Introduction to Pakistan

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					University of Miskolc
Institute of World and Regional Economics

European Geotechnical and Environmental Course 2008-2010

Economic Geography

Introduction to Pakistan

Course Coordinator: Dr. Daniel Kuttor Submitted By: Amir M. Shaikh (Pakistan) EGEC – 2008-2010 Date: 24th November, 2009.

Table of Contents
1.0 Introduction......................................................................................................................1 2.0 Historical Background .....................................................................................................1 3.0 Government and Politics..................................................................................................2 4.0 Geography and Climate ..................................................................................................3 5.0 Geostrategic and Geopolitical Importance ......................................................................4 6.0 Foreign Affairs..................................................................................................................5 7.0 Culture of Pakistan...........................................................................................................5 8.0 Overview of Economy......................................................................................................8 9.0 Natural Resources...........................................................................................................9 10.0 Infrastructure................................................................................................................10 11.0 Language ....................................................................................................................11 12.0 Religion........................................................................................................................11 13.0 Population ...................................................................................................................12 14.0 Capital Territory............................................................................................................13 15.0 Education and Literacy Rate........................................................................................13 16.0 Biodiversity ..................................................................................................................14 17.0 Environment Issues .....................................................................................................15 18.0 Transitional Issues.......................................................................................................16 19.0 Pakistan International Rankings ..................................................................................17 20.0 Mega Projects or Future Plans ....................................................................................18 21.0 Concluding Words .......................................................................................................19 Appendices List of References


Economic Geography 1.0. Introduction

Introduction to Pakistan

Pakistan enjoys a central and pivotal position in Asia and the world where the cultures of the Middle East and South Asia meet. Here the cultures are rich and of various kinds. History exerts a profound influence over the psychology and behavior of the people. Religion and nationalism are two major culture forming forces uniting the society to common feelings and shared values. Pakistan is blessed with unique geographical features from gushing rivers, tying mountains, sea coast and deserts to green and fertile plains. Pakistan stretches from the Arabian Sea to the high mountains of Central Asia, and covers an area of 803,944 km2. It lies approximately between 24° and 37° north latitude, and between 61° and 78° east longitude. It neighbors Iran to the west, Afghanistan to the north, China to the northeast, and India to the east and southeast along a 2,000 km, partially contested border. There is a 1,000 km long coastline along the Arabian Sea. Pakistan can be divided physiographically into four regions: 1. 2. The great highlands The Baluchistan Plateau 3. 4. The Indus Plain The Desert areas

The Himalayan and the trans-Himalayan mountain ranges, rising to an average elevation of more than 6,000 m and including some of the world's highest peaks, such as K2 (8,611 m) and Nanga Parbat (8,126m). The Baluchistan Plateau, a broken highland region about 300 m in elevation with many ridges crossing it from northeast to southwest, occupies the western and southwestern sectors of the country. The Indus Plain, the most prosperous agricultural region of Pakistan, covers an area of 520,000 km 2 in the east and extends to 1,100 km from northern Pakistan southward to the Arabian Sea. In the southeast are the desert areas.

The main administrative divisions are the provinces of Punjab, Sind, Baluchistan and the North West Frontier Province (NWFP) plus the Federal Capital Territory of Islamabad. Two other regions, the Northern Areas and Azad Jammu and Kashmir (AJK) are administered by the Government of Pakistan. [Appendix – I]

2.0. Historical Background The first known inhabitants of the modern-day Pakistan are believed to have been the Soanian - Homo erectus which settled in the Soan Valley and Riwat almost 2 million years ago. Over the next several thousand years, the region would develop into various civilizations like Mehrgarh and the Indus Valley Civilization. Throughout its history, the region has also been apart of various Greek, Persian, Islamic and British empires. The region's ancient history also includes some of the oldest empires from the Indian Subcontinent and some of its major civilizations.

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Economic Geography

Introduction to Pakistan

Modern-day Pakistan began with independence from British India on August 14, 1947. The political history of eventual birth of the country began in the aftermath of the Indian Rebellion of 1857, which culminated in 90 years of direct rule by the British Crown and subsequently, spawned a successful freedom struggle led by the Indian National Congress and later by the All India Muslim League. The latter was founded in 1906 to protect Muslim interests and rose to popularity in the late 1930s amid fears of neglect and under-representation of Muslims in politics. On the 29 December 1930, Muhammad Iqbal called for an autonomous state in "northwestern India for Indian Muslims". Muhammad Ali Jinnah espoused the Two Nation Theory and led the Muslim League to adopt the Lahore Resolution of 1940, demanding the formation of an independent Pakistan. The Dominion of Pakistan was formed on 14 August 1947 pursuant to the Indian Independence Act 1947, which created the independent dominions of Pakistan and the Union of India and received the Royal Assent on 18 July 1947. The Dominion of Pakistan was a federation of five regions or Provinces: East Bengal (later to become Bangladesh), West Punjab, Baluchistan, Sindh, and the North-West Frontier Province (NWFP). In addition, those princely states (which were free after the partition to join either country) that were geographically inalienable to Pakistan joined the federation. These included the Princely States of Bhawalpur, Khairpur, Swat, Dir, Hunza, Chitral, Makran, the Khanate of Kalat and Jammu and Kashmir (the latter remains disputed). All Provinces had their own Governor, who was appointed by the GovernorGeneral of Pakistan. [Appendix – II] 3.0. Government and Politics The Politics of Pakistan has taken place in the framework of a federal republic, where the system of government has at times been parliamentary, presidential, or semi-presidential. In the current semipresidential system, the President of Pakistan is the head of state, the Prime Minister is head of government, and there is a multi-party system. Executive power is exercised by the government. Legislative power is largely vested in the Parliament. Officially a federal republic, Pakistan has had a long history of alternating periods of electoral democracy and authoritarian military government. Military presidents include General Ayub Khan in the 1960s, General Zia ul Haq in the 1980s, and General Pervez Musharraf from 1999 to 2008. However, a majority of Pakistan's Heads of State and Heads of Government have been elected civilian leaders. The President’s appointment and term are constitutionally independent of the Prime Minister’s term. On September 6, 2008, the Electoral College (composed of the Senate, the National Assembly, and the four

