Pakistan

Pakistan Economic Profile

Pakistan is a major economy in South Asia with a nominal GDP of approximately $370 billion in 2023 and a population exceeding 220 million people, classified as a lower-middle-income country. The economy is based on three pillars: agriculture, manufacturing, and services. Agriculture accounts for approximately 18-20% of GDP and Pakistan is known as a major exporter of primary agricultural products such as cotton and rice. The textile industry is particularly important as a source of foreign exchange, with exports of clothing and textile products supporting the economy.

Pakistan's economy has faced difficult circumstances recently. From 2022 to 2023, the inflation rate exceeded 30%, a high level, with significant depreciation of the Pakistani rupee and a sharp decline in foreign exchange reserves becoming serious issues. In August 2023, the IMF approved a support program, and the country has initiated fiscal reconstruction and structural reforms. The electricity crisis is also a drag on economic growth, with insufficient generation capacity and distribution losses weakening the competitiveness of the manufacturing sector.

Notable points include that over 60% of the population is youth, making appropriate education and job creation urgent priorities. Additionally, the China-Pakistan Economic Corridor (CPEC) project based on China's Belt and Road Initiative brings large-scale infrastructure investment, but concerns about increased debt burden exist. Furthermore, counter-terrorism costs and political instability are factors that constrain long-term economic growth.