 est.)[23]
FDI stock
 $31.540 billion
 Abroad: $1.870 billion (31 Dec 2021)[24]
Current account
 -2.557 billion US$ (FY 2023)[25]
Gross external debt
 $125.7 billion (Mar 2023)[26]Public finances
Government debt
 61.4% of GDP (Jun 2024)[27]
Budget balance
 −6.8% of GDP (FY 2024)[28]Revenues 12.5% of GDP; 13,269 billion PKR or $47 billion (FY 2024)[28]Expenses 19.3% of GDP; 20,476 billion PKR $72 billion (FY 2024)[28]Economic aid $2.6983 billion (2021)[29]
Credit rating
Standard & Poor's:[30]
CCC+ (Long term)
C (Short term)
Outlook: Stable
Moody's:[31]
 Caa2
Outlook: Positive
Fitch:[32]
 CCC+ (July 2024)[33]
[34]
Outlook: Positive
Foreign reserves
 $14.31bn (May 2024)[35][36] (115th)
All values, unless otherwise stated, are in US dollars.
Rupee
The basic unit of currency is the rupee, ISO code PKR, and abbreviated Rs, which is divided into 100 paisas. Currently, the 5,000 rupee note is the largest denomination in circulation. From 13 August 2005, the SBP started introducing its fifth generation design of banknotes with additional security features, with the Rs. 20 note being the first issuance. New designs of Rs. 5 (July 2008, later replaced by a coin), 10 (May 2006), Rs. 20 (March 2008, new color scheme), Rs. 50 (July 2008), Rs. 100 (November 2006), Rs. 500 (January 2010), Rs. 1000 (February 2007), and Rs. 5000 (May 2006) were gradually introduced.[60][61][62]
The Pakistani rupee was pegged to the pound sterling until 1982, when the government of General Zia-ul-Haq, changed it to a managed float regime. As a result, the rupee devalued by 38.5% between 1982/83, and many of the industries built by his predecessor suffered a huge surge in import costs. After years of appreciation under Zulfikar Ali Bhutto and despite huge increases in foreign aid, the rupee depreciated.
Foreign exchange rate
The Pakistani rupee depreciated against the US dollar until around the start of the 21st century, when Pakistan's large current-account surplus pushed the value of the rupee up versus the dollar. Pakistan's central bank then stabilized by lowering interest rates and buying dollars, in order to preserve the country's export competitiveness.
US$ to PKR average exchange rates[63]2008200920102011201220132014201520162017201820192020202120222023202462.5578.5083.8085.5089.2396.73102.86101.29
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