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Economic Geography

Introduction to Pakistan

Provincial Assemblies) chose Asif Ali Zardari as the eleventh President of Pakistan for a five-year term. The Prime Minister is usually the leader of the largest party in the National Assembly and is assisted by a cabinet of ministers drawn from both chambers of the federal legislature. The current Prime Minister is Yousaf Raza Gillani of the Pakistan Peoples Party, who took office on March 25, 2008. Pakistan is subdivided into 4 provinces, 1 territory, and 1 capital territory. Each province has a Provincial Assembly, a directly-elected legislature. Members are elected for five-year terms. Each Assembly elects a Chief Minister, who then selects the ministers of his or her cabinet. [Appendix III] 4.0. Geography and Climate Pakistan covers 340,403 square miles (881,640 km2), approximately equaling the combined land areas of France and the United Kingdom. Its eastern regions are located on the Indian tectonic plate and the western and northern regions on the Iranian plateau and Eurasian land plate. Apart from the 1,046kilometre (650 mi) Arabian Sea coastline, Pakistan's land borders total 6,774 kilometers 2,430 kilometers (1,509 mi) with Afghanistan to the northwest, 523 kilometers (325 mi) with China to the northeast, 2,912 kilometers (1,809 mi) with India to the east and 909 kilometers (565 mi) with Iran to the southwest. The northern and western highlands of Pakistan contain the towering Karakoram and Pamir mountain ranges, which incorporate some of the world's highest peaks, including K2 (28,250 ft; 8,611 m) and Nanga Parbat (26,660 ft; 8,126 m). The Baluchistan Plateau lies to the west, and the Thar Desert and an expanse of alluvial plains, the Punjab and Sind, lie to the east. The 1,000-mile-long (1,609-km) Indus River and its tributaries flow through the country from the Kashmir region to the Arabian Sea. Pakistan lies in the temperate zone. The climate is mostly semi-arid, but arid in the south, characterized by hot summers and cool or cold winters, and wide variations between extremes of temperature at given locations. There is little rainfall. These generalizations should not, however, obscure the distinct differences existing among particular locations. For example, the coastal area along the Arabian Sea is usually warm, whereas the frozen snow-covered ridges of the Karakoram Range and of other mountains of the far north are so cold year round that they are only accessible by world-class climbers for a few weeks in May and June of each year. Pakistan has four seasons: a cool, dry winter from December through February; a hot, dry spring from March through May; the summer rainy season, or southwest monsoon period, from June through September; and the retreating monsoon period of October and November. The onset and duration of

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these seasons vary somewhat according to location. Rainfall can vary radically from year to year, and successive patterns of flooding and drought are also not uncommon. [Appendix IV]


Geo-Strategic & Geo Political Importance

Geo strategic means the importance of a country or a region as by virtue of its geographical location. Geo political is defined as, stressing the influence of geographic factors on the state power, international conduct and advantages it derives from its location. While history has been unkind to Pakistan, its geography has been its greatest benefit. It has resource rich area in the north-west, people rich in the north-east.” Pakistan is a junction of South Asia, West Asia and Central Asia, a way from resource efficient countries to resource deficient countries. The world is facing energy crisis and terrorism. Pakistan is a route for transportation, and a front line state against terrorism. Bridge between South Asia and South West Asia; Iran and Afghanistan are energy abundant while India and China are lacking of. China finds way to Indian Ocean and Arabian Sea through Korakaram. China with its fastest economic growth rate of 9%; is developing its southern provinces because its own port is 4500 km away from Sinkiang but Gawader is 2500 km away. Pakistan offers the shortest route of 2600 km as compared to Iran (4500 km) or Turkey (5000 km). Land locked Afganistan now at the phase of reconstruction, finds its ways through Pakistan. Gawader port with its deep waters attracts the trade ships of China, and South East Asian Countries. Iran is struggling to export its surplus gas and oil to eastern countries. Qatar Pakistan and Turkmenistan Pipeline projects highlight the position. Pakistan would get 400 million dollar annually if IPI gets success. Mountain Ranges: Himalayas, Hindu Kush in the North are plentiful in providing water and natural resources. US interests in the regions to contain the Growing China, nuclear Iran, terrorist Afghanistan, and to benefit from the market of India. Security and Business are two main US interests in the region while Pakistan is playing a front line role against terrorism. Today the political scenario of the region is tinged with pre emption policy and US invasion of Iraq and Afghanistan, Iran’s nuclear program, India’s geopolitical muscles(new strategic deal with US) to gain the hegemony and to counter the ‘The Rise of China’ which has earned all the qualities to change unipolar world into Bipolar world. In all these issues, Pakistan is directly or indirectly involved, especially after Al Qaeda operations. The American think tanks have repeatedly accepted that war against terror could never be won without the help of Pakistan. Pakistan has rigorously fought, and ongoing military operation in Waziristan is also targeting the suspected Taliban in the bordering area. Main threats to Pakistan: Baluchistan and Waziristan conflicts are posing threats to any economic project like IPI gas pipeline. Negative role of India, US, Iran in this conflict ridden area. Kashmir is flash point, accelerating nuclear race in the South Asia. Instable governments in Pakistan have contributed in weakening the strong position.

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Economic Geography 6.0. Foreign Relations

Introduction to Pakistan

Pakistan is the second largest Muslim country in terms of population (after Indonesia), and its status as a declared nuclear power, being the only Islamic nation to have that status, plays a part in its international role. Pakistan is also an important member of the Organization of the Islamic Conference (OIC). Pakistan is an active member of the United Nations. Historically, its foreign policy has encompassed difficult relations with the Republic of India; especially on the core-issue of Kashmir, over which it has fought two wars. However it has had long-standing close relations with its other neighbors Afghanistan, Iran and China, extensive security and economic interests in the Persian Gulf and wide-ranging bilateral relations with the United States and other Western countries. Wary of Soviet expansion, Pakistan had strong relations with both the United States of America and the People's Republic of China during much of the Cold War. Today, the two superpowers remain Pakistan's closest allies. It was a member of the CENTO and SEATO military alliances. Its alliance with the United States was especially close after the Soviets invaded the neighboring country of Afghanistan. In 1964, Pakistan signed the Regional Cooperation for Development (RCD) Pact with Turkey and Iran, when all three countries were closely allied with the U.S., and as neighbors of the Soviet Union, wary of perceived Soviet expansionism. To this day, Pakistan has a close relationship with Turkey. RCD became defunct after the Iranian Revolution, and a Pakistani-Turkish initiative led to the founding of the Economic Cooperation Organization (ECO) in 1985. For several years prior to the staged November 2008 Mumbai attacks, Pakistan's relations with India had been gradually improving, which opened up Pakistan's foreign policy to issues beyond security. An increasingly important actor on the world scene, Pakistan formed the "Friend of Pakistan" group which includes important countries such as Australia, Britain, Canada, China, France, Germany, Italy, Japan, Saudi Arabia, Turkey, the United Arab Emirates, the United States, the United Nations and European Union.


