Pakistan Industry Sectors

Pakistan is the 27th largest economy in the world, with a GDP (PPP) of US$ 464.897 billion. It operates on a semi-industrialized economy, which includes agriculture, textiles, mining and IT industries.

Since 2000, the Pakistan government under then-President Pevez Musharraf aim to boost the economy of Pakistan by introducing various macroeconomic policies. The government initiative of the privatization of Pakistan’s industry and services has boosted job growth opportunities, and are the driving force behind the country’s economic growth in the 2000s.

Pakistan is the 27th largest economy in the world, with a GDP (PPP) of US$ 464.897 billion. It operates on a semi-industrialized economy, which includes agriculture, textiles, mining and IT industries.

Since 2000, the Pakistan government under then-President Pevez Musharraf aim to boost the economy of Pakistan by introducing various macroeconomic policies. The government initiative of the privatization of Pakistan’s industry and services has boosted job growth opportunities, and are the driving force behind the country’s economic growth in the 2000s.

Pakistan has large reserve of natural resources, which include oil, coal, iron, ore, copper, salt and gold. Pakistan has the 2nd largest salt mine, 2nd largest coal reservoirs and 5th largest goal mine in the world. However, due to constraints in infrastructure and funding, the exploration and production of the natural reserves has been slow. Experts predict current exploration makes up only about 20 – 30 percent of the country’s deposits.

Pakistan’s Industry Sectors

Agriculture was responsible for 21.8 percent of Pakistan’s GDP in 2010. Pakistan’s arable land, which takes up 25 percent of total land area, makes the country one of the world’s largest producers of commodities, which include apricot, buffalo milk, chickpea, cotton, dates, mango, onion, oranges, rice, sugarcane, tangerines and wheat, according to Food and Agriculture Organization.

Industry is also important to Pakistan’s economy. It contributes 23.6 percent to the nation’s total GDP and employs 20.3 percent of the total workforce. Important industries includes textiles, mining and information technology.

Pakistan has a sound textile industry, as it is one of the major producers of cotton in the world. Textiles and apparel  manufacturing contributes 51.4 percent of the country’s total exports. The textile industry also employs 40 percent of the industrial workforce.

Information technology (IT) industry in Pakistan has been growing in recent years. This growth can be observed from the increase in software exports to foreign markets. The booming IT industry also sees a rise in the number of IT companies set up in the country. To date, there are 1306 IT companies in the estimated IT market of US$2.8 billion.

In 2010, services contributes 54.6 percent of Pakistan’s total GDP, and employs 36.6 percent of the workforce. The government’s initiative of the privatization of telecommunications, utilities and banking industry have brought about significant job growth opportunities in services.

Telecommunications plays an important role in the services of Pakistan. For the mobile phone market alone, the number of subscribers have multiplied exponentially since 2000, to reach over 100 million users, boasting one of the highest mobile densities in the world. Telecommunications is also the most attractive industry in Pakistan for foreign direct investment, amounting to over 9 billion since 2000.