Pakistan Economy

Pakistans economy is 26th largest in the world in terms of PPP, and 14th in terms of nominal
GDP with the per capita nominal GDP of $1,427. The average GDP growth rate in Pakistan
from 1952 to 2014 is 4.92 per year. The highest GDP growth rate is 10.22% in 1954 and the
lowest is -1.80% in 1952.

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TradingEconomics

The main drivers of the Pakistans economy are the following sectors
1234-

Agriculture
Services Sector
Manufacturing Sector
Industry
iMining and Quarrying Sector
iiConstruction Sector

According to the 2013 estimate, the percentage contribution of the sectors to the total GDP
are:
Agriculture: 25.3%
Industry: 21.6%
Services: 53.1%

Agriculture Sector:
Pakistan has a rich and vast natural resource base, covering various ecological and climatic
zones hence the country has great potential for producing all types of food commodities. It
has an important direct and indirect role in generating economic growth.
About 50 years earlier, this sector was not considered as commercial sector for economic
development. During the last 50 years this sector becomes a major productive sector of
Pakistan economy.
According to the latest economic survey, Agriculture sector contributes 20.88% to GDP and
43.5% of employment. The sector has linkages with other sectors of economy and play
significant role in socio-economic development of country.

Economic Surveys
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

Contribution to GDP (%)

25.98
25.77
26.35
24.99
25.55
26.14
25.48
26.7
27.31
27.03
25.93
24.09
23.35
23.36
22.18
21.47
23.01
23.06
23.11
23.91
24.29
26.02
24.55
25.11
25.12
[5]

TheGlobalEconomy

Services Sector:
Services sector is largest and fastest growing sector in the economy of world. In Pakistan, the
shares of services are increasing in all sectors of economy. The growth rate of services sector
is greater than agriculture and manufacturing. According to the latest survey, it accounts to
54% of GDP.
Economic Surveys
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

Contribution to GDP (%)

48.83
48.78
48.63
50.29
50.19
50.06
50.35
49.79
48.89
49.23
50.74
51.89
52.78
52.73
50.83
51.43
56.04
55.81
54.56
55.89
55.13
52.74
53.4
53.81
53.59
[5]

TheGlobalEconomy

Manufacturing Sector:
Industrial sector is the second largest individual sector of the Pakistans economy accounts
for the 20.3% to the GDP according to the latest economic survey. This sector reduces the
dependence on agricultural exports to earn the foreign exchange.

Economic Surveys
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

Contribution to GDP (%)

17.41
17.13
16.86
16.67
16.78
16.31
16.05
15.88
15.85
15.48
14.68
15.5
15.5
16
17.19
18.56
13.81
14.03
15.19
13.39
13.64
14.32
14.48
14.01
14.06
[5]

TheGlobalEconomy

Industry Sector:
Mining & Quarrying Sector:
Mining sector is also important driver of Pakistan economy. Pakistan is blessed with many
significant mineral resources. According to the latest economic survey, it contributes 3.0% to
the total GDP.
Construction Sector:
Construction sector is considered to be a basic and important industry on which the
development of any country depends to a great extent. The growth of country and its status of
development are generally determined by the quality of its construction companies and their
capabilities. This industry plays an important role in the economic uplift. But Construction
sector is one of the most neglected sectors in Pakistan because the per capita consumption of
cement in Pakistan is one of the lowest in the developing countries i.e. 72kgs. (Hassan, 2002).
Economic Surveys
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

Contribution to GDP
25.19
25.45
25.02
24.72
24.26
23.8
24.16
23.51
23.8
23.74
23.33
24.02
23.86
23.91
26.99
27.1
20.95
21.13
22.33
20.2
20.58
21.23
22.05
21.08
21.28
[5]
TheGlobalEconomy

Comparison of Construction Sector with Other Sectors:

Construction sector comes under the Industry sector. In Pakistan, construction sector is
unfortunately did not treated as an important sector. However, it is very important sector in
the world because it can generate revenue but also it can provide employments and can fulfill
the needs of country.
60
50
40
Agriculture

30

Industry
Manufacture

20

Services

10
0

[5]

TheGlobalEconomy

This is the last 25 years data of Pakistan Economy. And we can see that in the last 10 years,
the industry sector is running behind the agriculture and services sector. Keeping in mind that
industry sector do not contain only construction sector, there are many sectors so we can get
the idea that the construction sector in our country is not the major or prominent contributor
is the national economy.

References:
1)
2)
3)
4)

World Bank Organization

Ministry of Finance, Pakistan
State Bank of Pakistan
Trading Economics www.tradingeconomics.com
5) The Global Economy www.theglobaleconoy.com