Gas, water, coal, oil. Substantial untapped natural resources. Low labor costs. Potentially huge market. One of the world's leading producers of cotton and a major exporter of rice.
Weaknesses
Weather conditions cause considerable variation in annual production and sales of cotton and rice. Inefficient and haphazard government economic policies. Weak and overstretched infrastructure.
Profile
Pakistan has recently begun to tackle its considerable economic problems. Successive governments have reversed the nationalization policies instituted in the 1970s by President Bhutto. Under ex-prime minister Sharif, inefficiencies such as the need to license even small investment decisions, which could take years, began to be tackled. Private capital has been brought into previously state-only sectors such as banking, water and other utilities. However, approximately one-third of the state budget is still allocated to military spending, and will as such remain a rein on development.
Despite its considerable economic potential, much of Pakistan's population lives below the poverty line.
