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The main articles are:
GDP
2022: Pakistan's share of global PPP GDP rises to 0.94%
Main article: World Economy
Financial system
External debt
2022: The country's economy is strictly tied to external loans and is on the verge of default
By 2022, Pakistan was heavily stuck in debt to China, the Gulf countries and the International Monetary Fund (IMF).
The situation was aggravated by summer floods throughout the republic, with the consequences of which they could not cope by December. Humanitarian aid from the UN and some states has essentially stopped, and Pakistan is on the verge of default.
An attempt to refinance loans through the IMF also failed due to the requirements of an international organization. The Fund demands a decrease in dependence on China and a de facto freeze on the China-Pakistan Economic Corridor project from the PRC to the Pakistani port of Gwadar, which, even if the government wishes, is no longer possible.
2019: Debt to China - $20.2 billion
with the
Gold and foreign exchange reserves
2023: Reserves cut to $4 billion
2022:42% reduction in reserves for the year to $14 billion
In the year to October 2022, Pakistan lost up to 42% of its foreign exchange reserves. For a country with a population of over 230 million people, reserves of $14 billion are absolutely critical. This will not be enough even for three months of import payment, which is fraught with the country's default, which will inevitably increase the general turbulence in the global economy.
Inflation
2022: Inflation in November - 26.6%
Key rate
2023: Up to 21%
In April 2023, Pakistan's Central Bank raised its benchmark interest rate from 20% to a record 21% as prices skyrocket, the country is teetering on the brink of default and the International Monetary Fund's bailout program is suspended.
Currency: Pakistan rupee
2023: Depreciation to 240 rupees per dollar
The Pakistani currency fell 2.7 per cent in January 2023, nearing a record low, a day after exchangers lifted the cap on the rupee against the dollar.
The rupee fell to 238.25 against the US dollar, nearing a record low of 240.375 set in July, according to data compiled by Bloomberg.
Pakistani currency exchange companies have lifted the cap on the rate to the rupee since dollar Wednesday and said they would allow the currency to fall slowly on the open market. dollars Supply at Pakistan's exchange offices has dried up and locals are turning to the black market, where the dollar sells about 10% above the announced rates.
2021: Pakistan rupee falls to 200 per dollar for first time amid dwindling foreign exchange reserves
According to the results of trading on May 20, 2022, the Pakistani rupee fell by 0.08% to 200.14 per US dollar, breaking the 200/$ 1 mark for the first time in history amid a shortage of dollars from the state, Bloomberg reported.
The Pakistani government's foreign exchange reserves now cover less than two months of imports, the agency wrote.
The country's authorities are negotiating with the International Monetary Fund to resume the currency lending program. However, an important condition for the IMF is an increase in fuel prices, which could cause popular discontent against the background of already high inflation of 13%.
Energy carriers
2023: Pakistan starts buying oil from Russia
In April 2023, Pakistan placed the first discounted oil order in Russia under a bilateral agreement between the two countries, Pakistan's Minister of State for Oil Musadiq Malik said. As expected, supplies will reach 100 thousand barrels per day. According to Malik, the first tanker with Russian oil will arrive at the port of Karachi in May. Oil delivered from Russia will be processed at Pakistani enterprises.
2021: Russia and Pakistan sign agreement to build Pakistan Stream gas pipeline
Main article: Pakistan Stream
In May 2021, Russia and Pakistan signed an agreement on the construction of the Pakistan Stream gas pipeline (formerly North-South).
A pipe of 1,100 kilometers, with a capacity of up to 12.4 billion cubic meters per year, will connect the terminal of the port city of Karachi in southern Pakistan with Lahore.
2018: Petrol price less than €1 per litre
Power
2020: Very low energy consumption per capita
and
Foreign trade
2022
The United States is the largest export destination
No. 4 in the world in terms of rice exports
2020: Trade with Russia reaches $730 million
In 2020, the trade turnover of Russia and Pakistan reached a record $730 million.
2015: Meager trade with India
According to ITC, in 2015, exports from India to Pakistan amounted to $1.96 billion, compared to $2.17 billion in 2014 - the share of supplies to Pakistan in the total volume of Indian exports amounted to 0.74% and 0.68%, respectively. In 2015, India supplied mainly uncrewed cotton fiber ($506.014 million, or 25.8%) and cotton yarn ($109.895 million, or 5.6%) to the neighboring country.
India in 2015 reduced imports from Pakistan in price terms to $456.328 million compared to $529.855 million in 2014, although the share in total imports did not change - 0.12%. At the same time, Pakistan's share in Indian imports over the past 15 years has not exceeded 0.16%. In 2015, India purchased mainly oil and oil products from Pakistan ($113.837 million, or 24.9%) and fruits: dates, figs, pineapples, etc. ($93.825 million, or 20.6%)[1]
Outsourcing IT
The leader of IT outsourcing for 2019 is traditionally India, where there are many cheap programmers (even if most of them graduated from two-week courses).
Communication
2024: In Pakistan, people are turned off their mobile communications for tax debts
At the end of April 2024, the Pakistani authorities approved a new measure to combat tax defaulters. The government has directed the national telecommunications authority and local cellular operators to block SIM cards of individuals caught evading taxes.
According to The Register, over 506 thousand citizens were blacklisted. Their names are given in a publicly available PDF document of 8737 pages. According to the order of the authorities, participants in the telecommunications industry of Pakistan are obliged to ensure the blocking of SIM cards that belong to the people listed on the list. In case of refusal to fulfill this requirement, fines are provided, the amount of which can reach $358 thousand.
Moreover, the Pakistani authorities intend to introduce an increased fee for the use of communication services for citizens who do not comply with tax legislation: it will be 75% against the usual 15%. The approval of these measures is explained by the government's desire to increase the flow of funds to the state treasury. The fact is that the country has large debts to the International Monetary Fund (IMF), which provides financial assistance to Pakistan. The funds are allocated for the implementation of reforms that are expected to stabilize the state's economy and ensure growth.
Against this background, Pakistan intends to accelerate the digitalization of government operations. In part, this initiative is also aimed at improving the efficiency of tax collection. Earlier in the work of the IT systems of the Federal Tax Administration of Pakistan there were failures associated, among other things, with the unsuccessful project of migration to the new platform. It was said that the department could use pirated software, as well as products with an expired support period.[2]
R&D
2020: R&D spending - $2.5 billion
Unemployment
2020: Unemployment rate - 4.5%
Incomes of the population
2023: Minimum wage - $111
Agriculture
2019: Low use of pesticides in agriculture
Real estate
2020:56% of urban population lives in slums
Consumption
2023: Beef is the most consumed type of meat
See also
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