ISLAMIC REPUBLIC OF

Address/Contact details of Indian Mission/ Post:

High Commission of India, G-5, Diplomatic Enclave, Islamabad.

Tel: 0092-51-220-6950 to 54 0092-51-282-8376 Fax: 0092-51-282-3102 0092-51-282-3386 E-Mail: [email protected]

Consulate General of India, 3, Fatima Jinnah Road, Karachi. Consulate would be reopened on 1st January 2006.

BASIC INFORMATION ABOUT COUNTRY

Official Name: Islamic Republic of Pakistan

Area: 796,096 sq.kms (Source: Pakistan Statistical Pocket Book 2005)

Administrative divisions: 4 provinces (Punjab, Sindh, Balochistan and North- West-Frontier), 1 capital territory (Islamabad) and Federally Administered Tribal Areas (FATA) bordering Afghanistan.

Capital: Islamabad

Independence Day: 14 August

National Day: 23 March

Head of State: President – General

Head of Government: Prime Minister –

Foreign Minister: Khurshid Mahmood Kasuri

Defence Minister: Rao Sikandar Iqbal

Commerce Minister: Humayun Akhtar Khan

Indian High Shivshankar Menon Commissioner in Islamabad:

Pakistan High Aziz Ahmad Khan Commissioner in New Delhi:

1 Flag description: Green with a vertical band on the hoist side; a large white crescent and a star are centered in the green field; the white and green fields signify peace and prosperity, the crescent symbolizes progress and the star stands for light and knowledge.

Currency: 1 Pakistani rupee (PKR) = 100 paisa [1 Indian Rupee = 1.37 PKR] [1 USD = 59.68 PKR]

Fiscal year: 1 July - 30 June

Climate: Extreme cold in winter and pleasant summers in the mountainous areas in the North of the country. Cold winters and extreme heat in summer in the plains of Punjab and Indus valley. Average rainfall is 62 millimetres per annum.

Terrain: Flat Indus plain in east; mountainous in north and northwest, Balochistan plateau in the west.

Natural resources: Land, extensive natural gas reserves, limited petroleum, poor quality coal, iron ore, copper, salt, limestone.

Language: Punjabi 48%, Sindhi 12%, Seraiki (a Punjabi variant) 10%, Pashtu 8%, Urdu (official) 8%, Balochi 3%, Hindko 2%, Brahui 1%, English (official and lingua franca of most Government ministries), Burushaski, and other 8%.

Population and Area of Pakistan (1998 Census):

Name Population Area Persons % % (000) Sq. Km

Pakistan 132,352 100.0 796,096 100.0 Islamabad 805 0.6 906 0.1 Punjab 73,621 55.6 205,345 25.8 Sindh 30,440 23.0 140,914 17.7 NWFP 17,744 13.4 74,521 9.4 Balochistan 6,566 5.0 347,190 43.6 FATA 3,176 2.4 27,220 3.4

Economic and Social Indicators: (Source: Economic Survey of Pakistan 2004-05)

Growth Rate(%) 1999- 2000- 2001-02 2002-03 2003- 2004-05 (Constant fc) 00 01 04

GDP 3.9 1.8 3.1 5.1 6.4 8.4 Agriculture 6.1 -2.2 0.1 4.1 2.2 7.6 Manufacturing 1.5 9.3 4.5 6.9 14.1 12.5

2 Commodity 3.0 0.5 1.3 4.9 6.9 8.9 Producing Sector Services Sector 4.8 3.1 4.8 5.3 6.0 7.9

Human Resources:

2000- 2001-02 2002-03 2003- 2004-05 01 04 Population Million 140.47 145.96 146.75 149.65 152.53 Labour Force Million 41.20 41.84 43.18 44.12 46.82 Employed Labour Million 38.80 38.57 39.80 40.47 43.22 Force Unemployed Million -2.4 3.27 3.38 3.72 3.60 Labour Force Unemployment % per 6.0 7.8 7.8 8.27 7.69 Rate annum Birth Rate Per 1000 - 28.70 27.3 27.30 27.80 persons Death Rate Per 1000 - 8.20 8.0 8.10 8.70 persons Infant Mortality Per 1000 - 85.00 83.0 83.00 79.90 Rate persons

