Introduction About Pakistan

.1 Introduction

The Islamic Republic of Pakistan was founded in August 1947 as part of the separation of British India and the Eastern and Western sections of Pakistan. In 1971 Eastern Pakistan ceded to what is now the country of Bangladesh.

1.2 Geography

Pakistan has an area encompassing 796,096 square kilometers and is bordered by India on the east, China on the northeast, Afghanistan on the northwest while Iran shares its boarder in the southwest with the Arabian Sea bordering south.

Figure 2

Source: Ministry of Foreign Affairs, Kingdom of Thailand

1.3 Socio-economic Profile

Demographics

Pakistan is a multi-cultural society where many ethnic groups are represented and speak a variety of languages. Urdu is the national language of Pakistan, however, both Urdu and English are used in official matters and business transactions. Various dialects are spoken throughout the country while educational classes are usually tri-lingual with the regional language, Urdu and English.

Islam is the national religion, however, there are other minority religions such as Christianity and Hinduism.

Population

The population as of the 1998 census was 132.35 million, as compared to 85.09 million recorded in the 1981 census. The average growth rate over the past 10 years has been approximately 2% per annum. According to the Pakistan Government's Statistics Division, the population as of the end of 2003 was estimated at 148.72 million. As indicated in Table 1, over 50% of the total population is less than 20 years old, while 52% are males and 48% are females.

Table 1

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Population by Age 1998 Census(in thousands)

Age	Males	%	Females	%	Total	%
0 - 4	9,761	14.2	9,357	14.7	19,118	14.4
5 - 9	10,571	15.3	9,644	15.2	20,215	15.3
10 - 14	8,910	12.9	7,822	12.3	16,732	12.6
15 - 19	6,909	10.0	6,490	10.2	13,399	10.1
20 - 24	5,815	8.4	5,773	9.1	11,588	8.8
25 - 29	4,878	7.1	4,643	7.3	9,521	7.2
30 - 34	4,232	6.1	3,808	6.0	8,040	6.1
35 - 39	3,254	4.7	2,913	4.6	6,167	4.7
40 - 44	2,931	4.3	2,814	4.4	5,745	4.3
45 - 49	2,360	3.4	2,203	3.5	4,563	3.4
50 - 54	2,200	3.2	1,948	3.1	4,148	3.1
55 - 59	1,505	2.2	1,272	2.0	2,777	2.1
60 - 64	1,418	2.1	1,219	1.9	2,637	2.0
65 - 69	850	1.2	704	1.1	1,554	1.2
70 - 74	778	1.1	631	1.0	1,409	1.1
75+	849	1.2	714	1.1	1,563	1.2
FATA	1,652	2.4	1,524	2.4	3,176	2.4
Total	68,873	100.0	63,479	100.0	132,352	100.0
Gender Mixl		52.0		48.0

Note: FATA - Federally Administered Tribal Area
Source: Population Census Organization

The vast majority of the population lives in rural communities and villages, which, as indicated in Table 2, comprise over 67% of the total population..

Table 2

Population by Area 1998 Census (in thousands)

Area	Males	%	Females	%	Total	%
Urban	22,752	33.0	20,284	32.0	43,036	32.5
Rural	46,122	67.0	43,194	68.0	89,316	67.5
Total	68,874	100.0	63,478	100.0	132,352	100.0

Source: Population Census Organization

Labor Force

According to the Asian Development Bank (ADB), the labor force stood at 42.13 million people as of 30 June 2002. Unemployment was 3.2% of the labor force, or 3.29 million for the same period end.

Table 3

Percentage Distribution of Employed Persons By Major Occupational Groups 2001 - 2002

Occupational Groups	Employer	Employee	Self - Employed	Un-paid Family Helper	Total
Legislators, Senior Officials and Managers	0.5	1.1	8.1	1.9	11.6
Professionals	0.1	1.7	0.3	0.0	2.1
Technicians and Associate Professionals	0.0	4.0	0.6	0.1	4.8
Clerks	-	1.7	0.0	0.0	1.7
Service workers and Shop and Market Sales Workers	0.0	4.5	0.7	0.5	5.7
Skilled Agricultural Fishery Workers	0.0	0.3	20.3	14.1	34.7
Craft and Related Trade Workers	0.1	9.8	4.6	1.7	16.2
Plant and Machine Operators and Assemblers	0.1	2.9	0.8	0.1	3.9
Elementary (unskilled) Occupations	-	14.0	3.1	2.3	19.4
Total	0.8	39.9	38.5	20.8	100.0

