ITS ALL ABOUT ECONMICS OF PAKISTAN AND WORLD

Economic aid

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Pakistan receives economic aid from several sources as loans and grants. The International Monetary Fund (IMF), World Bank (WB), Asian Development Bank (ADB), etc provides long term loans to Pakistan. Pakistan also receives bilateral aid from developed and oil-rich countries.

The Asian Development Bank will provide close to $6 billion development assistance to Pakistan during 2006-9. The World Bank unveiled a lending program of up to $6.5 billion for Pakistan under a new four-year, 2006-2009, aid strategy showing a significant increase in funding aimed largely at beefing up the country's infrastructure. Japan will provide $500 million annual economic aid to Pakistan.

Economic aid / Remittance

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Remittance

The remittance of Pakistanis living abroad has played important role in Pakistan's economy and foreign exchange reserves. The Pakistanis settled in Western Europe and North America are important sources of remittance to Pakistan. Since 1973 the Pakistani workers in the oil rich Arab states have been sources of billions dollars of remittance.

Pakistan received $5.493 billion as workers’ remittances during the last fiscal year 2006-07 up by 19.42 Percent against over $4.6 billion in 2005-06.

An IMF research paper has revealed that workers’ remittances contribute 4% to the GDP of Pakistan and are equivalent to about 22 percent of annual exports of goods and services.

Economic aid / Investment

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Investment

Foreign direct investment (FDI) in Pakistan soared by 180.6 per cent year-on-year to US$2.22 billion and portfolio investment by 276 per cent to $407.4 million during the first nine months of fiscal year 2006, the State Bank of Pakistan (SBP) reported on April 24. During July-March 2005-06, FDI year-on-year increased to $2.224 billion from only $792.6 million and portfolio investment to $407.4 million, whereas it was $108.1 million in the corresponding period last year, according to the latest statistics released by the State Bank. Pakistan has achieved FDI of almost $7 billion in the financial year 06/07, surpassing the government target of $4 billion.

Pakistan is now the most investment-friendly nation in South Asia. Business regulations have been profoundly overhauled along liberal lines, especially since 1999. Most barriers to the flow of capital and international direct investment have been removed. Foreign investors do not face any restrictions on the inflow of capital, and investment of up to 100% of equity participation is allowed in most sectors (local partners must be brought in within 5 years and contribute up to 40% of the equity in the services and agriculture sectors). Unlimited remittance of profits, dividends, service fees or capital is now the rule. Business regulations are now among the most liberal in the region. This was confirmed by a World Bank report published in late 2006 ranking Pakistan (at 74th) well ahead of neighbors like China (at 93rd) and India (at 134th) based on ease of doing business.

Pakistan is attracting an increasingly large amount of private equity and was the ranked as number 20 in the world based on the amount of private equity entering the nation. Pakistan has been able to attract a large portion of the global private equity investments because of economic reforms initiated in 2003 that have provided foreign investors with greater assurances for the stability of the nation and their ability to repatriate invested funds in the future.

Tariffs have been reduced to an average rate of 16%, with a maximum of 25% (except for the car industry). The privatisation process, which started in the early 1990s, has gained momentum, with most of the banking system privately owned, and the oil sector targeted to be the next big privatisation operation.

The recent improvements in the economy and the business environment have been recognised by international rating agencies such as Moody’s and Standard and Poor’s (country risk upgrade at the end of 2003).

Foriegn Trade Of Palistan

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Pakistani exports in 2005

Pakistan is a member of the World Trade Organization, and has bilateral and multilateral trade agreements with many nations and international organizations.

Fluctuating world demand for its exports, domestic political uncertainty, and the impact of occasional droughts on its agricultural production have all contributed to variability in Pakistan's trade deficit.

In the six months to December 2003, Pakistan recorded a current account surplus of $1.761 billion, roughly 5% of GDP. Pakistan's exports continue to be dominated by cotton textiles and apparel, despite government diversification efforts. Exports grew by 19.1% in FY 2002-03. Major imports include petroleum and petroleum products, edible oil, chemicals, fertilizer, capital goods, industrial raw materials, and consumer products.

Past external imbalances left Pakistan with a large foreign debt burden. Principal and interest payments in FY 1998-99 totaled $2.6 billion, more than double the amount paid in FY 1989-90. Annual debt service peaked at over 34% of export earnings before declining.

With a current account surplus in recent years, Pakistan's hard currency reserves have grown rapidly. Improved fiscal management, greater transparency and other governance reforms have led to upgrades in Pakistan's credit rating. Together with lower global interest rates, these factors have enabled Pakistan to prepay, refinance and reschedule its debts to its advantage. Despite the country's current account surplus and increased exports in recent years, Pakistan still has a large merchandise-trade deficit. The budget deficit in fiscal year 1996-97 was 6.4% of GDP. The budget deficit in fiscal year 2003-04 is expected to be around 4% of GDP.

In the late 1990s Pakistan received about $2.5 billion per year in loan/grant assistance from international financial institutions (e.g., the IMF, the World Bank, and the Asian Development Bank) and bilateral donors. Increasingly, the composition of assistance to Pakistan shifted away from grants toward loans repayable in foreign exchange. All new U.S. economic assistance to Pakistan was suspended after October 1990, and additional sanctions were imposed after Pakistan's May 1998 nuclear weapons tests. The sanctions were lifted by president George W. Bush after Pakistani president Musharraf allied Pakistan with the U.S. in its war on terror. Having improved its finances, the government refused further IMF assistance, and consequently the IMF program was ended. The government is also reducing tariff barriers with bilateral and multilateral agreements.

While the country has a current account surplus and both imports and exports have grown rapidly in recent years, it still has a large merchandise-trade deficit. The budget deficit in fiscal year 2004-2005 was 3.4% of GDP. The budget deficit in fiscal year 2005-06 is expected to be over 4% of GDP. Economists believe that the soaring trade deficit would have an adverse impact on Pakistani rupee by depreciating its value against dollar (1 US $ = 60 Rupees (March 2006) ) and other currencies.

One of the main reasons that contributed to the increase in trade deficit is the increased imports of earthquake relief related items, especially tents, tarpaulin and plastic sheets to provide temporary shelter to the survivors of earthquake of October 8, 2005 in Azad Jammu and Kashmir and parts of the NWFP, an official said. The rise in the trade gap was also fuelled by high oil import prices, food items, machinery and automobiles.

The Petroleum Ministry says that this year the bill of oil imports was expected to reach $6.5 billion against $4.6 billion in the last fiscal year, which is the main reason behind the all-time high trade deficit.

The EU is the single largest trading partner of Pakistan absorbing over one-third of the exports in 2003.

Foreign trade / Exports

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Exports

Pakistan's exports stood at $17.011 billion in the financial year 2006-2007, up by 3.4 percent from last year's exports of $16.451 billion.

Pakistan exports rice, furniture, cotton fiber, cement, tiles, marble, textiles, clothing, leather goods, sports goods (renowned for footballs/soccer balls), surgical instruments, electrical appliances, software, carpets, and rugs, ice cream, livestock meat, chicken, powdered milk, wheat, seafood (especially shrimp/prawns), vegetables, processed food items, Pakistani assembled Suzukis (to Afghanistan and other countries), defense equipment (submarines, tanks, radars), salt, marble, onyx, engineering goods, and many other items. Pakistan now is being very well recognized for producing and exporting cements in Asia and Mid-East. Starting August 2007, Pakistan will be exporting Cement to India to fill in the shortage there caused by the building boom.

Foreign trade / Deficit in economy

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Deficit in economy

Pakistan suffered a merchandise trade deficit of $13.528 billion for the financial year 2006-7. The gap has considerably widened since 2002-3 when the deficit was only $1.06 billion. Services sector deficit for 2006-2007 stood at $4.125 billion which equals the services export of $4.125 billion for the same year.

The combined deficit in services and goods stand at $17.653 billion which is approx 83.5 percent of country's total export of $21.136 (Goods and services). The rise in the trade gap has been attributed to high oil import bill, and rise in the prices of food items, machinery and automobiles.

Current account deficit - Current account deficit for 2006-7 reached $7.016 billion up by 41 percent over previous year's $4.490 billion.

Foreign trade / Imports

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Imports

Pakistan's imports stood at $30.54 billion in the financial year 2006-2007, up by 8.22 percent from last year's imports of $28.58 billion.

Pakistan's single largest import category is petroleum and petroleum products. Other imports include: industrial machinery, construction machinery, trucks, automobiles, computers, computer parts, medicines, pharmaceutical products, food items, civilian aircraft, defense equipment, iron, steel, toys, electronics, and other consumer items.

Sales tax is levied at 15 percent both on imports and domestically produced products. The income withholding tax is levied at 6 percent on imports and at 3.5 percent on the sales of domestic taxpayers.

Electricity / Electricity consumption

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Electricity consumption

Electricity - consumption: 74.62 TWh (2004)
Electricity - exports: 0%
Electricity - imports: 0%
Electricity Consumption per Capita = 345.00 kWh/capita

Electricity / Popular habits

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Popular habits

In the environment which prevails across the world today, there is already a considerable line-up of both individuals and countries which have placed orders to buy new equipment. Indeed, Pakistani officials are all too aware of international market conditions which only add to the difficulty surrounding their task.

Though sorting out global market conditions are just not in reach of one country alone, other matters are indeed within Pakistan's grasp. These include the need to turn around popular habits which hardly help to curtail the usage of electricity, with wastages and deliberate inefficiencies being the principal factors. But the lead for such an endeavour must come in part from Pakistani leaders.

Electricity / Growing demand

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Growing demand

In the short run addressing difficult challenges such as the demand for a parity of treatment to both domestic and foreign investors must make some difference by way of attracting investors across the board. Given the growing demand for electricity, foreign investors must have a role in helping Pakistan meet this challenge.

But the challenges faced by Pakistan are by no means easy. It is indeed the case that the business of reforming the electricity supply network is just not about short term and often incomplete measures of the kind that Pakistanis have been accustomed to.

Even if Pakistan successfully set aside the vast funds which are necessary to finance such a turn-around, the time taken to ensure the supply of all the technical ingredients must in itself make the task formidably challenging.

Electricity / Electricity production

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Electricity production

Electricity - production: 88.42 TWh (2005)
Electricity - production by source (2003)
- fossil fuel: 63.7% of total
- hydro: 33.9% of total
- nuclear: 2.4% of total

Last week's reports of Pakistan's electricity producers seeking a parity in returns for both domestic and foreign investors is indicative of one of the key unresolved issues in overseeing a surge in electricity generation when the country faces growing shortages.

For years, the matter of balancing Pakistan's supply against the demand for electricity has remained a largely unresolved matter. Pakistan faces a significant challenge in revamping its network responsible for the supply of electricity.

While the government claims credit for overseeing a turnaround in the economy through a comprehensive recovery, it has just failed to oversee a similar improvement in the quality of the network for electricity supply.

Some officials even go as far as claiming that the frequent power cuts across Pakistan today are indicative of an emerging prosperity as there is fast rising demand for electricity. And yet, the failure to meet the demand is indeed indicative of a challenge to that very prosperity.

