the budget dificit

8/9/2019 The Budget Dificit

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The economy of Pakistan is 25th largest in the world (in nominal terms) and 27th largest in the world (in absolute dollar terms). Pakistan has a semi-

industrialized economy , !"#$" ##" which mainly encom%asses te&tiles, chemicals ,'ood %rocessing , agriculture and other industries. rowth %oles o'

Pakistan s economy are situated along the *ndus +i er ##"#2"di ersi'ied economies o' arachi and Pun/ab s urban centers coe&ist with lesser de elo%ed

areas in other %arts o' the country . ##" The economy has su''ered in the %ast 'rom decades o' internal %oliticaldis%utes, a 'ast growing %o%ulation, mi&ed

le els o' 'oreign in estment, and a costly, ongoing con'rontation with neighboring *ndia. 0owe er ,*1 -a%%ro ed go ernment %olicies citation needed ",

bolstered by 'oreign in estment and renewed access to global markets, ha e generated solid macroeconomic reco ery the last decade. 3ubstantial

macroeconomic re'orms since 2$$$, most notably at %ri atizing the banking sector ha e hel%ed the economy.

4P growth, s%urred by gains in the industrial and ser ice sectors, remained in the -6 range in 2$$8-$ due to economic re'orms in the year 2$$$

by the 1usharra' go ernment . #9" *n 2$$5, the :orld ;ank named Pakistan the to% re'ormer in its region and in the to% #$ re'ormers globally.

#8" *slamabad has steadily raised de elo%ment s%ending in recent years, including a 52 real increase in the budget allocation 'or de elo%ment in


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o 2.+ Revenu e

3 ,urrency system

o 3.1 Ru ee

o 3.2 Foreign e(change rate

o 3.3 Foreign e(change reserves

! $tructure of economy

) $ectors

o ).1 -gricu lture

o ).2 ndust ry

).2.1 $ME $ector

).2.2 -utomo/ile industry

).2.3 ,0% indust ry

).2.! ,ement indust ry

).2.) # indust ry

).2.* #e(tiles

).2.+ Mining

o ).3 $ervices

).3.1 ,ommunication

).3.2 Rail&ays

).3.3 -viation

).3.! holesale and retail trade

).3.) Finance and insuran ce

).3.* &nershi of d&ellings

).3.+ 'u/lic administration and defence

).3. $ocial4 community and ersonal services

).3.5 Electr icity

* Foreign trade4 remittances4 aid4 and investment

o *.1 nvestment

*.1.1 Foreign ac6uisitions and mergers

o *.2 Foreign trade

*.2.1 E( orts

o *.3 E(ternal m/alances

o *.! Economic aid

o *.) Remit tances

+ %overnme nt financ es

http://en.wikipedia.org/wiki/Economy_of_Pakistan#Revenuehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Currency_systemhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Rupeehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Foreign_exchange_ratehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Foreign_exchange_reserveshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Structure_of_economyhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Sectorshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Agriculturehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Industryhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#SME_Sectorhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Automobile_industryhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#CNG_industryhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Cement_industryhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#IT_industryhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Textileshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Mininghttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Serviceshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Communicationhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Railwayshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Aviationhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Wholesale_and_retail_tradehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Finance_and_insurancehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Ownership_of_dwellingshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Public_administration_and_defencehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Social.2C_community_and_personal_serviceshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Electricityhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Foreign_trade.2C_remittances.2C_aid.2C_and_investmenthttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Investmenthttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Foreign_acquisitions_and_mergershttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Foreign_tradehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Exportshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#External_Imbalanceshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Economic_aidhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Remittanceshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Government_financeshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Revenuehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Currency_systemhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Rupeehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Foreign_exchange_ratehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Foreign_exchange_reserveshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Structure_of_economyhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Sectorshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Agriculturehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Industryhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#SME_Sectorhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Automobile_industryhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#CNG_industryhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Cement_industryhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#IT_industryhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Textileshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Mininghttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Serviceshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Communicationhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Railwayshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Aviationhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Wholesale_and_retail_tradehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Finance_and_insurancehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Ownership_of_dwellingshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Public_administration_and_defencehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Social.2C_community_and_personal_serviceshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Electricityhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Foreign_trade.2C_remittances.2C_aid.2C_and_investmenthttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Investmenthttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Foreign_acquisitions_and_mergershttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Foreign_tradehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Exportshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#External_Imbalanceshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Economic_aidhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Remittanceshttp://en.wikipedia.org/wiki/Economy_of_Pakistan#Government_finances


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o +.1 Revenues and ta(at ion

o +.2 E( enditures 7and the e conomic costs of ar on #error8

o +.3 $overeign /onds

ncome distri/u tion

5 $ee also

19 Further reading

11 References

12 E(ternal links

[edit ]Economic history

Main article: Economic history of Pakistan[edit ]First five decades

:hen it gained inde%endence in #!87 'rom > . Pakistan s a erage economic growth rate since inde%endence has been higher than the a erage

growth rate o' the world economy during the %eriod. ? erage annual real 4P growth rates # " were .6 in the #! $s, 8.6 in the #!7$s, and .5 in

the #!6$s. ? erage annual growth 'ell to 8. in the #!!$s with signi'icantly lower growth in the second hal' o' that decade. 3ee also #7"

4uring the #! $s, Pakistan was seen as a model o' economic de elo%ment around the world, and there was much %raise 'or its economic

%rogression. arachi was seen as an economic role model around the world, and there was much %raise 'or the way its economy was %rogressing.

1any countries sought to emulate Pakistan s economic %lanning strategy and one o' them, 3outh orea , co%ied the city s second @ i e-


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4P +ate o' rowth #!5#-2$$!

