ECONOMY CONDITION Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes and

low levels of foreign investment. Between 2001-07, however, poverty levels decreased by 10%, as Islamabad steadily raised development spending. During 2004-07, GDP growth in the 5-8% range was spurred by gains in the industrial and service sectors - despite severe electricity shortfalls - but growth slowed in 2008-09 and unemployment rose. Inflation remains the top concern among the public, climbing from 7.7% in 2007 to more than 13% in 2010. In addition, the Pakistani rupee has depreciated since 2007 as a result of political and economic instability. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 in response to a balance of payments crisis, but during 2009-10 its current account strengthened and foreign exchange reserves stabilized - largely because of lower oil prices and record remittances from workers abroad. Record floods in July-August 2010 lowered agricultural output and contributed to a jump in inflation, and reconstruction costs will strain the limited resources of the government. Textiles account for most of Pakistan's export earnings, but Pakistan's failure to expand a viable export base for other manufactures has left the country vulnerable to shifts in world demand. Other long term challenges include expanding investment in education, healthcare, and electricity production, and reducing dependence on foreign donors. GDP (purchasing power parity) $464.9 billion (2010 est.) $443.6 billion (2009 est.) $429.2 billion (2008 est.) note: data are in 2010 US dollars GDP (official exchange rate) $174.9 billion (2010 est.) GDP - real growth rate 4.8% (2010 est.) 3.4% (2009 est.) 1.6% (2008 est.) GDP - per capita (PPP) $2,500 (2010 est.) $2,400 (2009 est.) $2,400 (2008 est.) note: data are in 2010 US dollars

GDP - composition by sector agriculture: 21.2% industry: 25.4% services: 53.4% (2010 est.) Population below poverty line 24% (FY05/06 est.) Labor force 55.77 million note: extensive export of labor, mostly to the Middle East, and use of child labor (2010 est.) Labor force - by occupation agriculture: 43% industry: 20.3% services: 36.6% (2005 est.) Unemployment rate 15.4% (2010 est.) 14.4% (2009 est.) note: substantial underemployment exists Unemployment, youth ages 15-24 total: 7.7% male: 7% female: 10.5% (2008) Household income or consumption by percentage share lowest 10%: 3.9% highest 10%: 26.5% (2005) Distribution of family income - Gini index 30.6 (FY07/08) 41 (FY98/99) Investment (gross fixed)

13.8% of GDP (2010 est.) Budget revenues: $24.75 billion expenditures: $35.67 billion (2010 est.) Taxes and other revenues 14.2% of GDP (2010 est.) Budget surplus (+) or deficit (-) -6.2% of GDP (2010 est.) Public debt 50.6% of GDP (2010 est.) 50.2% of GDP (2009 est.) Inflation rate (consumer prices) 13.9% (2010 est.) 13.6% (2009 est.) Central bank discount rate 0.07% (31 December 2010 est.) 12.5% (31 December 2009 est.) Agriculture - products cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs Industries textiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimp Industrial production growth rate 4.6% (2010 est.) Electricity - production 89.23 billion kWh (2009 est.)

Imports $32.88 billion (2010 est.) $28.62 billion (2009 est.) Imports - commodities petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea Imports - partners China 17.9%, Saudi Arabia 10.7%, UAE 10.6%, Kuwait 5.5%, US 4.9%, Malaysia 4.8% (2010) Pakistani culture Pakistani culture can be called as Mixed Culture. Although the majority of people in Pakistan are Muslims by birth and faith, there is a strong influence of Hindu culture on the present Pakistani culture. The shadows of this influence are quite visible on the marriage ceremonies and festivals like Basant. Dowry Systems and heavy expenditures on the marriage of girls is done, which is inherited from Hindu society because in Hindu society there is no share of women in the inheritance of their parents. Although women are given a share in the inheritance of their parents in Pakistani society, there are huge expenditures on the marriages of daughters. English is the official language in Pakistan, but the national language is Urdu, which is widely spoken and understood throughout the country. Punjabi, Pushto, Sindhi, Baluchi and Kashmiri are the regional languages. Pakistani society is a Male Oriented Society, where they are given full protection and great respect. The family is headed by a male member, usually the oldest male member of the group. He guides the other members. Old people are given positions of prestige, honor and respect in Pakistani culture. Social life is simple. Social customs and traditions reflect Islamic touch: people are very much conscious about their social traditions and feel pride in following them. Dress in a Muslim society like Pakistan is designed and intended to cover human body, as nudity is prohibited in Islam. So, people of Pakistan prefer to wear simple dresses according to their climate. Pakistani handicrafts are gaining popularity in the world market day by day, as Pakistani craftsman are considered as the best in their craftsmanship. Pakistan is famous for its high standard items of glass, silver, wooden furniture, pottery, marble goods and things made of camel skin.

Cricket, Hockey, Football, Kabbadi, squash, badminton, and wrestling are the major sports in Pakistan. Ulema, Mushaikh and Sufi poets occupy highly honored places in Pakistani culture. The society and culture of Pakistan, comprises frequent assorted cultures and national groups as the Punjabis, Kashmiri and Sindhis in the east; the tribal cultures of the Baloch and Pashtun in the west; and the very old Dardic and Tajik communities in the north. These Pakistani cultures have been greatly influenced by many of the surrounding countries cultures, such as the Turkish, Persian, Afghan, and Indians of South Asia, Central Asia and the Middle East.