Income distribution

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Income distribution

Gini Index: 41
Household income or consumption by percentage share:
- lowest 10%: 4.1%
- highest 10%: 27.7% (1996)
- lowest 20% : 27.7% (2006)

Industrial sector

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Industrial sector

Industries: textiles (8.5% of the GDP), fertilizer, cement, oil refineries, dairy products,food processing, beverages, construction materials, clothing, paper products, shrimp
Industrial production growth rate: 10.7% (2005)
Large-scale manufacturing growth rate: 18% (2003)

Fiscal budget

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Fiscal budget

Fiscal year: 1 July - 30 June
Revenues: $19.8 billion
Expenditures: $25 billion (2006 est.)
Debt - external: $39.94 billion (2005 est.)
Economic aid - recipient: $2 billion (FY97/98)

Foreign acquisitions and mergers

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Foreign acquisitions and mergers

With the rapid growth in Pakistan's economy, foreign investors are taking a keen interest in the corporate sector of Pakistan. In the recent years, majority stakes in many corporations have been acquired by multinational groups.

PICIC by Singapore based Tamasek holdings for $339 million
Union Bank by Standard Chartered bank for $487 million
Prime commercial bank by ABN Amro for $228 million
PakTel ltd by China Mobile Ltd for $460 million
Additional 57.6 percent shares of Lakson Tobacco company acquired by Philip Morris international for $382 million

The foreign exchange receipts from these sale outs are also helping covering the massive current account deficit.

Bonds

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Bonds

Pakistan is expected to sell a dual-tranche sovereign bond worth $750 million on March 23, 2006 that analysts said should ensure a favorable reception in the bond market. The 10-year tranche would be $500 million and the 30-year portion $250 million. Pricing is expected during New York trading hours on March 23, 2006. The sources said that the 10-year tranche was expected to be priced at around 7.125 percent, while the longer-dated tranche was expected to be sold at around 7.875 percent, the top end of the indicative yield range of 7.75 to 7.875 percent.

The bonds, comprising 10-year and 30-year tranches, had generated $1.5 billion in orders and a total size of as much as $1.25 billion had been anticipated for what is Pakistan’s third foray into the international debt market since 2004.

Government of Pakistan has been raising money from the international debt market from time to time.

Details of amount raised in various issues is as follows:-

1999 - $623 million

2004 - $500 million @ 6.75 Percent

2005 - $600 million worth Islamic bonds

2007 - $ 750 million @ 6.875 Percent worth Euro Bonds which were highly over subscribed

Structure of economy / Ownership of dwellings

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Ownership of dwellings

The property sector has expanded twenty-threefold since 2001, particularly in metropolises like Lahore. Nevertheless, the Karachi Chamber of Commerce and Industry estimated in late 2006 that the overall production of housing units in Pakistan has to be increased to 0.5 million units annually to address 6.1 million backlog of housing in Pakistan for meeting the housing shortfall in next 20 years. The report noted that the present housing stock is also rapidly ageing and an estimate suggests that more than 50 percent stock is over 50 years old. It is also estimated that 50 percent of the urban population now lives in slums and squatter settlements. The report said that meeting the backlog in housing, besides replacement of out-lived housing unit is beyond the financial resources of the government. This necessitates putting in place of framework to facilitate financing in the formal private sector and mobilise non-government resources for a market-based housing finance system.

The Federal Bureau of Statistics provisionally valued this sector at Rs.185,376 million in 2005 thus registering over 49% growth since 2000.

Structure of economy / Public administration and defence

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Public administration and defence

The Federal Bureau of Statistics provisionally valued this sector at Rs.389,545 million in 2005 thus registering over 65% growth since 2000.

Structure of economy / Social, community and personal services

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Social, community and personal services

The Federal Bureau of Statistics provisionally valued this sector at Rs.631,229 million in 2005 thus registering over 78% growth since 2000.

Structure of economy / Finance and insurance

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Finance and insurance

A reduction in the fiscal deficit has resulted in less government borrowing in the domestic money market, lower interest rates, and an expansion in private sector lending to businesses and consumers. Foreign exchange reserves continued to reach new levels in 2003, supported by robust export growth and steady worker remittances.

Credit card market continued its strong growth with sales crossing the 1 million mark in mid-2005.

Since 2000 Pakistani banks have begun aggressive marketing of consumer finance to the emerging middle class, allowing for a consumption boom (more than a 7-month waiting list for certain car models) as well as a construction bonanza.

The Federal Bureau of Statistics provisionally valued this sector at Rs.311,741 million in 2005 thus registering over 166% growth since 2000.

Structure of economy / Wholesale and retail trade

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Wholesale and retail trade

The Federal Bureau of Statistics provisionally valued this sector at Rs.1,358,309 million in 2005 thus registering over 96% growth since 2000.

Structure of economy / Transport, storage and communication

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Transport, storage and communication

Pakistan Telecommunication Company Ltd has emerged as a successful Forbes 2000 conglomerate with over $1 billion in sales in 2005. Cellphone market has exploded fourteen fold since 2000 to reach a subscriber base of 78.7 million in 2008. In addition, there are over 6 million landlines in the country.. As a result, Pakistan won the prestigious Government Leadership award of GSM Association in 2006.

The World Bank estimates that it takes about 50 days only to get a phone connection in Pakistan.

In Pakistan, following are the top mobile phone operators:

Mobilink (Parent: Orascom, Pakistan/Egypt)
Ufone (Parent: PTCL, Pakistan/UAE)
Telenor (Parent: Telenor, Norway)
Warid (Parent: Dhabi Group, UAE}
Instaphone (*Operations discontinued due to nonpayment of license fees*)(Parent:Milicom,South.A)
Paktel (recently been acquired by China Mobile for US$ 450 million)

The cellular base in Pakistan is growing at around 14% per year and already the cellular customer has outpaced the fixed line customers. Wireless revolution has swept Pakistan, and competition among the mobile operators is pulling the prices down. Its as cheap as Rs.2 to call to USA per minutes (that is 3-4 cents per minutes). Sony Ericsson, Nokia and Motorola along with Samsung and LG remain to be the popular brands among customers. Though Nokia has a strong market presence^{[citation needed]}, this has been somewhat taken over by Sony Ericsson, through aggressive marketing and advertisement.^{[citation needed]}

Pakistan is on the verge of Telecom revolution and it is by far the most attracted sector in Pakistan in terms of Foreign Direct investment coming in Pakistan. It s estimated alone that this year 2006-07, FDI attracted by Telecom will be US$ 2 Billion out of the total FDI of US$ 6 Billion, the highest in Pakistan history.

Pakistan International Airlines, the flagship airline of Pakistan's civil aviation industry, has turnover exceeding $1 billion in 2005. The government announced a new shipping policy in 2006 permitting banks and financial institutions to mortgage ships. A massive rehabilitation plan worth $1 billion over 5 years for Pakistan Railways has been announced by the government in 2005.

Private sector airlines in Pakistan include Airblue, Aeroasia and Shaheen Air International. Many private airlines are in pipeline including Air Mahreq, Dewan Air and Pearl Air.

Airblue is using the state of the art A-320 and A-321 aircraft for flying across Pakistan and will soon commence UK operation. Airblue has recently ordered 6 New A-321 aircraft, while 2 aircraft will be taken on lease which will be added to the existing fleet of 4-5 aircraft, making it the second biggest fleet behind PIA which has 42 aircraft.

The Government of Pakistan has, over the last few years, granted numerous incentives to technology companies wishing to do business in Pakistan. A combination of decade-plus tax holidays, zero duties on computer imports, government incentives for venture capital and a variety of programs for subsidizing technical education, are intended to give impetus to the nascent Information Technology industry. This in recent years has resulted in impressive growth in that sector. Pakistan saw an increase in IT export cash inflows of 50% from 2003-4 to 2004-5, with total export cash inflows standing at $48.5 million. In 2005-6 export cash inflows increased to greater than $73 million. This year the government has set a goal of $108 million. Exports account for 11% of the total revenues of the IT sector in Pakistan. Compared to India, Pakistan's IT sector is relatively small, but recent growth has been extremely high leading economists to be optimistic about the IT industries future prospects in Pakistan. Gartner, one of the world’s leading information technology research and advisory companies has placed Pakistan amongst the top countries of the world in terms of suitability for offshore outsourcing.

Paging and mobile (cellular) telephone were adopted early and freely. Cellular phones and the Internet were adopted through a rather laissez-faire policy with a proliferation of private service providers that led to fast adoption. Both have taken off and in the last few years of the 1990s and first few years of the 2000s. With a rapid increase in the number of internet users and ISPs, and a large English-speaking population, Pakistani society has seen major changes.

Pakistan has more than 20 million internet users as of 2005. The country is said to have a potential to absorb up to 50 million mobile phone Internet users in the next 5 years thus a potential of nearly 1 million connections per month.
Almost all of the main government departments, organizations and institutions have their own websites.
The use of search engines and instant messaging services is also booming. Pakistanis are some of the most ardent chatters on the Internet, communicating with users all over the world. Recent years have seen a huge increase in the use of online marriage services, for example, leading to a major re-alignment of the tradition of arranged marriages.
As of 2007 there were 6 cell phone companies operating in the country with nearly 60 million mobile phone users in the country.
Wireless local loop and the landline telephony sector has also been liberalized and private sector has entered thus increasing the teledensity rate from less than 3% to more than 10% in span of two years.

The Federal Bureau of Statistics provisionally valued this sector at Rs.982,353 million in 2005 thus registering over 91% growth since 2000.

Structure of economy / Services sector

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Services sector

Pakistan's service sector accounts for about 53.3% of GDP. Transport, storage, communications, finance, and insurance account for 24% of this sector, and wholesale and retail trade about 30%. Pakistan is trying to promote the information industry and other modern service industries through incentives such as long-term tax holidays.

The government is acutely conscious of the immense job growth opportunities in service sector and has launched aggressive privatisation of telecommunications, utilities and banking despite union unrest.

Structure of economy / Commodity producing sector

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Commodity producing sector

Agriculture

Pakistan is one of the world's largest producers and suppliers of the following according to the 2005 Food and Agriculture Organization of The United Nations and FAOSTAT given here with ranking:

Chickpea (2nd)
Apricot (4th)
Cotton (4th)
Sugarcane (4th)
Milk (5th)
Onion (5th)
Date Palm (6th)
Mango (7th)
Tangerines, mandarin orange, clementine (8th)
Rice (8th)
Wheat (9th)
Oranges (10th)

Pakistan ranks fifth in the Muslim world and twentieth worldwide in farm output. It is the world's fifth largest milk producer.

Pakistan's principal natural resources are arable land and water. About 25% of Pakistan's total land area is under cultivation and is watered by one of the largest irrigation systems in the world. Pakistan irrigates three times more acres than Russia. Agriculture accounts for about 23% of GDP and employs about 44% of the labor force.

Crops

The most important crops are wheat, sugarcane, cotton, and rice, which together account for more than 75% of the value of total crop output.

Pakistan's largest food crop is wheat. In 2005, Pakistan produced 21,591,400 metric tons of wheat, more than all of Africa (20,304,585 metric tons) and nearly as much as all of South America (24,557,784 metric tons),

Pakistan has also cut the use of dangerous pesticides dramatically.