Culture of Pakistan

Pakistanis are a nation with their own distinctive culture and civilization, language and literature, art and architecture, names and nomenclature, sense of values and proportion, legal laws and moral code, customs and calendar, history and tradition, aptitudes and ambitions and aspirations that have roots deep in their history and their religion and culture.

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The culture of Pakistan is an amalgamation of influences various civilizations that thrived in this part of the world as old as 7000 BC (Mehrgarh) and Indus Valley Civilization (3500 BC–1800 BC). In the near past, or one can say from the start of the present era or the AD, religions like the Buddhism, Hindu aim and finally the Islam greatly influenced the way people of this part of the world live. This was further augmented by the culture of a series of invasions and invaders, who left their foot prints in the form of food, dress and way of living. One can see the differences in culture among the different ethnic groups in matters such as dress, food, and religion, especially where pre-Islamic customs differ from Islamic practices. The Kafir Kalash in the northern mountain region of Chitral greatly resemble the Greeks (Alexander 326 BC), while in other areas influences of the Dravidians, Aryans, White Huns, Persians, Mongols (Chenghis Khan), the Arabs (711 AD), the Afghans, the Moguls and finally the British can be easily recognized. The basic origin of Pakistanis however comes from the civilizations of North India and eastern Afghanistan, with significant influences from Persia, Turkistan and Hellenistic Greece. Therefore Pakistan abounds in ancient remains: Buddhist monuments, Hindu temples, palaces and monuments built by Emperors, tombs, gardens and Anglo-Mogul mansions. Sculpture is dominated by Graeco-Buddhist friezes, and crafts by ceramics, jewellery, silk goods and engraved woodwork and metalwork. Therefore, what we see in Pakistan is in fact inherited from the rule of many foreign invaders that added their cultural traditions to this part of the world. One of the most influenced cultures being the Mughal. However, there is one type of culture stems from the mainstream South Asian Muslim culture. Being generally conservatives, the people of Pakistan have been able to preserve their rich and unique cultural heritage throughout history. Religious practices of various faiths are an integral part of everyday life in society. Education is highly regarded by members of every socio-economic stratum. The traditional family values are highly respected and considered sacred, although urban families have grown into a nuclear family system, owing to the socio-economic constraints imposed by the traditional joint family system. Pakistani society is largely multilingual and multicultural. and over the past almost 60 years of integration of a largely diverse ethnic groups, a distinctive "Pakistani" Culture has sprung up especially in the urban areas. Pakistani music is represented by a wide variety of forms. It ranges from traditional styles (such as Qawwali) to more modern forms that try to fuse traditional Pakistani music with western music. Popular forms of music also prevail, the most notable being Film music and Urdu Pop music. In addition to this are the diverse traditions of folk music. Pakistani films are generally made in the national language Urdu, but films in regional languages are also very popular, especially the Punjabi films which are liked all over the country. Lahore and Karachi is the main hub of film productions, and for its closeness to Hollywood, Lahore is known as Lollywood for film making. The films made in the 60s and 70s did wonderful business on box office, but presently the cinema in Pakistan is on the decline and not many quality films are produced these days.

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The sports in Pakistan have a very large diversity. While Polo is regarded as a traditional sport and played widely in the northern areas, especially at Shandur, the highest polo ground of the world. The official and national sport of Pakistan is field hockey, although squash and cricket are also very popular. The national cricket team has won the Cricket World Cup once (in 1992), was runners-up once (in 1999) and co-hosted the games twice (in 1987 and 1996). At the international level, Pakistan has competed many times at the Summer Olympics in field hockey, boxing, athletics, swimming, and shooting. Pakistan has hosted several international competitions, including the SAF Games in 1989 and 2004. Pakistan recently stepped into the expensive sports of car racing and has participated in the A1 Grand Prix in the 2005 season. The Tour de Pakistan, modeled on the Tour de France, is an annual cycling competition that covers the length and breadth of Pakistan. Recently, football has grown in popularity across the country, where traditionally it had been played almost exclusively in the western province of Baluchistan. Also, it is hoped that Pakistan will fare better in the Football World Cup qualifiers for 2010. Pakistani cuisines have a deep impact of northern Indian, Persian, Turkish and Middle Eastern influences foods. However, the dishes are heavily peppered vegetables, meat, curries, spiced and barbecued beef, mutton or chicken, lentils (dhal), spicy spinach, cabbage, peas and rice with baked and deep-fried breads (roti, chapattis, puri, halwa and nan). Lately, Pizzazz and snacks are also becoming popular in cities with the mushrooming of western eateries. Like the rich spicy food, a wide range of desserts is also followed to lessen the burning left by hot and spicy foods. Though Pakistan is officially 'dry' (alcohol-free), it does brew its own beer (Murree Beer) and spirits which can be bought (as well as imported alcohol) from designated bars and hotels for non-Muslims only. Like all countries, festivities are many. The two main religious festivals are the Eids. Chand Raat (the moon sighting night of Eid-ul-Fitr (just after the month of Ramazan - the month of fasting) is a festivity in itself. Girls putting henna on their hands, while most people throw parties at their houses. People flock the markets and bazaars for the last minute shopping for gifts and sweets that will be given to friends and families. Even outside at the malls and the plazas, there are many colourful lights. There are large crowds in the city centre to celebrate the beginning of Eid. The attire for men mainly consist of Shalwar (a loose trousers), kameez (long shirt), Sherwani and Karakul (hat), while women add dopatta (an unstitched matching cloth with Shalwar and Kameez) mainly to cover the body as is obligatory in Islam. The globalization has increased the influence of "Western culture" in Pakistan. Therefore, use of western clothes is mostly seen in the cities and government offices. Many Western restaurant chains have established themselves in Pakistan, and are found in the major cities.

