Pakistan

A

Agriculture, Forestry, and Fishing

About 28 per cent of Pakistan’s total land area, predominantly in the Indus Valley, is considered arable; most cultivated land is irrigated. Agriculture and related activities involve over half (42 per cent) of the work force and provide 19.4 per cent of GDP. By the late 1970s an intensive land-reform effort had resulted in the expropriation of some 1.2 million hectares (3 million acres) from landlords, the distribution of almost half of this to tenants, and the limitation of individual holdings to 40 hectares (100 acres) of irrigated, or 81 hectares (200 acres) of non-irrigated land.

Formerly an importer of wheat, Pakistan achieved self-sufficiency in grain by the mid-1970s, and is now also a major exporter of rice. Principal crops in 2006 (with output in tonnes) included sugar cane, 44.7 million; wheat, 21.3 million; rice, 8.14 million; cotton, 2.19 million; and maize, 2.97 million. Most people living in rural areas keep some animals; those living in the arid upland areas, such as the Baluchistan Plateau, are generally pastoralists, living nomadic or semi-nomadic lives. The livestock population in 2006 included an estimated 25.5 million cattle, 25.4 million sheep, 61.9 million goats, 28.4 million buffalo, 4.58 million donkeys, 738,000 camels, and 166 million chickens and poultry.

About 5 per cent of Pakistan is forested. Most of the 29 million cu m (1,024 million cu ft) of roundwood harvested in 2006 was used as fuel.

Fishing resources are extensive. In 2005 the total catch was about 515,472 tonnes, most of it obtained from the Indian Ocean. The fish caught include sardines, sharks, and anchovies; the shrimp catch is also important.

B

Mining

In 1995 the most important minerals (with annual production in tonnes) included gypsum (620,000), rock salt (890,000), limestone (9.7 million), bauxite (4,400), chromite (13,000), and coal and lignite (3 million). In 2004 crude oil production was about 21.9 million barrels, and production of natural gas was about 23.8 billion cu m (840 million cu ft).

C

Manufacturing

Pakistan’s manufacturing capacity is increasing and production has been steadily expanding. In 2006 manufacturing accounted for about 20 per cent of GDP. Important products include processed foods; leather; clothing and footwear; cotton and jute textiles; cotton, silk, and rayon cloth; refined petroleum; cement; fertilizers; sugar; cigarettes; soda ash; bicycles; steel billets and sheets; and chemicals. Handicraft products, such as pottery and carpets, are also important. Government policy since the late 1970s has been to encourage private-sector investment in industry. However, the largest plants are still mainly state owned, including those producing cement, fertilizer, steel, and ghee (clarified butter) for cooking.

D

Energy

About 64 per cent of Pakistan’s electricity is produced in thermal installations, and most of the rest is generated in hydroelectric facilities, including the large Tarbela project on the River Indus. Pakistan also has a small nuclear sector; a nuclear power plant situated near Karachi contributes around 2.35 per cent of total output. Pakistan’s output of electricity in 2003 was 76.9 billion kWh, based on an installed generating capacity of 8,430 MW.

E

Currency and Banking

The monetary unit of Pakistan is the Pakistani rupee of 100 paisa (61.43 rupees equalled US$1; early 2008). The State Bank of Pakistan, established in 1948, is the central bank. It issues banknotes; manages currency, credit, the public debt, and exchange controls; and supervises the commercial banks. Pakistani banks were nationalized in 1974. A number of major foreign banks (21) maintain offices in the country. The practices of banks and other financial institutions are regulated, in part, by Islamic law. They are not permitted, under 1985 legislation, to pay interest on domestic transactions, or—under a 1991 Federal Shari’ah (Islamic) Court ruling—to charge interest. Instead banks operate a system of investment partnerships with customers.