Pakistan Facts and Figures

Pakistan, strategically located in South Asia, is known for its vibrant culture, youthful population, and growing economy. Bordering India, China, Afghanistan, and Iran, with a coastline along the Arabian Sea, Pakistan’s geographic position has made it a pivotal player in regional trade and politics. Rich in natural resources and home to diverse landscapes, Pakistan presents both challenges and opportunities on its path to development.

Islamabad, the capital city, symbolizes Pakistan’s blend of traditional values and modern aspirations. As a center of political and administrative activity, Islamabad reflects Pakistan’s commitment to progress and international engagement.

Demographics of Pakistan

With a population of 240.5 million (2023) and a high population density of 300 people per square kilometer, Pakistan is one of the world’s most populous countries. The median age is just 21, with a working-age population of 59.2%, underscoring Pakistan’s demographic advantage for future economic growth. The population is growing at an annual rate of 2.0%, supported by a high fertility rate of 3.4. Life expectancy is 66 years, though healthcare challenges remain, as indicated by an infant mortality rate of 51 per 1,000 live births. Urbanization is ongoing, with 38% of the population residing in urban areas, reflecting gradual rural-to-urban migration.

Economic Profile

Ranked 44th globally, Pakistan’s GDP stands at $338.4 billion (2023), with an annual growth rate of 4.8%, highlighting moderate economic expansion. Services dominate the economy, contributing 52.2% of GDP, followed by agriculture at 22.4%, which employs a significant portion of the population. Industry and manufacturing account for 20.4% and 13.8% of GDP, respectively, reflecting Pakistan’s growing industrial base. Inflation remains a pressing challenge, projected to decline from 29.2% in 2023 to 24.8% in 2024, emphasizing the need for economic stability. Pakistan’s trade deficit stands at $22 billion, with exports of $28.5 billion and imports totaling $50.5 billion. Unemployment was recorded at 6.3% in 2021, with efforts underway to enhance job creation.

Public Finance and Fiscal Policy

Pakistan’s fiscal policy reflects the need to balance economic growth with debt management. The country’s fiscal deficit has slightly improved from -7.84% of GDP in 2022 to -7.75% in 2023, showing a continued commitment to public investment and social spending. Central government debt has risen significantly to 75.75% of GDP, up from 56.73% in 2012, reflecting an increased reliance on debt to fund infrastructure and social programs. Official Development Assistance (ODA) received is at 0.5% of GNI, underscoring ongoing international support for Pakistan’s development goals.

Security and Defense Investment

Pakistan maintains a strong defense posture, with military spending at 2.6% of GDP and approximately 644,000 active personnel, emphasizing its role in regional security. Given its strategic location and complex geopolitical environment, Pakistan’s military investment underscores its commitment to stability and national security.

Conclusion

With a youthful population, growing economy, and strategic South Asian location, Pakistan offers significant opportunities for businesses and investors. Market research in Pakistan is essential for understanding its economic landscape, regulatory environment, and consumer base. As it navigates economic challenges and builds on its strengths, Pakistan presents a dynamic market for those looking to engage in a rapidly evolving South Asian economy.