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:
- Industry, and
- 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.
THREE MAIN SECTORS OF THE ECONOMY OF PAKISTAN
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.
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
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.