Economy of Pakistan

Pakistan is a developing country with an emerging economy and has a potential to become one of the largest 25 economies in the World. The economy of Pakistan is 38th largest economy in the world with nominal GDP of $285 billion, and GDP growth rate of 4.71% in 2016. Pakistan has a mixed economy with three main sectors:

  1. Agriculture
  2. Industry, and
  3. Services sector

However, the economy has been severely affected by continuous adverse civil-military relations, repeated military coups, political unrest and unstable weak civilian government. These factors lead to poor law & order situation, mismanagement, lack of long-term planning and corruption in the country.


1. Agriculture
The agriculture sector contributes 19.82% in GDP. It is the largest employer absorbing 42.3% of the country's total labour force. Due to extreme weather and the decline in the production of cotton, rice, maize and other crops, agriculture sector recorded a negative growth of −0.19% in the financial year 2015-16 (July 01, 2015 to June 30, 2016). The agriculture sector has four sub-sectors: crops, livestock, fisheries and forestry.

2. Industry
The industrial sector contributes 21.02% in GDP. It is the major source of tax revenues for the government. The Industrial sector recorded a growth of 6.80% in the financial year 2015-16. The manufacturing is the most important sub-sector of the industrial sector containing 64.71% share in the overall industrial sector. The manufacturing has three components:

  • Large-Scale Manufacturing (LSM)
  • Small Scale Manufacturing (SSM), and
  • Construction

3. Services sector
The services sector contributes 59.16% in GDP. It is the largest contributor to the Gross Domestic Product (GDP). The Services sector recorded a growth of 5.71% in the financial year 2015-16.

Development Projects in Pakistan

Since June 2013, Pakistan has been entering a new era of prosperity and development. Different development projects with thousands of billions of rupees are under-construction across the country.

Economy of Pakistan
Area:796,095 km2 (36th)
Population:195.4 million (6th)
Labour Force:61.04 million
GDP (PPP):$982 billion (25th) - 2016
GDP (nominal):$285 billion (38th) - 2016
GDP Growth:4.71% (2016)
Per Capita Income:$1560.7
Public Debt:Rs.19,676.7 billion (June 2016)
Policy Rate:5.75%
Budget Deficit:5.3% (2015)
Tax-to-GDP Ratio:11.0% (2015)

Pakistan Stock Exchange (PSX)

The three Stock Exchanges Karachi, Lahore and Islamabad were merged into Pakistan Stock Exchange (PSX) on January 11, 2016. PSX is world's one of the best performing stock markets. PSX 100-Index reached 46,000 levels on December 13, 2016, the highest level in Pakistan stock market history.

Benazir Income Support Program (BISP)

Benazir Income Support Program (BISP) is a government of Pakistan's program to eradicate extreme poverty through provision of cash transfers. Currently, more than 5.6 million beneficiaries are receiving financial help of Rs.1610 per month.

Foreign Exchange Reserves

Foreign exchange reserves of Pakistan reached the new historic high of $24.5 billion on October 14, 2016.

Agriculture Package for Small Farmers

Government of Pakistan on September 15, 2015 announced relief package of Rs.341 billion for small farmers. Read More