Pakistan is a rapidly developing country and is one of the Next Eleven, the eleven countries that, along with theBRICs, have a high potential to become the world's largest economies in the 21st century. However, after decades of war and social instability, as of 2013, serious deficiencies in basic services such as railway transportation and electric power generation had developed. The economy is semi-industrialized, with centres of growth along the Indus River. The diversified economies of Karachi and Punjab's urban centrescoexist with less developed areas in other parts of the country. Pakistan's estimatednominal GDP as of 2011 is US$202 billion. The GDP by PPP is US$488.6 billion. The estimated nominal per capita GDP is US$1,197, GDP (PPP) per capita is US$2,851 (international dollars), and debt-to-GDP ratio is 55.5%. A 2010 report by RAD-AID positioned Pakistan's economy at 27th largest in the world by purchasing power and 45th largest in absolute dollars. It is South Asia's second largest economy, representing about 15 percent of regional GDP.
Pakistan's economic growth since its inception has been varied. It has been slow during periods of civilian rule, but excellent during the three periods of military rule, although the foundation for sustainable and equitable growth was not formed. The early to middle 2000s was a period of rapid reform; the government raised development spending, which reduced poverty levels by 10% and increased GDP by 3%. The economy cooled again from 2007. Inflation reached 25% in 2008 and Pakistan had to depend on an aggressive fiscal policy backed by the International Monetary Fund to avoid possible bankruptcy. A year later, the Asian Development Bank reported that Pakistan's economic crisis was easing. The inflation rate for the fiscal year 2010–11 was 14.1%.
Pakistan is one of the largest producers of natural commodities, and its labour market is the 10th largest in the world. The 7 million strong Pakistani diaspora, contributed US$11.2 billion to the economy in FY2011. The major source countries of remittances to Pakistan include UAE, USA, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), Australia, Canada, Japan, UK and EU countries like Norway, Switzerland, etc. . According to the World Trade Organization Pakistan's share of overall world exports is declining; it contributed only 0.128% in 2007. The trade deficit in the fiscal year 2010–11 was US$11.217 billion.
The structure of the Pakistani economy has changed from a mainly agricultural to a strong service base. Agriculture now accounts for only 21.2% of the GDP. Even so, according to the United Nations Food and Agriculture Organization, Pakistan produced 21,591,400 metric tons of wheat in 2005, more than all of Africa (20,304,585 metric tons) and nearly as much as all of South America (24,557,784 metric tons). Between 2002 and 2007 there was substantial foreign investment in Pakistan's banking and energy sectors. Other important industries include clothing and textiles (accounting for nearly 60% of exports), food processing, chemicals manufacture, iron and steel. There is great potential for tourism in Pakistan, but it is severely affected by the country's instability.
Foreign direct investment (FDI) in Pakistan soared by 180.6 per cent year-on-year to US$2.22 billion and portfolio investment by 276 per cent to $407.4 million during the first nine months of fiscal year 2006, the State Bank of Pakistan (SBP) reported on April 24. During July–March 2005–06, FDI year-on-year increased to $2.224 billion from only $792.6 million and portfolio investment to $407.4 million, whereas it was $108.1 million in the corresponding period last year, according to the latest statistics released by the State Bank. Pakistan has achieved FDI of almost $8.4 billion in the financial year 06/07, surpassing the government target of $4 billion. Foreign investment had significantly declined by 2010, dropping by 54.6% due to Pakistan's political instability and weak law and order, according to the Bank of Pakistan.
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