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Pakistanis are highly spiritual people mainly due to the predominance of the religion of Islam, practiced by some 37% of its populace. The translation of Pakistan's name meaning land of the pure, implies spiritual purity. And one of the pillars of this spiritual purity is sexual purity, which over time, has become a part of the Pakistani sense of national identity. Sexual purity does not imply not having sex rather it only implies a complete avoidance of pre or extra marital sex. Unlike other Muslim countries of the East, specially the Arab countries, men in Pakistan seldom go for the second marriage (though marrying four women at a time is permissible in Islam) and those who do get married second time are generally not respected. Public displays of affection, even by married couples are seldom seen, while consumption of alcoholic beverages by Muslims in Public is not allowed. However, for non Muslims concessions are given to to buy alcohol with a permit, which is issued by the government of Pakistan. However, there are not many bars nor non-Muslims are allowed to drink publicly. The social system of Pakistan is very different from that of the west, wherein the grown up children, especially the boys continue to live with their parents even after getting married. While the daughters are married off between the ages 18 to 25, and move in with her husband after marriage, the boys are always there - acting as the parents' social security, since there is no government run official 'social security' system that is administered. Thus the boys or at least one of the boys continue to stay with their parents all their lives and take care of them in their old age. [Appendix V]


Overview of Economy

Pakistan is a rapidly developing country and a major emerging market, with an economic growth rate of 7 percent per annum for four consecutive years up to 2007. Despite being a very poor country in 1947, Pakistan's economic growth rate was better than the global average during the subsequent four decades, but imprudent policies led to a slowdown in the late 1990s. Recently, wide-ranging economic reforms have resulted in a stronger economic outlook and accelerated growth especially in the manufacturing. There has been great improvement in the foreign exchange. The 2005 estimate of foreign debt was close to US$40 billion. However, this has decreased in recent years with assistance from the International Monetary Fund. Pakistan's gross domestic product is estimated to be US$475.4 billion while its per capita income. The poverty rate in Pakistan is estimated to be between 23% and 28%. Pakistan's GDP growth rates have seen a steady increase over the last 5 years. However, inflationary pressures and a low savings rate, among other economic factors, could make it difficult to sustain a high growth rate.

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The structure of the Pakistani economy has changed from a mainly agricultural base to a strong service base. Agriculture now only accounts for roughly 20% of the GDP, while the service sector accounts for 53% of the GDP with wholesale and retail trade forming 30% of this sector. In the past few years, the Karachi Stock Exchange has increased in value along with most of the world's emerging markets. Significant foreign investments have been made in several areas including telecommunications. Mobile Telecommunications, real estate and energy. Other major industries include software, automotives, textiles, cement, fertilizer, steel, ship building, aerospace and arms manufacturing In November, 2006, China and Pakistan signed a free trade agreement to achieve the tripling of bilateral trade from $4.2 billion (USD) to $15 billion (USD) within the next five years. Pakistan's exports in 2007 amounted to $20.58 billion (USD). The Economic crisis of 2008 led Pakistan to seek more than $100 billion in aid in order to stave off possible bankruptcy, which could result in a severe blow on the global fight against terrorism. Karachi Stock Exchange was declared as the “Best Performing Stock Market of The World" in 2002. KSE has been well into the 3rd year of being one of the Best Performing Markets of the world as declared by the international magazine “Business Week”. Similarly the US newspaper, USA Today, termed Karachi Stock Exchange as one of the best performing bourses in the world. The GDP growth remained in the 6-8% range in 2004-06. In 2005, the World Bank named Pakistan the top reformer in its region and in the top 10 reformers globally. [Appendix VI] 9.0. Natural Resources Pakistan's principal natural resources are arable land, water, and extensive natural gas and oil reserves. About 28% of Pakistan's total land area is under cultivation and is watered by one of the largest irrigation systems in the world. The most important crops are cotton, wheat, rice, sugarcane, maize, sorghum, millets, pulses, oil seeds, barley, fish, fruits and vegetables, which together account for more than 75% of the value of total crop output. Pakistan also exports wood, cement, tiles, marbles, cotton textiles, leather goods, sports goods, surgical instruments, electrical appliances, carpets, rugs, and hides & skins. The Salt Range in Punjab Province has large deposits of pure salt. Pakistan has extensive energy resources, including fairly sizable natural gas reserves, oil reserves, coal, gypsum, limestone, chromites, iron ore, rock salt, silver, gold, precious stones, gems, marbles, tiles, copper, sulfur, fire clay, silica sand, and large hydropower potential. However, the exploitation of energy resources has been slow due to a shortage of capital and domestic and international political constraints.

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Pakistan's principal natural resources are arable land and water. About 25% of Pakistan's total land area is under cultivation and is watered by one of the largest irrigation systems in the world. Pakistan irrigates three times more acres than Russia. Agriculture accounts for about 23% of GDP and employs about 44% of the labor force. [Appendix VII] 10.0. Infrastructure

The domestic transportation infrastructure was not well developed at independence. Railroads were the main means of transportation, but the network in West Pakistan had been constructed under the assumption that the area formed part of a larger sub continental economic and political entity and was not suited to the needs of the new nation. Considerable development was necessary to improve links between Karachi, Pakistan's first capital and the country's principal port and commercial center, and Punjab, where Islamabad was established as the new administrative capital in 1962. In the 1970s and 1980s, road and air networks grew considerably faster than did the railroads. Between FY 1978 and FY 1992, the volume of freight and the number of passengers carried by rail increased only slightly, whereas road-borne freight and the number of air passengers more than doubled. In 1994 transportation policy was aimed at shifting more of the traffic back to the rail system, with a long-term goal of a rail to - road freight traffic ratio of 33:67 by 2000. Now the government is committed to develop infrastructure utilizing its own limited resources and by extensive privatization and through inflow of foreign direct Investment. Sector Structure includes; • • • • • Roads & Highways (more than 260,000Km) Railways (around 8000Km) Ports & Shipping (3 Mega Sea Ports) Dry Ports (more than 15) Airports (98 paved airports)

The telecommunications infrastructure is improving dramatically with foreign and domestic investments in fixed-line and mobile networks; mobile-cellular subscribership has skyrocketed, reaching some 91 million in 2009, up from only about 300,000 in 2000; fiber systems are being constructed throughout the country to aid in network growth; main line availability has risen only marginally over the same period and there are still difficulties getting main line service to rural areas. Domestic: microwave radio relay, coaxial cable, fiber-optic cable, cellular, and satellite networks. International: country code - 92; is landing point for the SEA-ME-WE-3 and SEA-ME-WE-4 submarine cable systems that provide links to Asia, the Middle East, and Europe; satellite earth stations, 3