Pakistan is a net food exporter, except in occasional years when its harvest is adversely affected by droughts. Pakistan exports rice, cotton, fish, fruits, and vegetables and imports vegetable oil, wheat, cotton, pulses and consumer foods. The country is Asia's largest camel market, second-largest apricot and ghee market and third-largest cotton, onion and milk market.

The economic importance of agriculture has declined since independence, when its share of GDP was around 53%. Following the poor harvest of 1993, the government introduced agriculture assistance policies, including increased support prices for many agricultural commodities and expanded availability of agricultural credit. From 1993 to 1997, real growth in the agricultural sector averaged 5.7% but has since declined to about 4%. Agricultural reforms, including increased wheat and oilseed production, play a central role in the government's economic reform package.

Much of the Pakistan's agriculture output is utilized by the country's growing processed-food industry. The value of processed retail food sales has grown 12 percent annually during the Nineties and was estimated at over $1 billion in 2000, although supermarkets accounted for just over 10% of the outlets.

The Federal Bureau of Statistics provisionally valued major crop yields at Rs.504,868 million in 2005 thus registering over 55% growth since 2000 while minor crop yields were valued at Rs.184,707 million in 2005 thus registering over 41% growth since 2000.

Livestock

According to the Economic Survey of Pakistan, the livestock sector contributes about half of the value added in the agriculture sector, amounting to nearly 11 per cent of Pakistan's GDP, which is more than the crop sector.

The leading daily newspaper Jang reports that the national herd consists of 24.2 million cattle, 26.3 million buffaloes, 24.9 million sheep, 56.7 million goats and 0.8 million camels. In addition to these there is a vibrant poultry sector in the country with more than 530 million birds produced annually. These animals produce 29.472 million tons of milk (making Pakistan the 5th largest producer of milk in the world), 1.115 million tons of beef, 0.740 million tons of mutton, 0.416 million tons of poultry meat, 8.528 billion eggs, 40.2 thousand tons of wool, 21.5 thousand tons of hair and 51.2 million skins and hides.

The Food and Agriculture Organization reported in June 2006 that in Pakistan, the world's fifth largest milk producing country, government initiatives are being undertaken to modernize milk collection and to improve milk and milk product storage capacity.

The Federal Bureau of Statistics provisionally valued this sector at Rs.758,470 million in 2005 thus registering over 70% growth since 2000.

Fishery

Fishery plays an important role in the national economy. It provides employment to about 400,000 fishermen directly. In addition, another 500,000 people are employed in ancillary industries. It is also a major source of export earning. In July-May 2002-03 fish and fishery products valued at US $ 117 million were exported from Pakistan. Federal Government is responsible for fishery of Exclusive Economic Zone of Pakistan.

The major fish harbours of Pakistan are:

Karachi Fisheries Harbour is being operated by Provincial Government of Sindh.
Karachi Fish Harbour handles about 90% of fish and seafood catch in Pakistan and 95% of fish and seafood exports from Pakistan.
Korangi Fish Harbour is being managed by Federal Ministry of Food, Agriculture and Livestock.
Pasni Fish Harbour being operated by Provincial Government of Balochistan.
Gwadar Fish Harbour being operated by Federal Ministry of Communication.

The Federal Bureau of Statistics provisionally valued this sector at Rs.18,290 million in 2005 thus registering over 10% growth since 2000.

Forestry

The Federal Bureau of Statistics provisionally valued this sector at Rs.25,637 million in 2005 thus registering over 3% decline since 2000.

Industry

Pakistan ranks forty-first in the world and fifty-fifth worldwide in factory output.

Pakistan's industrial sector accounts for about 24% of GDP. Cotton textile production and apparel manufacturing are Pakistan's largest industries, accounting for about 66% of the merchandise exports and almost 40% of the employed labour force. Other major industries include cement, fertilizer, edible oil, sugar, steel, tobacco, chemicals, machinery, and food processing.

The government is privatizing large-scale parastatal units, and the public sector accounts for a shrinking proportion of industrial output, while growth in overall industrial output (including the private sector) has accelerated. Government policies aim to diversify the country's industrial base and bolster export industries.

**Pakistan's 2 leading companies, as per Forbes Global 2000 ranking for 2005.**
Global ranking	Company Name
1,284	Oil & Gas Development
1,316	PTCL
Forbes Global 2000

Mining and quarrying

The country has immense reserves of various minerals and natural resources. Important minerals found in Pakistan are gypsum, limestone, chromites, iron ore, rock salt, silver, gold, precious stones, gems, marble, copper, coal, graphite, sulphur, fire clay, silica. The salt range in Punjab Province has the largest deposit of pure salt found anywhere in the world. Balochistan province is a mineral rich area having substantial mineral, oil and gas reserves which have not been exploited to their full capacity or fully explored, recent government policies have begun to develop this region of the country and to tap into the immense resources found there. The province has significant quantities of copper, chromite and iron, and pockets of antimony and zinc in the south and gold in the far west. Natural gas was discovered near Sui in 1952, and the province has been gradually developing its oil and gas projects over the past fifty years.

Major reserves of copper and gold in Balochistan's Rekodiq area have been discovered in early 2006. The Rekodiq mining area has proven estimated reserves of 2 billion tons of copper and 20 million ounces of gold. According to the current market price, the value of the deposits has been estimated at about $65 billion, which would generate thousands of jobs.

The discovery has ranked Rekodiq among the world's top seven copper reserves. The Rekodiq project is estimated to produce 200,000 tons of copper and 400,000 ounces of gold per year, at an estimated value of $1.25 billion at current market prices. The copper and gold are currently traded at about $5,000 per ton and $600 per ounce respectively in the international market.

North West Frontier Province accounts for at least 78% of the marble production in Pakistan. Pakistan is home to some of the most finest and purest grades of marble, granite and slate found in the world. Much of the grade A Marble that is exported out of European countries like Italy actually have their origins in Pakistan which previously lacked fine polishing and processing machinery. The Government has taken steps to invest in this crucial sector with the recent establishment of a Marble City within Balochistan.

The Federal Bureau of Statistics provisionally valued this sector at Rs.211,851 million in 2005 thus registering over 99% growth since 2000.

Fuel extraction industry

Pakistan's first oil field was discovered in the late 1952 in Baluchistan near a giant gas field at Sui in Balochistan. The Toot oilfield was discovered in the early 1960s the Islamabad in the Punjab. Production has steadily increased since then.

Pakistan's first gas field was the giant gas field at Sui in Balochistan which was discovered in the late 1952.

Pakistan is also a major producer of Bituminous coal, Sub-bituminous coal and Lignite. Coal mining started in the British colonial era and has continued to be used by Pakistani industries after independence in 1947.

Pakistan produced about 45 tonnes of Uranium in 2006.

Manufacturing

In FY 2002-03, real growth in manufacturing was 7.7%. In the twelve months ending 30 June 2004, large-scale manufacturing grew by more than 18% compared to the previous twelve-month period. The textile and garment industry's share in the economy along with its contribution to exports, employment, foreign-exchange earnings, investment and value added make it Pakistan’s single largest manufacturing sector. The industry is comprised of 453 textile mills: 50 integrated units; and 403 spinning units, with 9.33 million spindles and 148,000 rotors, The capacity utilization was 83% for spindles and 47% for rotors during 2003.

The Federal Bureau of Statistics provisionally valued large-scale manufacturing at Rs.981,518 million in 2005 thus registering over 138% growth since 2000 while small-scale manufacturing was valued at Rs.356,835 million in 2005 thus registering over 80% growth since 2000.

Construction

After the devastating 2005 Kashmir earthquake Pakistan has instituted stricter building codes. The cost of construction in Pakistan will increase 30 to 50% due to implementation of a new building code which requires strengthening of structures to withstand earthquake of 8 to 8.5 magnitude. The demand for cement has increased due to reconstruction after the earthquake. The price of cement has increased by 50% and Pakistan government banned export of cement to lower the prices and the reconstruction costs.

Dubai Ports World, announced on June 1, 2006 that it will spend $10 billion to develop transport infrastructure and real estate in Pakistan. Dubai Ports World is also discussing the possibility of the company taking over operational management of Gwadar port in Balochistan.

Emaar Properties, announced on May 31, 2006 three real estate developments in the cities of Islamabad and Karachi in Pakistan. The projects, with a total investment of $2.4 billion, will include a series of master planned communities that will set new benchmarks in commercial, residential and retail property within Pakistan.

In addition the conglomerate signed an unprecedented $43 billion deal to develop two island resorts - Bundal Island and Buddo Island - over the next decade.

The Federal Bureau of Statistics provisionally valued this sector at Rs.178,819 million in 2005 thus registering over 88% growth since 2000.

Electricity, gas and water supply

Pakistan has extensive energy resources, including fairly sizable natural gas reserves, some proven oil reserves, coal (Pakistan has the fourth-largest coal reserves in the world), and a large hydropower potential. However, the exploitation of energy resources has been slow due to a shortage of capital and domestic political constraints. Domestic petroleum production totals only about half the country's oil needs, and the need to import oil has contributed to Pakistan's trade deficits and past shortages of foreign exchange.

The current government has announced that privatization in the oil and gas sector is a priority, as is the substitution of indigenous gas for imported oil, especially in the production of power. Pakistan is a world leader in the use of compressed natural gas (CNG) for personal automobiles.

The short-term national energy demand has expanded significantly since 2001 due to massive rise in sales of durable goods like refrigerators, washing machines, split air conditioners, et al.

In 2004, Access Group International announced plans to invest $1 billion over the next 5 years in solar cell manufacture and wind farms. MOUs have been signed with Alternate Energy Development Board. In early 2005, the government approved a 25-year Energy Security Plan to boost electric capacity eightfold.

The Canadian conglomerate Cathy Oil and Gas signed a memorandum of understanding in late 2006 to invest $5 billion in oil and gas exploration, development, production and commercialisation in Pakistan.

The World Bank estimates that it takes about 32 days only to get an electrical connection in Pakistan.

The Federal Bureau of Statistics provisionally valued this sector at Rs.215,662 million in 2005 thus registering over 62% growth since 2000.

Structure of economy

2008-08-21T14:18:00.001+06:00

From modest beginnings, Pakistani economy has moved successfully to a low-inflation high-growth trajectory since 2000. The central bank has controlled inflation at around 3% per annum in recent years - a record since 1980.

Over 1,081 patent applications were filed by non-resident Pakistanis in 2004 revealing a new-found confidence.

Agriculture accounted for about 53% of GDP in 1947. While per-capita agricultural output has grown since then, it has been outpaced by the growth of the non-agricultural sectors, and the share of agriculture has dropped to roughly one-fifth of Pakistan's economy.

In recent years, the country has seen rapid growth in industries (such as apparel, textiles, and cement) and services (such as telecommunications, transportation, advertising, and finance).

