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Pakistan-Development Planning





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Pakistan Index

Pakistan's economic development planning began in 1948. By 1950 a six-year plan had been drafted to guide government investment in developing the infrastructure. But the initial effort was unsystematic, partly because of inadequate staffing. More formal planning--incorporating overall targets, assessing resource availability, and assigning priorities--started in 1953 with the drafting of the First Five-Year Plan (1955-60). In practice, this plan was not implemented, however, mainly because political instability led to a neglect of economic policy, but in 1958 the government renewed its commitment to planning by establishing the Planning Commission.

The Second Five-Year Plan (1960-65) surpassed its major goals when all sectors showed substantial growth. The plan encouraged private entrepreneurs to participate in those activities in which a great deal of profit could be made, while the government acted in those sectors of the economy where private business was reluctant to operate. This mix of private enterprise and social responsibility was hailed as a model that other developing countries could follow. Pakistan's success, however, partially depended on generous infusions of foreign aid, particularly from the United States. After the 1965 Indo-Pakistani War over Kashmir, the level of foreign assistance declined. More resources than had been intended also were diverted to defense. As a result, the Third Five-Year Plan (1965-70), designed along the lines of its immediate predecessor, produced only modest growth.

When the government of Zulfiqar Ali Bhutto came to power in 1971, planning was virtually bypassed. The Fourth Five-Year Plan (1970-75) was abandoned as East Pakistan became independent Bangladesh. Under Bhutto, only annual plans were prepared, and they were largely ignored.

The Zia government accorded more importance to planning. The Fifth Five-Year Plan (1978-83) was an attempt to stabilize the economy and improve the standard of living of the poorest segment of the population. Increased defense expenditures and a flood of refugees to Pakistan after the Soviet invasion of Afghanistan in December 1979, as well as the sharp increase in international oil prices in 1979-80, drew resources away from planned investments (see Pakistan Becomes a Frontline State , ch. 5). Nevertheless, some of the plan's goals were attained. Many of the controls on industry were liberalized or abolished, the balance of payments deficit was kept under control, and Pakistan became self-sufficient in all basic foodstuffs with the exception of edible oils. Yet the plan failed to stimulate substantial private industrial investment and to raise significantly the expenditure on rural infrastructure development.

The Sixth Five-Year Plan (1983-88) represented a significant shift toward the private sector. It was designed to tackle some of the major problems of the economy: low investment and savings ratios; low agricultural productivity; heavy reliance on imported energy; and low spending on health and education. The economy grew at the targeted average of 6.5 percent during the plan period and would have exceeded the target if it had not been for severe droughts in 1986 and 1987.

The Seventh Five-Year Plan (1988-93) provided for total public-sector spending of Rs350 billion. Of this total, 38 percent was designated for energy, 18 percent for transportation and communications, 9 percent for water, 8 percent for physical infrastructure and housing, 7 percent for education, 5 percent for industry and minerals, 4 percent for health, and 11 percent for other sectors. The plan gave much greater emphasis than before to private investment in all sectors of the economy. Total planned private investment was Rs292 billion, and the private-to- public ratio of investment was expected to rise from 42:58 in FY 1988 to 48:52 in FY 1993. It was also intended that public-sector corporations finance most of their own investment programs through profits and borrowing.

In August 1991, the government established a working group on private investment for the Eighth Five-Year Plan (1993-98). This group, which included leading industrialists, presidents of chambers of commerce, and senior civil servants, submitted its report in late 1992. However, in early 1994, the eighth plan had not yet been announced, mainly because the successive changes of government in 1993 forced ministers to focus on short-term issues. Instead, economic policy for FY 1994 was being guided by an annual plan.