[edit ]Background

0istorically, Pakistan s o erall economic out%ut ( 4P ) has grown e ery year since a #!5# recession . 4es%ite this record o' sustained growth,

Pakistan s economy had, until a 'ew years ago, been characterized as unstable and highly ulnerable to e&ternal and internal shocks . 0owe er, the

economy %ro ed to be une&%ectedly resilient in the 'ace o' multi%le ad erse e ents concentrated into a 'our-year (#!!6C2$$2) %eriod D

the ?sian 'inancial crisis

economic sanctions D according to Aolin Powell , Pakistan was @sanctioned to the eyeballs@ 2$"

The global recession o' 2$$#-2$$2

a se ere drought D the worst in Pakistan s history, lasting about 'our years

heightened %erce%tions o' risk as a result o' military tensions with *ndia D with as many as # million troo%s on the border, and %redictions

o' im%ending (%otentially nuclear) war

the %ost-!E## military action in neighboring ?'ghanistan, with a massi e in'lu& o' re'ugees 'rom that country

4es%ite these ad erse e ents, Pakistan s economy ke%t growing, and economic growth accelerated towards the end o' this %eriod. This resilience has

led to a change in %erce%tions o' the economy, with leading international institutions such as the *1 , :orld ;ank, and the ?4; %raising Pakistan s

%er'ormance in the 'ace o' ad ersity.

[edit ]More recent reports of resilience

?dditional con'irmation that the country s economy is not as weather-sensiti e as had been %re iously %ercei ed comes 'rom a 2$$6 analysis that

@e&amined 6 countries, =uanti'ying their sensiti ity to 'luctuations in weather, using 'igures on 4P by industry sector and the sensiti ity o' %articular

sectors to gi en weather ariables.@ The analysis 'ound that o' the 6 countries, the @least weather-sensiti e country was Pakistan.@ 2#"22" 29"

?'ter the highly destructi e 2$$5 earth=uake , Pakistan s economy ke%t e&%anding, growing by o er 7 in the twel e months ending Fune 9$, 2$$ .

Pakistan emerged as one o' the best %er'ormers in the wake o' the global 'inancial crisis , e en as the country waged a costly war against militants. *ts

domestically-dri en economy was minimally a''ected and its banking sector boasted sur%lus li=uidity while remaining unharmed. 0owe er the im%act

was seen 'or e&%ort sectors which shrank as a result o' lower e&ternal demand. 28" re'G@;arclays sees huge %otential in Pakistan (?ug #8 2$$!)@ .

4?:H. +etrie ed 2$$!-$!-#5.IEre'G

[edit ]Macroeconomic reform and prospects

http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=5http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=5http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=5http://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Recessionhttp://en.wikipedia.org/wiki/Recessionhttp://en.wikipedia.org/wiki/Shock_(economics)http://en.wikipedia.org/wiki/Shock_(economics)http://en.wikipedia.org/wiki/Shock_(economics)http://en.wikipedia.org/wiki/Asian_financial_crisishttp://en.wikipedia.org/wiki/Asian_financial_crisishttp://en.wikipedia.org/wiki/Asian_financial_crisishttp://en.wikipedia.org/wiki/Economic_sanctionshttp://en.wikipedia.org/wiki/Colin_Powellhttp://en.wikipedia.org/wiki/Colin_Powellhttp://en.wikipedia.org/wiki/Colin_Powellhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-19http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-19http://en.wikipedia.org/wiki/Global_recessionhttp://en.wikipedia.org/wiki/Global_recessionhttp://en.wikipedia.org/wiki/Droughthttp://en.wikipedia.org/wiki/Droughthttp://en.wikipedia.org/wiki/Droughthttp://en.wikipedia.org/wiki/War_in_Afghanistan_(2001%E2%80%93present)http://en.wikipedia.org/wiki/War_in_Afghanistan_(2001%E2%80%93present)http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=6http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=6http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=6http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-20http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-20http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-21http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-21http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-22http://earthquake.usgs.gov/regional/world/most_destructive.phphttp://earthquake.usgs.gov/regional/world/most_destructive.phphttp://earthquake.usgs.gov/regional/world/most_destructive.phphttp://en.wikipedia.org/wiki/2005_Kashmir_earthquakehttp://en.wikipedia.org/wiki/2005_Kashmir_earthquakehttp://en.wikipedia.org/wiki/Global_financial_crisishttp://en.wikipedia.org/wiki/Global_financial_crisishttp://en.wikipedia.org/wiki/Global_financial_crisishttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-23http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/business/09-barclays-sees-huge-potential-in-pakistan---szh-05http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/business/09-barclays-sees-huge-potential-in-pakistan---szh-05http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=7http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=7http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=7http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=5http://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Recessionhttp://en.wikipedia.org/wiki/Shock_(economics)http://en.wikipedia.org/wiki/Asian_financial_crisishttp://en.wikipedia.org/wiki/Economic_sanctionshttp://en.wikipedia.org/wiki/Colin_Powellhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-19http://en.wikipedia.org/wiki/Global_recessionhttp://en.wikipedia.org/wiki/Droughthttp://en.wikipedia.org/wiki/War_in_Afghanistan_(2001%E2%80%93present)http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=6http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-20http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-21http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-22http://earthquake.usgs.gov/regional/world/most_destructive.phphttp://en.wikipedia.org/wiki/2005_Kashmir_earthquakehttp://en.wikipedia.org/wiki/Global_financial_crisishttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-23http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/business/09-barclays-sees-huge-potential-in-pakistan---szh-05http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=7


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Hational 0ighways, 1otorways J 3trategic +oads o' Pakistan.

