assistance and renewed access to global markets
since late 2001, have generated solid macroeconomic recovery the
last two years. The government has made substantial inroads in
macroeconomic reform since 2000, although progress on more
politically sensitive reforms has slowed. For example, in the third
and final year of its $1.3 billion IMF Poverty Reduction and Growth
Facility, Islamabad has continued to require waivers for energy
sector reforms. While long-term prospects remain uncertain, given
Pakistan's low level of development, medium-term prospects for job
creation and poverty reduction are the best in nearly a decade.
Islamabad has raised development spending from about 2% of GDP in
the 1990s to 4% in 2003, a necessary step towards reversing the
broad underdevelopment of its social sector. GDP growth is heavily
dependent on rain-fed crops, and last year's end to a four-year
drought should support moderate agricultural growth for the next few
years. Foreign exchange reserves continued to reach new levels in
2003, supported by robust export growth and steady worker
remittances.

GDP:
purchasing power parity - $318 billion (2003 est.)

GDP - real growth rate:
5.5% (2003 est.)

GDP - per capita:
purchasing power parity - $2,100 (2003 est.)

GDP - composition by sector:
agriculture: 23.3%
industry: 23.5%
services: 53.2% (2003 est.)

Investment (gross fixed):
12.9% of GDP (2003)

Population below poverty line:
35% (2001 est.)

Household income or consumption by percentage share:
lowest 10%: 4.1%
highest 10%: 27.6% (FY96/97)

Distribution of family income - Gini index:
41 (FY98/99)

Inflation rate (consumer prices):
2.9% (2003 est.)

Labor force:
43.98 million
note: extensive export of labor, mostly to the Middle East, and use
of child labor (2003)

Labor force - by occupation:
agriculture 44%, industry 17%, services 39% (1999 est.)

Unemployment rate:
7.7% plus substantial underemployment (2003 est.)

Budget:
revenues: $12.08 billion
expenditures: $15.41 billion, including capital expenditures of NA
(2003 est.)

Public debt:
72.7% of GDP (2003)

Agriculture - products:
cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef,
mutton, eggs

Industries:
textiles and apparel, food processing, pharmaceuticals,
construction materials, paper products, fertilizer, shrimp

Industrial production growth