Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes, low levels of foreign investment, and declining exports of manufactures. Faced with untenable budgetary deficits, high inflation, and hemorrhaging foreign exchange reserves, the government agreed to an International Monetary Fund Standby Arrangement in November 2008. Between 2004-07, GDP growth in the 6-8% range was spurred by gains in the industrial and service sectors, despite severe electricity shortfalls. Poverty levels decreased by 10% since 2001, and Islamabad steadily raised development spending in recent years. In 2008 the fiscal deficit - a result of chronically low tax collection and increased spending - exceeded Islamabad's target of 4% of GDP. Inflation remains the top concern among the public, jumping from 7.7% in 2007 to 20.8% in 2008, primarily because of rising world fuel and commodity prices. In addition, the Pakistani rupee has depreciated significantly as a result of political and economic instability.
GDP (purchasing power parity):
$431.2 billion (2008 est.) country comparison to the world: 28 $417 billion (2007 est.)
$393.4 billion (2006 est.)
note: data are in 2008 US dollars
GDP (official exchange rate):
$164.6 billion (2008 est.)
GDP - real growth rate:
3.4% (2008 est.) country comparison to the world: 114 6% (2007 est.)
6% (2006 est.)