?ccording to many sources, the Pakistani go ernment has made substantial economic re'orms since 2$$$ , #9" and medium-term %ros%ects 'or /ob

creation and %o erty reduction are the best in nearly a decade.

o ernment re enues ha e greatly im%ro ed in recent years, as a result o' economic growth, ta& re'orms - with a broadening o' the ta& base, and

more e''icient ta& collection as a result o' sel'-assessment schemes and corru%tion controls in the Aentral ;oard o' +e enue - and the %ri atization o'

%ublic utilities and telecommunications. Pakistan is aggressi ely cutting tari''s and assisting e&%orts by im%ro ing %orts, roads, electricity su%%lies and

irrigation %ro/ects. *slamabad has doubled de elo%ment s%ending 'rom about 2 o' 4P in the #!!$s to 8 in 2$$9, a necessary ste% towards

re ersing the broad underde elo%ment o' its social sector.

Biberalization in the international te&tile trade has already yielded bene'its 'or Pakistan s e&%orts, and the country also e&%ects to %ro'it 'rom 'reer trade

in agriculture. ?s a large country, Pakistan ho%es to take ad antage o' signi'icant economies o' scale, and to re%lace Ahina as the largest te&tile

manu'acturer as the latter Ahina mo es u% the alue-added chain. These industries %lay to Pakistan s relati e strengths in low labor costs.

rowing stability in the nation s monetary %olicies has contributed to a reduction in money-market interest rates, and a great e&%ansion in the =uantity

o' credit, changing consum%tion and in estment %atterns in the nation. Pakistan s domestic natural gas %roduction, and its signi'icant use o' AH in

automobiles, has cushioned the e''ect o' the oil-%rice shock o' 2$$8-2$$5. Pakistan is also mo ing away 'rom the doctrine o' im%ort substitution which

some de elo%ing countries (such as *ran) dogmatically %ursued in the twentieth century. The Pakistani go ernment is now %ursuing an e&%ort-dri en

model o' economic growth success'ully im%lemented by 3outh Kast ?sia and now highly success'ul in Ahina .

*n 2$$5, the :orld ;ank re%orted that

@Pakistan was the top reformer in the region and the number 10 reformer globally — making it easier to start a business, reducing the

cost to register property, increasing penalties for violating corporate governance rules, and replacing a re uirement to license every

shipment with two!year duration licenses for traders"# 25"

[edit ]Doing Business

http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-londonstockexchange.com-12http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-londonstockexchange.com-12http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-londonstockexchange.com-12http://en.wikipedia.org/wiki/Central_Board_of_Revenuehttp://en.wikipedia.org/wiki/Central_Board_of_Revenuehttp://en.wikipedia.org/wiki/Central_Board_of_Revenuehttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Compressed_natural_gashttp://en.wikipedia.org/wiki/Compressed_natural_gashttp://en.wikipedia.org/wiki/Compressed_natural_gashttp://en.wikipedia.org/wiki/Shock_(economics)http://en.wikipedia.org/wiki/Shock_(economics)http://en.wikipedia.org/wiki/Shock_(economics)http://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-24http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=8http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=8http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=8http://en.wikipedia.org/wiki/File:Pakistan_Nationalhighways.PNGhttp://en.wikipedia.org/wiki/File:Pakistan_Nationalhighways.PNGhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-londonstockexchange.com-12http://en.wikipedia.org/wiki/Central_Board_of_Revenuehttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Compressed_natural_gashttp://en.wikipedia.org/wiki/Shock_(economics)http://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-24http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=8


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The :orld ;ank (:;) and *nternational inance Aor%oration s 'lagshi% re%ort Kase o' 4oing ;usiness *nde& 2$#$ ranked Pakistan 65 among

#6# countries around the globe. Pakistan comes highest in 3outh ?sia but also ranks higher than Ahina, +ussia and *ndia which is at #99.

The to% 'i e countries are 3inga%ore, Hew Lealand, the >nited 3tates, 0ong ong and >nited ingdom. 2 "

The o ernment o' Pakistan has granted numerous incenti es to technology com%anies wishing to do business in Pakistan. ? combination o'

decade-%lus ta& holidays , zero duties on com%uter im%orts, go ernment incenti es 'or enture ca%ital and a ariety o' %rograms 'or subsidizing

technical education, are intended there.

[edit ]The economy today

4ue to in'lation and economic crisis worldwide, Pakistan s economy reached a state o ' ;alance o' Payment crisis. @The *nternational 1onetary

und bailed out Pakistan in Ho ember 2$$6 to a ert a balance o' %ayments crisis and in Fuly last year increased the loan to M##.9 billion 'rom

an initial M7. billion.@27"

4uring the mid-2$$$s, Pakistan e&%erienced a %eriod o' tremendous growth, a eraging 7 yearly 4P growth between 2$$9-$7. 4ue to its

large %o%ulation o' #6 million, it was included in 2$$5 by the oldman 3achs lobal Kconomics rou% as one o' the @ He&t Kle en (H-##)@ C

a grou% o' countries with economies that Nmight ha e the kind o' %otential 'or global im%act that the ;+*As %ro/ections highlighted, essentially

an ability to match the 7 in sizeO . 26"

;y ctober 2$$7, Pakistan raised back its oreign +eser es to a handsome M# .8 billion. K&ce%tional %olicies ke%t Pakistan s trade de'icit

controlled at M#9 billion, e&%orts boomed to M#6 billion, re enue generation increased to become M#9 billion and attracted 'oreign in estment

o' M6.8 billion.

3ince the beginning o' 2$$6, Pakistan s economic outlook has taken stagnation. 3ecurity concerns stemming 'rom the nation s role in the :ar

on Terror ha e created great instability and led to a decline in 4* 'rom a height o' a%%ro&imately M6 bn to M9.5bn 'or the current 'iscal year.

