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

Swipe to view more

GDP USD263.68bn (World ranking 43, World Bank 2020)
Population 220.892mn (World ranking 5, World Bank 2020)
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, 2020)

Exports Rank Imports
United States 18.6%
1
27.3% China
China 8.4%
2
9.8% United Arab Emirates
United Kingdom 7.8%
3
5.6% United States
Germany 6.3%
4
5.3% Indonesia
United Arab Emirates 4.9%
5
4.1% Saudi Arabia

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Textile yarn and related products 32.0%
1
14.3% Petroleum, petroleum products and related materials
Articles of apparel & clothing accessories 27.8%
2
5.3% Gas, natural and manufactured
Cereals and cereal preparations 9.8%
3
4.8% Fixed vegetable oils and fats, crude, refined or fractionated
Vegetables and fruits 3.4%
4
4.5% Textiles fibres and their wastes
Non-ferrous metals 2.0%
5
4.5% Telecommunication and sound recording apparatus
Popular Risk Reports: Americas

Popular Risk Reports: Europe

Popular Risk Reports: Asia Pacific

Popular Risk Reports: Middle East