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operational international gateway exchanges (1 at Karachi and 2 at Islamabad); microwave radio relay to neighboring countries. Few basic aspects of infrastructure and trade facilitation include; • • • • • • • • • Two seaports (third under construction – World’s Largest Deep Sea Port - Gawadar) Well established network of dry ports Air links to all major cities Extensive rail and road network Modern telecom facilities Trade facilitation (reduced clearance time and simplification of customs procedures) Well established banking system and Low mark up charged by banks Securities & Exchange Commission of Pakistan (SECP) oversees the Company Law and ensures good corporate governance Production Sharing Contracts

[Appendix VIII]



Pakistan is a multilingual country with more than sixty languages being spoken. English is the official language of Pakistan and used in official business, government, and legal contracts, while Urdu is the national language. Punjabi is the provincial language of Punjab. Pashto is the provincial language of NWFP. Sindhi is the provincial language of Sindh and Balochi is the provincial language of Balochistan. Some of these are endangered languages with a relatively small number of speakers and others have hundreds of thousands of speakers. Most of the languages belong to the Indo-Iranian branch of the IndoEuropean family. The exceptions are Burushaski, which is a language isolate; Balti, which is SinoTibetan; and Brahui, which is Dravidian. [Appendix IX]



Pakistan is the second-most populous Muslim-majority country and also has the second-largest Shi'a population in the world. About 95% of the Pakistanis are Muslim, of which nearly 75% are Sunni and 20% are Shi'a. Although the two groups of Muslims usually coexist peacefully, sectarian violence occurs sporadically.

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The religious breakdown of the country is as follows: • • • • • Islam 173,000,000 (96%) (Nearly 70% are Sunni Muslims and 20% are Shi'a Muslims). Hinduism 3,200,000 (1.85%) Christianity 2,800,000 (1.6%) Sikhs around 20,000 (0.001%) The remaining are Parsis, Ahmadis, Buddhists, Jews, Bahá'ís, and Animists (mainly the Kalasha of Chitral) Besides, a small faction of Parsis and Zoroastrians also practice their faith, most of who generally reside in Karachi. Pakistan is also the birthplace of Mahayana Buddhism, the form of Buddhism that is practiced by most Buddhists today, including those in India, Japan, China, Korea, and Vietnam. The religion enjoyed prominence in the northwestern section of the country up until the Islamic conquest. [Appendix X] 13.0. Population

The estimated population of Pakistan in 2009 was over 180,800,000 making it the world's sixth mostpopulous country, behind Brazil and ahead of Russia. By the year 2020, the country's population is expected to reach 208 million, owing to a relatively high growth rate. About 20 % of the population lives below the international poverty line of US$1.25 a day. Population projections for Pakistan are relatively difficult because of the differences in the accuracy of each census and the inconsistencies between various surveys related to the fertility rate, but it is likely that the rate of growth peaked in the 1980s and has since declined significantly. The majority of southern Pakistan's population lives along the Indus River. By population size, Karachi is the biggest city of Pakistan. In the northern half, most of the population lives about an arc formed by the cities of Lahore, Faisalabad, Rawalpindi, Islamabad, Gujranwala, Sialkot, Gujrat, Jhelum, Sargodha and Sheikhupura. In the past, the country's population had a relatively high growth rate that has, however, been moderated by declining fertility and birth rates. Dramatic social changes have led to rapid urbanization and the emergence of megacities. During 1990–2003, Pakistan sustained its historical lead as the most urbanized nation in South Asia, with city dwellers making up 34% of its population. Pakistan has a multicultural and multi-ethnic society and hosts one of the largest refugee populations in the world as well as a young population. Approximately 1.7 million Afghan refugees remain in Pakistan. Nearly half of this population actually was born and grew up in Pakistan during the last 30 years, so they have never seen Afghanistan. They are not counted in the national census, even the ones born in

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Pakistan, because they are still considered citizens of Afghanistan. About 8 million Muhajirs - then roughly one-fourth of the country’s population - arrived from India after the independence in 1947. The Urduspeaking Muhajirs make up nearly half of the Karachi’s 17 million residents, with Punjabis and Pashtuns also having sizable communities in the city. [Appendix XI]


Capital Territory

Karachi became the first capital of the new country of Pakistan in 1947. The Federal Capital Territory (FCT) was created in 1948 to enable the federal government to operate from a nationally-held territory. At that time it had a population of 400,000 people which began to increase rapidly because of the political focus on the city and the fact that it was the major commercial seaport for western Pakistan. When the territory was absorbed into the province of West Pakistan the city had a population of about 1.9 million. Islamabad (Meaning "Abode of Islam") is the current capital of Pakistan, and is the tenth largest city in Pakistan with an estimated population of over 673,766 in 2009. The Rawalpindi/Islamabad Metropolitan Area is the third largest in Pakistan, with a population of over 4.5 million inhabitants. The city was built during the 1960s to replace Karachi as Pakistan's capital. However, the capital was not moved directly from Karachi to Islamabad. It was first shifted to Rawalpindi and then to Islamabad after all the developmental works was finished. Karachi was and still is the financial capital of Pakistan, accounting for the largest share of the nation's GDP and generating the largest share of the national revenue. The State Bank of Pakistan and most commercial banks had their headquarters in Karachi together with Pakistan's first and largest stock exchange - the KSE.


Education and Literacy Rate

Education in Pakistan is divided into five levels: primary (grades one through five); middle (grades six through eight); high (grades nine and ten, leading to the Secondary School Certificate); intermediate (grades eleven and twelve, leading to a Higher Secondary School Certificate); and university programmes leading to graduate and advanced degrees. Pakistan also has a parallel secondary school education system in private schools, which is based upon the curriculum set and administered by the Cambridge International Examinations, in place of government exams. Some students choose to take the O level and A level exams through the British Council. There are currently 730 technical & vocational institutions in Pakistan. The minimum qualifications to enter male vocational institutions, is the completion of grade 8. The programmes are generally two to

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three years in length. The minimum qualifications to enter female vocational institutions, is the completion of grade 5. All academic education institutions are the responsibility of the provincial governments. The federal government mostly assists in curriculum development, accreditation and some financing of research. English medium education is to be extended, on a phased basis, to all schools across the country. Through various educational reforms, by the year 2015, the ministry of education expects to attain 100% enrolment levels amongst primary school aged children, and a literacy rate of 86% amongst people aged over 10. Pakistan also has madrassahs that provide free education and also offer free boarding and lodging to students who come mainly from the poorer strata of society. After criticism over terrorists using them for recruiting purposes, efforts have been made to regulate them. [Appendix XII] 16.0. Biodiversity

