Economy of Pakistan

Economy of Pakistan
	High rise office towers New Blue Area, Islamabad
Currency	Pakistani rupee (₨) (PKR)
Fiscal year	1 July – 30 June
Trade organisations	ECO, SAFTA, WTO, AIIB, ADB, SAARC OIC
Country group	Developing economy; Lower-middle income economy;
Statistics
Population	254,400,000 (2024)
GDP	$411 billion (nominal; 2025); $1.670 trillion (PPP; 2025);
GDP rank	44th (nominal; 2025); 26th (PPP; 2025);
GDP growth	-0.2% (2023); 2.5% (2024f); 2.6% (2025f);
GDP per capita	$1,824 (nominal; 2025); $6,950 (PPP; 2025);
GDP per capita rank	155th (nominal; 2025); 141st (PPP; 2025);
GDP by sector	Agriculture: 23.17%; Industry: 18.41%; Services: 58.42%; (FY 2023);
GDP by component	Household consumption: 82.0%; Government consumption: 11.3%; Investment in fixed capital: 14.5%; Investment in inventories: 1.6%; Exports of goods and services: 8.2%; Imports of goods and services: −17.6%; (2017 est.);
Inflation (CPI)	0.3% (Apr 2025);
Base borrowing rate	11.00% (May 2025)
Population below poverty line	39.8% on less than $3.65/day (2023); 84.5% on less than $6.85/day (2023); 4.93% in extreme poverty (2025); 8% (rural) ; 0.3% (urban);
Gini coefficient	31.6 medium (2018, World Bank)
Human Development Index	0.544 low (2023) (168th); 0.360 low IHDI (2022, 138th);
Labour force	78,800,000 (2025);
Labour force by occupation	Agriculture: 37.4%; Industry: 25.4%; Services: 37.2%; (2021);
Unemployment	5% (2025);
Main industries	Textiles; Apparel; Food processing; Pharmaceuticals; Surgical instruments; Construction materials; Fertilizer; Overseas remote freelancing; Seafood; Luxury products; Technology; Paper products; Automotive; Telecommunication; Marble; Glass manufacturing; Shipbreaking; Ornamentations; Banking; Energy; Precious minerals & metals; Defense industry; Media; Education; Tourism; Financial services; Human resources;
External
Exports	$38.9 billion (FY 2024)
Export goods	Textiles: $16,301 million; Food: $7,082 million; Chemicals and pharmaceuticals: $1,421 million; Leather goods: $877 million; Sports goods: $439 million; Petroleum: $553 million;
Main export partners	United States 17.5%; China 8.7%; United Arab Emirates 6.7%; United Kingdom 6.5%; Germany 4.9%; Spain 4.7%; Netherlands 4.4%; Italy 3.6% Turkey 0.0%; ; EU 0.0%; CHE 0.0%; OIC 0.0%; (2024 est.);
Imports	$63.3 billion (FY 2024)
Import goods	Petroleum: 15,162 million; Agriculture and other chemicals: $8,944 million; Machinery: $7,406 million; Food: $7,111 million; Metal: $4,668 million; Textile: $3,890 million; Transport: $1,621 million;
Main import partners	China 25.4%; United Arab Emirates 11.9%; Saudi Arabia 8.5%; Singapore 4.6%; Indonesia 4.5%; United States 3.6%; Kuwait 3.4%; Russia 2.0%; Turkey 0.0%; EU 0.0%; OIC 0.0%; CHE 0.0%; (2024 est.);
FDI stock	$31.540 billion; Abroad: $1.870 billion (31 Dec 2021);
Current account	1.8 billion US$ (FY 2025)
Gross external debt	$131 billion (2025)
Public finances
Government debt	61.4% of GDP (Jun 2024)
Foreign reserves	$15.5 billion (Feb 2025)
Budget balance	−5.6% of GDP (FY 2024)
Revenues	12.5% of GDP; 13,269 billion PKR or $47 billion (FY 2024)
Expenses	19.3% of GDP; 20,476 billion PKR $72 billion (FY 2024)
Economic aid	$2.6983 billion (2021)
Credit rating	Standard & Poor's:; CCC+ (long term); C (short term); Outlook: stable; Moody's:; Caa2; Outlook: positive; Fitch:; B- (April 2025); Outlook: stable;
	All values, unless otherwise stated, are in US dollars.

The economy of Pakistan is categorized as a developing economy. It ranks as the 26th-largest based on GDP using purchasing power parity (PPP) and the 44th largest in terms of nominal GDP. With a population of 254.4 million people as of 2024, Pakistan's position at per capita income ranks 155th by GDP (nominal) and 141st by GDP (PPP) according to the International Monetary Fund (IMF).

In its early years, Pakistan's economy relied heavily on private industries. The nationalization of a significant portion of the sector, including financial services, manufacturing, and transportation, began in the early 1970s under Zulfikar Ali Bhutto. During Zia-ul Haq's regime in the 1980s, an "Islamic" economy was adopted, outlawing economic practices forbidden in Sharīʿah and mandating traditional religious practices. The economy started privatizing again in the 1990s.

The economic growth centers in Pakistan are located along the Indus River; these include the diversified economies of Karachi and major urban centers in Punjab (such as Faisalabad, Lahore, Sialkot, Rawalpindi, and Gujranwala), alongside less developed areas in other parts of the country. In recent decades, regional connectivity initiatives such as the China-Pakistan Economic Corridor (CPEC) have emerged as pivotal contributors to infrastructure and energy development, with long-term implications for economic stability. Pakistan was classified as a semi-industrial economy for the first time in the late 1990s, albeit an underdeveloped country with a heavy dependence on agriculture, particularly the textile industry relying on cotton production. Primary export commodities include textiles, leather goods, sports equipment, chemicals, and carpets/rugs.

Pakistan is presently undergoing economic liberalization, including the privatization of all government corporations, aimed at attracting foreign investment and reducing budget deficits. However, the country continues to grapple with challenges such as rapid population growth, widespread illiteracy, political instability, hostile neighbors and heavy foreign debt.