Economy of Pakistan
Pakistan has a developing capitalist economy with a large agriculture sector. It is the 40th-largest in terms of nominal GDP and the 20th-largest economy by purchasing power parity (PPP) as of 2026. In per capita terms, the Pakistani economic output ranks 160th by nominal GDP and 138th by PPP GDP. Economic development in Pakistan is varied with growth centers located along the Indus River. Major urban centers with diversified economies include Karachi and the broader Punjab region, including Faisalabad, Lahore, Sialkot, Rawalpindi, and Gujranwala. With a large population exceeding 250 million, Pakistan is sensitive to immigration, natural disasters and regional armed conflict. Historically reliant on its private sector, Pakistan underwent nationalization in the 1970s, with a focus on its financial services, manufacturing, and transportation industries. It converted to an Islamic economic system in the following decade, outlawing economic practices forbidden under Shari'a law. During the...
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