Pakistan profile

Demography and Health

Pakistan is home to about 251 million people in 2024, ranking fifth globally by population. The country has a young demographic profile, reflected in a birth rate of 27.8 per 1,000 people in 2023, suggesting rapid population growth that places ongoing pressure on schools, jobs, and health services. The crude death rate stands at 6.47 per 1,000 in 2023, while life expectancy at birth is 67.6 years (2023), highlighting challenges in healthcare access and quality compared with more developed nations. Under-5 mortality is notably high at 58.5 deaths per 1,000 live births (2023), signaling continuing gaps in maternal and child health, nutrition, and primary care infrastructure. Together, these indicators imply a need for substantial investment in childhood health, vaccination, nutrition programs, and maternal services to support a productive generation. Net migration is negative, with about 1.4 million people leaving in 2024, which can affect labor supply, skills, and remittance flows while potentially offsetting some population growth benefits.

Health system financing is limited: current health expenditure accounts for 2.9% of GDP in 2022, and per-capita health expenditure at PPP (current international US$) is 68.1 in 2022, indicating constraints in funding for public health, infrastructure, and services. Domestic public health expenditure per capita is tightly constrained, while higher private and out-of-pocket costs may burden households. The country’s health indicators reflect structural weaknesses in health governance, access, and quality, which are reinforced by governance indicators showing substantial room for improvement in regulatory quality, rule of law, and control of corruption. The mix of relatively low health spending, a sizable population, and persistent health challenges underscores the critical need for targeted investments in primary care, nutrition, immunization programs, and preventive services to improve life expectancy and child survival outcomes. Internet access stands at 27.4% of the population in 2023, suggesting that digital health solutions and telemedicine face adoption barriers, though they also hold potential to expand reach in remote areas if combined with improved connectivity and affordability.

Economy

Pakistan’s GDP per capita is 1,485 current US$ in 2024, with a purchasing power parity (PPP) measure of 6,287 international US$, signaling that overall living standards are substantially lower than high-income peers. The inflation rate is high, at 12.6% in 2024, reflecting macroeconomic instability that can erode real incomes, raise living costs, and complicate business planning. Economic activity is reflected in trade openness: exports of goods and services constitute 10.4% of GDP in 2024, while imports account for 17.1% of GDP, indicating a trade position that relies on imports for consumer and intermediate goods and faces exchange-rate and balance-of-payments pressures. The unemployment rate was 6.34% in 2021, suggesting a sizable share of the labor force seeking work or underemployed, especially among youth, given the large population base. The country’s external position includes a current account balance of 0.187% of GDP in 2024, pointing to a relatively balanced external stance, albeit with vulnerability to commodity and energy price shocks due to import intensity. Military expenditure totals about 8.5 billion current US$ in 2023, ranking 29th globally, which reflects significant budgetary allocations to defense that compete with social and development spending. Overall, Pakistan’s economy shows a mix of growth potential and structural constraints, with weak governance indicators likely to impede performance in areas like business climate, investment, and long-term competitiveness.

Trade and Investment

The country’s export performance is modest relative to its size, with exports of goods and services comprising 10.4% of GDP in 2024. Imports are higher as a share of GDP at 17.1%, signaling a reliance on foreign goods and inputs, and exposing the economy to global price volatility and currency movements. Foreign direct investment (net inflows) equals 0.688% of GDP in 2024, indicating a cautious investor stance and room for improvement through policy reforms, ease of doing business enhancements, and greater clarity on industrial and energy sector incentives. Pakistan’s high-technology exports are relatively small in absolute terms (about 0.38 billion US$, 2023), with a corresponding patent activity by residents at 426 applications in 2021, pointing to limited domestic high-tech production and innovation capacity. The current macroeconomic climate, including inflation and governance weaknesses, may constrain investment and export diversification unless accompanied by structural reforms and targeted sectoral support. The level of foreign exchange risk and policy credibility will influence the durability of any gains in trade and investment, particularly in long-term projects tied to energy, infrastructure, and manufacturing.

Governance and Institutions

Pakistan’s governance indicators reveal notable challenges: regulatory quality is negative at -0.901 in 2023, rule of law at -0.86, and control of corruption at -0.999, all signaling deficiencies in legal frameworks, contract enforcement, and corruption control. Political stability and absence of violence/terrorism score -1.93, reflecting continued security concerns and political risk. Government effectiveness stands at -0.578. Such governance weaknesses can deter investment, hinder implementation of reforms, and complicate policy consistency, which in turn affects business confidence, public service delivery, and long-run development potential. These indicators align with a broader picture of development that requires strengthening institutions, rule of law, anti-corruption measures, and a credible policy environment to support private sector growth, foreign investment, and efficient public programs. Addressing governance gaps would be foundational to improving the ease of doing business, enhancing public trust, and enabling more effective health, education, and infrastructure investments.

Infrastructure and Technology

Pakistan’s digital and technological landscape shows both opportunity and constraint. The internet penetration rate is 27.4% of the population in 2023, pointing to substantial gaps in connectivity that limit digital inclusion and the reach of online services, including e-government and digital health or education initiatives. Research and development expenditure stands at 0.164% of GDP in 2023, far below global benchmarks for innovation-driven growth, underscoring a weak innovation ecosystem and limited private-sector R&D incentives. Patent activity by residents is 426 applications in 2021, indicating some inventive output but insufficient scale to drive global competitiveness. High-technology exports amount to about 0.38 billion US$ in 2023, a modest level that reflects limited manufacturing capacity in advanced sectors. Renewable energy constitutes 41.6% of total final energy consumption in 2021, a notable share that points to a substantial role for cleaner energy in the mix, though total energy demand remains high with implications for energy security and affordability. The level of water stress is severe (water withdrawal relative to available freshwater resources at 162.0 in 2021, ranking 7), signaling long-term sustainability challenges for water supply, agriculture, and industrial use. Taken together, these indicators reveal a country with potential digital and energy advantages but with significant barriers in connectivity, innovation funding, and resilience in water resources that need targeted policy attention and investment in capacity-building, infrastructure, and human capital.

Environment and Sustainability

Pakistan’s environmental indicators highlight important sustainability dimensions. Per-capita greenhouse gas emissions (excluding LULUCF) are 2.15 t CO2e in 2023, placing the country within the lower-middle range globally but still contributing to climate change pressures, particularly through energy and industry emissions. The prevalence of undernourishment is 20.7% of the population in 2022, underscoring ongoing food security concerns and nutritional gaps that affect health and economic productivity. The renewable energy share (41.6% of total final energy consumption in 2021) indicates a meaningful, but not dominant, shift toward cleaner energy, presenting opportunities for continued decarbonization and energy diversification. Water stress is extreme, with freshwater withdrawal levels indicating severe scarcity as highlighted by a very high indicator value and a ranking that places water security among the country’s most pressing environmental challenges. These factors collectively suggest that Pakistan faces critical environmental and sustainability risks—needful of integrated policy action in climate resilience, water management, agricultural productivity, and energy transition to support sustainable development and public well-being over the medium to long term.