Structure of production

Share of Various Sectors in GDP

Sector

2000-01

2001-02

2002-03

2003-04

2004-05

Goods (1+2+3+4+5)

48.2

47.3

47.1

47.4

47.6

1. Agriculture

25.1

24.4

24.2

23.3

23.1

2. Mining

1.3

1.4

1.5

1.4

3. Manufacturing

15.9

16.1

16.4

17.6

18.3

4. Construction

2.4

2.1

2.0

5. Energy Distribution

3.4

3.0

2.5

2.9

2.7

Services (6+7+8+9+10+11)

51.8

52.7

52.9

52.6

52.4

6. Transportation & Comm.

11.7

11.5

11.4

11.1

7. Trade

18.1

18.0

18.2

18.5

19.1

8. Finance & Insurance

3.1

3.6

3.3

3.7

9. Ownership of Dwellings

3.2

3.1

2.9

10. Public Admin. & Defense

6.3

6.5

6.7

6.5

6.0

11. Other Services

9.4

9.9

10.0

9.9

9.6

Note: GDP is estimated at constant factor cost. Figures are in percentage.
Source: Economic Survey of Pakistan 2005

**Sectoral contribution to GDP Growth**
Most of the recent acceleration in GDP growth has come from the industrial and service sectors.
GDP growth by sector, as a percentage of GDP
Sector	2001-02	2002-03	2003-04	2004-05
Agriculture	0.03	1.01	0.53	1.74
Industry — Manufacturing	0.61 1.71	1.08 1.11	2.74 2.31	2.46 2.19
Service	2.47	2.75	3.16	4.16
Real GDP (fc)	3.1%	4.8%	6.4%	8.4%
Source: Economic Survey of Pakistan 2005

Currency system / Foreign exchange rate

2008-08-21T14:17:00.004+06:00

Foreign exchange rate

1 Pakistani Rupee (PKR) = 100 Paise

Dollar-Rupee exchange rate

The Pakistani rupee depreciated against the US dollar until the turn of the century, when Pakistan's large current-account surplus pushed the value of the rupee up versus the dollar. Pakistan's central bank then stabilized by lowering interest rates and buying dollars, in order to preserve the country's export competitiveness

Exchange rates: Pakistani rupee (PKR) per US$1
- 71.50 (26/07/08)
- 63.50 (01/04/08)
- 60.50 (01/11/07)
- 60.75 (05/08/2007)
- 58 (2004)
- 57.752 (2003)
- 59.7238 (2002)
- 61.9272 (2001)
- 53.6482 (2000)
- 51.90 (1999)
- 44.550 (1998)
- 40.185 (1997)
- 35.266 (1996)
- 30.930 (1995)

Currency system / Foreign exchange reserves

2008-08-21T14:17:00.003+06:00

Foreign exchange reserves

In 2007 Pakistan's foreign exchange reserves were over $16 billion - a twelvefold rise since 2001. According to latest figures from Brecorder, it is now down to below $11b.

Currency system

2008-08-21T14:16:00.001+06:00

The 500 rupee note

Rupee

The basic unit of currency is the Rupee, which is divided into 100 paisas. Since the turn of the century, a strengthening economy and large current-account surplus has caused the rupee's exchange rate to rise in value. In response, Pakistan's central bank has prevented the rupee from rising too much, by lowering interest rates and buying dollars, in order to preserve the country's export competitiveness. As of 2005, one US dollar is approximately equal to 60 rupees. Currently the newly printed 5,000 rupee note is the largest denomination in circulation. Recently the SBP has introduced all new design notes of Rs. 5, 10, 20, 100, 500, 1000, 5000 denomination, while the work of Rs.10,000 note is in progress which will help the banking industry in keeping few notes in saving accounts.

The new notes have been designed using the euro technology and are made in good bright colors.

The economy today / Revenue

2008-08-21T14:15:00.002+06:00

Revenue

The Board of Revenue has collected nearly one trillion Rupees($14.1 billion) in taxes in the 2007-2008 financial year

The economy today / Employment

2008-08-21T14:13:00.005+06:00

Employment

The high population growth in the past few decades has ensured that a very large number of young people are now entering the labor market. Even though it is among the seven most populous Asian nations, Pakistan has a lower population density than Bangladesh, Japan, India, and the Philippines. In the past, excessive red tape made firing from jobs, and consequently hiring, difficult. Significant progress in taxation and business reforms has ensured that many firms now are not compelled to operate in the underground economy.

In late 2006, the government launched an ambitious nationwide service employment scheme aimed at disbursing almost $2 billion over five years.

The economy today / Tourism

2008-08-21T14:13:00.004+06:00

Tourism

Tourism in Pakistan in Pakistan is a growing industry. Major attractions include ruins of Indus valley civilisation and mountain resorts in the Himalayas. Himalayan and Karakoram range (which includes K2, the second highest mountain peak in the world, attracts adventurers and mountaineers from around the world.

The economy today / Poverty alleviation expenditures

2008-08-21T14:12:00.005+06:00

Poverty alleviation expenditures

Pakistan government spent over 1 trillion Rupees (about $16.7 billion) on poverty alleviation programs during the past four years, cutting poverty from 35 percent in 2000-01 to 24 percent in 2006. Rural poverty remains a pressing issue, as development there has been far slower then in the major urban areas.

The economy today / Demographics

2008-08-21T14:12:00.004+06:00

Demographics

With a per capita GDP of over $3000 (PPP, 2006) compared with $2600 (PPP, 2005) in 2005 the World Bank considers Pakistan a medium-income country, it is also recorded as a "Medium Development Country" on the Human Development Index 2007. Pakistan has a large informal economy, which the government is trying to document and assess. Approximately 49% of adults are literate, and life expectancy is about 64 years. The population, about 168 million in 2007, is growing at about 1.80%.

Relatively few resources in the past had been devoted to socio-economic development or infrastructure projects. Inadequate provision of social services, high birth rates and immigration from nearby countries in the past have contributed to a persistence of poverty. An influential recent study concluded that the fertility rate peaked in the 1980s, and has since fallen sharply. Pakistan has a family-income Gini index of 41, close to the world average of 39.

The economy today / Growing middle class

2008-08-21T14:11:00.002+06:00

Karachi - the financial capital of Pakistan

Growing middle class

Measured by purchasing power, Pakistan has a 30 million strong middle class, according to Dr. Ishrat Husain, Ex-Governor (2 December 1999 - 1 December 2005) of the State Bank of Pakistan.^[18] It is a figure that correlates with research by Standard Chartered Bank which estimates that Pakistan possesses a "a middle class of 30 million people that Standard Chartered estimates now earn an average of about $10,000 a year." In addition, Pakistan has a growing upper class with relatively high per capita incomes.

On measures of income inequality, the country ranks slightly better than the median. In late 2006, the Central Board of Revenue estimated that there were almost 2.8 million income-tax payers in the country.

The economy today / Manufacturing and finance

2008-08-21T14:10:00.001+06:00

Manufacturing and finance

Pakistan's manufacturing sector has experienced double-digit growth in recent years, with large-scale manufacturing growing by 18% in 2003. A reduction in the fiscal deficit has resulted in less government borrowing in the domestic money market, lower interest rates, and an expansion in private sector lending to businesses and consumers. Foreign exchange reserves continued to reach new levels in 2003, supported by robust export growth and steady worker remittances.

The economy today / Stock market

2008-08-21T14:08:00.002+06:00

Stock market

In the first four years of the twenty-first century, Pakistan's KSE 100 Index was the best-performing stock market index in the world as declared by the international magazine “Business Week”.

The stock market capitalisation of listed companies in Pakistan was valued at $45,937 million in 2005 by the World Bank. As a result, the corporate sector of Pakistan has grown dramatically in significance in recent times.

Economic history / Recent economic history

2008-08-21T13:59:00.006+06:00

Recent economic history

Pakistan's economic outlook has brightened in recent years in conjunction with rapid economic growth and a dramatic improvement in its foreign exchange position as a result of its current account surplus and a consequent rapid growth in hard currency reserves.

The state-owned firm in early 2002 signed agreements with five international telecom companies for terminating additional international incoming traffic to capture the grey market by using voice over Internet protocol (VoIP) technology from the US and Europe into Pakistan.

The conditionality of the IMF program, which was suspended in July 1999 and resumed later during the administration of Pervez Musharraf. Having improved its finances, Pakistan's government announced in 2004 that it would no longer require IMF assistance, and the assistance program ended in that year.

Average urban wages in 2007 hover around $4-5 per day.

With accelerating economic growth, economists are now emphasizing a different range of problems. According to Ahmed Rashid, the World Bank Country Director for Pakistan,

Now Pakistan faces higher quality problems—the problems of success. Demand has risen faster than supply. This has shown up in high inflation and a zooming trade deficit. The “tight fiscal, easy money” formula to get growth going needs to be “tight fiscal, tight money and credit” to sustain rapid growth. Idle domestic production capacity allowed the rising demand to be accommodated by rising capacity utilization in cement, steel, fertilizer, textiles, automobiles and motorcycles. Now that capacity is more than fully utilized, resulting in backlogs and imports.

Musharraf's economic agenda continues to include measures to widen the tax net, privatize public sector assets, and improve its balance of trade. Pakistan has made governance reforms, privatization, and deregulation the cornerstones of its economic revival

Although it received a positive endorsement from international financial institutions such as the World Bank, the International Monetary Fund and the Asian Development Bank, as well as improved credit ratings from Standard & Poor's and Moody's.

Pakistan's current account surplus had put upward pressure on the Pakistani rupee, which rose from 64 rupees per dollar to 57 rupees per dollar. The State Bank of Pakistan (the central bank) stabilized the rise by lowering interest rates and buying dollars. After short-term Pakistani T-bond rates fell below 2%, with government borrowing having declined, banks greatly expanded their lending to businesses and consumers. Construction activity, sales of durable goods such as trucks and automobiles, and housing purchases have all jumped to record levels. Private sector credit expanded by 28.5% in 2003, and continues to expand despite monetary restraints — the SBP imposed interest-rate increases to moderate money supply and prevent "overheating".

Pakistan's nominal gross domestic product (GDP) in 1997 was US$ 75.3 billion. Five years later in 2002, the country's nominal GDP came down to US$ 71.5 billion. During this five-year period, the real GDP grew by a meagre 3.0 per cent on an average. Pakistan government's debt was 82 per cent of its GDP in 2002. Over one-third of the government's revenue was being used up in making interest payments on the national debt. The near stagnant economy suddenly started showing miraculous growth in 2002 after lifting of economic sanctions imposed after Pakistan's 1998 nuclear tests. The economy grew at 5.1 per cent in 2003, 6.4 per cent in 2004 and 7.0 per cent in 2005. The US$ 72 billions economy of 2002 has swelled into a US$ 108 billion economy in 2005. During 1997-2002 Pakistan's average export growth has been 1.2 per cent per year and increased to 13 per cent per year during 2003-05. Pakistan's debt as a percentage of the GDP came down to 59 per cent in 2005 from 82 per cent in 2002. Pakistan government's interest payment as a percentage of revenue collection came down to 23 per cent in 2005 as compared to 35 per cent in 2002. The foreign economic aid since 9/11, especially from the USA, has contributed most to the country's economic progress.

According to the Asian Development Bank, the first half of FY2006 was marked by a slowdown in both industry and agriculture in Pakistan. Output of cotton declined by an estimated 10.9 per cent from an all-time high of 14.6 million bales harvested in FY2005. Production of sugarcane, another major summer crop, is also estimated lower than last year. The growth of large-scale manufacturing slowed to 8.7 per cent in the first quarter of FY2006 from 24.9 per cent in the same period of last year, primarily due to capacity constraints and the high-base effect. Among individual industries in the first quarter, growth of textiles tumbled to 7.2 per cent from 29.6 per cent year on year. Automobile assembly and electronics, which have shown the fastest expansion among sub-sectors in the last 2-3 years, also decelerated. Inflation accelerated in FY2005 after five years of price stability. Annual inflation, based on the consumer price index, more than doubled to 9.3 per cent from 4.6 per cent, mainly because of higher food prices and rising house rents. Due to a sharp increase in domestic oil prices, transport costs also jumped. Core -- nonfood, non-oil -- inflation also doubled, from 3.7 per cent to 7.4 per cent.

