Pakistan's economy

In terms of nominal gross domestic product and purchasing power parity, Pakistan's economy ranks 38th and 25th, respectively, in the world. Pakistan has a nominal GDP per capita of $1,550, which ranks 132nd in the world, and has a population of over 190 million people, making it the sixth-largest in the world. However, Pakistan's undocumented economy, which accounts for an estimated 36% of the country's total economy, is ignored when determining per capita income.

 Pakistan is a nation in development. It is one of the Next Eleven, a group of eleven nations that, together with the BRICS, have the potential to have significant economies in the twenty-first century. However, as of 2013, there were significant shortcomings in fundamental services including electric power generation and railroad transportation as a result of years of conflict and societal unrest. With growing hubs around the Indus River, the economy is semi-industrialized. Textiles, leather products, sporting items, chemicals, and carpets/rugs are among the main export commodities.

The Indus River is where Pakistan's economic growth hubs are located, where the diverse economies of Karachi and the main Punjabi cities coexist with less developed regions in other parts of the nation. Political tensions inside the country, a rapidly expanding population, and inconsistent levels of foreign investment have all harmed the economy in the past.

While consistent worker remittances help to maintain foreign exchange reserves, a rising current account deficit - caused by a widening trade gap as import growth outpaces export expansion - might deplete reserves and slow GDP development in the medium run. To draw foreign investment and reduce the budget deficit, Pakistan is currently implementing a phase of economic liberalization that includes the privatization of all government-owned businesses.

Foreign exchange reserves exceeded $18.4 billion in 2014, which resulted in a stable outlook for Standard & Poor's long-term rating. With a focus on its manufacturing hub, a 2016 BMI Research research classified Pakistan as one of the ten developing economies.

Christine Lagarde, the head of the IMF, stated in Islamabad in October 2016 that Pakistan's economy was "out of the crisis." The World Bank projects that increased foreign investment, particularly from the China-Pakistan Economic Corridor, will boost Pakistan's economic growth to a "strong" 5.4% by 2018.

Pakistan's poverty rate decreased from 64.3% in 2002 to 29.5% in 2014, according to the World Bank. The budget deficit has decreased from 6.4% in 2013 to 3.8% in 2016, and Pakistan's financial situation is still improving. The macroeconomic situation of the nation is improving, and Moody's has upgraded Pakistan's debt outlook to "stable."