The Islamic Republic of Pakistan, is located the area where South Asia converges with Middle East and Central Asia. The country has a 1,046 kilometre (650 miles) coastline along the Arabian Sea and Gulf of Oman in the south, and is bordered by Iran and Afghanistan in the west, India in the east and China in the northeast.
Pakistan’s people and traditions reflect a mixture of many varied cultural influences. Although the modern Pakistani state was founded in 1947, it is home to one of the earliest known human civilizations, the Indus Valley civilization, dating back at least 5000 years.
Pakistan’s economic lifeline and main source of water is the Indus River. Since as far back Indus Valley civilization, the people of this area have settled near the river and used it for agricultural and transportation purposes. The agricultural sector still dominates Pakistan’s economy. The country is one of the world’s largest cotton producers, with cotton being one of its primary export earners. Other significant exports include rice, leather goods, sports goods, chemicals, manufactures, carpets and rugs.
Pakistan is administratively divided into four provinces: Punjab, Sindh, North-West Frontier Province (NWFP) and Baluchistan. the federal capital of Islamabad and seven Federally Administered Tribal Areas (FATA). In addition, Pakistan administers one part of the disputed territory of Kashmir, known as Pakistan Administer Kashmir (PAK) and the Northern Areas. Punjab is Pakistan’s most populous province and produces a significant proportion of agricultural output. NWFP produces many varieties of citrus and dry fruits, as well as timber. To the south, Sindh is also known for its agricultural output and its capital Karachi is Pakistan’s largest city and port, and it’s industrial and financial hub. Baluchistan is the largest province in terms of size but is the least populated. Although largely covered by desert, Baluchistan is rich in natural resources and contains Pakistan’s largest natural gas reserves.
In recent years Pakistan has made significant economic progress. 2007 was the fourth successive year of sustained high growth in the economy, with the average annual growth accelerating to 7.0 percent from 2003 to 2007. However, in 2007-08 the GDP has fallen to 5.8% (against the target of 7.2%). The energy and food crisis, double digit inflation, especially, food inflation, high trade and fiscal deficit and falling savings and investment rates have all contributed to this fall in GDP.
With a human development index (HDI) of 0.551 in 2007, Pakistan ranks 136th out of 177 countries, according to the Human Development Report 2007. Pakistan’s human development indicators have generally improved, they still lag behind other countries in the region. The recent economic growth has increased disparities between regions and rural-urban areas, particularly in recent years. The country continues has a combined literacy rate of 49.9% and the percentage of people living below Poverty Line i.e. Rs. 944.47 (USD $16 approx) per adult equivalent per month is 22.32 %
The government has released its Public Sector Development Programme (PSDP) around five priority areas during 2008-09. The priority areas are:
- Providing a comprehensive safety net against severe hardships faced by the poor & vulnerable groups;
- Overcoming the Energy and Water Crisis in a planned & systematic manner;
- development and uplift of Baluchistan and NWFP and Special Areas (FATA, PAK and Northern Areas);
- Reviving growth in agriculture and in manufacturing so as to overcome food shortages and generate vitally needed incomes and employment;
- Building up human resources with education at all levels.
Given the high poverty levels in Pakistan, it is extremely important to maintain stable growth rates in the medium to long term to be able to bring the effects of economic growth to the common person. Key challenges facing Pakistan include a poorly targeted social safety net, an infrastructure deficit – particularly in energy, transport, and irrigation, and poor delivery of social services. The country must continue to work towards improving its overall human development indictors, and UNDP is committed to helping Pakistan achieve these goals
*Source: UNDP Situation Analysis Pakistan 2008
