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Memo Provided By: Globaledge.Msu.Edu and EXPORT.GOV Pakistan Introduction Key Economic Facts Risk Assessment (Provided by Coface) Pakistan is a country located in South Asia. It has a Income Level (by per capita Lower Middle Income Country rating: D - A high-risk political and economic coastline along the Arabia Sea and the Gulf of Oman and is GNI): situation and an often very difficult business environment bordered by Afghanistan, China, India, and Iran. The Level of Development: Developing can have a very significant impact on corporate payment geography of Pakistan is diverse with the GDP, PPP (current international $1,060.75 billion (2019) Thar Desert in the east and the Hindu $): behavior. Corporate default probability is very high. Kush and Pamir mountain ranges in the GDP growth (annual %): 0.99% (2019) Business Climate rating: C - The business environment is north. The government system is a federal GDP per capita, PPP (current $4,898.05 (2019) difficult. Corporate financial information is often unavailable parliamentary republic; the chief of state is international $): and when available often unreliable. Debt collection is the president, and the head of government is the prime External debt stocks, total $100,818,526,514.40 (2019) unpredictable. The institutional framework has many minister. Pakistan has a mixed economic system with a (DOD, current US$): combination of free-market activity and government Manufacturing, value added (% 12.46% (2019) troublesome weaknesses. Intercompany transactions run intervention. Pakistan is a of GDP): major risks in the difficult environments rated C. member of the South Asian Current account balance (BoP, -$7.14 billion (2019) Strengths current US$): Association for Regional • Large internal market supported by dynamic Cooperation (SAARC). Inflation, consumer prices 10.58% (2019) (annual %): demographics Labor force, total: 75,862,533 (2020) • Large remittances from migrant workers Unemployment, total (% of 4.45% (2020) • Large and inexpensive labor force total labor force) (modeled ILO estimate): • Development of economic corridors with China and Location: Southern Asia Imports of goods and services $56.53 billion (2019) Central Asia, door to the Indian Ocean Capital City: Islamabad (+5 GMT) (current US$): • A major player in Islamic finance Chief of State: President Arif Alvi Exports of goods and services $28.15 billion (2019) • Mineral potential (current US$): Head of Govt.: Prime Minister Imran Khan Weaknesses Currency: Pakistani rupee (PKR) GDP Composition % Agriculture Services Industry Manufacturing • Tense neighborhood, political fragility and domestic Major Languages: <p>Punjabi 48%, Sindhi 12%, Saraiki (a Punjabi variant) 10%, Pashto insecurity (alternate name, Pashtu) 8%, Urdu 54 • Informality (40% of GDP and 60% of employment) (official) 8%, Balochi 3%, Hindko 2%, 22 18 12 Brahui 1%, English (official; lingua and low tax revenues (13% of GDP) franca of Pakistani elite and most *Although Manufacturing is included in the Industry figures, it is also separately • Inadequate education (40% illiterate), health, government ministries), Burushaski, reported because it plays a critical role in economy. and other 8%</p> infrastructure and agriculture Rankings Primary Religions: <p>Muslim (official) 96.4% (Sunni 85- • Delayed development of Balochistan, favoring 90%, Shia 10-15%), other (includes Index Rank separatism, and rural areas, conducive to the Christian and Hindu) Corruption Perceptions Index 120 / 180 3.6%&nbsp;(2010 est.)</p> development of radical Islamism EY Globalization Index 50 / 60 Calling Code: 92 • Energy dependency, deficient electricity production Global Competitiveness Index 110 / 141 Voltage: 230 Global Enabling Trade Index 122 / 136 • Weak manufacturing (20% of GDP) and export base, weak sectoral diversification Key Websites Global Services Location Index 30 / 55 Index of Economic Freedom 131 / 179 • 20% of GDP and 40% of the workforce depend on Main Government Page: pakistan.gov.pk International Logistics Performance Index (LPI) 122 / 160 the agricultural sector, which is sensitive to climatic Commerce Ministry: commerce.gov.pk Inward FDI Potential Index 123 / 139 hazards and world prices Export Promotion Agency: tdap.gov.pk KOF Index of Globalization 112 / 185 U.S. Embassy Investment Promotion invest.gov.pk Networked Readiness Index (NRI) 110 / 139 Agency: Open Budget Index 60 / 115 U.S. Embassy Islamabad Diplomatic Enclave, Ramna 5 Islamabad, Pakistan Phone: (+92) 051-201-4000 https://pk.usembassy.gov Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV.
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