Pakistan is a middle income country. Its economy is among the fastest-growing in the world as its economy has reached the size of $140 billion from a mere $70 billion a few years earlier, Federal Advisor on Finance Dr Salman Shah informed the media. Per capita income now stands at $808.

The Economic Survey of Pakistan for 2006-2007 has concluded the country's economy recorded 7.3 percent growth, . Former Prime Minister Shaukat Aziz said that Pakistan's economy should continue to grow every year at about seven percent and he also assured that many measures will be taken to give the economy a further boost. He promised privitization of companies and he also invested in the economy by allowing free education for under 16's and also came up with a scheme to pay girls two hundred rupees a month as an incentive to attend school. Also in the next five years many foreign universities from different European nations have announced they will be opening campuses in Pakistan.

Economic history / Macroeconomic reform and prospects

2008-08-21T13:59:00.005+06:00

Macroeconomic reform and prospects

Islamabad Business Offices

According to many sources, the Pakistani government has made substantial economic reforms since 2000, and medium-term prospects for job creation and poverty reduction are the best in nearly a decade.

Government revenues have greatly improved in recent years, as a result of economic growth, tax reforms - with a broadening of the tax base, and more efficient tax collection as a result of self-assessment schemes and corruption controls in the Central Board of Revenue - and the privatization of public utilities and telecommunications. Pakistan is aggressively cutting tariffs and assisting exports by improving ports, roads, electricity supplies and irrigation projects. Islamabad has doubled development spending from about 2% of GDP in the 1990s to 4% in 2003, a necessary step towards reversing the broad underdevelopment of its social sector.

Liberalization in the international textile trade has already yielded benefits for Pakistan's exports, and the country also expects to profit from freer trade in agriculture. As a large country, Pakistan hopes to take advantage of significant economies of scale, and to replace China as the largest textile manufacturer as the latter China moves up the value-added chain. These industries play to Pakistan's relative strengths in low labor costs.

Growing stability in the nation's monetary policies has contributed to a reduction in money-market interest rates, and a great expansion in the quantity of credit, changing consumption and investment patterns in the nation. Pakistan's domestic natural gas production, and its significant use of CNG in automobiles, has cushioned the effect of the oil-price shock of 2004-2005. Pakistan is also moving away from the doctrine of import substitution which some developing countries (such as Iran) dogmatically pursued in the twentieth century. The Pakistani government is now pursuing an export-driven model of economic growth successfully implemented by South East Asia and now highly successful in China.

In 2005, the World Bank reported that

"Pakistan was the top reformer in the region and the number 10 reformer globally — making it easier to start a business, reducing the cost to register property, increasing penalties for violating corporate governance rules, and replacing a requirement to license every shipment with two-year duration licenses for traders."

In addition, reduced tensions with India and the ongoing peace process raise new hopes for a prosperous and stable South Asia, with more intra-regional trade. However, due to global economic crisis in year 2007-2008 the economic progress has been adveresely affected and unemployment has increased.

Shahid Javed Burki, former vice president of World Bank and who was in charge of the bank’s Latin American division when Mexico was hit by the crisis in 1994, said Pakistan is facing symptoms that preceded the Mexican financial crisis more than 10 years ago. He points to the nation’s current account deficit, ‘excessive’ speculative business activity and weak banking system. In a direct comparison with Indian economy, Pakistan's economy is 1/10th in size however, Pakistan by virtue of its area and population is approximately 1/5th to India's area and population. A lot more needs to be done to raise the standard of the rural and tribal people.

Economic history / Economic resilience

2008-08-21T13:58:00.003+06:00

Economic resilience

Historically, Pakistan's overall economic output (GDP) has grown every year since a 1951 recession. Despite this record of sustained growth, Pakistan's economy had, until a few years ago, been characterized as unstable and highly vulnerable to external and internal shocks. However, the economy proved to be unexpectedly resilient in the face of multiple adverse events concentrated into a four-year period —

the Asian financial crisis;
economic sanctions — according to Colin Powell, Pakistan was "sanctioned to the eyeballs";
global recession;
severe rioting in the port city of Karachi;
a severe drought — the worst in Pakistan's history, lasting for many years (about four);
heightened perceptions of risk as a result of military tensions with India — with as many as 1 million troops on the border, and predictions of impending (potentially nuclear) war;
the post-9/11 military action in neighboring Afghanistan, with a massive influx of refugees from that country;
the 2005 Pakistan earthquake

Despite these adverse events, Pakistan's economy kept growing, and economic growth accelerated towards the end of this period. This resilience has led to a change in perceptions of the economy, with leading international institutions such as the IMF, World Bank, and the ADB praising Pakistan's performance in the face of adversity.

Economic history / First five decades

2008-08-21T13:54:00.002+06:00

First five decades

This is a chart of trend of gross domestic product of Pakistan at market prices estimated by the International Monetary Fund with figures in millions of Pakistani Rupees. See also

Year	Gross Domestic Product	US Dollar Exchange	Inflation Index (2000=100)
1960	100	4.76 Pakistani Rupees
1980	283,460	9.90 Pakistani Rupees	21
1985	569,114	16.28 Pakistani Rupees	30
1990	1,029,093	21.41 Pakistani Rupees	41
1995	2,268,461	30.62 Pakistani Rupees	68
2000	3,826,111	51.64 Pakistani Rupees	100
2005	6,581,103	60.40 Pakistani Rupees	126

Pakistan was a very poor and predominantly agricultural country when it gained independence in 1947. Pakistan's average economic growth rate since independence has been higher than the average growth rate of the world economy during the period. Average annual real GDP growth rates were 6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in the 1980s. Average annual growth fell to 4.6% in the 1990s with significantly lower growth in the second half of that decade.

Industrial-sector growth, including manufacturing, was also above average. In the late 1960s Pakistan was seen as a model of economic development around the world, and there was much praise for its economic progression. Later, economic mismanagement in general, and fiscally imprudent economic policies in particular, caused a large increase in the country's public debt and led to slower growth in the 1990s. Two wars with India in 1965 and 1971 adversely affected economic growth. In particular, the latter war brought the economy close to recession, although economic rebounded sharply until the nationalizations of the mid-1970s.

Economy of Pakistan

2008-08-21T13:52:00.001+06:00

Pakistan is a nation with a diverse economy that include textiles, chemicals, food processing, agriculture and other industries. It is the 40th largest economy in the world.

The economy has suffered in the past from decades of internal political disputes, a fast growing population, mixed levels of foreign investment, and a costly, ongoing confrontation with neighboring India. However, IMF-approved government policies, bolstered by foreign investment and renewed access to global markets, have generated solid macroeconomic recovery the last decade. Substantial macroeconomic reforms since 2000, most notably at privatizing the banking sector have helped the economy. Pakistan has seen a growing middle class population since then and poverty levels have decreased by 10% since 2001.

GDP growth, spurred by gains in the industrial and service sectors, remained in the 6-8% range in 2004-06. In 2005, the World Bank named Pakistan the top reformer in its region and in the top 10 reformers globally.

Islamabad has steadily raised development spending in recent years, including a 52% real increase in the budget allocation for development in FY07, a necessary step toward reversing the broad underdevelopment of its social sector. The fiscal deficit - the result of chronically low tax collection and increased spending, including reconstruction costs from the devastating Kashmir earthquake in 2005 was manageable. Development in urban areas of Pakistan has remained high but is low in rural areas.

Inflation remains the biggest threat to the economy, jumping to more than 9% in 2005 before easing to 7.9% in 2006. In 2008, following the surge in global petrol prices inflation in Pakistan has reached as high as 12.0%. The central bank is pursuing tighter monetary policy while trying to preserve growth. Foreign exchange reserves are bolstered by steady worker remittances, but a growing current account deficit - driven by a widening trade gap as import growth outstrips export expansion - could draw down reserves and dampen GDP growth in the medium term.

2008-08-21T13:51:00.001+06:00

Economy Of Pakistan
Currency	100 Pakistani Rupee (PKR) = 1.64908 US dollar = 1.23810 euro = 0.80096 Pound sterling
Fiscal year	July 1—June 30
Current fiscal year	(2008—2009)
Central bank	The State Bank of Pakistan (SBP)
Trade organizations and treaties	ECO, SAFTA, ASEAN, WIPO and WTO
Fiscal Budget	$27.5 billion (revenue) $35 billion (expenditure)
Inflation	7.9% (2006 est.)^[1]	People
President	Pervez Musharraf
Prime Minister	Yousaf Raza Gilani
Commerce Minister	Naveed Qamar
SBP Governor	Dr. Shamshad Akhtar
SECP	Razi ur Rehman Khan
Gross Domestic Product (GDP)
GDP at PPP	$504.3 billion (2008) [2]
GDP at current exchange rates
GDP real growth rate (at PPP)	6.9%^[2] (2008 est.)
GDP growth rate	6.6% (2008 est.)^[3]
GDP per capita	$3320.12 (2008)
GDP by sector	agriculture: 19.6% industry: 26.8% services: 53.7%^[3] (2007)
Demographics
Population	165,803,560 (2006 est.)
Population below poverty line	23% (2007)
Labor force	49.18 million
Unemployment rate	7.5% (2007 est.)
Production
Agricultural products	cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs, shrimp, poultry, tea
Main industries	textiles, chemicals, food processing, steel, transport equipment, automotives, machinery, beverages, construction, materials, clothing, paper products.
International trade
Imports (2007 est.)	$30.99 billion f.o.b (53rd^[4]) (2006 est.)
Major imported commodities	Petroleum, Petroleum products, Machinery, Plastics, Transportation equipment, Edible oils, Paper and paperboard, Iron and steel, Tea
Main import partners (2006)	China 14.7%, Saudi Arabia 10.1%, UAE 8.7%, Japan 6.5%, United States 5.3%, Germany 5%, Kuwait 4.9% (2006 est.)^[3]
Exports	$20.58 billion (2007 est.) (68th^[5])
Major exported commodities	textile goods (garments, bed linen, cotton cloths, and yarn), rice, leather goods, sports goods, chemicals manufactures, carpets and rugs.
Main export partners	United States 22.4%, UAE 8.3%,UK 6%, China 5.4%, Germany 4.7% (2006 est.)
Overall balance of payments (2006)	-$1.753 billion^[6]
Note: Data is for 2006-07, unless specified otherwise. Pakistan's ranking, where applicable, are specified in brackets, and linked to the source data. CIA Pakistan Section from The World Factbook, dated February 12, 2008. Pakistan Government Website

Economic data

2008-08-21T13:42:00.001+06:00

Divisions have already appeared between the parties making up the new coalition government, the Pakistan People's Party (PPP) and the Pakistan Muslim League (Nawaz), or PML (N), indicating that their ability to work together during the forecast period is questionable. The need to share power could undermine co-operation between them, and the main ideological faultline in Pakistani politics—that dividing a liberal, pro-Western camp dominated by the PPP from a more conservative camp represented by the PML (N)—could easily resurface.
The poor security situation will remain another pressing issue. The early indications are that the new government will prove to be no more effective in stemming the rising tide of attacks by Islamist militants than was the previous, military-backed regime led by the president, Pervez Musharraf (who until November 2007 was also army chief). Failure to make demonstrable progress on this front is likely to place increasing strain on ties with the US.
The politicisation of the judiciary that has been in evidence since mid-2007 will undermine government unity in the early part of the forecast period, as the PPP and the PML (N) differ strongly over how they wish to deal with judicial issues. Over the longer term it will also further damage the already questionable independence and integrity of the judiciary itself
Real GDP growth will average 4.9% a year between fiscal year 2008/09 (July-June) and 2011/12, driven by private consumption and investment. The economy will remain dependent on textiles, other manufacturing and services.
Efforts to control inflation will remain the focus of monetary policy. The Economist Intelligence Unit expects inflationary pressures to increase sharply in 2008 but to diminish again in the remaining years of the forecast period.
The current account will remain in deficit throughout the forecast period, driven by the widening trade and services balances.
The Pakistan rupee will continue to depreciate against the US dollar in nominal terms, but this will mask an appreciation in real terms. The currency will ease from an average PRs66.1:US$1 in 2008 to PRs73.5:US$1 in 2012.