Located in the south Asian subcontinent, Pakistan occupies a land area of over 880,000 km 2. Pakistan spans a remarkable number of the world’s broad ecological regions, including four biomes: the desert biome, temperate grassland biome, tropical seasonal forest biome, and mountain biome. Pakistan fauna includes 668 birds (25 threatened), 198 freshwater fishes (29 endemic, 1 threatened), 177 reptiles (13 endemic, 6 threatened), and 174 mammals (6 endemic, 20 threatened). About 5,700 species of flowering plants have also been identified. A worrying ecological trend in Pakistan is the continuing loss, fragmentation and degradation of natural and modified habitats: the forest area, already greatly reduced and fragmented, is suffering further loss and degradation; most rangelands are suffering further degradation; and many freshwater and marine ecosystems have already been lost or are threatened with further destruction. Also of great concern in Pakistan is the continuing decline in many native species of animals and plants. Some species are already extinct and many are threatened. The degradation of agro-ecosystems and the accelerating loss of domesticated genetic diversity also constitute issues of serious concern in Pakistan. The national animal of Pakistan is the Markhor and the national bird is the Chukar, also known as Chakhoor in Urdu. The wide variety of landscapes and climates in Pakistan allows for a wide variety of wild animals and birds. The forests range from coniferous alpine and subalpine trees such as spruce, pine, and deodar cedar in the northern mountains to deciduous trees such as the mulberry-type. The western hills have juniper and tamarisk as well as coarse grasses and scrub plants. Along the southern coast are mangrove forests which form much of the coastal wetlands. In the south, there are crocodiles in the murky waters at the mouth of the Indus River whilst on the banks of the river; there are boars, deer, porcupines, and small rodents. In the sandy scrublands of central

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Pakistan are found jackals, hyenas, wild cats, panthers, and leopards while the clear blue skies abound with hawks, falcons, and eagles. In the southwestern deserts are rare Asiatic cheetahs. In the northern mountains are a variety of endangered animals including Marco Polo sheep, Urial sheep, Markhor and Ibex goats, black and brown Himalayan bears, and the rare Snow Leopard. During August 2006, Pakistan donated an orphaned snow leopard cub called Leo to USA. Another rare species is the blind Indus River Dolphin of which there are believed to be about 1,100 remaining, protected at the Indus River Dolphin Reserve in Sind. In recent years the number of wild animals being killed for fur and leather trading led to a new law banning the hunting of wild animals and birds and the establishment of several wildlife sanctuaries and game reserves. The number of hunters has greatly dwindled since then. [Appendix XIII] 17.0. Environmental Issues

The availability of natural resources is limited by the dry climate and mountainous terrain, substantial population growth is increasing pressure on the resource base, and resource management has suffered from the emphasis on rapid economic growth and often-unregulated forms of economic productivity. As a result, human transformation of the environment is manifest in several problems. Population growth and poor water infrastructure have reduced per capita water availability from 53,000 cubic meters to 1,200 cubic meters, and heavy reliance on firewood has contributed to the world’s second highest rate of deforestation. Poor agricultural practices have led to soil erosion, groundwater degradation, and other problems that have hindered crop output and contributed to health problems for rural communities. Solid waste burning, low-quality fuels, and the growing use of fuel-inefficient motor vehicles have contributed to air pollution that in some cities—such as Karachi, Islamabad, Lahore, Peshawar, Quetta, Faisalabad and Rawalpindi - has exceeded levels deemed safe by the World Health Organization. And Pakistan is suffering a lot from droughts from the dry climates. The government has expressed concern about environmental threats to economic growth and social development and, since the early 1990s, has addressed environmental concerns with new legislation and institutions such as the Pakistan Environment Protection Council. Yet, foreign lenders provide most environmental protection funds, and only 0.04 percent of the government’s development budget goes to environmental protection. Thus, the government’s ability to enforce environmental regulations is limited, and private industries often lack funds to meet environmental standards established by international trade organizations. 18.0. Transitional Issues

Disputes - international:

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Various talks and confidence-building measures cautiously have begun to defuse tensions over Kashmir, particularly since the October 2005 earthquake in the region; Kashmir nevertheless remains the site of the world's largest and most militarized territorial dispute with portions under the de facto administration of China (Aksai Chin), India (Jammu and Kashmir), and Pakistan (Azad Kashmir and Northern Areas); UN Military Observer Group in India and Pakistan (UNMOGIP) has maintained a small group of peacekeepers since 1949; India does not recognize Pakistan's ceding historic Kashmir lands to China in 1964; India and Pakistan have maintained their 2004 cease fire in Kashmir and initiated discussions on defusing the armed stand-off in the Siachen glacier region. Pakistan protests India's fencing the highly militarized Line of Control and construction of the Baglihar Dam on the Chenab River in Jammu and Kashmir, which is part of the larger dispute on water sharing of the Indus River and its tributaries; to defuse tensions and prepare for discussions on a maritime boundary, India and Pakistan seek technical resolution of the disputed boundary in Sir Creek estuary at the mouth of the Rann of Kutch in the Arabian Sea; Pakistani maps continue to show the Junagadh claim in India's Gujarat State; by 2005, Pakistan, with UN assistance, repatriated 2.3 million Afghan refugees leaving slightly more than a million, many of whom remain at their own choosing; Pakistan has proposed and Afghanistan protests construction of a fence and laying of mines along portions of their porous border; Pakistan has sent troops into remote tribal areas to monitor and control the border with Afghanistan and to stem terrorist or other illegal activities. Illicit drugs: Significant transit area for Afghan drugs, including heroin, opium, morphine, and hashish, bound for Iran, Western markets, the Gulf States, Africa, and Asia; financial crimes related to drug trafficking, terrorism, corruption, and smuggling remain problems; opium poppy cultivation estimated to be 2,300 hectares in 2007 with 600 of those hectares eradicated; federal and provincial authorities continue to conduct antipoppy campaigns that utilizes forced eradication, fines, and arrests. Terrorist Activities and US War Against Terror: Pakistan’s strategic location makes it almost impossible for the country to keep itself away from the events all over the world. 9-11 2001 attacks on world trade centre towers in New York lead Pakistan to a situation in which it had to take a U-turn on its successful Afghan policy and they had to pull off their support for the pro-Pakistan Taliban government. The legitimacy of the war is not only criticized by many in Pakistan and all over the world but the debate is also a hot topic in USA itself whether the 9-11 attacks are the job of al-Qaida or it’s an insider job. Nevertheless Pakistan government took a position of frontline state in the war and now it is facing the brunt of it and also in that war on terror Pakistan was forced to send its troop in the northern parts of its country.

