Pakistan Keeps Growing
Located in South Asia, Pakistan’s official name is Islamic republic of Pakistan. It’s the 6th largest country in terms of population. The neighboring countries are India, china, Iran and Afghanistan. It is considered home for many ancient cultures such as Indus valley civilization and Neolithic Mehrgarh. In the past, this region was ruled by many empires. The country came into being, due to the efforts of Mohammad Ali Jinnah, in 1947.
A great diversity is found in country in terms of ethnicity, languages, geography and wildlife. The armed force of Pakistan is 7th largest in the world and it’s the only Muslim country having nuclear power. With respect to purchasing power the economy of the country is 27th in the world and regarding nominal GDP it’s at 47th place. Pakistan is member of Organization of Islamic cooperation, United Nations, commonwealth, SAARC, ECO and D8.
The economy of Pakistan can be considered a semi industrial economy. 24.3% of GDP comes from the industrial sector. According to 2009 estimation, country has 55.88 million labor force. Agriculture, Cement, Fertilizer, Textile, steel, pharmaceuticals, sea food, edible oil, sugar, chemical and food processing are the largest industries in Pakistan. Shortage of electricity was a constrain, but industrial growth was seen between 2004-06. Share of foreign investment in industries is 2.5% of GDP.
The textile industry of the country is flourishing, as the country is cotton producing giant. Textile exports were $5.2 billion in 1999 and they jumped to $10.5 billion in 2007. 3% of US textile imports are from Pakistan. It is expected, that textile exports will cross $14 billion and employment in textile sector will reach 6.2 million workers. 40% labor in Pakistan is already associated with textiles.
Pakistan has rich mining resources. Area having mineral deposits is extended to 6,00,000 km². National Mineral Policy was formulated in 1995, as a result mining sector extended and four international companies are operating in the country. Natural products of the sector include coal, gold, rock salt, gemstones etc.
Economic review of the country reflects that after 2008, manufacturing and financial sector boomed due to wise policies of the government. Export is focus of the economy, which has taken a leap to $18 billion from $7.5 in year 2007–08. Cotton fiber, rice, furniture, tiles, cement, vegetables, powder milk, clothing, leather products, carpets, surgical instruments, wheat, processed food, salt, software and engineering good are some main export items. Imports of the country include, medicines, petroleum, trucks, computers, toys, food items, iron, machines, steel and civilian aircrafts. Recently, the focus of the economic review was to combat with economic recession. Presently, economic indicators are showing progress. Central bank discount rate is better and indicating 1.5 percentage points. It’s a great tool to fight inflation in country. Foreign investment is encouraged in various sectors by the government of Pakistan, which includes fertilizer, real estate, textiles, arm manufacturing, energy, telecom, steel, cement, software and ship building.
The economy of Pakistan has been progressed since the independence of country, in 1947, yet the country is ranked as semi industrialized. Major contributors in the economic growth of Pakistan are province of Punjab and city of Karachi. The economic position of the country is improving, as it enters in 21st century, due to economic reforms, in manufacturing and financial sectors specifically.
Primary sector plays a vital role in the economy of the country, which is based on agriculture. The country produces verity of agricultural items. Primary sector gives jobs to the 43% labor force of Pakistan, which constitutes 20.8% of the economy in 2009. According to Food and agriculture organization of United nations, Pakistan is the second country with reference to Chickpea production and the third largest mango producing nation, in 2005. Other than that, Cotton, oranges, rice, onion, date palm, wheat, apricot, clementine and sugarcane are also major agricultural products of Pakistan. Another large industry is dairy farming. It stands at 5th place in the world, in milk production. Even though the livestock is very large, but nearly $40 million are spent to import formula milk.
According to 2005 estimation, manufacturing sector of the country gives jobs to 20.3% workers of Pakistan. Cotton textile, carpet, chemicals, rice and leather goods are some large manufacturing industries. In 2007 – 08, secondary sector seen 5.4% growth, but shortage of electricity is a big hurdle in the development of this sector.