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The Economy of Pakistan

Pakistan at a Glance

Pakistan is a populous South Asian economy dependent on agriculture, textiles and remittances, and repeatedly squeezed by balance-of-payments crises.

Pakistan has more than 240 million people, making it one of the world’s most populous countries, with a young population and a large informal economy.

Sectors

Agriculture employs about a third of workers, textiles dominate exports and services form the largest share of GDP.

Strengths

A large young workforce, a big domestic market and diaspora remittances.

Weaknesses

Low tax collection, energy shortages, low investment and frequent external financing crises.

Cotton to clothes

Cotton grown in Punjab is spun and woven into cloth and garments for export.

Assuming Pakistan's economy is simply a smaller India

Its structure and challenges differ.

Key takeaways
  • Pakistan is very populous.
  • Agriculture and textiles are central.
  • Remittances matter.
  • Balance-of-payments crises recur.
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