Data as of April 1994



BackgroundThe Indus Valley civilization, one of the oldest in the world and dating back at least 5,000 years, spread over much of what is presently Pakistan. During the second millennium B.C., remnants of this culture fused with the migrating Indo-Aryan peoples. The area underwent successive invasions in subsequent centuries from the Persians, Greeks, Scythians, Arabs (who brought Islam), Afghans, and Turks. The Mughal Empire flourished in the 16th and 17th centuries; the British came to dominate the region in the 18th century. The separation in 1947 of British India into the Muslim state of Pakistan (with West and East sections) and largely Hindu India was never satisfactorily resolved, and India and Pakistan fought two wars - in 1947-48 and 1965 - over the disputed Kashmir territory. A third war between these countries in 1971 - in which India capitalized on Islamabad's marginalization of Bengalis in Pakistani politics - resulted in East Pakistan becoming the separate nation of Bangladesh. In response to Indian nuclear weapons testing, Pakistan conducted its own tests in 1998. The dispute over the state of Kashmir is ongoing, but discussions and confidence-building measures have helped the two countries begin to work through their issues. In February 2008, Pakistan held parliamentary elections and in September 2008, after the resignation of former President MUSHARRAF, elected Asif Ali ZARDARI to the presidency. Pakistani government and military leaders are struggling to control domestic insurgents, many of whom are located in the tribal areas adjacent to the border with Afghanistan. India-Pakistan relations have been rocky since the November 2008 Mumbai attacks, but both countries are taking small steps to put relations back on track.
LocationSouthern Asia, bordering the Arabian Sea, between India on the east and Iran and Afghanistan on the west and China in the north
Area(sq km)total: 796,095 sq km
land: 770,875 sq km
water: 25,220 sq km
Geographic coordinates30 00 N, 70 00 E
Land boundaries(km)total: 6,774 km
border countries: Afghanistan 2,430 km, China 523 km, India 2,912 km, Iran 909 km

Coastline(km)1,046 km

Climatemostly hot, dry desert; temperate in northwest; arctic in north

Elevation extremes(m)lowest point: Indian Ocean 0 m
highest point: K2 (Mt. Godwin-Austen) 8,611 m
Natural resourcesland, extensive natural gas reserves, limited petroleum, poor quality coal, iron ore, copper, salt, limestone
Land use(%)arable land: 24.44%
permanent crops: 0.84%
other: 74.72% (2005)

Irrigated land(sq km)182,300 sq km (2003)
Total renewable water resources(cu km)233.8 cu km (2003)
Freshwater withdrawal (domestic/industrial/agricultural)total: 169.39 cu km/yr (2%/2%/96%)
per capita: 1,072 cu m/yr (2000)
Natural hazardsfrequent earthquakes, occasionally severe especially in north and west; flooding along the Indus after heavy rains (July and August)
Environment - current issueswater pollution from raw sewage, industrial wastes, and agricultural runoff; limited natural fresh water resources; most of the population does not have access to potable water; deforestation; soil erosion; desertification
Environment - international agreementsparty to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Wetlands
signed, but not ratified: Marine Life Conservation
Geography - notecontrols Khyber Pass and Bolan Pass, traditional invasion routes between Central Asia and the Indian Subcontinent
Population176,242,949 (July 2009 est.)
Age structure(%)0-14 years: 37.2% (male 33,739,547/female 31,868,065)
15-64 years: 58.6% (male 52,849,607/female 50,378,198)
65 years and over: 4.2% (male 3,475,927/female 3,931,605) (2009 est.)
Median age(years)total: 20.8 years
male: 20.6 years
female: 21 years (2009 est.)
Population growth rate(%)1.947% (2009 est.)
Birth rate(births/1,000 population)27.62 births/1,000 population (2009 est.)
Death rate(deaths/1,000 population)7.68 deaths/1,000 population (July 2009 est.)

Net migration rate(migrant(s)/1,000 population)-0.48 migrant(s)/1,000 population (2009 est.)
Urbanization(%)urban population: 36% of total population (2008)
rate of urbanization: 3% annual rate of change (2005-10 est.)
Sex ratio(male(s)/female)at birth: 1.05 male(s)/female
under 15 years: 1.06 male(s)/female
15-64 years: 1.05 male(s)/female
65 years and over: 0.88 male(s)/female
total population: 1.04 male(s)/female (2009 est.)
Infant mortality rate(deaths/1,000 live births)total: 65.14 deaths/1,000 live births
male: 65.24 deaths/1,000 live births
female: 65.05 deaths/1,000 live births (2009 est.)

Life expectancy at birth(years)total population: 64.49 years
male: 63.4 years
female: 65.64 years (2009 est.)

Total fertility rate(children born/woman)3.6 children born/woman (2009 est.)
Nationalitynoun: Pakistani(s)
adjective: Pakistani
Ethnic groups(%)Punjabi 44.68%, Pashtun (Pathan) 15.42%, Sindhi 14.1%, Sariaki 8.38%, Muhagirs 7.57%, Balochi 3.57%, other 6.28%

Religions(%)Muslim 95% (Sunni 75%, Shia 20%), other (includes Christian and Hindu) 5%
Languages(%)Punjabi 48%, Sindhi 12%, Siraiki (a Punjabi variant) 10%, Pashtu 8%, Urdu (official) 8%, Balochi 3%, Hindko 2%, Brahui 1%, English (official; lingua franca of Pakistani elite and most government ministries), Burushaski, and other 8%

