tar are centered in the green field; the crescent, star, and color
green are traditional symbols of Islam

@Pakistan:Economy

Overview: The Pakistani economy has made progress in several key areas
since Benazir BHUTTO became Prime Minister in October 1993. She has
been under pressure from international donors and the IMF - which gave
Pakistan a $1.3 billion structural adjustment credit in February 1994
- to continue the economic reforms and austerity measures begun by her
predecessor, caretaker Prime Minister Moeen QURESHI (July-October
1993). Foreign exchange reserves climbed to more than $3 billion in
1994, and the budget deficit was substantially reduced. Real GDP
growth was 4% in FY93/94, up from 2.3% in FY92/93. Foreign direct and
portfolio investment also have increased. Privatization of large
public sector utilities began in 1994 with the sale of 12% of the
Pakistan Telecommunications Corporation (PTC) and the Water and Power
Development Authority (WAPDA); the sale of state-owned banks and other
large units are planned for 1995. Still, the government must cope with
long-standing economic vulnerabilities - high levels of debt service
and defense spending, a small tax base, a huge population, and
dependence on cotton-based exports - which hamper its ability to
create a stable economic environment. In addition, Pakistan's
infrastructure is inadequate and deteriorating, low levels of literacy
constrain industrial growth, and increasing sectarian, ethnic, and
tribal violence disrupt production.

National product: GDP - purchasing power parity - $248.5 billion (1994
est.)

National product real growth rate: 4% (1994 est.)

National product per capita: $1,930 (1994 est.)

Inflation rate (consumer prices): 12% (FY93/94)

Unemployment rate: 10% (FY90/91 est.)

Budget:
revenues: $10.5 billion
expenditures: $11.2 billion, including capital expenditures of $3.1
billion (FY93/94)

Exports: $6.7 billion (1993)
commodities: cotton, textiles, clothing, rice, leather, carpets
partners: US, Japan, Hong Kong, Germany, UK, UAE, France

Imports: $9.5 billion (1993)
commodities: petroleum, petroleum products, machinery, transportation
equipment, vegetable oils, animal fats, chemicals
partners: Japan, US, Germany, UK, Saudi Arabia, Malaysia, South Korea

External debt: $24 billion (1993 est.)

Industrial production: growth rate 5.6% (FY93/94); accounts for 18% of
GDP

Elect