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We must not forget that many Indian RAW agents have been arrested for their involvement in terrorist activities in Pakistan and also it is now well clear that BLA (Baluchistan Liberation Army ) was well supported by India and Israel (with US-backing and approval). Also we should not neglect the statement given by Robert Gates in December 2007: “Al-Qaida right now seems to have turned its face toward Pakistan and attacks on the Pakistani government and Pakistan people.” Refugees and internally displaced persons: Refugees (country of origin): 1,043,984 (Afghanistan). IDPs: undetermined (government strikes on Islamic militants in South Waziristan); 34,000 (October 2005 earthquake; most of those displaced returned to their home villages in the spring of 2006) (2007).

19.0. • • • • • • • • • • • • • • • • • • •

Pakistan International Rankings

Population of cities Urban area population Total Area Length of coastline Highest Point Fertility Rate English-speaking population Human Development Index Quality-of-life index Population Population Density Account Balance Exports Imports Index of Economic Freedom GDP (nominal) per capita GDP (nominal) Global Competitiveness Index Ease of Doing Business Index

2nd City: Karachi. 23rd 34th/233 82nd/196 2nd/K2 is world’s second highest peak. 60th/223 9th/133 136th/177 74/108 6th/221 58th/241 172/188 CIA World Factbook 63/196 49/197 89/157 135/182 45/181 91/125 76/178 World Bank

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• • • •
• • • • •

Labor Force Inflation rate Natural gas reserves Reserves of foreign exchange and gold Number of internet users Telephones - main lines in use Mobile cellular Active troops ranked Nuclear Power

10/222 CIA World Book Fact 163/224 CIA World Book 29/207 CIA World Book 59/155 17/220 34/231 8/222 7/165 countries 7/188

20.0. •

Mega Projects or Future Plans

Development and startup of world’s largest deep sea port at Gawadar. Karachi Coastal Refinery with Abu Dhabi, construction in progress. Trans Asia Oil refinery with China that would be third largest refinery in the world. Development of Thar Coal Project, with reserves of over 25 Trillion Dollars. Development of Oil and Gas Fields with reserves of over 30 Billion Dollars. Development of Dams for Power Generation of over 10Gigawatts. Construction of Howard University Campus in Islamabad. Construction of largest Consulate of America in Islamabad. Development of Jaguar fighter planes and other military ammunition with China. Literacy rate increase to 90% by 2015. Investment of over 5 billion dollars in Telecommunication Sector. Development of more than 100 industrial zones around the country. Construction of Motorways, Highways and rail tracks in Northern Areas. Construction of Asian Trade Center in Islamabad. Key ally in war against terrorism to USA.

• • • • • • •


• •

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Concluding Words

In the present Pakistan economy, there are five major economic diseases which result from inconsistent planning in the past. The triangle problem of deficit, debt and inflation is the result of inefficient economic policies. International trade does not appear be playing the role of a driving force for growth. Pakistan suffers from illiteracy, unemployment and low productivity. Failure to mobilize domestic resources as well as foreign dependence appears to be the most serious problems. The government relies easily on external help, rather than internal help. Self-help attitude is not built in. In order for the economic growth to recover, new steps will be needed. Lessons from past mistakes and improvement of economic policies could help the economy return to the right path. Two types of policies, short-run and long-run, will be needed: (1) Short-run policies, which focuses on recovery, will help restore the confidence of international donors and local as well as international businessmen. (2) Long-run policies will be needed for sustained growth. These policies must focus on appropriate sectoral priorities. Human resource development should be at the top of the development agenda. Illiterate labor should be diminished. Small and medium industries need to be converted into large industries. There is also a need to improve upon technology and quality of exports. With the opening of new era for free trade, there are opportunities for Pakistan to increase its trade. Trade led growth could accelerate economic growth, which should not be a short-run goal. In the long run, foreign dependence must be reduced to stop the resource drain through debt servicing. In the past the economy of Pakistan showed good response to development policies. It was able to achieve one of the highest growth rates in South Asia. Pakistan’s politics is complicated and heavily influenced by external factors. It is however on somewhat of a right path, but has ways to go. The global community has to play its role, as Pakistan’s history is unique and it has paid its dues during the Afghan war, which we all know was the proxy between the then USSR and the USA. If I say, what Pakistan needs to really become an ‘Asian Tiger” and alleviate its problems, I would prescribe 3 things: land reforms, a sound justice system and heavy investment in education. Pakistan historically has had its strengths in Agriculture, Textiles, Leather, Surgical Equipment, Sporting Goods, etc. Currently, Pakistan, like many other developing countries is aiming to become a destination for Business Process/ Back Office Outsourcing. The cooperation of China and Pakistan is positive and China has a big role to play in Pakistan. There is also a number of Middle Eastern funds that heavily investing in Pakistan in the leasing and finance sectors. Despite all the problems, I see Pakistan to be on the road to success.

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Appendix – I Appendix – II Appendix – III Appendix – IV Appendix – V Appendix – VI • • • • • • • • • • • • • • • • • • • • • • • • • • Map of Islamic Republic of Pakistan Map of Pakistan as on 14th August, 1947 History of Pakistan (Region) Heads of Islamic Republic of Pakistan Geographical Map of Pakistan Geographical Details of Pakistan Culture of Pakistan Economical Aspects of Pakistan Facts and Figures about Pakistan’s Economy Soil Map of Pakistan Mineralogy of Pakistan Industrial Map of Pakistan, Year 2002 Infrastructure of Pakistan Roads & Highways Infrastructure Pipelines Infrastructure (Gas) Facts and Figures about Infrastructure of Pakistan Languages in Pakistan Ethnic Groups in Pakistan Major Ethnic Groups in Region Religions in Pakistan Population Density of Pakistan City Wise Population of Pakistan Literacy Map of Pakistan Literacy Rate of Pakistan Biodiversity in Pakistan Wetlands of Pakistan

