What is the Ranking of Pakistan’s Economy in 2024? | Detailed Analysis and Global Perspective

Pakistan’s economy stands at a crucial crossroads in 2024. As the world’s 46th largest economy by nominal GDP, Pakistan remains a significant emerging market within South Asia, with a GDP of approximately $340 billion that places it among the top 50 global economies. In this article, we explore the key drivers behind Pakistan’s economic ranking in 2024, current challenges, growth opportunities, and how the country’s economic position compares with regional and global peers.

Overview of Pakistan’s Economic Ranking in 2024

Pakistan’s global economic ranking in 2024 highlights both notable achievements and significant hurdles. Ranking as the 46th largest economy by nominal GDP and 24th by purchasing power parity (PPP) (as calculated here: https://purchasingpowerparitycalculator.com/), Pakistan’s economy faces ongoing challenges such as high inflation and currency depreciation. However, as the 2nd largest economy in South Asia and 6th largest in Asia, Pakistan remains a central player within its region, driven by its large population and key industries in agriculture, services, and manufacturing.

Key Statistics at a Glance

• Population: 235.8 million (2024 estimate)
• GDP Growth Rate: 2.5% (2024 projection)
• Per Capita Income: $1,568
• Inflation Rate: 29.7%
• Foreign Exchange Reserves: $8.2 billion

Global Economic Context in 2024

The global economic landscape in 2024 continues to recover from prior economic disruptions, with economies worldwide adjusting to inflationary pressures, changing trade dynamics, and technological advancements. Emerging markets, particularly in Asia, are reshaping their economic policies to improve resilience against external shocks, and Pakistan’s economic strategy, focused on domestic reforms and regional alliances, plays a crucial role in sustaining its growth amid these changes.

Key Economic Indicators

GDP Composition

Pakistan’s economy in 2024 is built upon three primary sectors:

• Services: 54% of GDP, highlighting sectors like retail, finance, and telecommunications.
• Industry: 19.1%, encompassing manufacturing and energy production.
• Agriculture: 26.9%, reflecting Pakistan’s strong agricultural base and reliance on staple crops.

Trade Statistics

In 2024, Pakistan’s trade data underscores a persistent trade deficit:

• Exports: $31.8 billion, largely from textiles, agriculture, and other raw materials.
• Imports: $55.2 billion, including energy, machinery, and manufactured goods.
• Trade Deficit: $23.4 billion, highlighting the need for policies aimed at export diversification and reduced import dependency.

Foreign Investment

Foreign direct investment (FDI) in Pakistan shows a mixed trend:

• 2024 FDI: $1.9 billion, with primary investors from China, the UAE, the US, and the UK.
• Key investments are aimed at infrastructure, energy, and technology sectors, though fluctuations due to political stability remain a concern.

Comparative Analysis with Neighboring Economies

Pakistan’s economy is often compared to its neighbors, particularly India and Bangladesh. While it holds the title of the second-largest economy in South Asia, its growth rate lags behind other regional players, underscoring the importance of industrial diversification and investment in human capital.

Country	Nominal GDP Rank (2024)	GDP Growth (%)	Inflation Rate (%)
Pakistan	46	2.5	29.7
India	5	6.8	6.2
Bangladesh	39	5.6	8.5

Regional and Global Standing

• South Asia Ranking: 2nd largest economy
• Asia Ranking: 6th largest economy by nominal GDP
• Global Purchasing Power Parity (PPP) Ranking: 24th position
• Global Per Capita Income Ranking: 165th position

Challenges and Opportunities

Current Challenges

External Debt Management

• Total External Debt: $130.7 billion
• Debt-to-GDP Ratio: 78.9%, signaling a critical area for financial management.

Currency Depreciation

• PKR/USD Exchange Rate: 279.5
• Impacts: Elevated import costs, reduced purchasing power, and cautious foreign investment.

Energy Crisis

• Circular Debt: $14 billion
• Implications: Ongoing power shortages affecting industrial output and economic stability.

Growth Opportunities

Digital Economy

• E-commerce Growth: 35% year-over-year, reflecting Pakistan’s rising digital adoption.
• Digital Payment Solutions and Startup Ecosystem: Key drivers of innovation, providing potential for job creation and economic diversification.

CPEC Projects

• Infrastructure Development: Major highways, ports, and energy projects enhancing connectivity and trade.
• Industrial Cooperation and Special Economic Zones (SEZs): Designed to attract foreign investment and foster local industry.

Agricultural Modernization

• Technology Integration: Increased efficiency through digital solutions.
• Export Potential and Value Addition: Opportunities to expand agricultural exports through improved logistics and quality control.

Future Economic Outlook for Pakistan

Short-Term Outlook (2024-2025)

• GDP Growth Rate: Expected to reach 3.5%
• Inflation Rate: Projected to moderate to around 20%
• Foreign Investment: Anticipated to increase to $2.5 billion, driven by CPEC projects and digital economy growth.

Long-Term Prospects (2025-2030)

• Demographic Dividend: A youthful population offers potential for economic growth through skilled labor.
• Digital Infrastructure Expansion: Increasing broadband and mobile access to stimulate e-commerce and IT sectors.
• Industrial Modernization: As Pakistan continues to enhance its industrial infrastructure, there are opportunities for increased productivity and economic diversification.

Expert Insights

World Bank Assessment

“Pakistan’s economy shows resilience despite global challenges, with potential for growth through structural reforms and digital transformation.”

IMF Perspective

“Continued fiscal discipline and structural reforms are crucial for Pakistan’s economic stability and growth trajectory.”

Local Economic Experts

Dr. Hafiz A. Pasha, Former Finance Minister:
“Pakistan’s economic ranking could improve significantly with proper policy implementation and debt management strategies.”

Conclusion: Pakistan’s Position on the Global Stage

Pakistan’s economic standing in 2024 reflects both persistent challenges and emerging opportunities. As the 46th largest economy globally, Pakistan holds substantial growth potential in sectors like digital economy, agriculture, and infrastructure development through CPEC. However, navigating debt management, currency volatility, and energy shortages is essential to achieving sustainable progress. With a commitment to policy reform and strategic investments, Pakistan can build a resilient economy capable of improving its global standing in the years ahead.

Key Takeaways

• Global Rank: 46th by nominal GDP
• Growth Sectors: Digital economy, agriculture, infrastructure projects
• Challenges: High inflation, debt management, currency stability
• Opportunities: CPEC, agricultural modernization, digital transformation

Frequently Asked Questions

What is the projected growth rate for Pakistan’s economy in 2024?
The projected growth rate is 2.5% for 2024, with an expected increase to 3.5% in 2025.