Key indicators	2007	2008	2009	2010	2011	2012
Real GDP growth (%; fiscal years ending Jun 30th)	6.0	6.0	4.4	4.9	5.0	5.3
Consumer price inflation (av; %)	7.6	18.6	11.3	6.0	5.8	5.7
Budget balance (% of GDP; fiscal years ending Jun 30th)	-4.5	-6.4	-6.0	-5.0	-4.5	-3.1
Current-account balance (% of GDP)	-5.7	-8.6	-8.3	-8.1	-7.8	-7.7
Short-term interest rate (av; %)	9.3	9.4	9.4	8.8	7.8	7.5
Exchange rate PRs:US$ (av)	60.7	66.1	69.9	71.5	72.5	73.5
Exchange rate PRs:¥100 (av)	51.6	62.8	68.7	75.1	79.0	80.1

The world's most dangerous place

2008-08-21T13:36:00.000+06:00

Nothing else has worked: it is time for Pakistan to try democracy

THE war against Islamist extremism and the terrorism it spawns is being fought on many fronts. But it may well be in Pakistan that it is won or lost. It is not only that the country's lawless frontier lands provide a refuge for al-Qaeda and Osama bin Laden, and that its jihad academies train suicide-bombers with global reach. Pakistan is also itself the world's second most populous Muslim nation, with a proud tradition of tolerance and moderation, now under threat from the extremists on its fringes. Until recently, the risk that Pakistan might be prey to Islamic fundamentalism of the sort its Taliban protégés enforced in Afghanistan until 2001 seemed laughable. It is still far-fetched. But after the assassination of Benazir Bhutto, twice prime minister, nobody is laughing. This, after all, is a country that now has the bomb Miss Bhutto's father, Zulfikar Ali Bhutto, craved so passionately as prime minister in the 1970s.

There are many other reasons why the murder of Miss Bhutto (and some 20 other people unlucky enough to be near her) makes Pakistan seem a frightening place (see article). That terrorists could strike in Rawalpindi, headquarters of the Pakistani army, despite having advertised threats against Miss Bhutto, and despite the slaughter of some 150 people in Karachi on the day she returned from exile last October, suggests no one is safe. If, as many in Pakistan believe, the security services were themselves complicit, that is perhaps even scarier. It would make it even harder to deal with the country's many other fissures: the sectarian divide between Sunni and Shia Muslims; the ethnic tensions between Punjabis, Sindhis, Pushtuns and “mohajir” immigrants from India; the insurgency in Baluchistan; and the spread of the “Pakistani Taliban” out of the border tribal areas into the heartlands.

In search of statesmen

Miss Bhutto's murder has left her Pakistan People's Party (PPP), the country's biggest, at risk of disintegration. It is now in the hands of her unpopular widower, Asif Ali Zardari, and her 19-year-old son, Bilawal, who by rights should be punting and partying with his classmates at Oxford, not risking his neck in politics. The election whose campaign killed Miss Bhutto was due on January 8th, but the Election Commission has delayed it by six weeks. The PPP will reap a big sympathy vote. But bereft of Miss Bhutto, the party—and the country—look desperately short of leaders of national stature. Other Bhutto clan-members are already sniping at her successors.

The other big mainstream party, led by her rival Nawaz Sharif, another two-time prime minister, is also in disarray. Both parties have been weakened by their leaders' exiles, as well as by persecution at the hands of President Pervez Musharraf's military dictatorship. In truth, both Miss Bhutto and Mr Sharif were lousy prime ministers. But at least they had some semblance of a popular mandate. The systematic debilitation of their parties benefits the army, which has entrenched itself in the economic as well as the political system. But it also helps the Islamist parties—backed, as they are, by an army which has sometimes found them more congenial partners than the more popular mainstream parties. The unpopularity of the Musharraf regime, hostility towards America, and resentment at a war in neighbouring Afghanistan that many in Pakistan see as directed at both Islam and their ethnic-Pushtun kin, have also helped the Islamists.

So, ironically, America's support for Mr Musharraf, justified as necessary to combat extremism next door, has fostered extremism at home. Similarly, in the 1980s America backed General Zia ul Haq, a dictator and Islamic fundamentalist, as his intelligence services sponsored the mujahideen who eventually toppled the Soviet-backed regime in Afghanistan. In the process, they helped create what Miss Bhutto called a “Frankenstein's monster”—of jihadist groups with sympathisers in the army and intelligence services. The clubbable, whisky-quaffing, poodle-cuddling Mr Musharraf is no fundamentalist. But the monster still stalks his security forces.

Two straws to clutch

Yet Pakistan's plight is not yet hopeless. Two things could still help arrest its slide into anarchy, improbable though both now seem. The first is a credible investigation into Miss Bhutto's murder and the security-service lapses (or connivance) that allowed it to happen. Mr Musharraf's willingness to let a couple of British policemen help the inquiry is unlikely to produce this. Every time a bomb goes off in Pakistan, people believe that one of the country's own spooks lit the fuse. Until there has been a convincing purge of the military-intelligence apparatus, Pakistan will never know true stability.

Second, there could be a fair election. This would expose the weakness of the Islamist parties. In the last general election in 2002, they won just one-tenth of the votes, despite outrageous rigging that favoured them. Even if they fared somewhat better this time, they would still, in the most populous provinces, Sindh and Punjab, be trounced by the mainstream parties. An elected government with popular support would be better placed to work with the moderate, secular, professional tendency in the army to tackle extremism and bring Pakistan's poor the economic development they need.

Sadly, there seems little hope that the security forces will abandon the habit of a lifetime and allow truly fair elections. The delay in the voting—opposed by both main opposition parties—has been seen as part of its plan to rig the results. The violence that has scarred the country since Miss Bhutto's assassination may intensify. The army may be tempted to impose another state of emergency; or it may cling on to ensure that the election produces the result it wants—a weak and pliable coalition of the PPP and Mr Musharraf's loyalists.

For too long, Mr Musharraf has been allowed to pay lip-service to democratic forms, while the United States has winked at his blatant disdain for the substance. The justification has been the pre-eminent importance of “stability” in the world's most dangerous place. It is time to impress upon him and the generals still propping him up that democracy is not the alternative to stability. It is Pakistan's only hope.

Dollar further sheds value against rupee

2008-08-20T22:15:00.000+06:00

KARACHI - The US dollar further shed value against the Pakistani currency in the open market and inter-bank operations. Thus after the resignation of former President Pervez Musharraf, the rupee has gained Rs 3.25 paisa in two days.
On Tuesday, the dollar-rupee exchange rate parity reversed again and the Pak rupee recovered against the US dollar after witnessing slide position in the liquidity market.
Analysts consider this recovery and price correction of the national currency versus U.S. currency as “artificial and temporarily relief” for money market keeping in view that the prevalent economic crisis is not ended indeed, the other crucial phase for the economy of Pakistan has been started after quitting the then President Musharraf from his office as macroeconomic stability and good fiscal governance would remain big challenges for the financial policy makers and stakeholders of the country.
Despite vanishing political uncertainty, the Pak rupee may remain under pressure time to time until unless the weaknesses in the supply side like slowdown in capital inflows into the country is not improved.
“The money market is still volatile and high degree of fluctuations and intensification in the rupee exchange rate price might be taking place for a couple of weeks”, told a dealer.
Important to note that the Pak-rupee edged up by Rs 1.65 against the US dollar in the open market on Monday and closed at Rs 75.
According to daily forex trading report, the US dollar started new day’s trading at Rs.74, continued to give up grounds and was changing hands at Rs.73.75 at close of markets recovering 25 paisa in kerb dealings on Tuesday.
In interbank market, the rupee recovered 0.60 paisa against the US dollar on Tuesday. The national currency continued to witness recovery versus greenback. The US currency started off new day’s trading at Rs.75, kept losing grounds and was trading at Rs.74.40 paisa at close of markets on Tuesday.
The US currency was steadily gaining against rupee during the past few weeks amid speculations and manipulations by the market forces. In June this year the dollar-rupee parity was below Rs 63, but it soared to over Rs 77 last week amid growing political chaos in the country.

Stock market celebrates Musharraf's stepping down

2008-08-20T22:14:00.000+06:00

LAHORE - The stock market on Monday rose more than 4 per cent, celebrating the resignation decision by President Pervez Musharraf, who stepped down, bringing down the curtain on unstable nine years in power to avoid impeachment. The Karachi Stock Exchange benchmark 100-index ended the day up 4.47 per cent or 460.91 points to close at 10,719 level.
The rupee also started to strengthen on the news, after hitting a record low against the dollar on fears that Musharraf would be impeached. The rupee, which has shed around a quarter of its value, started to recover on Monday after falling to 76.65 to the dollar. From 283 traded scrips 236 closed in plus column and 37 in minus while 10 scrips closed at last level. Volumes saw handsome improvement and increased to 158.862 million shares. NBP kept top position in volumes with traded volumes of 13.574 million shares.
Dealers said that at last the moment came for which the nation was waiting since February 18th. President resigned and market welcomed that with its closing on very strong note. “Now restoration of the judges is the immediate challenge and if coalition government overcomes that then market can resume upward trend with full force,” they added.
The investors said the resignation would help to dispel the political uncertainty that has dented markets recently. They were of the view that market could grow more and the rupee could get stronger against the dollar if the country sees good governance in future. They added the resignation would eliminate all the uncertainties in the market and political tension waa coming to an end.
Earlier, the market opened on mixed note at 10264.71 points plus 6 points and climbed up to resume upwards trend on the news that President is going to address the nation.
In anticipation of President Resignation market initially went up but later on rumours that President is not resigning pulled the market down. When media confirmed his resignation it again climbed up breaching previous high and touched new high. When President started his speech and started criticizing government market took a deep plunge. Just few minutes after when he announced his resignation market in one go went to 10722.63 points but closed little lower at 10719.62 points after making massive gain of 460.91 points.
Free float index after opening in plus column fluctuated for some time and then closed at 12279.90 points after hitting 12285.58 points high. Junior index gained 589.67 points. All shares index gained 318.87 points and closed at 7691.77 points.
At LSE market closed little lower at 3466.11 points plus 173.12 points. Traded scrips were 90 in numbers and out of those 61 closed in plus against none closing in minus column while 29 scrips closed at their last level. Volumes doubled and 19.217 million shares were traded today.