Source:Pakistan 2004 Statistical Pocket Book Labour Force Survey

Poverty Levels:

According to the National Ten Year Perspective Development Plan 2001 - 2011 prepared by the Government of Pakistan Planning Commission, there were approximately 47 million people that fell below the food poverty line defined as not able to incur the food expenditure needed to achieve the minimum required level of calorie intake as defined as 2,150 calories per day. Table 4 indicates the increase in the number of the population considered under the calorie intake poverty line from 26.9% of the population in 1986 to 28.7% in 2000.

Table 4

Poverty Under Calorie Based Approach

Year	Male	Female	Total
1986 - 1987	24.5	29.4	26.9
1987 - 1988	22.7	29.9	26.4
1990 - 1991	18	26.2	23.3
1999 - 2000	27.6	29.2	28.7

Source:Ten Year Perspective Development Plan 2001 - 2011

Table 5

Gross Domestic Product Current Factor Cost (in Millions) 2002 - 2003

Sectors	Rupees	US$	% of Total
Agriculture	864,828	14,480	23.3
Industrial	871,250	14,588	23.5
Services
• Transport, Storage and Communications	440,951	7,383	-
• Wholesale and Retail Trade	562,070	9,411	-
• Finance and Insurance	114,105	1,911	-
• Ownership of Dwellings	183,383	3,071	-
• Public Admin and Defense	316,967	5,307	-
• Community, Social and Personal Services	356,116	5,963	-
Total Services	1,973,592	33,045	53.2
Total GDP	3,709,670	62,114	100.0

Source:Pakistan 2004 Statistical Pocket Book Federal Bureau of Statistics Average Foreign Exchange rate for 2002 was 59.72:US1

Budget

Table 6

Expenditures met from Revenue Budget 2003 - 2004 (in Millions)

	Rupee	US$	%
Revenue Receipts	728,370	12,196	-
Non-Development Expenditures
• General Administration	58,596	981	8.3
• Defense	160,250	2,683	22.7
• Law and Order	12,334	207	1.8
• Community Services	8,571	144	1.2
• Education	9,645	161	1.4
• Health	2,795	47	0.4
• Social Security and Welfare	2,959	50	0.4
• Other Social Services	1,004	17	0.1
• Agriculture and Irrigation	1,261	21	0.2
• Rural Development	46	1	0.0
• Transport and Communication	2,248	38	0.3
• Other Economic Services	1,111	19	0.2
• Subsidies	64,517	1,080	9.2
• Debt Servicing Investable Funds / Grants	318,026	5,325	45.1
• Un-allocable	1,872	31	0.3
Development Expenditure	59,243	992	8.4
Total	704,478	11,796	100.0
Surplus	23,892	400	-

Source:Pakistan 2004 Statistical Pocket Book Federal Government Budget. Average Foreign Exchange for 2002 was 59.72:us

Imports

Table 7

Imports by Commodity 2002 - 2003 (in Millions)

Commodity	Rupee	In US$	% of Total
Mineral Fuels, and Related Material	184,204	3,084	25.8
Machinery and Transport	171,904	2,878	24.1
Chemicals	126,404	2,116	17.7
Manufactured Goods Classified by Material	71,772	1,202	10.0
Crude Materials (except fuels)	53,964	904	7.6
Animal or Vegetable Oils	40,654	681	5.7
Food and Live Animals	29,000	486	4.1
Miscellaneous Manufactured Articles	21,380	358	3.0
Commodities and Transaction Not Classified	14,720	246	2.1
Beverages / Tobacco	368	6	0.1
Total	714,370	11,961	100.0

Note: Pakistan 2004 Statistical Pocket Book Federal Bureau of Statistics Average Foreign Exchange for 2002 was 59.72:US1

Exports

Table 8

Exports by Commodity 2002 - 2003 (In Millions)

Commodity	In Rupee	In US$	% of Total
Manufactured Goods Classified by Material	344,328	5,765	52.8
Miscellaneous Manufactured Articles	190,982	3,198	29.3
Food and Animals	68,638	1,149	10.5
Mineral Fuels and Related Material	14,547	244	2.2
Chemicals	15,247	255	2.3
Crude Materials (except Fuels)	11,845	198	1.8
Machinery and Transport Equipment	4,328	72	0.7
Animal Oils	1,450	24	0.2
Beverages / Tobacco	627	10	0.1
Commodities and Transactions Not Classified	302	5	0.0
Total	652,294	10,922	100.0