Country nameconventional long form: Islamic Republic of Pakistan
conventional short form: Pakistan
local long form: Jamhuryat Islami Pakistan
local short form: Pakistan
former: West Pakistan
Government typefederal republic
Capitalname: Islamabad
geographic coordinates: 33 42 N, 73 10 E
time difference: UTC+5 (10 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, in 2009 - begins third Wednesday in April; ends first Sunday in November; note - a new policy of daylight saving time was initiated by the government in 2008; the specific date of the start of DST has varied over the last two years
Administrative divisions4 provinces, 1 territory*, and 1 capital territory**; Balochistan, Federally Administered Tribal Areas*, Islamabad Capital Territory**, North-West Frontier Province, Punjab, Sindh
note: the Pakistani-administered portion of the disputed Jammu and Kashmir region consists of two administrative entities: Azad Kashmir and Gilgit-Baltistan
Constitution12 April 1973; suspended 5 July 1977, restored 30 December 1985; suspended 15 October 1999, restored in stages in 2002; amended 31 December 2003; suspended 3 November 2007; restored on 15 December 2007

Legal systembased on English common law with provisions to accommodate Pakistan's status as an Islamic state; accepts compulsory ICJ jurisdiction with reservations

Suffrage18 years of age; universal; joint electorates and reserved parliamentary seats for women and non-Muslims
Executive branchchief of state: President Asif Ali ZARDARI (since 9 September 2008)
head of government: Prime Minister Syed Yousuf Raza GILANI (since 25 March 2008)
cabinet: Cabinet appointed by the president upon the advice of the prime minister
elections: the president is elected by secret ballot through an Electoral College comprising the members of the Senate, National Assembly, and the provincial assemblies for a five-year term; election last held on 6 September 2008 (next to be held not later than 2013); note - any person who is a Muslim and not less than 45 years of age and is qualified to be elected as a member of the National Assembly can contest the presidential election; the prime minister is selected by the National Assembly; election last held on 24 March 2008
election results: Asif Ali ZARDARI elected president; ZARDARI 481 votes, SIDDIQUE 153 votes, SYED 44 votes; Syed Yousuf Raza GILANI elected prime minister; GILANI 264 votes, Pervaiz ELAHI 42 votes; several abstentions

Legislative branchbicameral parliament or Majlis-e-Shoora consists of the Senate (100 seats; members indirectly elected by provincial assemblies and the territories' representatives in the National Assembly to serve six-year terms; one half are elected every three years) and the National Assembly (342 seats; 272 members elected by popular vote; 60 seats reserved for women; 10 seats reserved for non-Muslims; serve five-year terms)
elections: Senate - last held on 3 March 2009 (next to be held in March 2012); National Assembly - last held on 18 February 2008 with by-elections on 26 June 2008 (next to be held in 2013)
election results: Senate - percent of vote by party - NA; seats by party - PPPP 27, PML-Q 21, MMA 9, PML-N 7, ANP 6, MQM 6, JUI-F 4, BNP-A 2, JWP 1, NPP 1, PKMAP 1, PML-F 1, PPP 1, independents 13; National Assembly - percent of votes by party - NA; seats by party - PPPP 124, PML-N 91, PML 54, MQM 25, ANP 13, MMA 7, PML-F 5, BNP-A 1, NPP 1, PPP-S 1, independents 17; note - 3 seats remain unfilled

Judicial branchSupreme Court (justices appointed by the president); Federal Islamic or Sharia Court

Political pressure groups and leadersother: military (most important political force); ulema (clergy); landowners; industrialists; small merchants
International organization participationADB, ARF, C, CP, ECO, FAO, G-24, G-77, IAEA, IBRD, ICAO, ICC, ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURCAT, MINURSO, MONUC, NAM, OAS (observer), OIC, OPCW, PCA, SAARC, SACEP, SCO (observer), UN, UNAMID, UNCTAD, UNESCO, UNHCR, UNIDO, UNMIL, UNMIS, UNMIT, UNOCI, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO
Flag descriptiongreen with a vertical white band (symbolizing the role of religious minorities) on the hoist side; a large white crescent and star are centered in the green field; the crescent, star, and color green are traditional symbols of Islam

Economy - overviewPakistan, 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.)
$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.)
6% (2007 est.)
6% (2006 est.)
GDP - per capita (PPP)$2,500 (2008 est.)
$2,500 (2007 est.)
$2,400 (2006 est.)
note: data are in 2008 US dollars
GDP - composition by sector(%)agriculture: 20.4%
industry: 26.6%
services: 53% (2008 est.)
Labor force50.58 million
note: extensive export of labor, mostly to the Middle East, and use of child labor (2008 est.)

