economy of pakistan

The Economy of Pakistan

The Economy of Pakistan is made up of various sectors. Some of them are Agricultural sector, Property sector, Processing-food industry, Oil and natural gas industry, and many others. It is a diverse economy that reflects the needs of the population. This article will look at these sectors. You’ll learn about how they contribute to the overall economy of Pakistan.

Agricultural sector

The agriculture sector is one of the most important sectors of Pakistan’s economy and contributes about 18% of GDP. It employs over 38 percent of the national labor force and provides livelihood to more than six out of every ten Pakistanis. It is closely linked to other sectors of the economy and plays a critical role in Pakistan’s socio-economic development. However, agriculture is facing several challenges that need to be addressed if the economy of Pakistan is to grow and contribute more to GDP.

Pakistan’s agriculture is agro-based. It accounts for almost half of the country’s labor force and generates a large share of the country’s export earnings. It also serves as a source of nutrition for a rapidly growing population. The agriculture sector is also a large part of the wider rural economy, including small businesses, local schools, and clinics. These activities generate an estimated 40 to 57 percent of the total rural household income.

Among major exports, Pakistan’s agricultural sector produces rice, cotton, and wheat. It grows around nine billion bales of cotton annually and produces 4.3 million tons of rice each year. These exports are traded abroad against foreign exchange. The money is used to upgrade infrastructure and other sectors of the economy.

Agriculture is an important part of the economy of Pakistan, contributing about 25 percent of the country’s GDP, more than any other sector. It also contributes to employment, which is crucial in developing an economy. Moreover, agriculture produces raw materials for many industries.

Property sector

The property sector in Pakistan is booming with multiple projects being launched in different parts of the country. Some are backed by foreign partners, while others are joint ventures between local developers. This industry contributes over 9 percent of GDP. Nevertheless, the government did not implement a proper regulatory framework to develop the sector, which led to obstacles hindering its growth. Despite these hurdles, the sector is gaining more significance in recent years.

Pakistan’s real estate industry has great potential and can be the backbone of the economy. It can bring about massive employment and improve the country’s foreign relations. It also brings in more investment, which ultimately boosts the government’s revenue. For these reasons, Pakistan should implement a plan to grow its property industry.

Lack of transparency is one of the major obstacles facing the sector. Despite this, the government has taken some positive steps to reform the sector and attract foreign investment. In particular, the government has started launching initiatives to digitize real estate data, which gives investors more confidence. As a result, the sector is expected to grow exponentially in the next few years.

Pakistan has one of the highest housing needs per capita in the world. By 2040, it needs to create 20 million housing units. It is possible to meet the housing demand by building planned areas. Only 0.5% of Pakistan is currently planned, but that area can add up to USD 1.5-2 trillion to the country’s economy. Moreover, the development of planned areas can result in 15 to 20 million jobs.

The CPEC project will have a significant impact on the economy of Pakistan. It will create new jobs and industries and increase the demand for land and housing. As the economy grows, more people will have access to affordable real estate, which will boost the real estate industry.

Processing-food industry

The processed food market in Pakistan has experienced a rapid expansion in recent years. By 2021, it is projected to be worth more than $89 billion. This industry is the second largest in Pakistan after textiles and accounts for 27% of value-added production and 16% of manufacturing employment. The industry is also a significant source of foreign direct investment. Since 2012, it has received $223.5 million in foreign direct investment annually. In 2014, it was granted GSP+ status by the European Union, which translates to zero or low duty on exports.

In 2015-16, the meat industry contributed 1.4% of the country’s GDP. It accounts for 6.9% of value-added agriculture and 11.7% of value-added livestock. It is therefore essential that Pakistan’s meat industry maintains high standards. In addition to meat, other products produced by the meat industry include dairy products, eggs, and poultry products.

The country’s trade balance widened to US$31.8 billion, the highest in ten years. The same year, the country’s exports reached a record level of $25.6 billion, higher than the $25.3 billion in the previous fiscal year. However, the rupee’s depreciation has hit Pakistan’s industries hard.

The country’s food sector is facing a number of challenges. Small landholdings prevent many food processing companies from achieving economies of scale. In addition, the availability of raw materials is a critical constraint. While the country produces industrial crops, a majority of farmers own small land units. Despite these problems, the food sector is undergoing rapid changes in the consumer’s lifestyle and food preferences. Processed food sales are growing at over 10% annually, generating more than $1 billion in economic value annually.

The country’s industrial sector is largely driven by domestic consumption and investments. The economy of Pakistan is led by imports and consumption, as well as exports.


There are many factors that affect the impact of foreign direct investment on the economy of Pakistan. For example, FDI can affect the country’s GDP and trade openness. The impact of FDI on GDP is positive, but it can also have negative effects. FDI can affect the country’s exchange rate, its government debt, and its agri-culture sector. The effects on a country’s economy are complex and cannot be determined before the investment actually occurs.

The government of Pakistan is working on the privatization of the telecommunication industry. This sector has become increasingly attractive to international investors, and the government is pursuing deregulation and liberalization efforts in this area. However, more research is needed to better understand the effect of FDI in other sectors.

The government needs to increase the mobilization of foreign resources, particularly as long-term official assistance becomes more difficult to obtain. In addition, the country’s capital market is still underdeveloped, so encouraging large portfolio investment is not the best option. Therefore, the government needs to make foreign direct investment a top priority.

FDI is important for Pakistan’s economy because it helps in boosting GDP. There are several factors that can mediate the relationship between FDI and GDP, including the level of human resource capital. In addition, Pakistan’s resources provide opportunities for domestic capital formation. The development of domestic capital can benefit the country. The government is making strides to attract FDI, but FDI has not been fully utilized to increase economic growth.

Foreign investors can set up and own most types of businesses in the country, although there are some restrictions. Foreign investors are prohibited from owning radioactive substances and high explosives. In addition, foreign investors cannot own currency, mints, and consumable alcohol. However, the government has been working on easing regulations that prevent discrimination against foreign investment. The 2013 Investment Policy also removed lower and upper limits on foreign equity.

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