Source: Pakistan 2004 Statistical Pocket Book Federal Bureau of Statistics Average Foreign Exchange for 2002 was 59.72 : US1

1.4 Government

Pakistan is a democratic system of government with a bicameral Parliament consisting of a Senate and National Assembly. The Senate is indirectly elected by provincial assemblies to serve 4 year terms, while the National Assembly is elected by popular vote to serve 4 year terms. There are four provincial assemblies and a system of district governments. The head of state is the Prime Minister who is selected by the national Assembly for a 4 year term. The Cabinet is appointed by the Prime Minister. The President is elected by Parliament for a 5 year term.

1.5 National Social Welfare System

The social protection system in Pakistan includes old-age, invalidity and widow pensions and health care governed by the Employees Old-age Benefits Institution (EOBI) and Provincial Social Security Institutions. Being a federal subject , the old-age benefits provided by EOBI are regulated and administered at the federal level, whereas medical care is a provincial subject and is provided by the Employee' Social Security Institution of each Province under similar legislation.

Pension Plans

A large section of the population is not provided pension or old-age benefits. All government employees and their dependents, however, are entitled to life pension, widow pension and commutation of a portion of pension and free medical care. A small number of employees of registered industrial establishments or a commercial establishment have been covered under the EOBI scheme in 1979. The EOBI is funded by an employer contribution of 5% of wages and a limited Federal contribution and provides monetary benefits to its insured persons in their old-age, in the event of their becoming disabled/invalid owing to injuries/diseases. Survivor pension is also provided in the event of the death of an insured person to the widow for life.

Social Security System

The Social Security System provides protection against the economic and social distress that result in stoppage of or substantial reduction of earnings resulting from old age, employment injury, unemployment, invalidity, death or sickness.

The Social Security Scheme was launched in 1967 under the West Pakistan Employees' Social Security Ordinance of 1965 with the assistance of the International Labour Organization (ILO). The Social Security scheme which covers establishments employing 5 or more workers provides medical care facilities and cash benefits to the secured workers and their dependants. Secured workers are entitled for cash benefits in the event of sickness, employment injury, maternity and disablement pension whereas dependants are entitled for survivors pension and death grants. Workers drawing wages up to Rs. 3,000 per month or Rs. 120 per day and employed in registered establishments are liable to be covered under the Scheme in accordance with the provisions of the Social Security Ordinance.

The main source of income is the Social Security contribution. Employers covered under the Scheme contribute towards the Scheme at 7% of their wages paid to insurable workers. During the 1999-2000 fiscal year, the Punjab Employees Social Security Institution (PESSI) and the Sindh Employees Social Security Institution (SESSI) paid more than Rs. 1 billion to approximately 700,000 workers and 40,000 dependents.

1.6 Education Profile

Education System:

There are four distinct tiers within the education system in Pakistan. The four levels of education are: primary (grades 1-5); secondary (grades 6-10); higher secondary or intermediate (grades 11-12); and graduate and post-graduate or higher (grades 13-16).

Primary Education

Primary education in Pakistan ranges from grades 1 - 5. Under the current education policy 1998-2010, there is a big effort to universalize education at this level. It is envisioned that all children throughout the country aged 5-10 will receive at least a basic primary education. One effort in achieving this goal is through enforcing co-education, thereby alleviating some of the strain on the system. This is the only stage of education that males and females are educated together until university.

The language of instruction is Urdu or the regional language of the area. There are some "English" schools but these are mostly in the private sector. The primary level curriculum is primarily uniform throughout the country. Promotion from one grade to the other depends on in-house annual examinations.

Secondary Education

Secondary schooling consists of two well defined stages: middle school (grades 6-8) and high school (grades 9-10). The age group covered by this stage is 11-18 year olds. There is a matriculation or secondary school certificate (S.S.C.) exam at the end of the 10th grade. The medium of instruction is Urdu except in "English" schools. The curriculum at this stage begins to be specialized.

