Flag description: green with a vertical white band (symbolizing the role of religious minorities) on the hoist side; a large white crescent and star are centered in the green field; the crescent, star, and color green are traditional symbols of Islam
Economy
Economy - overview: Pakistan is a poor, highly populated Third World country struggling to make the difficult transition to the modern world of high technology and international markets. Even though GDP growth has remained strong, at roughly 5% annually, international confidence in Prime Minister Benazir BHUTTO's government declined in 1996. The IMF suspended a Standby Agreement in the spring; foreign investment declined; and the budget and trade deficits rose substantially. In October 1996, BHUTTO responded to IMF pressure to implement reforms, devaluing the rupee by about 8% and raising petroleum prices in an attempt to slow the drain on foreign exchange reserves. But Islamabad still failed to meet IMF revenue and borrowing targets. Pakistan's interim government - in power since President LEGHARI sacked BHUTTO on 5 November 1996 - agreed to slash the budget deficit, push down bank borrowing, implement an agricultural tax; and speed up reforms in the financial sector; accordingly, the Standby Agreement was reinstated in December 1996 and a tranche of $80 million released; but Pakistan fell out of compliance in February 1997. For the long run, Pakistan must deal with serious problems of deteriorating infrastructure, low literacy levels, and persistent sectarian and political violence.
GDP: purchasing power parity - $296.5 billion (1996 est.)
GDP - real growth rate: 5.5% (1996 est.)
GDP - per capita: purchasing power parity - $2,300 (1996 est.)
GDP - composition by sector: agriculture: 24.8% industry: 26.5% services: 48.7% (1996)
Inflation rate - consumer price index: 10.8% (FY95/96)
Labor force: total: 36.7 million (1997) by occupation: agriculture 47%, mining and manufacturing 17%, services 17%, other 19% note : extensive export of labor, mostly to the Middle East, and use of child labor
Unemployment rate: NA%