US dollar hits Rs77 for first time in PAKISTAN

2008-08-20T22:10:00.000+06:00

KARACHI - The dollar-rupee exchange rate parity peaked at record high on Friday as the rupee plunged to lowest-ever against the US dollars in the open market.
As anticipated by the currency analysts, the Pak rupee continued to shed value versus the US dollar, falling to Rs 77 in the local forex market on Friday.
A currency dealer at local money exchange branch told The Nation that “uncertainty regarding the rescue and recovery of the national currency in the exchange trade with the US currency is still prevalent in the capital market because the manipulators and profit-margins-seeking mafia in the domestic liquid markets are more active to make lots of money through heavily buying and selling of the said currency which is crucial for the survival of those pseudo investors these days”, he said.
“The most irritating thing for both market experts and genuine investors is that the constant fluctuations being witnessed in the dollar-rupee exchange rate are not in line with the certain market variables”, he added.
The daily forex trading report compiled by Khanani & Kalia Pvt International Ltd, revealed that demand of US dollar and political uncertainty continued to hurt the national currency as dollar crossed the barrier of Rs.76 in the open market. The American currency kicked off new day’s trading at Rs.75.70 paisa, continued to break records and was trading at Rs.76.50 paisa at close of markets on Friday.
The rupee lost Rs.1.35 versus dollar in the interbank dealings on Friday. Rupee continued to remain under pressure versus greenback in the interbank market dealings. The American dollar started off new day’s trading at its Wednesday’s closing rate of Rs.75, continued to gain and was trading at Rs.76.35 paisa at close of markets on Friday, report said.
According to JS Research, during the outgoing week, Rupee depreciated by 5% against US dollar amid buying by commercial banks to meet their payment obligations. So far this year Pakistan currency has weakened by 23.1% due to declining forex reserves. As a result, foreign investors who are net sellers in Pakistan market since last few months further trimmed their position. Last week they bought shares worth US$22mn and sold US$31.6mn. To date in 2008 foreigners have sold (net of buying) shares valuing US$315mn at Karachi bourse. On the international desks, the dollar headed for a fifth weekly gain against the euro, its longest winning streak in more than two years, on speculation U.S. consumer spending will keep the world’s biggest economy out of recession.

Pakistani Rupee’s Record Slide Versus US Dollar

2008-08-20T22:00:00.000+06:00

According to money central at msn, Pakistani Rupee was traded at US $68.25 today. Just around January of 2008, Rupee was quite steady at around 61 rupees to a dollar but in the past 4 months, the depreciation has been alomst 10%. That too at a time, when US dollar is also weakening as compared to other major curencies of the world. Following graph shows Rupee’s one year comparison versus the US dollar.

On May 23, 2008, ONE Unit of other currencies was equal to following number of rupees:

1 Australian Dollar = 65.64 Pakistani Rupees
1 Bangladesh Takka = 0.99 Pakistani Rupees
1 Canadian Dollar = 69.09 Pakistani Rupees
1 Chinese Yuan = 9.84 Pakistani Rupees
1 Euro = 107.73 Pakistani Rupees
1 Indian Rupee = 1.6 Pakistani Rupees
1 Iraqi Dinar = 0.06 Pakistani Rupee
1 Kuwaiti Dinar = 257.58 Pakistani Rupees
1 Saudi Rial = 18.23 Pakistani Rupees
1 Thai Baht = 2.12 Pakistani Rupees
1 UAE Dirhan = 18.61 Pakistani Rupees
1 Zimbabwe Dollar = 0.002 Pakistani Rupees

Following graph is the 5-year view of Pakistani rupee versus the US dollar. One can easily note the alarmingly sharp decline in the value of Rupee in the last few months.

Following graph shows Rupee’s sharp decline as of August 7, 2008

References:

1. Money central, msn
2. Yahoo Finance

Pakistani Stocks Rise on Musharraf's Exit

2008-08-20T21:46:00.000+06:00

Pakistan shares surged and its currency nudged up versus the dollar after President Pervez Musharraf announced his resignation, but analysts cautioned that worries over the deteriorating economy will limit near-term market gains.

Mr. Musharraf said he was stepping down in an address to the nation Monday even as he defended his record of economic management and support for democracy.

The move, after nine years in power, came as he faced the threat of impeachment from the ruling coalition, which accused him of corruption.

Pakistan's benchmark KSE-100 index rose 4.5% to 10719.62, but it is still down 32% from its record of 15739.25 on April 21. The U.S. dollar ended the day at 75.30 Pakistan rupees, down from Friday's close of 76.40 rupees.

The rupee, which hit an all-time low of 76.90 to the dollar Friday, is expected to rebound strongly as the resignation removes some of the immediate political uncertainty and should allow the government to focus on the economic challenges that remain, including unstable public finances, lackluster growth, surging inflation and widening trade and current-account deficits.

"Now the focus of coalition partners will be on the economy, and they need immediate remedial measures to improve imbalances," said Muzamil Aslam, an economist at KASB Securities.

Pakistan's economy has been slammed by a collapse in foreign direct investment and hefty equity outflows, with investors spooked by slumping foreign-exchange reserves because of costly fuel and food subsidies and construction projects launched by the new coalition government.

Pakistan's economic growth slowed to 5.8% in the fiscal year ended June 30 from 7.2% a year earlier. The government forecasts economic growth at 5.5% in the current fiscal year. Foreign-exchange reserves -- viewed as a reflection of the strength of a given economy -- now stand at $9.92 billion, their lowest level since 2003.

That is also down from a record $16.39 billion in early November, in large part because the government has been borrowing heavily from the central bank to pay its bills.

The government has pledged to phase out fuel subsidies by December, but recent cuts have already sent inflation to a multidecade high of 24% year-to-year in July, up from 22% in June, which has further eroded confidence.

Many international investors, who have been deserting the country in droves on political and economic worries, fear the absence of a common foe will lead to fighting within the ruling coalition.

Both of the leading parties in the coalition are likely to push, however, to curb presidential powers, which could lead to a delay in selecting a successor for Mr. Musharraf.

That person, market participants say, could well be someone who is less supportive than Mr. Musharraf, a U.S. ally, in the fight against terrorism.

Credit-default swaps, a measure of perceived risk, rose to 7.25 to nine percentage points for five-year protection on Pakistan's sovereign credit. Before Mr. Musharraf's resignation, they stood at seven percentage points on the bid side and were at siix percentage points Friday.

Ratings companies aren't rushing to give the thumbs-up, either, after cutting ratings in May, citing political uncertainties. Mr. Musharraf's move "may ease investor sentiment a bit, but a lot of the future direction on the credit depends on which policy adjustments will now take effect," said Aninda Mitra, a vice president and senior analyst at Moody's Investors Service Inc.

Moody's rates the country B2 with a stable outlook, while Standard & Poor's ranks Pakistan at single-B with a negative outlook.

Observers say the dollar could now ease to 70 to 75 rupees before year end, assuming Pakistan's government shows it is serious about removing expensive fuel subsidies and halting the slump in foreign-exchange reserves.

Nadeem Naqvi, chief executive officer of Karachi-based brokerage firm International Investment Co., said the dollar's fair value should be at 70 to 71 rupees, indicating the Pakistani currency is trading with a heavy risk premium.

He said the fight over Mr. Musharraf's future had become a significant distraction for the government. "We have become very focused on personalities," he said.

The dollar has gained 24% against the rupee since January, reflecting a sharp deterioration in the economic outlook for Pakistan after several years of relatively stable growth.

Pakistan's current-account deficit, at 9% of gross domestic product in the last fiscal year, has also become a key cause for concern, said Mushtaq Khan, a London-based economist with Citigroup Inc.

He warned Pakistan's troubles may require further rises in the 13% benchmark interest rate to dent import demand and, possibly, funding from friendly countries, including the U.S. and Saudi Arabia.

"In our view, only this will calm the forex market and keep the rupee from losing value too rapidly," he said.

D.F.Is

2008-08-20T21:29:00.003+06:00

Mr. Zaigham Mahmood Rizvi
Managing Director/ Chairman
House Building Finance Corporation

3^rd Floor, Finance & Trade Centre, Shahrah-e-Faisal, Karachi

Phone: 0800 50005

Website: http://www.hbfc.com.pk

Mr. Abdul Latif Uqaili
Managing Director
Investment Corporation of Pakistan

5^th Floor, National Bank Building, I.I.Chundrigar Road, Karachi

Phone: (+92-21) 9211326-7, 9212388-89

Website: -

Mr .Istaqbal Mehdi
Managing Director & Chief Executive
Pak Kuwait Investment Company (Pvt.) Limited

Block-C, Finance & Trade Centre, 4th Floor, Shahrah-e-Faisal, Karachi.

Phone: (+92-21) 111-611-611

Website: http://www.pkic.com

Mr. Naeemuddin Khan
Managing Director
Pak Libya Holding Company Limited

5th Floor, Block ‘C’ Finance & Trade Centre, Main Shahrah-e-Faisal, Karachi.

Phone: (+92-21) 111-111-115

Website: http://www.paklibya.com.pk

Mr. Zafar Iqbal
MD/Chief Executive Officer
Pak Oman Investment Company(Pvt.) Limited

Ist Floor, Tower A, Finance & Trade Centre, Sharae Faisal, Karachi.

Phone: (+92-21) 5660472-75

Website: http://www.pakoman.com

Mr. Muhammad Ali Khoja
Managing Director
Pakistan Industrial Credit & Investment Corporation (PICIC)

State Life Building No.1, 6^th Floor, I.I. Chundrigar Road, Karachi.

Phone: 0800-55550

Website: http://www.picic.com

Mr. Muhammad Rashid Zahir
General Manager/Chief Executive
Saudi Pak Industrial & Agricultural Investment Company Limited

19^th Floor, Saudi Pak Tower, 61/A, Jinnah Avenue, Blue Area, Islamabad.

Phone: 111-222-003

Website: http://www.saudipak.com

FOREIGN BANKS

2008-08-20T21:26:00.000+06:00

Mr. Naved A. Khan
Country Representative Pakistan
ABN AMRO Bank N.V.

16, Abdullah Haroon Road, Karachi.

Phone: 111-06-06-06

Website: http://www.abnamro.com.pk

Mr. Shafqaat Ahmed
Regional General Manager & Country Head
Albaraka Islamic Bank B.S.C. (E.C.)

PICIC House, 14-Shahrah-e-AiwaneTijarat, Lahore.

Phone: 111-742-742

Website: http://www.albaraka.com.pk

Mr. Nadeem Karamat
Senior Director & Country Manager
American Express Bank Limited

Shaheen Commercial Complex,

Dr. Zia-ud-din Ahmed Road, Karachi.

Phone: (+92-21) 2634153, 2630343-49

Mr. Zubyr Soomro
Country Corporate Officer, MD
Citibank N.A.