Other Indicators: Unit Value

Population Growth Rate (2005) % 1.90

Population Change (1988 over 1981) % 57.01

Density of Population 190 per Sq. Km

Literacy Ratio (2003-04) % 54.00

Life Expectancy (2001): Male Years 64 Female Years 66

Exports (US $ billion) 2003-04 12.313

Imports (US $ billion) 2003-04 15.592

Trade Balance (US $ billion) 2003-04 -3.279

Inflation Rate (%) (2003-04) 4.6

Political Overview

The Islamic Republic of Pakistan was founded on the 14th of August 1947. The seat of the Federal Government is the city of Islamabad. Pakistan is divided into four Provinces: Sindh, Balochistan, Punjab and the North-West Frontier Province (NWFP). In addition, Pakistan has illegally occupied part of the Indian state of Jammu and Kashmir.

The 1973 Constitution declared Pakistan to be a federal parliamentary republic with President as Head of State and Prime Minister as Head of Government. Following the military takeover on October 12, 1999 General Pervez Musharraf suspended the

3 Constitution and assumed the title of Chief Executive. On June 20, 2001, General Musharraf named himself as President and continued to hold the post of Chief Executive. In a referendum held on April 30, 2002, his presidency was extended by five more years. On August 24, 2002, President Musharraf issued the Legal Framework Order 2002 (LFO) for transition of power from the Chief Executive to a newly elected Prime Minister. On October 10, 2002, elections were held to the National Assembly and Provincial Assemblies. On November 21, 2002 Mir of (PML) took oath as Prime Minister. On December 25, 2003, the Government and the Opposition Muttahida Majlis Amal (MMA) reached an agreement on the LFO. On December 28, 2004 the National Assembly passed the 17th Amendment Bill to give effect to this agreement. President Musharraf declared that he would give up the post of Chief of Army Staff, which was also being held by him, by December 2004.

On June 30, 2004, after Prime Minister Jamali stepped down, President of PML, Chaudhry took oath as Prime Minister. This was an interim arrangement until the election to the National Assembly of Finance Minister Shaukat Aziz. On August 28, 2004 Shaukat Aziz took oath as the new Prime Minister of Pakistan following his election to the National Assembly. On December 30, 2004 President Musharraf announced his decision to hold the post of President and Chief of Army Staff till 2007.

Pakistan has a bicameral legislature consisting of Senate (upper house) and National Assembly (lower house). The Senate has 100 members indirectly elected by provincial assemblies to serve four-year term. The National Assembly has 342 seats; 60 seats reserved for women; 10 seats reserved for minorities. The last elections to the National Assembly were held on October 10, 2002. The next general elections are due in 2007.

Economy

Pakistan's economy continues to be heavily dependent upon agriculture. Nearly a fourth of its total output and 44% of total employment is in this sector. Wheat is the major food crop followed by rice, millet, maize, barley and pulses. While self-sufficient in rice, over the last few years, Pakistan has become a net importer of wheat, palm oil and pulses. Cotton is the most important cash crop.

Industry, including mining, manufacturing, power and construction, employs 26% of the work force and accounts for 27% of the GDP. Major industries include agro- industries such as the refining of sugar, vegetable-based products, as well as textiles, cotton yarn, light engineering goods, cement, pharmaceuticals, leather and rubber etc.

Large supplies of natural gas, mostly in Balochistan (as well as recent finds in Sindh) have helped the growth of a substantial fertilizer industry. Hydroelectric power is the largest source of energy in the country. Imports include petroleum and its products, edible oils, motor vehicles, wheat, tea, rubber, pulses etc. The major trade partners are USA, Japan, Germany, UK, Hong Kong, Kuwait and Saudi Arabia, Singapore, China and Malaysia.

4 INDIA-PAKISTAN RELATIONS

Bilateral Political Relations

India desires peaceful, friendly and cooperative relations with Pakistan as envisaged in the Simla Agreement of 1972 which forms the bedrock of bilateral relations between the two countries. In this spirit India has undertaken several initiatives with Pakistan over the years to place bilateral relations on a harmonious and cooperative footing and thereby transcend the distrust and conflict which has plagued the bilateral relationship since 1947.

