OVER VIEW OF Economy of Pakistan

Population 242,923,845 (5th; 2022 est.)

GDP 
 $341.5 billion (nominal; 2023)[4]
 $1.58 trillion (PPP; 2023 est.)[5]
GDP rank  46th (nominal; 2023)
 24th (PPP; 2023)
GDP growth  6.0% (FY 2022)[6]
 0.5% (FY 2023)[7]
 3.5% (FY2024)[7]


GDP per  $1,568 (nominal; 2023

capita  $6,836 (PPP; 2023 est.)
GDP per  157th (nominal; 2023)
capita rank  138th (PPP; 2023 est.)

 Agriculture: 22.68%
GDP by sector  Industry: 19.11%
 Services: 58.20%

GDP by  Household consumption: 82.0%

component  Government consumption: 11.3%
  Investment in fixed capital: 14.5%
 Investment in inventories: 1.6%
 Exports of goods and services: 8.2%
 Imports of goods and services: −17.6%


Inflation (CPI)  29.4%

Population  35.7% on less than $3.20/day

below poverty
line
 5% in extreme poverty (2022)]

8% (rural) ; 0.3% (urban)

Gini coefficient 31.6 medium , World Bank)

Human  0.544 low (161st)

Development  0.380 low IHDI
Index

Labour force  Total 71.76 million

 Employed 67.25 million (2021)[21]
Labour force  Agriculture: 37.4%
by occupation  Industry: 25.4%
 Services: 37.2%


 Unemployment  7%
 17.4 million unemployed (2023)[22]

Main industries
 Textiles
 Apparel
 Food processing
 Pharmaceuticals
 Surgical instruments
 Construction materials
 Fertilizer
 Shrimp
 Paper products

The economy of Pakistan has been growing slowly over the past two
decades.
Annual Per Capita growth has estimated only 2 percent, less than half of
the South Asia average,
partly due to inconsistent macroeconomic policies and an under-reliance
on investment and exports to drive economic growth.
Short periods of rapid consumption-fueled growth led to the sizable current
account and fiscal deficits, that ultimately required tightening of policies,
resulting in recurrent boom-bust cycles.
The economic history of Pakistan has always been a semi-industrialized
one
.

Last 2 Decades & Statistics

The economy of Pakistan is the 22nd largest in the world in terms of
purchasing power parity (PPP),

And’

45th largest in terms of nominal gross domestic product.;

 Government Pervez Musharraf – During this time

the economy grew at an average rate of 6.3 per cent a year. The
GDP increased at the annual rate of 4.7 per cent.

 Government Asif Ali Zardari – GDP growth in 2010

– 11 was only 2 percent and the rate in 2011-12 was not higher
than 3 per cent.


 Government Nawaz Sharif – Pakistan’s GDP grew at 5.3

percent in 2017, making it the fifth fastest growing economy in
the world.

 Government Imran Khan – Pakistan’s GDP grew by

1.9% in 2019 as compared to a decade – high of 5.8% the previous
year.

In early FY20, which runs from July 2019 to June 2020, following one such
episode of

external and fiscal imbalances,

the country entered a 39-month IMF-Extended Fund Facility
.

Instability, COVID, Politics & Economy of

Pakistan

Political issues may lead to a clash between the government and a

combined opposition in early 2021. Due to the second wave of COVID-19
expected to run well into February 2021, there is little reason to cheer
Pakistan’s growth prospects. As global economic activity raised on account
of the vaccine, so will oil prices, putting a further dent in Pakistan’s current
account and increasing inflation.

Even if COVID-19 had not been badly affected, 2020 would still have been
a year to forget. There is a sliver of fiscal space available before the
government returns to the IMF in the next few months. Electricity and gas
prices still not raised as required by the IMF after which greater strict
economic policies will be enforced. The government can continue to extend
its donor-supported social protection programs like the Ehsaas program
and provide some temporary relief.

Summing Things Up!

While per – capita agricultural output has grown since independence, it has
been outpaced by the growth of the non – agricultural sectors, and the
share of agriculture has dropped to roughly one – fifth of Pakistan’s
economy. In recent years, the country has seen rapid growth in industries
(such as apparel, textiles, and cement) and services (such as
telecommunications, transportation, advertising, and finance).