Labor force - by occupation(%)agriculture: 43%
industry: 20.3%
services: 36.6% (2005 est.)
Unemployment rate(%)13.6% (2008 est.)
5.6% (2007 est.)
note: substantial underemployment exists
Population below poverty line(%)24% (FY05/06 est.)
Household income or consumption by percentage share(%)lowest 10%: 3.9%
highest 10%: 26.5% (2005)
Distribution of family income - Gini index30.6 (FY07/08)
41 (FY98/99)
Investment (gross fixed)(% of GDP)20% of GDP (2008 est.)
Budgetrevenues: $22.3 billion
expenditures: $32.35 billion (2008 est.)
Inflation rate (consumer prices)(%)20.3% (2008 est.)
7.6% (2007 est.)

Stock of money$NA (31 December 2008)
$52.76 billion (31 December 2007)
Stock of quasi money$NA (31 December 2008)
$18.42 billion (31 December 2007)
Stock of domestic credit$NA (31 December 2008)
$65.05 billion (31 December 2007)
Market value of publicly traded shares$23.49 billion (31 December 2008)
$70.26 billion (31 December 2007)
$45.52 billion (31 December 2006)
Economic aid - recipient$1.666 billion (2005)

Public debt(% of GDP)51.2% of GDP (2008 est.)
71.4% of GDP (2004 est.)
Agriculture - productscotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs
Industriestextiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimp

Industrial production growth rate(%)4.6% (2008 est.)

Current account balance-$15.68 billion (2008 est.)
-$8.297 billion (2007 est.)
Exports$21.09 billion (2008 est.)
$18.12 billion (2007 est.)

Exports - commodities(%)textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sports goods, chemicals, manufactures, carpets and rugs
Exports - partners(%)US 16%, UAE 11.7%, Afghanistan 8.6%, UK 4.5%, China 4.2% (2008)
Imports$38.19 billion (2008 est.)
$28.76 billion (2007 est.)

Imports - commodities(%)petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea
Imports - partners(%)China 14.1%, Saudi Arabia 12%, UAE 11.2%, Kuwait 5.4%, India 4.8%, US 4.7%, Malaysia 4.1% (2008)

Reserves of foreign exchange and gold$8.903 billion (31 December 2008 est.)
$15.69 billion (31 December 2007 est.)
Debt - external$46.39 billion (31 December 2008 est.)
$38.8 billion (31 December 2007 est.)

Stock of direct foreign investment - at home$25.44 billion (31 December 2008 est.)
$20.01 billion (31 December 2007 est.)
Stock of direct foreign investment - abroad$1.017 billion (31 December 2008 est.)
$982 million (31 December 2007 est.)
Exchange ratesPakistani rupees (PKR) per US dollar - 70.64 (2008 est.), 60.6295 (2007), 60.35 (2006), 59.515 (2005), 58.258 (2004)

Currency (code)Pakistani rupee (PKR)

Telephones - main lines in use4.546 million (2008)
Telephones - mobile cellular91.44 million (2009)
Telephone systemgeneral assessment: the telecommunications infrastructure is improving dramatically with foreign and domestic investments in fixed-line and mobile networks; mobile-cellular subscribership has skyrocketed, reaching some 91 million in 2009, up from only about 300,000 in 2000; fiber systems are being constructed throughout the country to aid in network growth; main line availability has risen only marginally over the same period and there are still difficulties getting main line service to rural areas
domestic: microwave radio relay, coaxial cable, fiber-optic cable, cellular, and satellite networks
international: country code - 92; landing point for the SEA-ME-WE-3 and SEA-ME-WE-4 submarine cable systems that provide links to Asia, the Middle East, and Europe; satellite earth stations - 3 Intelsat (1 Atlantic Ocean and 2 Indian Ocean); 3 operational international gateway exchanges (1 at Karachi and 2 at Islamabad); microwave radio relay to neighboring countries (2009)
Internet country code.pk
Internet users18.5 million (2008)
Airports145 (2009)
Pipelines(km)gas 10,402 km; oil 2,076 km; refined products 792 km (2008)
Roadways(km)total: 259,197 km
paved: 172,827 km (includes 711 km of expressways)
unpaved: 86,370 km (2007)