Some of the important Agreements reached between the two countries in recent years are as follows:

(i) Simla Agreement (July 2, 1972) (ii) Declaration (February 21, 1999) (iii) Joint Press Statement (Islamabad, January 6, 2004) (iv) Joint Press Statement (February 18, 2004) (v) Joint Statement (New Delhi, September 8, 2004) (vi) Joint Press Statement (New York, September 24, 2004) (vii) Joint Statement (Islamabad, December 28, 2004) (viii) Joint Statement (New Delhi, April 18, 2005)

A new phase to relations between India and Pakistan was initiated in January 2004 when Prime Minister Vajpayee visited Pakistan for the Islamabad SAARC Summit. The January 6 Joint Statement emerged following his meeting with President Musharraf contains a clear commitment by Pakistan that no territory under its control would be used to support terrorism in any manner. Both sides also agreed to resume a Composite Dialogue process. Under this process both sides have agreed to discuss ‘Peace and Security including Confidence Building Measures’ and ‘Jammu and Kashmir’ and also Siachen, Sir Creek, Wullar Barrage/Tulbul Navigation project, Promotion of Friendly Exchanges in Various Fields, Economic and Commercial Cooperation and Terrorism and Drug trafficking.

Over the past year, the Dialogue Process has been strengthened by bilateral meetings at various levels by wide ranging people to people contacts. President General Musharraf visited India in April 2005 and had a landmark meeting with Prime Minister Dr. Manmohan Singh. The two leaders declared the peace process to be irreversible following this meeting.

There has been significant progress in bilateral relations since the beginning of the Composite Dialogue. Both countries have agreed and implemented various Confidence Building Measures in areas of security, trade, culture and people to people exchanges. At the same time, India continues to have serious concerns on terrorist infrastructure in Pakistan targeting India operating within Pakistan.

Bilateral Trade Relations

In accordance with the Simla Agreement, a Protocol for Trade was signed on November 30, 1974. This Protocol expired in 1978. Trade has thereafter continued without any formal trade agreement. India granted MFN status to Pakistan in 1995-96 and has consequently no list of permitted or prohibited products. Pakistan has not extended MFN status to India. It maintains a list of goods (768 items) that may be legally imported from India.

Pakistan’s largest exports to India remain fruits and nuts, pulses, spices, textile, cotton yarn fabrics, crude minerals, made-up articles, dyeing and spun yarn and row

5 wool while India’s major exports to Pakistan are sugar, pharmaceuticals, rubber manufactured goods except footwear, coal tar chemicals, inorganic organic and agro chemicals, iron ore, paints, plastic and linoleum products and spices and tea.

Trade flows in the past four years is as follows:

Pakistan’s Exports to India and % of Pak Global Trade

Year Exports US $ million

2001-02 49.2 (0.53%) 2002-03 70.7 (0.63%) 2003-04 93.7 (0.76%) 2004-05 (Feb) 149.361 (1.69%)

Pakistan’s Imports from India and % of Pak Global Trade

Year Exports US $ million

2001-02 186.5 (1.8%) 2002-03 166.05 (1.35%) 2003-04 382.4 (2.45%) 2004-05 (Feb) 297.20 (2.4%)

Financial Year (July-June) [Source: Ministry of Commerce, Govt. of Pakistan]

The overall climate for industry and business has improved significantly since January 2004. Several business delegations from both countries have visited the other country to explore opportunities for trade, joint ventures and transfer of technology.

Some of the important business delegations, which visited Pakistan from India in the past 12 months, are: PHD Chamber of Commerce and Industry, CII CEOs delegation, NASSCOM, Indian Tea Association, Synthetic and Rayon Textiles Export Promotion Council, Research and Information System for Non-aligned and other developing countries and ASSOCHAM. In addition, representatives of major industrial houses, Tata Sons, Bajaj, ESSAR Group, Munjals, Ashok Leyland, IOC, Apollo, Dr. Reddy’s Laboratory, Eicher, Jayco, Praj Industries are at various stages of negotiations with Pakistani counterparts in individual areas of interest. Almost all business chambers of Pakistan have sent their delegations for visit to India.

August 2005

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