Aoncurrently, the insurgency has 'orced massi e ca%ital 'light 'r om Pakistan to the ul'. Aombined with high global commodity %rices, the

dual im%act has shocked Pakistan s economy, with ga%ing trade de'icits, high in'lation and a crash in the alue o' the +u%ee, which has 'allen

'rom $-# >34 to o er 6$-# >34 in a 'ew months. or the 'irst time in years, it may ha e to seek e&ternal 'unding as ;alance o' Payments

su%%ort. Aonse=uently, 3JP lowered PakistanQs 'oreign currency debt rating to AAA-%lus 'r om ;, /ust se eral notches abo e a le el that

would indicate de'ault. PakistanQs local currency debt rating was lowered to ;-minus 'rom ;;-minus. Aredit agency 1oodyQs *n estors 3er ice

cut its outlook on PakistanQs debt to negati e 'rom stable due to %olitical uncertainty, though it maintained the countryQs rating at ;2.The cost

o' %rotection against a de'ault in PakistanQs so ereign debt trades at #,6$$ basis %oints, according to its 'i e year credit de'ault swa%, a le el

that indicates in estors belie e the country is already in or will soon be in de'ault.

The middle term howe er may be less turbulent, de%ending on the %olitical en ironment. The K*> estimates that in'lation should dro% back to

single digits in 2$#$, and that growth should %ick u% to o er 5 %er annum by 2$##. ?lthough less than the %re ious 5 year a erage o' 7 , it

would re%resent an o ercoming o' the %resent crisis wherein growth is a mere 9.5-8 . 2!"

Economic comparison of Pakistan 1 !"##$ 9$"

http://en.wikipedia.org/wiki/Ease_of_Doing_Business_Indexhttp://en.wikipedia.org/wiki/Ease_of_Doing_Business_Indexhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-25http://en.wikipedia.org/wiki/Government_of_Pakistanhttp://en.wikipedia.org/wiki/Government_of_Pakistanhttp://en.wikipedia.org/wiki/Government_of_Pakistanhttp://en.wikipedia.org/wiki/Tax_holidayhttp://en.wikipedia.org/wiki/Tax_holidayhttp://en.wikipedia.org/wiki/Tax_holidayhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Venture_capitalhttp://en.wikipedia.org/wiki/Venture_capitalhttp://en.wikipedia.org/wiki/Venture_capitalhttp://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=9http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=9http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=9http://en.wikipedia.org/wiki/Balance_of_Paymenthttp://en.wikipedia.org/wiki/Balance_of_Paymenthttp://en.wikipedia.org/wiki/Balance_of_Paymenthttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-26http://www2.goldmansachs.com/ideas/index.htmlhttp://www2.goldmansachs.com/ideas/index.htmlhttp://www2.goldmansachs.com/ideas/index.htmlhttp://en.wikipedia.org/wiki/Next_Elevenhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-27http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-27http://en.wikipedia.org/wiki/War_on_Terrorhttp://en.wikipedia.org/wiki/War_on_Terrorhttp://en.wikipedia.org/wiki/War_on_Terrorhttp://en.wikipedia.org/wiki/War_on_Terrorhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-economist.com-28http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-economist.com-28http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-29http://en.wikipedia.org/wiki/Ease_of_Doing_Business_Indexhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-25http://en.wikipedia.org/wiki/Government_of_Pakistanhttp://en.wikipedia.org/wiki/Tax_holidayhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Venture_capitalhttp://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=9http://en.wikipedia.org/wiki/Balance_of_Paymenthttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-26http://www2.goldmansachs.com/ideas/index.htmlhttp://en.wikipedia.org/wiki/Next_Elevenhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-27http://en.wikipedia.org/wiki/War_on_Terrorhttp://en.wikipedia.org/wiki/War_on_Terrorhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-economist.com-28http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-29


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? iew o' *. *. Ahundrigar +oad, the 'inancial district o' arachi in Pakistan

1ainstay o' the economy - by region. 3ourceR 9#"

Year Gross Domestic Product US Dollar Exchange Inflation Index(2000= 00!

Per Ca"ita Income(as # of US$!

15*9 2949) !.+* 'akistani Ru ees 3.3+

15*) 314+!9 !.+* 'akistani Ru ees 3.!9

15+9 )143)) !.+* 'akistani Ru ees 3.2*

15+) 1314339 5.51 'akistani Ru ees 2.3*

15+ 2 34!*9 5.5+ 'akistani Ru ees 21 2. 3

http://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-30http://en.wikipedia.org/wiki/File:Mainstay_of_the_Economy_-_By_Region.jpghttp://en.wikipedia.org/wiki/File:Mainstay_of_the_Economy_-_By_Region.jpghttp://en.wikipedia.org/wiki/File:IICROAD.jpghttp://en.wikipedia.org/wiki/File:IICROAD.jpghttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-30


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15 ) )*5411! 1*.2 'akistani Ru ees 39 2.9+

1559 149254953 21.!1 'akistani Ru ees !1 1.52

155) 242* 4!*1 39.*2 'akistani Ru ees * 2.1*

2999 34 2*4111 )1.*! 'akistani Ru ees 199 1.)!