Appendix – VII

Appendix – VIII

Appendix – IX Appendix – X Appendix – XI Appendix – XII

Appendix – XIII


Appendix - I

Map of Islamic Republic of Pakistan


Appendix – II

Map of Pakistan as on 14th August, 1947


Appendix – II

History of Pakistan (Region) Soanian People Mehrgarh Culture Indus Valley Civilization Vedic Civilization Greco-Bactrian Kingdom Gandhara Civilization Scythian Kingdom Parthian Kingdom Kushan Empire Rai Dynasty of Sindh Umayyad Caliphate Ghaznavid Empire Mamluk dynasty Khilji dynasty Tughlaq dynasty Sayyid dynasty Lodhi dynasty Mughal Empire Durrani Empire Sikh Empire British Raj Dominion of Pakistan Islamic Republic of Pakistan ca. 500,000 7000-2800 3300-1700 2000–600 250BC–10BC 200BC-1000BC 200BC-400BC 21AD–130AD 60AD–375AD 489AD–632AD 661-750 963–1187 1206-1290 1290-1320 1320-1413 1414-1451 1451-1526 1526–1858 1747–1823 1733–1849 1849-1947 1947-1956 since 1956


Appendix – III

Heads of Islamic Republic of Pakistan Name Muhammad Ali Jinnah Liaquat Ali Khan Ghulam Muhammad Iskandar Mirza Muhammad Ayub Khan Yahya Khan Zulfikar Ali Bhutto Fazal Ilahi Chaudhry Muhammad Zia-ul-Haq Ghulam Ishaq Khan Wasim Sajjad (Acting) Farooq Leghari Wasim Sajjad (Acting) Muhammad Rafiq Tarar Pervez Musharraf Muhammad Mian Soomro (Acting) Asif Ali Zardari Office Joining 15 August 1947 12 March 1949 23 March 1952 23 March 1956 27 October 1958 25 March 1969 20 December 1971 13 August 1973 16 September 1978 17 August 1988 18 July 1993 14 November 1993 2 December 1997 1 January 1998 20 June 2001 18 August 2008 9 September 2008 Party All India Muslim League All India Muslim League All India Muslim League Republican Party Military Military Pakistan Peoples Party Pakistan Peoples Party Military Independent Pakistan Muslim League (N) Pakistan Peoples Party Pakistan Muslim League (N) Pakistan Muslim League (N) Military/Pakistan Muslim League (Q) Pakistan Muslim League (Q) Pakistan Peoples Party Title Governor General Prime Minister Governor General President Dictator / Chief Executive Dictator / Chief Executive President President Dictator / Chief Executive President President President President President Dictator / Chief Executive President President


Appendix - IV

Geographical Map of Pakistan


Appendix - IV

Geographical Details of Pakistan Continent Region Coordinates Asia Southern Asia 30°00'N 70°00'E Ranked 36th in world 880,940 km2 (340,132.8 sq mi) Area 97.13% land 2.87 % water Total: 6,975 km (4,334.1 mi) Afghanistan: 2,643 km (1,642.3 mi) Borders China: 510 km (316.9 mi) India: 2,910 km (1,808.2 mi) Iran: 912 km (566.7 mi) Godwin Austen K2 Highest point 8,616.3 m (28,269 ft) Indian Ocean Lowest point 0 m (0.0 ft) Longest river Largest lake Indus River Manchar Lake


Appendix – V

Culture of Pakistan

Arts and Crafts

Marriage Ceremony

Architecture from 1800s

Typical Lunch

Traditional Dress

Typical Music Classes

Sports Festival – Shandur Valley

Basant Festival in Lahore


Appendix – VI

Economical Aspects of Pakistan

Annual GDP

GDP By Province

Economic Freedom Index 2006

Economic Sectors by Percentage

Pakistan Currency PKR – Pakistani Rupee


Appendix – VII

Soil Map of Pakistan


Appendix – VII Following according to the 2005 Food and Agriculture Organization of The United Nations and FAOSTAT given here with ranking: • • • • • • • • Chickpea (2nd) Apricot (4th) Cotton (4th) Sugarcane (4th) (National Juice of Pakistan) Milk (5th) Onion (5th) Date Palm (6th) Mango (7th) (National fruit of Pakistan) Tangerines, mandarin orange, Clementine (8th) Rice (8th) Wheat (9th) Oranges (10th)

• • •

Mineralogy of Pakistan


Appendix – VII

Industrial Map of Pakistan, Year 2002


Appendix – VIII

Infrastructure of Pakistan

Railway Network

Dry Port Network

Asian Highway Route Map

Air Ports

Sea Ports – Proposed and Developed


Appendix – VIII

Roads & Highways Infrastructure
Total Roads High Type Low type Total Roads growth (2005-06) High type road increase Low type road decrease National Highways Provincial Highways Local Government Roads Municipal Roads 258,340 Kms. 165,762 Kms. 92,578 Kms. 0.1 % 1.8 % (-) 2.9 % 9,000 Kms 102,000 Kms 94,000 Kms 55,000 Kms


Appendix – VIII

Pipelines Infrastructure (Gas)


Appendix – IX

Languages in Pakistan
2008 estimate: Rank Language Speakers Percentage Native Speakers




















South Punjab





















Appendix – IX

Ethnic Groups in Pakistan


Appendix – IX

Major Ethnic Groups in Region


Appendix – X

Religions in Pakistan

Badshahi Mosque - Lahore Sha

Catholic Church - Lahore

h Faysal Mosque - Islamabad

Cathedral Church - Lahore

Hindu Temple - Karachi

Guru Nanak Tomb of Sikhs – Rawalpindi

Buddhist Temple – Islamabad


Appendix – XI

Population Density of Pakistan


Appendix – XI

City Wise Population of Pakistan

Country Rank
1 2 3 4 5 6 7 8 9 10

Karachi Lahore Faisalabad Rawalpindi Multan Hyderabad Gujranwala Peshawar Quetta Islamabad

Sindh Punjab Punjab Punjab Punjab Sindh Punjab NWFP Balochistan Capital Territory

12,827,927 6,936,563 2,793,721 1,933,933 1,566,932 1 536 398 1,526,168 1,390,874 859,973 673,766

International Ranking
24 40


Appendix – XII

Literacy Map of Pakistan


Appendix – XII

Literacy Rate of Pakistan


Appendix – XIII

Biodiversity in Pakistan

Wetlands of Pakistan


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