Ongoing vulnerabilities limit the economic potential

D4

HIGH RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD313bn (World ranking 40, World Bank 2018)
Population 212mn (World ranking 5, World Bank 2018)
Form of state Federal Parliamentary Republic 
Head of government Imran Khan (President)
Next elections 2023, presidential and legislative (National Assembly)
  • Large domestic market
  • Strategic location, in principle, neighboring both China and India
  • Despite often strained relations, continued support by the US and multilateral agencies (IMF)
  • Strong hard currency remittances
  • Susceptibility to natural disasters and dependence on rain-fed agriculture
  • Substantial domestic and regional security risks (social unrest, tensions with India over Kashmir, border with Afghanistan)
  • Low per capita income and high poverty levels
  • Large fiscal deficits and high level of public debt
  • Low foreign exchange reserves (just around two months import cover in 2019)
  • High exchange rate vulnerability and inflationary risk
  • Weak business environment

Trade structure by destination/origin

(% of total)

Exports Rank Imports
United States 15%
1
20% China
China 9%
2
15% United Arab Emirates
Afghanistan 8%
3
9% Saudi Arabia
United Kingdom 7%
4
6% Kuwait
United Arab Emirates 5%
5
4% India

Trade structure by product

(% of total)

Exports Rank Imports
Textile yarn and related products 37%
1
30% Petroleum and related products
Articles of apparel, clothing accessories 20%
2
4% Fixed vegetable oils and fats
Cereals and cereals preparations 10%
3
4% Organic chemicals
Vegetables and fruits 3%
4
4% Iron and steel
Petroleum and related products 3%
5
4% Plastics in primary forms
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