299) *4) 14193 )5. * 'akistani Ru ees 12* 1.+1

Indicator %%% 200& 200' 200%

%"' : +) /illion : 1*9 /illion : 1+9 /illion : 1 ) /illion

%"' 'urchasing 'o&er 'arity 7'''8 : 2+9 /illion : !+).) /illion : )9! /illion : )!).* /illion

%"' er ,a ita ncome : !)9 : 52) :19 ) :12)9

Revenue collection Rs. 39) /illion Rs. +9 /illion Rs. 559 /illion Rs. 1.9) trillion

Foreign reserves : 1.5* /illion : 1*.! /illion : . 5 /illion : 1! /illion

E( orts : +.) /illion : 1 .) /illion : 15.22 /illion : 1 .!) /illion

#e(tile E( orts : ).) /illion : 11.2 /illion ; ;

?ia/ilities : 35 /illion : !9.1+ /illion : !).5 /illion : )9.1 /illion


9/14

'overty level 3!@ 2!@ ; ;

?iteracy rate !)@ )3@ ; ;

"evelo ment rograms Rs. 9 /illion Rs. )29 /illion Rs. )!5.+ /illion Rs. *21 /illion

Kconomic Aom%arison #!!!-2$$6

[edit ]%tock market

Main article: $arachi %tock E&change

*n the 'irst 'our years o' the twenty-'irst century, Pakistan s 3K #$$ *nde& was the best-%er'orming stock market inde& in the world as

declared by the international magazine N;usiness :eekO. citation needed " The stock market ca%italisation o' listed com%anies in Pakistan was

alued at M5,!97 million in 2$$5 by the :orld ;ank . 92" ;ut in 2$$6, a'ter the eneral Klections, uncertain %olitical en ironment, rising militancy

along western borders o' the country, and mounting in'lation and current account de'icits resulted in the stee% decline o' the arachi 3tock

K&change. ?s a result, the cor%orate sector o' Pakistan has declined dramatically in recent times.

[edit ]Manufacturing and finance

Pakistan s manu'acturing sector has e&%erienced double-digit growth in recent years, 'rom 2$$$ to 2$$7, with large-scale manu'acturing

growing 'rom a minimal #.5 in #!!! to a record #!.! in 2$$8-$5 and a eraged 6.6 by end o' 2$$7 . 99"

The ederal ;ureau o' 3tatistics alued the 'inance and insurance sector at +s.9##,78# million in 2$$5 thus registering o er # growth

since 2$$$. ? reduction in the 'iscal de'icit had resulted in less go ernment borrowing in the domestic money market, lower interest rates, and

an e&%ansion in %ri ate sector lending to businesses and consumers.

[edit ]&ro'ing middle class

1easured by %urchasing %ower, Pakistan has a 9$ million strong middle class, according to 4r. *shrat 0usain , K&- o ernor (2 4ecember

#!!! - # 4ecember 2$$5) o' the 3tate ;ank o' Pakistan . 98" *t is a 'igure that correlates with research by 3tandard Ahartered ;ank which

estimates that Pakistan %ossesses a @a middle class o' 9$ million %eo%le that 3tandard Ahartered estimates now earn an a erage o' about

M#$,$$$ a year.@ 95" Batest 'igures %ut Pakistan s 1iddle Alass at 95 million strong . 9 " *n addition, Pakistan has a growing u%%er J u%%er middle

class, which was estimated at .6 million in 2$$2 97" and has now grown to #7 million %eo%le as o' 2$#$, with relati ely high %er ca%ita

incomes . 96"

n measures o' income ine=uality , the country ranks slightly better than the median . *n late 2$$ , the Aentral ;oard o' +e enue estimated

that there were almost 2.6 million income-ta& %ayers in the country . 9!"

Po erty le els ha e decreased by #$ since 2$$# 8$" oreign Aom%anies which %ro ide 'or Pakistani middle classes ha e been ery

success'ul. or e&am%le, demand 'or >nili er %roducts ha e recently been so high that e en a'ter doubling %roduction the ?nglo-4utch

com%any struggled to meet demand and it s Ahairman stated @Pakistanis canQt seem to ha e enough@ . 9 "

[edit ]Poverty alleviation e(penditures

Main article: Poverty in Pakistan

http://presidentmusharraf.wordpress.com/2008/07/01/economic-comparison-1999-2007-and-beyond/http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=10http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=10http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=10http://en.wikipedia.org/wiki/Karachi_Stock_Exchangehttp://en.wikipedia.org/wiki/Karachi_Stock_Exchangehttp://en.wikipedia.org/wiki/KSE_100_Indexhttp://en.wikipedia.org/wiki/KSE_100_Indexhttp://en.wikipedia.org/wiki/KSE_100_Indexhttp://en.wikipedia.org/wiki/Stock_market_indexhttp://en.wikipedia.org/wiki/Stock_market_indexhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-31http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-31http://en.wikipedia.org/wiki/Karachi_Stock_Exchangehttp://en.wikipedia.org/wiki/Karachi_Stock_Exchangehttp://en.wikipedia.org/wiki/Karachi_Stock_Exchangehttp://en.wikipedia.org/wiki/Karachi_Stock_Exchangehttp://en.wikipedia.org/wiki/Pakistan_Inchttp://en.wikipedia.org/wiki/Pakistan_Inchttp://en.wikipedia.org/wiki/Pakistan_Inchttp://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=11http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=11http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=11http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-32http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-32http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=12http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=12http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=12http://en.wikipedia.org/wiki/Ishrat_Husainhttp://en.wikipedia.org/wiki/Ishrat_Husainhttp://en.wikipedia.org/wiki/Ishrat_Husainhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-income-33http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-income-33http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-34http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-34http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-thenews1-35http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-thenews1-35http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-thenews1-35http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-36http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-37http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-37http://en.wikipedia.org/wiki/Income_inequality_metricshttp://en.wikipedia.org/wiki/Income_inequality_metricshttp://en.wikipedia.org/wiki/Income_inequality_metricshttp://en.wikipedia.org/wiki/List_of_countries_by_income_equalityhttp://en.wikipedia.org/wiki/List_of_countries_by_income_equalityhttp://en.wikipedia.org/wiki/Central_Board_of_Revenuehttp://en.wikipedia.org/wiki/Central_Board_of_Revenuehttp://en.wikipedia.org/wiki/Central_Board_of_Revenuehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-38http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-38http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-39http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-39http://en.wikipedia.org/w/index.php?title=Uniliver&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Uniliver&action=edit&redlink=1http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-thenews1-35http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-thenews1-35http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=13http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=13http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=13http://en.wikipedia.org/wiki/Poverty_in_Pakistanhttp://en.wikipedia.org/wiki/Poverty_in_Pakistanhttp://presidentmusharraf.wordpress.com/2008/07/01/economic-comparison-1999-2007-and-beyond/http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=10http://en.wikipedia.org/wiki/Karachi_Stock_Exchangehttp://en.wikipedia.org/wiki/KSE_100_Indexhttp://en.wikipedia.org/wiki/Stock_market_indexhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-31http://en.wikipedia.org/wiki/Karachi_Stock_Exchangehttp://en.wikipedia.org/wiki/Karachi_Stock_Exchangehttp://en.wikipedia.org/wiki/Pakistan_Inchttp://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=11http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-32http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=12http://en.wikipedia.org/wiki/Ishrat_Husainhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-income-33http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-34http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-thenews1-35http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-36http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-37http://en.wikipedia.org/wiki/Income_inequality_metricshttp://en.wikipedia.org/wiki/List_of_countries_by_income_equalityhttp://en.wikipedia.org/wiki/Central_Board_of_Revenuehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-38http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-39http://en.wikipedia.org/w/index.php?title=Uniliver&action=edit&redlink=1http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-thenews1-35http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=13http://en.wikipedia.org/wiki/Poverty_in_Pakistan