AWT Plaza, I.I. Chundrigar Road, Karachi.

Phone: 111-333-333

Website: http://www.citibank.com.pk

Mr. Shazad Gul Dada
Chief Country Officer (Pakistan Operation) Deutsche Bank AG

Avari Plaza, Fatima Jinnah Road, Karachi.

Phone: 111-555-777

Website: www.db.com

Mr. Muhammad Zahir Esmail
Country Manager/Senior Executive Vice President
Habib Bank AG Zurich

HBZ Plaza, I.I. Chundrigar Road, Karachi.

Phone: (+ 92-21) 2633311.

Website: http://www.habibbank.com

Mr. Jehangir Shah
Country Manager – Pakistan
Oman International Bank S.A.O.G.

Ground Floor, Nadir House, I.I. Chundrigar Road, Karachi.

Phone: (+92-21) 2419294, 2419473

Website: http://www.oiboman.com

Mr. Badar Kazmi
Chief Executive Pakistan
Standard Chartered Bank

I.I. Chundrigar Road, Karachi.

Phone: 111-002-002

Website: http://www.standardchartered.com.pk

Mr. Muhammed Tahir Sadiq
Chief Executive Officer(Pakistan)
The Hong Kong and Shanghai Banking Corp. Ltd.

M.R. Kayani Road, Karachi.

Phone: 111-852-852

Website: http://www.hsbc.com.pk

Mr. Ryuichi Nakai
General Manager
The Bank of Tokyo-Mitsubishi-UFJ, Limited

Shaheen Commercial Complex, M.R Kayani Road, Karachi.

Phone: (+92-21) 2623244

Website: http://www.btm.co.jp

(This website is maintained by H.O. Tokyo.)

ISLAMIC BANKS

2008-08-20T21:24:00.000+06:00

Hasan Bilgrami
Chief Executive Office
BankIslami Pakistan Limited

Registered Address
10th Floor, Progressive Square,
Opposite Nursery, Main Sharah-e-Faisal,
Karachi-Pakistan.

Corporate Headquarters
11th Floor, Executive Tower Dolmen City Marine Drive, Block-4, Clifton
Karachi

Tel: 5378371-72-74-75
Fax: 5378373

Website: http://www.bankislami.com.pk

Email: -

Mr. Saad uz Zaman
Chief Executive Officer
Dubai Islamic Bank Pakistan Limited

Avari Towers Hotel Complex Fatimah Jinnah Road
Karachi.- 75530

Tel: 5631950-52
Fax: 5631953

Mr. Irfan Siddiqi
President/CEO
Meezan Bank Limited

3rd Floor, PNSC Building,
Moulvi Tamizuddin Khan Road, Karachi

Phone: 111-331-331
Website: http://www.meezanbank.com

PRIVATE SECTOR COMMERCIAL BANKS

2008-08-20T21:19:00.000+06:00

Mr. Khalid A. Sherwani
President
Allied Bank Limited

Central Office, Khayaban-e-Iqbal, Main Clifton Road, Bath Island, Karachi.

Phone: 111-110-110

Website: http://www.abl.com.pk

Mr. Rahim Khanani
President/Chief Executive
Arif Habib Rupali Bank Limited

2/1, R.Y. 16, Old Queens Road, Karachi-74000.

Phone: 2437892, 2436519, 2472804

Website:

3

Mr. Shahryar Ahmed
Chief Executive
Askari Commercial Bank Limited

AWT Plaza, The Mall, Rawalpindi.

Phone: 111-000-786

Website: http://www.askaribank.com.pk

4

Mr. M. Moazzam Khan
President/CEO
Atlas Bank Limited

3rd Floor, Federation House, Shahrae Firdousi, Clifton,Karachi.

Phone: (+92-21) 5866817-20, 5866919-20

Website:

Mr.Muhammad Saleem Akhtar
Chief Executive Officer
Bank Alfalah Limited

B.A. Building, I.I. Chundrigar Road, Karachi.

Phone:: 111-777-786

Website: http://www.bankalfalah.com

Mr. Abbas D. Habib
Chief Executive/M.D
Bank Al-Habib Limited

MacKinnon’s Building, I.I.Chundrigar Road, Karachi.

Phone: 111-014-014

Website: http://www.bankalhabib.com

7

Mr. Shehzad Naqvi
President & Chief Executive Officer
Crescent Commercial Bank Limited

6^th Floor, Sidco Centre,Maulana Din Mohammad Wafai Road,Karachi.

Phone: 111-999-333

Website: http://www.cresbank.com

8

Mr. Farook Bengali
President & Chief Executive Officer
Faysal Bank Limited

Faysal House
ST-02, Shahrae Faisal
Karachi.

Phone: 111-747-747

Website: -

Mr. Zakir Mahmood
President
Habib Bank Limited

Head Office, I.I. Chundrigar Road, Karachi.

Phone: (+92-21) 2418000 (50 lines)

Website: http://www.habibbankltd.com

Mr. Munir Kamal
President
KASB Bank Limited

Business & Finance Centre, I.I. Chundrigar Road, Karachi

Phone: 111- 555-666

Website: http://www.kasbbank.com

Mr. Muhammad Aftab Manzoor
President
MCB Bank Limited

Head Office, MCB Tower, I.I. Chundrigar Road, Karachi.

Phone: 0800-69622, 111-000-111

Website: http://www.mcb.com.pk

Mr. Kasim Parekh
President/Chief Executive
Metropolitan Bank Limited

Spencer Building, I.I. Chundrigar Road, Karachi.

Phone: 111-18-18-18
Website: http://www.metrobank.com.pk

Mr. S.M. Waseem
President & Chief Executive(Officiating)
Mybank Limited

Central Office 2^nd Mezzanine Floor, Business & Finance Centre, I.I.Chundrigar Road, Karachi

Phone: 111- 443-111

Website: http://www.mybankltd.com

Khawaja Iqbal Hassan
President & Chief Executive Officer
NIB Bank Limited

Muhammadi House, I.I. Chundrigar Road, Karachi.

Phone: 111-333-111

Website: http://www.nibpk.com

Mr. Muhammad Bilal Sheikh
President/Chief Executive Officer
PICIC Commercial Bank Limited

I.I. Chundrigar Road, Karachi.

Phone: 111-566-566

Website: http://www.picicbank.com

Mr. Saeed I. Chaudhry
Chief Executive Officer
Prime Commercial Bank Limited

L.C.C.H.S. Head Office, 77-Y, Phase III, Commercial Area, D.H.A. Lahore

Phone: 111-36-36-36

Website: http://www.primebank.com.pk

Mr. Mansoor M. Khan
President/CE
Saudi Pak Commercial Bank Limited

Saudi Pak Building, I.I. Chundrigar Road,

Karachi.

Phone: 111-00-1987

Website: http://www.saudipakbank.com

Mr. Safar Ali K. Lakhani
President/Chief Executive
Soneri Bank Limited

Central Office: 5^th Floor, Al-Rahim Tower, I.I.Chundrigar Road, Karachi.

Phone: 111-567-890

Website: http://www.soneri.com

Mr. Shaukat Tarin
President & CEO
Union Bank Limited

5^th Floor, New Jubilee Insurance House, I.I.Chundrigar Road, Karachi

Phone: 0800-66-666, 111-001-002

Website: http://www.unionbank.com.pk

Mr. Atif R. Bokhari
President/CEO
United Bank Limited

Head Office, I.I. Chundrigar Road, Karachi.

Phone: 0800-11-825

Website: http://www.ubl.com.pk

MICRO FINANCE INSTITUTIONS

2008-08-20T21:16:00.000+06:00

Mr. Ghalib Nishtar
President
Khushhali Bank

94 West, Fourth Floor, Amir Plaza Jinnah Avenue, Blue Area, Islamabad

Phone: (+92-51) 111-092-092

Website:-

Mr. Hussain Tejany
President
The First Micro Finance Bank Limited

Head Office: Evacuee Trust Complex, Ground Floor, Plot No.4, F-5/1, Agha Khan Road, Islamabad.

Karachi Office (CEO sitting place):

62-C, Tauheed Commercial Area, 25^th Commercial Street, DHA Phase 5, Karachi

Phone: (+92-21) 5822432

Website: -

Mrs. Musaret Siddiqui
President
Network Micro Finance Bank Limited

401-402, Gul Tower, I.I. Chundrigar Road, Karachi

Phone: (+92-21) 2424616, 2424655, 2424639

Website: -

Ozair Ahmed Hanafi
President/CEO
Pak Oman Micro Finance Bank

2nd Floor, Tower C, Finance & Trade Center, Sharae Faisal, Karachi.

Tel: (+92-21) 5630948
Fax: (+92-21) 5630999

Website: -

Mr. M. Saleem Shaikh
Chief Executive Officer
Rozgar Micro Finance Bank

Business Executive Centre, F-17/3, Block-8, Clifton, Karachi

Phone: (+92-21) 5865119,5865223, 5865431

Website: -

Mr. Nadeem Hussain
Chief Executive Officer
Tameer Micro Finance Bank Limited

15-A, Block 7&8, Central Commercial Area K.C.H.S. Union, Karachi.

Phone: (+92-21) 4325572-4

Fax: (+92-21) 4325575

SPECIALIZED BANKS

2008-08-20T21:15:00.000+06:00

Mr. Naeem Iqbal
Managing Director
Industrial Development Bank of Pakistan

State Life Building No.2, Wallace Road, Off: I.I. Chundrigar Road, Karachi.

Phone: (+92-21) 9213601-10

Website: http://www.idbp.com.pk

The President
The Punjab Provincial Cooperative Bank Limited

Bank Square, Shahrah-e-Quaid-e-Azam, Lahore.

Phone: (+92-42) 9211432-36

Website: -

Mr. Mansur Khan
President/CEO
SME Bank Limited

40, Jang Bldg (2^nd Floor), A.K.Fazau-ul-Haq Road, Blue Area, Islamabad.

Phone: 111-11-00-11

Website: http://www.smebank.org

Mr. R.A. Chughtai
President
Zarai Taraqiati Bank Limited

1-Faisal Avenue, P.O.Box No.1400, Islamabad.

Phone: (+92-51) 9220014,9220110

Website: http://www.ztbl.com.pk

PUBLIC SECTOR COMMERCIAL BANKS

2008-08-20T21:10:00.000+06:00

Ms. Zarine Aziz
President
First Women Bank Limited

Dr. Syedna Tahir Saifuddin Memorial Foundation Bldg.,

CL-10/20/2, Beaumont Road, Civil Lines, Karachi

Phone: 111-676-767

Website: http://www.fwbl.com.pk

Syed Ali Raza
President
National Bank of Pakistan

Head Office: National Bank Building, I.I.Chundrigar Road, Karachi.

Phone: (+92-21) 9212200, 9212208

Website: http://www.nbp.com.pk

Syed Ahmed Iqbal Ashraf
The Managing Director
The Bank of Khyber

Head Office, 24-The Mall, Peshawar

Phone: 111-95-95-95

Website: http://www.bok.com.pk

Mr. Hamesh Khan
President
The Bank of Punjab

Head Office, 7-Egerton Road, Lahore

Phone: (+92-42) 9200421-33

Website: http://www.bop.com.pk