Pakistan’s Recent Macroeconomic Performance
Pakistan is bounded by India, China, Iran and Afghanistan. Its population of 153 million
makesit the sixth most populous country in the world. It is strategically located in the region and hasaccess to a long coastline along the Arabian Sea. With a population growth rate of approximately3%, Pakistan’s population is estimated to reach 240 million by the year 2020.
Pakistan’s macroeconomic picture has improved considerably over the past five years and theeconomy is expected to maintain its growth momentum. Pakistan’s Gross Domestic Product(“GDP”) grew by 6.6% in the fiscal year ended 30 June 2006 (“FY 2006”) and the estimates forFY 2007 are between 7.0% and 7.3%
.This economic growth compares favourably with regional trends. The Figure below showsPakistan’s GDP growth exceeded the regional average last year.Prior to 1999-2000, Pakistan was lagging behind regional average GDP growth. The economicreforms instituted by the Government of Pakistan in 2001 started taking effect, and Pakistanexperienced sustained economic growth from FY 2003 onwards. Beyond 2005, higher oil pricesare expected to dampen GDP growth rates of Asian economies with high oil import bills.However, Pakistan delivered a GDP growth rate substantially higher than the Asian averageforecast of 5.8%.
Government of Pakistan estimate. CIA World Factbook estimates 162 million
Asian Development Bank