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Po erty in Pakistan

Pakistan go ernment s%ent o er # trillion +u%ees (about M# .7 billion) on %o erty alle iation %rograms during the %ast 'our years, cutting

%o erty 'rom 95 in 2$$$-$# to 28 in 2$$ . 8#" +ural %o erty remains a %ressing issue, as de elo%ment there has been 'ar slower than in the

ma/or urban areas.

[edit ])emographics

Main article: 'emographics of Pakistan

:ith a %er ca%ita 4P o' o er M9$$$ (PPP , 2$$ ) com%ared with M2 $$ (PPP , 2$$5) in 2$$5 the :orld ;ank considers Pakistan a medium-

income country, it is also recorded as a @1edium 4e elo%ment Aountry@ on the 0uman 4e elo%ment *nde& 2$$7. Pakistan has a large

in'ormal economy, which the go ernment is trying to document and assess. ?%%ro&imately 5 o' adults are literate, and li'e e&%ectancy is

about 8 years. The %o%ulation, about # 6 million in 2$$7, is growing at about #.6$ .

+elati ely 'ew resources in the %ast had been de oted to socio-economic de elo%ment or in'rastructure %ro/ects. *nade=uate %ro ision o'

social ser ices, high birth rates and immigration 'rom nearby countries in the %ast ha e contributed to a %ersistence o' %o erty. ?n in'luential

recent study 82" concluded that the 'ertility rate %eaked in the #!6$s, and has since 'allen shar%ly. Pakistan has a 'amily-income ini inde& o'

8#, close to the world a erage o' 9!.

[edit ]Employment

The high %o%ulation growth in the %ast 'ew decades has ensured that a ery large number o' young %eo%le are now entering the labor market.

K en though it is among the se en most %o%ulous ?sian nations, Pakistan has a lower %o%ulation density than ;angladesh, Fa%an, *ndia, and

the Phili%%ines. *n the %ast, e&cessi e red ta%e made 'iring 'rom /obs, and conse=uently hiring, di''icult . 89" 3igni'icant %rogress in ta&ation and

business re'orms has ensured that many 'irms now are not com%elled to o%erate in the underground economy. 88"

*n late 2$$ , t he go ernment launched an ambitious nationwide ser ice em%loyment scheme aimed at disbursing almost M2 billion o er 'i e

years. 85"8 "

1ean wages were M$.!6 %er manhour in 2$$!.+ate o' unem%loyment is 25 .

0igh in'lation and limited wage growth ha e drawn more women into the work'orce to 'eed their 'amilies, in s%ite o' cultural resistance and

domestic abuse o er the issue. 87"

[edit ]Tourism

Main article: (ourism in Pakistan

http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-40http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-40http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-40http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=14http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=14http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=14http://en.wikipedia.org/wiki/Demographics_of_Pakistanhttp://en.wikipedia.org/wiki/Demographics_of_Pakistanhttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Purchasing_Power_Parityhttp://en.wikipedia.org/wiki/Purchasing_Power_Parityhttp://en.wikipedia.org/wiki/Purchasing_Power_Parityhttp://en.wikipedia.org/wiki/Purchasing_Power_Parityhttp://en.wikipedia.org/wiki/Purchasing_Power_Parityhttp://en.wikipedia.org/wiki/Purchasing_Power_Parityhttp://en.wikipedia.org/wiki/Human_Development_Indexhttp://en.wikipedia.org/wiki/Human_Development_Indexhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-fertility-41http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-fertility-41http://en.wikipedia.org/wiki/Gini_indexhttp://en.wikipedia.org/wiki/Gini_indexhttp://en.wikipedia.org/wiki/Gini_indexhttp://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=15http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=15http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=15http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-42http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-42http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-42http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-43http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-44http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-44http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-45http://en.wikipedia.org/wiki/Inflationhttp://en.wikipedia.org/wiki/Inflationhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-46http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=16http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=16http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=16http://en.wikipedia.org/wiki/Tourism_in_Pakistanhttp://en.wikipedia.org/wiki/Tourism_in_Pakistanhttp://en.wikipedia.org/wiki/File:Poverty_in_Pakistan.jpghttp://en.wikipedia.org/wiki/File:Poverty_in_Pakistan.jpghttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-40http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=14http://en.wikipedia.org/wiki/Demographics_of_Pakistanhttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Purchasing_Power_Parityhttp://en.wikipedia.org/wiki/Purchasing_Power_Parityhttp://en.wikipedia.org/wiki/Human_Development_Indexhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-fertility-41http://en.wikipedia.org/wiki/Gini_indexhttp://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=15http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-42http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-43http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-44http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-45http://en.wikipedia.org/wiki/Inflationhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-46http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=16http://en.wikipedia.org/wiki/Tourism_in_Pakistan


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Tourism in Pakistan is a growing industry. 1a/or attractions include ruins o' *ndus alley ci ilization and mountain resorts in the 0imalayas .

