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PAKISTAN

The separation in 1947 of British India into the Muslim state of Pakistan (with two sections West and East) and largely Hindu India was never satisfactorily resolved. A third war between these countries in 1971 resulted in East Pakistan seceding and becoming the separate nation of Bangladesh. In response to Indian nuclear weapons testing, Pakistan conducted its own tests in 1998. The dispute over the state of Kashmir is ongoing, but recent discussions and confidence-building measures may be a start toward lessened tensions.

LOCATION

Southern Asia, bordering the Arabian Sea, between India on the east and Iran and Afghanistan on the west and China in the north. Slightly less than twice the size of California.

POPULATION

159,196,336 (July 2004 est.). Muslim 97% (Sunni 77%, Shi'a 20%), Christian, Hindu, and other 3%

NATURAL RESOURCES

Land, extensive natural gas reserves, limited petroleum, poor quality coal, iron ore, copper, salt, limestone.

NATURAL CHALLENGES

Frequent earthquakes, occasionally severe especially in north and west; flooding along the Indus after heavy rains (July and August). Water pollution from raw sewage, industrial wastes, and agricultural runoff; limited natural fresh water resources; a majority of the population does not have access to potable water; deforestation; soil erosion; desertification.

ECONOMICS

Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes, low levels of foreign investment, and a costly, ongoing confrontation with neighboring India. However, IMF-approved government policies, bolstered by generous foreign assistance and renewed access to global markets since late 2001, have generated solid macroeconomic recovery the last two years. The government has made substantial inroads in macroeconomic reform since 2000, although progress on more politically sensitive reforms has slowed. For example, in the third and final year of its $1.3 billion IMF Poverty Reduction and Growth Facility, Islamabad has continued to require waivers for energy sector reforms. While long-term prospects remain uncertain, given Pakistan's low level of development, medium-term prospects for job creation and poverty reduction are the best in nearly a decade. Islamabad has raised development spending from about 2% of GDP in the 1990s to 4% in 2003, a necessary step towards reversing the broad underdevelopment of its social sector. GDP growth is heavily dependent on rain-fed crops, and last year's end to a four-year drought should support moderate agricultural growth for the next few years. Foreign exchange reserves continued to reach new levels in 2003, supported by robust export growth and steady worker remittances.

Revenues: $12.08 billion
Expenditures: $15.41 billion, including capital expenditures of NA (2004 est.)

Natural gas - production:
23.4 billion cu m (2001 est.)

Natural gas - consumption:
23.4 billion cu m (2001 est.)

Natural gas - exports:
0 cu m NA (2001 est.)

Natural gas - imports:
0 cu m (2001 est.)

Natural gas - proved reserves:
695.6 billion cu m (2004)

Debt - external:
$33.54 billion (2004 est.)

Economic aid - recipient:
$2.4 billion (FY01/02)

Internet hosts:
15,124 (2003)

Internet users:
1.5 million (2002)

CONFLICTS

Kashmir remains the world's largest and most highly 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), but recent discussions and confidence-building measures among the parties are beginning to defuse tensions; India does not recognize Pakistan's ceding lands to China in 1965 boundary agreement; disputes with Pakistan over Indus River water sharing and the terminus of the Sir Creek Estuary at the mouth of the Rann of Kutch, which prevents maritime boundary delimitation; Pakistani maps continue to show Junagadh claim in India's Gujarat State; despite largely successful UN efforts at voluntary repatriation, thousands of Afghan refugees continue to reside in Pakistan; Pakistan has sent troops into remote tribal areas to control the border with Afghanistan to stem organized terrorist and other illegal cross-border activities; regular meetings with Afghan and coalition allies aim to resolve periodic claims of boundary encroachments. ##

Images and data; US CIA (Dec. 2004)