Mother Earth Travel > Country Index > Pakistan > Map Economy History |
| Economy - overview: Pakistan is a poor, heavily populated
country, suffering from internal political disputes, lack of foreign
investment, and a costly confrontation with neighboring India. Pakistan's
economic outlook continues to be marred by its weak foreign exchange
position, which relies on international creditors for hard currency
inflows. The MUSHARRAF government will face an estimated $21 billion in
foreign debt coming due in 2000-03, despite having rescheduled nearly $2
billion in debt with Paris Club members. Foreign loans and grants provide
approximately 25% of government revenue, but debt service obligations
total nearly 50% of government expenditure. Although Pakistan successfully
negotiated a $600 million IMF Stand-By Arrangement, future loan
installments will be jeopardized if Pakistan misses critical IMF
benchmarks on revenue collection and the fiscal deficit. MUSHARRAF has
complied largely with IMF recommendations to raise petroleum prices, widen
the tax net, privatize public sector assets, and improve the balance of
trade. However, Pakistan's economic prospects remain uncertain; too little
has changed despite the new administration's intentions. Foreign exchange
reserves hover at roughly $1 billion, GDP growth hinges on crop
performance, the import bill has been hammered by high oil prices, and
both foreign and domestic investors remain wary of committing to projects
in Pakistan. GDP: purchasing power
parity - $282 billion (2000 est.) SOURCE: The World Factbook |
Mother Earth Travel > Country Index > Pakistan > Map Economy History