| Pakistan |
| Economy - overview: Pakistan is a poor, highly populated Third World country struggling
to make the difficult transition to the modern world of high technology
and international markets. Even though GDP growth has remained strong, at
roughly 5% annually, international confidence in Prime Minister Benazir
BHUTTO's government declined in 1996. The IMF suspended a Standby Agreement
in the spring; foreign investment declined; and the budget and trade deficits
rose substantially. In October 1996, BHUTTO responded to IMF pressure to
implement reforms, devaluing the rupee by about 8% and raising petroleum
prices in an attempt to slow the drain on foreign exchange reserves. But
Islamabad still failed to meet IMF revenue and borrowing targets. Pakistan's
interim government - in power since President LEGHARI sacked BHUTTO on 5
November 1996 - agreed to slash the budget deficit, push down bank borrowing,
implement an agricultural tax; and speed up reforms in the financial sector;
accordingly, the Standby Agreement was reinstated in December 1996 and a
tranche of $80 million released; but Pakistan fell out of compliance in
February 1997. For the long run, Pakistan must deal with serious problems
of deteriorating infrastructure, low literacy levels, and persistent sectarian
and political violence. GDP: purchasing power parity - $296.5 billion (1996 est.) GDP - real growth rate: 5.5% (1996 est.) GDP - per capita: purchasing power parity - $2,300 (1996 est.) GDP - composition by sector: agriculture: 24.8% industry: 26.5% services: 48.7% (1996) Inflation rate - consumer price index: 10.8% (FY95/96) Labor force: total: 36.7 million (1997) by occupation: agriculture 47%, mining and manufacturing 17%, services 17%, other 19% note : extensive export of labor, mostly to the Middle East, and use of child labor Unemployment rate: NA% Budget: revenues : $12.5 billion expenditures: $14 billion, including capital expenditures of $2.8 billion (FY95/96 est.) Industries: textiles, food processing, beverages, construction materials, clothing, paper products, shrimp Industrial production growth rate: 6.1% (FY95/96 est.) Electricity - capacity: 13.17 million kW (1994) Electricity - production: 46.1 billion kWh (FY95/96) Electricity - consumption per capita: 403 kWh (1995 est.) Agriculture - products: cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs Exports: total value: $8.3 billion (FY95/96) commodities: cotton, textiles, clothing, rice, leather, carpets partners: US, Japan, Hong Kong, Germany, UK, UAE, France Imports: total value: $12 billion (FY95/96) commodities : petroleum, petroleum products, machinery, transportation equipment, vegetable oils, animal fats, chemicals partners: Japan, US, Germany, UK, Saudi Arabia, Malaysia, South Korea Debt - external: $28.6 billion (1996 est.) Economic aid: recipient: $2.6 billion from all bilateral and multilateral sources (FY95/96) Currency: 1 Pakistani rupee (PRe) = 100 paisa Exchange rates: Pakistani rupees (PRs) per US$1 - 40.120 (January 1997), 36.078 (1996), 31.643 (1995), 30.567 (1994), 28.1 (1993), 25.1 (1992); note - annual average of official rate; parallel market rate is higher Fiscal year: 1 July - 30 June |