Economy

Main article: Economy of Pakistan

A view of the skyline in Karachi's financial district.

Buildings in the main financial area of Islamabad

 

Pakistan has a semi-industrialized economy.^[96][97] The growth poles of the Pakistani economy are situated along the Indus River.^[97][98] Diversified economies of Karachi and Punjab's urban centres, coexist with lesser developed areas in other parts of the country.^[97] Despite being a very poor country in 1947, Pakistan's economic growth rate has been better than the global average during the subsequent four decades, but imprudent policies led to a slowdown in the late 1990s.^[99]
Recently, wide-ranging economic reforms have resulted in a stronger economic outlook and accelerated growth especially in the manufacturing and financial services sectors.^[99] Since the 1990s, there has been great improvement in the foreign exchange position and rapid growth in hard currency reserves.^[99]
The 2005 estimate of foreign debt was close to US$40 billion. However, this has decreased in recent years with assistance from the International Monetary Fund and significant debt-relief from the United States. Pakistan's gross domestic product, as measured by purchasing power parity, is estimated to be $475.4 billion^[100] while its per capita income stands at $2,942.^[100] The poverty rate in Pakistan is estimated to be between 23%^[101] and 28%.^[102]
GDP growth was steady during the mid-2000s at a rate of 7%;^[103][104] however, slowed down during the Economic crisis of 2008 to 4.7%.^[53] A large inflation rate of 24.4% and a low savings rate, and other economic factors, continue to make it difficult to sustain a high growth rate.^[105][106] Pakistan's GDP is US$167 billions, which makes it the 48th-largest economy in the world or 27th largest by purchasing power adjusted exchange rates. Today, Pakistan is regarded as to having the second largest economy in South Asia.^[107]
The structure of the Pakistani economy has changed from a mainly agricultural base to a strong service base. Agriculture now only accounts for roughly 20% of the GDP, while the service sector accounts for 53% of the GDP.^[108] Significant foreign investments have been made in several areas including telecommunications, real estate and energy.^[109][110] Other important industries include apparel and textiles (accounting for nearly 60% of exports), food processing, chemicals manufacture, and the iron and steel industries.^[111] Pakistan's exports in 2008 amounted to $20.62 billion (USD).^[112] Pakistan is a rapidly developing country.^{[113][114][115]}
However, the economic crisis of 2008 led Pakistan to seek more than $100 billion in aid in order to avoid possible bankruptcy.^[116][117] This was never given to Pakistan and it had to depend on a more aggressive fiscal policy, backed by the IMF. A year later, Asian Development Bank reported that the Pakistan economic crisis was easing.^[118] Furthermore it is projected that in 2010 Pakistan economy would grow at least 4% and could grow more with strong international economic recovery.^[119]