Pakistan

Pakistan Overview

After several experiments in economic restructuring, Pakistan currently operates a mixed economy in which state-owned enterprises account for a large portion of gross domestic product (GDP). The country has experimented with several economic models during its existence. At first, Pakistan’s economy was largely based on private enterprise, but significant sectors of it were nationalized beginning in the early 1970s, including financial services, manufacturing, and transportation. Further changes were made in the 1980s, under the military government of Zia ul-Haq. Specifically, an “Islamic” economy was introduced, which outlawed practices forbidden by Sharīʿah (Muslim law)—e.g., charging interest on loans (ribā )—and mandated such traditional religious practices as the payment of zakāt (tithe) and ʿushr (land tax). Though portions of the Islamic economy have remained in place, the state began in the 1990s to privatize—in whole or in part—large sectors of the nationalized economy.

The economy, which was primarily agricultural at the time of independence, has become considerably diversified. Agriculture, now no longer the largest sector, contributes roughly one-fifth of GDP, while manufacturing provides about one-sixth. Trade and services, which combined constitute the largest component of the economy, have grown considerably. In terms of the structure of its economy, Pakistan resembles the middle-income countries of East and Southeast Asia more than the poorer countries of the Indian subcontinent. Economic performance compares favourably with that of many other developing countries; Pakistan has maintained a sustained and fairly steady annual growth rate since independence.

At the same time, there has been a relentless increase in population, so, despite real growth in the economy, output per capita has risen only slowly. This slow growth in per capita income has not coincided with a high incidence of absolute poverty, however, which has been considerably smaller in Pakistan than in other South Asian countries. Nonetheless, a significant proportion of the population lives below the poverty line, and the relative prosperity of the industrialized regions around Karachi and Lahore contrasts sharply with the poverty of the Punjab’s barani areas, semiarid Balochistan, and Khyber Pakhtunkhwa.

Source: britannica.com

Landscape and growth

Global State of the Market Report

In 2022, the Advisory Board Centre mapped professionals currently serving on Advisory Boards. This assessment identified over 4,500 professionals on Advisory Boards in Pakistan.

Advisory Board Landscape

The assessment has identified low numbers of Advisory Board professionals in Pakistan. Minimal participation in the market may indicate:

  • That Advisory Board structures engaged in the country are informal in nature;
  • Advisory Boards are referred as a different name, such as committees, councils or think tanks;
  • Traditional sourcing of advice is more customary for Pakistan’s current business environment; or
  • There is a language barrier stemming from the search for Advisory Board professionals being in English.

Future Growth Opportunities

As an emerging sector in Pakistan, connection and collaboration with the global Advisor community will present strong future growth opportunities. Further, focusing on key market sectors – food processing, construction, and computer and software development – as well as acknowledging start-up and emerging industries are essential. It will also be important for Advisory Board professionals in market to be credentialed to best practice and ethics as this sector grows over time.

Key Statistics

Population 234 million
GDP $348,262 USD million
Labour Force by occupation
Agriculture36.92%
Industry24.96%
Services38.13%
GDP by sector
Agriculture22.67%
Industry18.8%
Services52.11%
Import $62,659 USD million
Export $31,546 USD million
Global ease of doing business rank 147th
Global ease of doing business score 51.65/100