Ports and terminalsKarachi, Port Muhammad Bin Qasim
Military branchesArmy (includes National Guard), Navy (includes Marines and Maritime Security Agency), Pakistan Air Force (Pakistan Fiza'ya) (2008)
Military service age and obligation(years of age)17-23 years of age for voluntary military service; soldiers cannot be deployed for combat until age 18; the Pakistani Air Force and Pakistani Navy have inducted their first female pilots and sailors (2009)
Manpower available for military servicemales age 16-49: 42,633,765
females age 16-49: 40,114,017 (2008 est.)
Manpower fit for military servicemales age 16-49: 33,690,322
females age 16-49: 32,602,910 (2009 est.)
Manpower reaching militarily significant age annuallymale: 2,089,936
female: 1,964,090 (2009 est.)
Military expenditures(% of GDP)3% of GDP (2007 est.)
Disputes - internationalvarious talks and confidence-building measures cautiously have begun to defuse tensions over Kashmir, particularly since the October 2005 earthquake in the region; Kashmir nevertheless remains the site of the world's largest and most militarized territorial dispute with portions under the de facto administration of China (Aksai Chin), India (Jammu and Kashmir), and Pakistan (Azad Kashmir and Northern Areas); UN Military Observer Group in India and Pakistan (UNMOGIP) has maintained a small group of peacekeepers since 1949; India does not recognize Pakistan's ceding historic Kashmir lands to China in 1964; India and Pakistan have maintained their 2004 cease fire in Kashmir and initiated discussions on defusing the armed stand-off in the Siachen glacier region; Pakistan protests India's fencing the highly militarized Line of Control and construction of the Baglihar Dam on the Chenab River in Jammu and Kashmir, which is part of the larger dispute on water sharing of the Indus River and its tributaries; to defuse tensions and prepare for discussions on a maritime boundary, India and Pakistan seek technical resolution of the disputed boundary in Sir Creek estuary at the mouth of the Rann of Kutch in the Arabian Sea; Pakistani maps continue to show the Junagadh claim in India's Gujarat State; by 2005, Pakistan, with UN assistance, repatriated 2.3 million Afghan refugees leaving slightly more than a million, many of whom remain at their own choosing; Pakistan has proposed and Afghanistan protests construction of a fence and laying of mines along portions of their porous border; Pakistan has sent troops into remote tribal areas to monitor and control the border with Afghanistan and to stem terrorist or other illegal activities

Refugees and internally displaced personsrefugees (country of origin): 1,043,984 (Afghanistan)
IDPs: undetermined (government strikes on Islamic militants in South Waziristan); 34,000 (October 2005 earthquake; most of those displaced returned to their home villages in the spring of 2006) (2007)
Electricity - production(kWh)90.8 billion kWh (2007 est.)
Electricity - production by source(%)fossil fuel: 68.8%
hydro: 28.2%
nuclear: 3%
other: 0% (2001)
Electricity - consumption(kWh)72.2 billion kWh (2007 est.)
Electricity - exports(kWh)0 kWh (2008 est.)
Electricity - imports(kWh)0 kWh (2008 est.)
Oil - production(bbl/day)61,870 bbl/day (2008 est.)
Oil - consumption(bbl/day)383,000 bbl/day (2008 est.)
Oil - exports(bbl/day)30,090 bbl/day (2007 est.)
Oil - imports(bbl/day)319,500 bbl/day (2007 est.)
Oil - proved reserves(bbl)339 million bbl (1 January 2009 est.)
Natural gas - production(cu m)37.5 billion cu m (2008 est.)
Natural gas - consumption(cu m)37.5 billion cu m (2008 est.)
Natural gas - exports(cu m)0 cu m (2008)
Natural gas - proved reserves(cu m)885.3 billion cu m (1 January 2009 est.)
HIV/AIDS - adult prevalence rate(%)0.1% (2007 est.)
HIV/AIDS - people living with HIV/AIDS96,000 (2007 est.)
HIV/AIDS - deaths5,100 (2007 est.)
Major infectious diseasesdegree of risk: high
food or waterborne diseases: bacterial diarrhea, hepatitis A and E, and typhoid fever
vectorborne diseases: dengue fever and malaria
animal contact disease: rabies
note: highly pathogenic H5N1 avian influenza has been identified in this country; it poses a negligible risk with extremely rare cases possible among US citizens who have close contact with birds (2009)
Literacy(%)definition: age 15 and over can read and write
total population: 49.9%
male: 63%
female: 36% (2005 est.)

School life expectancy (primary to tertiary education)(years)total: 7 years
male: 7 years
female: 6 years (2006)
Education expenditures(% of GDP)2.6% of GDP (2006)








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