The Pakistan Economy

Pakistan economy is mainly driven by its agriculture and semi-industrialized economy. However this country is poor in terms of its growth rate and it suffers huge debts and debt related problems with United States and WTO and the World Bank.

Pakistan also faces huge problems with poverty and unemployment. Almost fifteen percent of the working class population is unemployed and furthermore disturbing is the fact that twenty five percent of the population is below the poverty line.

This country has tried to implement many reforms and policies which gave a mixed response. Some policies really worked and benefited the country whereas some policies simply backfired.

Developing Economy:

Pakistan is a developing country and it is expected to be a developed nation in another twenty years’ time. Currently Pakistan is ranked twenty seventh in terms of the purchasing power parity and it has a GDP of 431.2 billion dollars with a meager growth rate of 2.0%. Statisticians feel that at this rate this country will leave too much to be desired and achieving the status of a developed nation would be beyond reality.

The economy of Pakistan is hugely affected by inflation and this is the main reason for most of the population to be stagnant and stay below the poverty line.

Major Industries:

Agriculture forms the main source of revenue for the Pakistan economy. However this country has witnessed some effective reforms in the industrial sector and it contributes about twenty seven percent of the GDP of Pakistan. The economy of Pakistan is also boosted by its services sector which contributes 54%. The major industries are the textiles, automobiles, steel and food processing. Paper industry is also thriving in Pakistan in the sense that it has abundant resources of forestry. With a huge labor force in its kitty, Pakistan will reach better position in the coming years.