0imalayan and arakoram range (which includes 2 , the second highest mountain %eak in the world, attracts ad enturers and mountaineers

'rom around the world. arachi and Bahore are ma/or attractions 'or authentic Pakistani 'ood and culture.

[edit ]Revenue

The ;oard o' +e enue has collected nearly one trillion ru%ees (M#8.# billion) in ta&es in the 2$$7-2$$6 'inancial year . 86"

[edit ]*urrency system

Main article: Pakistani )upee

The 5$$ ru%ee note

[edit ]Rupee

The basic unit o' currency is the +u%ee , *3 code P + and abbre iated +s, which is di ided into #$$ %aisas. Aurrently the newly %rinted

5,$$$ ru%ee note is the largest denomination in circulation. +ecently the 3;P has introduced all new design notes o' +s. 5, #$, 2$, 5$, #$$,

5$$, #$$$, and 5$$$ denomination, while the design work o' +s.#$,$$$ note is in %rogress which will hel% the banking industry in kee%ing 'ew

notes in sa ing accounts. The new notes ha e been designed using the euro technology and are made in eye-catching bright colours and

bold, stylish designs.

4ollar-+u%ee e&change rate

The Pakistani +u%ee was %egged to the >3 4ollar until #!62, when the go ernment o' eneral Lia-ul-0a= , changed it to managed 'loat . ?s a

result, the ru%ee de alued by 96.5 between #!62E69 and #!67E66 and many o' the industries built by his %redecessor su''ered with a huge

surge in im%ort costs. ?'ter years o' a%%reciation under Lul'icar ?li bhutto and des%ite huge increases in 'oreign aid the +u%ee de%reciated.

citation needed "

[edit ]Foreign e(change rate

# Pakistani +u%ee (P +) S #$$ Paisa

The Pakistani ru%ee de%reciated against the >3 dollar until the turn o' the century, when Pakistan s large current-account sur%lus

%ushed the alue o' the ru%ee u% ersus the dollar. Pakistan s central bank then stabilized by lowering interest rates and buying

dollars, in order to %reser e the country s e&%ort com%etiti eness

http://en.wikipedia.org/wiki/Tourism_in_Pakistanhttp://en.wikipedia.org/wiki/Tourism_in_Pakistanhttp://en.wikipedia.org/wiki/Himalayashttp://en.wikipedia.org/wiki/Himalayashttp://en.wikipedia.org/wiki/Himalayashttp://en.wikipedia.org/wiki/Karakoramhttp://en.wikipedia.org/wiki/Karakoramhttp://en.wikipedia.org/wiki/K2http://en.wikipedia.org/wiki/K2http://en.wikipedia.org/wiki/K2http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=17http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=17http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=17http://en.wikipedia.org/wiki/Board_of_Revenuehttp://en.wikipedia.org/wiki/Board_of_Revenuehttp://en.wikipedia.org/wiki/Board_of_Revenuehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-47http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-47http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=18http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=18http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=18http://en.wikipedia.org/wiki/Pakistani_Rupeehttp://en.wikipedia.org/wiki/Pakistani_Rupeehttp://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=19http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=19http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=19http://en.wikipedia.org/wiki/Pakistani_Rupeehttp://en.wikipedia.org/wiki/Pakistani_Rupeehttp://en.wikipedia.org/wiki/Pakistani_Rupeehttp://en.wikipedia.org/wiki/US_Dollarhttp://en.wikipedia.org/wiki/US_Dollarhttp://en.wikipedia.org/wiki/General_Zia-ul-Haqhttp://en.wikipedia.org/wiki/General_Zia-ul-Haqhttp://en.wikipedia.org/wiki/General_Zia-ul-Haqhttp://en.wikipedia.org/wiki/Managed_floathttp://en.wikipedia.org/wiki/Managed_floathttp://en.wikipedia.org/wiki/Managed_floathttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=20http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=20http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=20http://en.wikipedia.org/wiki/File:USD-PKR_Exchange.JPGhttp://en.wikipedia.org/wiki/File:USD-PKR_Exchange.JPGhttp://en.wikipedia.org/wiki/File:Rs500bk.jpghttp://en.wikipedia.org/wiki/File:Rs500bk.jpghttp://en.wikipedia.org/wiki/Tourism_in_Pakistanhttp://en.wikipedia.org/wiki/Himalayashttp://en.wikipedia.org/wiki/Karakoramhttp://en.wikipedia.org/wiki/K2http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=17http://en.wikipedia.org/wiki/Board_of_Revenuehttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-47http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=18http://en.wikipedia.org/wiki/Pakistani_Rupeehttp://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=19http://en.wikipedia.org/wiki/Pakistani_Rupeehttp://en.wikipedia.org/wiki/US_Dollarhttp://en.wikipedia.org/wiki/General_Zia-ul-Haqhttp://en.wikipedia.org/wiki/Managed_floathttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=20


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K&change ratesR Pakistani ru%ee (P +) %er >3M#

P ) "er US dollar %%*+200'

Year

,ighest - .o/est

Date )ate Date )ate

%%* '


13/14

;y ctober 2$$7, at the end o' Prime 1inister 3haukat ?zizQs tenure, Pakistan raised back its oreign +eser es to M# .8 billion.

