Economy of Pakistan

Economy of Pakistan
	Karachi, the industrial capital of Pakistan
Currency	Pakistani rupee (₨) (PKR)
Fixed exchange rates	1 USD = 280 PKR
Fiscal year	1 July – 30 June
Trade organisations	ECO, SAFTA, WTO, AIIB, ADB, SAARC OIC
Country group	Developing economy; Lower-middle income economy;
Statistics
Population	257,390,405 (2026)
GDP	$410.5 billion (nominal; 2026); $1.76 trillion (PPP; 2026);
GDP rank	41st (nominal; 2025); 26th (PPP; 2025);
GDP growth	-0.2% (2023); 2.5% (2024); 2.7% (2025); 3.6% (2026 forecast);
GDP per capita	$1,710 (nominal; 2025); $7,120 (PPP; 2026);
GDP per capita rank	161st (nominal; 2025); 142nd (PPP; 2025);
GDP by sector	Agriculture: 23.17%; Industry: 18.41%; Services: 58.42%; (FY 2023);
GDP by component	Household consumption: 82.0%; Government consumption: 11.3%; Investment in fixed capital: 14.5%; Investment in inventories: 1.6%; Exports of goods and services: 8.2%; Imports of goods and services: −17.6%; (2017 est.);
Inflation (CPI)	4.5% (2025); Preview warning: Page using Template:Plainlist with unknown parameter "bankrate"
Population below poverty line	88% on less than $8.30/day (2018); 21.6% on less than $3.65/day (2025); 2% in extreme poverty less than $1.90 (2025); 8% (rural); 0.3% (urban);
Gini coefficient	31.6 medium (2018, World Bank)
Human Development Index	0.544 low (2025) (168th); 0.364 low (2023, IHDI 138th);
Labour force	78,863,000 (2025);
Labour force by occupation	Agriculture: 37.4%; Industry: 25.4%; Services: 37.2%; (2021);
Unemployment	6.9% (2025);
Main industries	Textiles; Apparel; Food processing; Pharmaceuticals; Surgical instruments; Construction materials; Fertilizer; Overseas remote freelancing; Seafood; Luxury products; Technology; Paper products; Automotive; Telecommunication; Marble; Glass manufacturing; Shipbreaking; Ornamentations; Banking; Energy; Precious minerals & metals; Defense industry; Media; Education; Tourism; Financial services; Human resources;
External
Exports	$40.69 billion (2025)
Export goods	Textiles: $16,301 million; Food: $7,082 million; Chemicals and pharmaceuticals: $1,421 million; Leather goods: $877 million; Sports goods: $439 million; Petroleum: $553 million;
Main export partners	China 8.7%; United Arab Emirates 6.7%; United Kingdom 6.5%; Germany 4.9%; Spain 4.7%; Netherlands 4.4%; United States 17.5%; Italy 3.6%; (2024 est.);
Imports	$78.02 billion (2025)
Import goods	Petroleum: 15,162 million; Agriculture and other chemicals: $8,944 million; Machinery: $7,406 million; Food: $7,111 million; Metal: $4,668 million; Textile: $3,890 million; Transport: $1,621 million;
Main import partners	China 25.4%; United Arab Emirates 11.9%; Saudi Arabia 8.5%; Singapore 4.6%; Indonesia 4.5%; Kuwait 3.4%; Russia 2.0%; United States 3.6%; (2024 est.);
FDI stock	$31.540 billion; Abroad: $1.870 billion (31 Dec 2021);
Current account	1.8 billion US$ (FY 2025)
Gross external debt	$131 billion (2025)
Public finances
Government debt	61.4% of GDP (Jun 2024)
Foreign reserves	$20 billion (2025)
Budget balance	−5.6% of GDP (FY 2024)
Revenues	12.5% of GDP; 13,269 billion PKR or $47 billion (FY 2024)
Expenses	19.3% of GDP; 20,476 billion PKR $72 billion (FY 2024)
Economic aid	$2.6983 billion (2021)
Credit rating	Standard & Poor's:; CCC+ (long term); C (short term); Outlook: stable; Moody's:; Caa2; Outlook: positive; Fitch:; B− (April 2025); Outlook: stable;
	All values, unless otherwise stated, are in US dollars.

The economy of Pakistan is classified as a developing economy. It is the 26th-largest economy by GDP (PPP) and the 41st-largest in terms of nominal GDP in the world. In terms of per capita income, the country ranks 161st by GDP (nominal) and 142nd by GDP (PPP), according to the International Monetary Fund (IMF) in 2025.

In its early years, the economy of Pakistan relied heavily on private industries. The nationalization of a significant portion of the sector, including financial services, manufacturing, and transportation, began in the early 1970s under Zulfikar Ali Bhutto. During the regime of Zia-ul Haq in the 1980s, an Islamic model of economy was adopted, outlawing economic practices forbidden in Sharīʿah. The economy started privatizing again in the 1990s. Pakistan was classified as a semi-industrial economy for the first time in the late 1990s, albeit an underdeveloped country with a heavy dependence on agriculture, particularly the textile industry relying on cotton production.

Pakistan is presently recovering from a major economic crisis and undergoing economic liberalization, including the privatization of all government corporations, aimed at attracting foreign investment and reducing budget deficits. As of 11 February 2026, the Governor of the State Bank of Pakistan stated that the economy was projected to grow between 3.75% and 4.75% in fiscal year 2026, exceeding a recent IMF forecast. The central bank kept its policy rate at 10.5% following earlier reductions, and projected the current account deficit to remain within 0–1% of GDP, while emphasizing the need for continued structural reforms to sustain growth.

The economic growth centers in Pakistan are located along the Indus River; these include the diversified economies of Karachi and major urban centers in Punjab (such as Faisalabad, Lahore, Sialkot, Rawalpindi, and Gujranwala), alongside less developed areas in other parts of the country. In recent decades, regional connectivity initiatives such as the China-Pakistan Economic Corridor (CPEC) have emerged as pivotal contributors to infrastructure and energy development, with long-term implications for economic stability. Primary export commodities include textiles, leather goods, sports equipment, chemicals, and carpets/rugs.