Four compulsory subjects are taught at this level: Urdu, English, Pakistan Studies and Islamic Studies with an additional four subjects as chosen by the student. Two distinguishing features of the secondary school curriculum are: 1) there is a strong re-orientation towards the sciences; 2) there is a diversification of the program so as to offer a large number of technical and vocational subjects.

Higher Secondary

Higher Secondary education comprises grades 11-12 and is also known as intermediate college level. This level leads to the intermediate exam or higher secondary certificate (H.S.C. formerly FA/FSC) which is the pre-requisite for entrance to university or an institution of higher education. English is the medium of instruction at this level, which has been problematic since most education to this point has either been conducted in Urdu or a regional language. This causes a great disparity between students coming from private English high schools and those coming from government schools. This disparity has solicited a change in most intermediate colleges which now have switched to Urdu as the medium of instruction.

Public exams for the secondary school and higher secondary school certificates are conducted by the Board of Intermediate and Secondary Education at the end of grades 10 and 12 respectively.

University Education

Universities in Pakistan offer higher level degrees in general and professional education. Undergraduate studies for Bachelors degrees in arts and sciences require two years of study for completion. An honors bachelor degree takes three years. This distinction makes the difference in the length of time it takes to complete a Masters program.

Table 9

Number of Primary, Middle and High Schools 2001 - 2002

Type of School	Schools	(In 000's) Enrolment	Number of Teachers
Primary	149,085	17,529	414
Middle	26,790	3,821	230
High	15,051	1,574	270
Total	190,926	22,924	914

Source: Pakistan 2004 Statistical Pocketbook Federal Education Management Information System

Enrolment Ratios:

According to the World Health Organization (WHO) first level primary education overall enrolment rates were 72% as of 2002 while male and female enrolment rates were 83% and 61% respectively. Secondary level overall enrolment rates were 41% while male enrolment rates were 45% and female enrolment rates were 35%.

Public Expenditure on Education

Based on the 2003 - 2004 Federal Government Budget, allocations for education was targeted at 9.6 Billion Rupees (US$193 million), which comprises only 1.4% of the overall budget. It should be noted however that the Zakat Ordinance mandates that 2.5% of all declared fixed financial assets are extracted by the Government at the beginning of the month of Ramadan. Zakat funds are distributed through local committees which are used to fund (among various other social services) religious schools. Figures for education allocation from Zakat funds was not readily available for this report.

Literacy Rates

According to the Population Census Organization, the 1998 Census indicated a literacy rate for the total population of 43.9% with females having a significantly lower rate of 32%. Rural literacy was also recorded as much less than the national average at 33.6% with females only achieving a 20.1% literacy rate.

Table 10

Literacy Rates 1998 Census Aged 10 and above

	Urban	Rural	Total
Male	70.0	46.4	54.8
Female	55.2	20.1	32.0
Total	63.1	33.6	43.9

Source: Pakistan 2004 Statistical Pocket Book Population Census Organization

1.7 Health Profile

According to The World Health Organization (WHO) life expectancy at birth for the total population is 63.7 years for males and 63.4 years for females. Infant mortality per 1,000 live births is 82. According to the Health Division of Pakistan there were 906 hospitals in 2002 with over 101,500 registered physicians and over 44,500 registered nurses. Table 11 highlights other selected health facility indicators

Table 11

Selected Health Facility Indicators 2002

Type
Hospitals	906
Dispensaries	4,590
Maternity and Child H.C.	862
T.B. Clinics	285
Rural Health Centers	550
Basic Health Units and Sub H.C.	5,380
Beds in above Institutions	98,264
Registered Doctors	101,635
Registered Nurses	44,520
Midwives	23,084

Source: Pakistan 2004 Statistical Pocket Book Health Division

HIV/AIDS has not been a significant threat to Pakistan. It was estimated by the WHO that there is a prevalence rate of less than 1% in Pakistan with approximately 73,000 people living with HIV/AIDS in 2002. According to the Government of Pakistan there were 1,998 reported cases of HIV/AIDS in 2002. Based on the WHO estimates of people living with HIV/AIDS, deaths related to HIV/AIDS would have been approximately 3,500 in 2002.

1.8 Information Communication Technology

According to the National Telecommunication Corporation, as of the end of 2003, there were a total of 2,404,400 mobile phone subscribers. According to the Pakistan Software Export Board there were a total of 131 internet service providers in Pakistan at the end of 2003, with an estimated 6,000 internet users. The internet code for Pakistan is .pk.