Pakistan s trade de'icit was at M#9 billion, e&%orts grew to M#6 billion, re enue generation increased to become M#9 billion and the

country attracted 'oreign in estment o' M6.8 billion . 8!"

n ctober ##, 2$$6 3tate ;ank o' Pakistan re%orted that country s 'oreign e&change reser es had gone down by M57#.! 1illion to

M778!.7 1illion . 5$" The 'oreign e&change reser es had declined more by M#$ billion to an alarming rate o' M .5! billion. *n 3e%tember

2$#$ ?ccording the 3tate ;ank ' Pakistan Pakistan s oreign +eser es 3tood at M# .!! ;illion.

[edit ]%tructure of economy

The economy o' the *slamic +e%ublic o' Pakistan is su''ering with high in'lation rates well abo e 2 . er #,$6# %atent a%%lications

were 'iled by non-resident Pakistanis in 2$$8 re ealing a new-'ound con'idence. 5#" ?griculture accounted 'or about 59 o' 4P in

#!87. :hile %er-ca%ita agricultural out%ut has grown since then, it has been out%aced by the growth o' the non-agricultural sectors,

and the share o' agriculture has dro%%ed to roughly one-'i'th o' Pakistan s economy. *n recent years, the country has seen ra%id

growth in industries (such as a%%arel, te&tiles, and cement) and ser ices (such as telecommunications, trans%ortation, ad ertising,

and 'inance).

http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-48http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-48http://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-49http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-49http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-49http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=22http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=22http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=22http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-50http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-48http://en.wikipedia.org/wiki/State_Bank_of_Pakistanhttp://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-49http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=22http://en.wikipedia.org/wiki/Economy_of_Pakistan#cite_note-50


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[edit ]+griculture

Main article: *griculture in Pakistan

?griculture by Pro ince

1ango rchard in 1ultan , Pakistan

Pakistan is one o' the world s largest %roducers o' the 'ollowing commodities according

to ? 3T?T , the statistical arm o' the ood and ?griculture rganization o' The >nited Hations,

gi en here with the 2$$6 rankingR

?%ricot (9rd)

;u''alo 1ilk (2nd)

Ahick%ea (9rd)

Aotton , lint (8th)

Aotton , 3eed (9rd)

4ates (5th)

1ango ( th)

nion , dry (8th)

ranges (##th)

+ice ,%addy (##th)

Sectoral contri4ution to GDP Gro/th5ost of the recent acceleration in GDP gro/th has come from the industrial and ser6ice sectors7

GDP gro/th 48 sector9 as a "ercentage of GDP

Sector 200 +02 2002+0 200 +03 2003+0*

$griculture 9.93 1.91 9.)3 1.+!

Industr8 C Manufacturing

9.*1 1.71

1.9 1.11

2.+! 2.31

2.!* 2.19

Ser6ice 2.!+ 2.+) 3.1* !.1*

)eal GDP (fc! 3.1@ !. @ *.!@ .!@

Source: Economic Survey of Pakistan 2005 [+]
http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=24http://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=24http://en.wikipedia.org/wiki/Agriculture_in_Pakistanhttp://en.wikipedia.org/wiki/Agriculture_in_Pakistanhttp://en.wikipedia.org/wiki/Multanhttp://en.wikipedia.org/wiki/Multanhttp://en.wikipedia.org/wiki/Multanhttp://en.wikipedia.org/wiki/FAOSTAThttp://en.wikipedia.org/wiki/FAOSTAThttp://en.wikipedia.org/wiki/FAOSTAThttp://en.wikipedia.org/wiki/Food_and_Agriculture_Organizationhttp://en.wikipedia.org/wiki/Food_and_Agriculture_Organizationhttp://en.wikipedia.org/wiki/Apricothttp://en.wikipedia.org/wiki/Apricothttp://en.wikipedia.org/wiki/Milkhttp://en.wikipedia.org/wiki/Milkhttp://en.wikipedia.org/wiki/Chickpeahttp://en.wikipedia.org/wiki/Chickpeahttp://en.wikipedia.org/wiki/Cottonhttp://en.wikipedia.org/wiki/Cottonhttp://en.wikipedia.org/wiki/Cottonhttp://en.wikipedia.org/wiki/Cottonhttp://en.wikipedia.org/wiki/Dateshttp://en.wikipedia.org/wiki/Dateshttp://en.wikipedia.org/wiki/Mangohttp://en.wikipedia.org/wiki/Mangohttp://en.wikipedia.org/wiki/Onionhttp://en.wikipedia.org/wiki/Orange_(fruit)http://en.wikipedia.org/wiki/Orange_(fruit)http://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Ricehttp://www.finance.gov.pk/survey/home.htmhttp://www.finance.gov.pk/survey/home.htmhttp://en.wikipedia.org/wiki/File:MangoTree.jpeghttp://en.wikipedia.org/wiki/File:MangoTree.jpeghttp://en.wikipedia.org/wiki/File:Agriculture_by_Province.jpghttp://en.wikipedia.org/wiki/File:Agriculture_by_Province.jpghttp://www.finance.gov.pk/survey/home.htmhttp://en.wikipedia.org/w/index.php?title=Economy_of_Pakistan&action=edit&section=24http://en.wikipedia.org/wiki/Agriculture_in_Pakistanhttp://en.wikipedia.org/wiki/Multanhttp://en.wikipedia.org/wiki/FAOSTAThttp://en.wikipedia.org/wiki/Food_and_Agriculture_Organizationhttp://en.wikipedia.org/wiki/Apricothttp://en.wikipedia.org/wiki/Milkhttp://en.wikipedia.org/wiki/Chickpeahttp://en.wikipedia.org/wiki/Cottonhttp://en.wikipedia.org/wiki/Cottonhttp://en.wikipedia.org/wiki/Dateshttp://en.wikipedia.org/wiki/Mangohttp://en.wikipedia.org/wiki/Onionhttp://en.wikipedia.org/wiki/Orange_(fruit)http://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Sugarcane

the budget dificit

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