Pakistan

B

Agriculture

About 28 percent of Pakistan’s total land area is cultivated. Agriculture and related activities, including fishing, engage 42 percent of the workforce and provide 22 percent of the GDP. Principal crops include sugar cane, wheat, rice, cotton, and corn. Livestock include cattle, water buffalo, sheep, goats, and poultry.

Land reform is a controversial issue in Pakistan. At independence in 1947, a large proportion of the arable land was concentrated in a small number of large estates, many of them owned by absentee landlords and cultivated by tenant farmers. Land reforms introduced in 1959 provided some security of tenure to tenants but did little to break up the large estates. In the 1970s the government of Zulfikar Ali Bhutto introduced more extensive land reforms. The amount of land any individual could own was significantly reduced, and landlords were not compensated for the land they surrendered. Most of the expropriated land was distributed to tenants, but the government retained land that was not suitable for farming. Landlords strongly resisted the reforms, however, and the government bureaucracy was somewhat lax in enforcing them. In the end, the reforms shook the landlords but did not break their hold. By the end of the 20th century, about half of the country’s arable land was held by only a small percentage of wealthy landowners.

The Bhutto government also developed favorable credit and loan policies for farmers. The tractor became the new status symbol in rural Pakistan. Improved mechanization gave a boost to agricultural productivity. Formerly an importer of wheat, Pakistan achieved self-sufficiency in the grain by the late 1970s.

C

Fishing

Fishing resources, although underdeveloped, are extensive. In 2004 the catch was 569,995 metric tons, three-quarters of it obtained from the Indian Ocean. Types of fish caught include sardines, sharks, and anchovies.

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D

Manufacturing

In 2005 manufacturing accounted for 18 percent of the GDP. About 21 percent of the labor force is engaged in industry, including manufacturing and mining. Important products include processed foods, cotton textiles, silk and rayon cloth, refined petroleum, cement, fertilizers, sugar, cigarettes, and chemicals. Many handicrafts, such as pottery and carpets, also are produced.

E

Energy

Pakistan’s total output of electricity in 2003 was 77 billion kilowatt-hours. Hydroelectric dams on the Indus and its tributaries help furnish the country’s energy needs, but the supply of hydroelectricity drops sharply during the dry winter months. About 34 percent of the country’s electricity is produced through dams. The country also exploits its reserves of natural gas, crude petroleum, and coal. About 64 percent of the country’s electricity is generated in thermal installations fueled by natural gas and petroleum.

Pakistan has two nuclear power plants, but neither produces a significant amount of electricity. The Karāchi plant was built with Canadian help in the early 1960s, and the Chashma plant, on the Indus River in southern Punjab, was built in the 1980s with financial support from China.

Pakistan is not self-sufficient in energy production. The country relies on imported petroleum to fuel its electricity-generating thermal plants. However, the country’s exports bring in hardly enough revenues to meet the cost of petroleum imports. During the 1990s rising oil prices had a devastating effect on the economy, leading to a rise in the country’s foreign debt.

F

Currency and Banking

The basic monetary unit is the Pakistani rupee, consisting of 100 paisa (59.50 rupees equal US$1; 2005 average). The State Bank of Pakistan, established in 1948, issues banknotes; manages currency and credit, the public debt, and exchange controls; and supervises the commercial banks. Pakistani banks were nationalized in 1974, but in the early 1990s the country transferred two banks to private ownership and issued licenses for ten new commercial banks. A number of major foreign banks maintain offices in the country. In conformity with Islamic doctrine, domestic banks in Pakistan have redefined the payment and collection of interest as profit. Investment partnerships between the bank and the customer have replaced loans at interest.