Pakistan

Pakistan is globally the 33rd largest country spanning 881,913 km², with the 5th largest population. It shares its borders with Afghanistan and Iran to the west, India to the east, and China in the north, which it is connected to via the famous Khyber Pass. It is home to some of the most diverse landscapes, ranging from the Pamirs and the massive Karakoram Range encompassing stellar valleys in the north, down to fertile flat plateaus and the historic Indus River that trails south to the Arabian Sea with the ancient site of the Mohenjo-Daro civilisation along its side. Climate wise the northern areas of Pakistan consist of icy glacial mountain regions, and to the south in the province of Balochistan are stretches of scorching deserts reaching the coast of the Indian Ocean. The capital of the country, Islamabad, lies at the foothills of the glacial Himalayas. The culture and the people of Pakistan reflect the diversity of its landscapes. Pakistan also administers the western portion of Kashmir, called Azad Kashmir, and the province of Gilgit-Baltistan, both of which are collectively called “The Northern Areas”.

Demographics

Pakistan’s population is the fifth largest globally, standing at approximately 259 million as of 2026, with Karachi remaining the most populous city. The country has been growing at a rate of around 1.6 per cent each year. A substantial proportion of the population continues to live in rural areas due to the heavy focus on agriculture. Currently, the country has one of the youngest populations, with a large share of people under 30 years of age. Pakistan is home to over 70 different ethnicities but six of them form much of the population. The Punjabi people, from Pakistan’s largest province of Punjab, make up about 45 per cent of the population, followed by the Pashtuns (around 15 per cent), Sindhis (around 14 per cent), Saraiki speakers, Muhajirs and Balochis, with the remainder constituting other groups. According to official figures, the great majority of the population is Muslim, with small Christian, Hindu and other religious minorities. English and Urdu are both the official languages of Pakistan, the former being most used by upper-class families and government ministries. Punjabi is spoken by a large share of residents, followed by Sindhi, Saraiki, Pashto, Balochi, Hindko and others.

History

The Mughal Empire had a strong rule over the Indian subcontinent for over two centuries starting from 1526 up until 1761 when their influence began to wane due to internal fragmentation and foreign settlement forces, until the last Mughal emperor was exiled to Yangon, Myanmar by the British following the Sepoy Mutiny (1857-58). 28 years afterwards, in December of 1885 the Indian population was given representation in the government via the formation of the Indian National Congress, though it was not given any executive power. The Muslim members of the Congress were became increasingly dissatisfied with their level of representation, thus formed the All India Muslim League in 1906, of which lawyer, and future founder of Pakistan, Muhammad Ali Jinnah, became the leader of in 1913. The political faction began campaigning for an independent Islamic state in 1930 after a speech by the famous poet, Muhammad Allama Iqbal outlined the possible borders for a Muslim state. In 1935, the British passed the Government of India Act whereby the local population would be able to govern themselves using the parliamentary democracy system. Concerned that the Muslim population may be overshadowed by the Hindu politicians of the Indian Congress led by Mahatma Gandhi, who had adapted better under British rule, Jinnah became increasingly convinced that the Muslims needed political safeguarding. Thus, the landmark document demanding a separate homeland for the Muslims in the Lahore Resolution was published in March 1940.

With the conclusion of World War 2 in 1945, the new Labour Party government headed by Clement Attlee began arranging for India’s independence. To discuss the transfer of power, Attlee sent a cabinet led by William Pethic-Lawrence to finalise the details with Jinnah and Gandhi; however, the talks dissolved inconclusively due to lack of consensus between the two leaders and complete separation between the Muslims and non-Muslims became the only solution. Pakistan became an independent state on the 14th of August 1947, as a dominion within the Commonwealth. The country was divided into West Pakistan, with the 4 provinces of Punjab, Sindh, Balochistan, and Northwestern Frontier Province (now called Khyber Pakhtunkhwa), and East Pakistan. Jinnah became the first governor-general, with party member Liaquat Ali Khan as Prime Minister. In October of the same year, the government of Azad Kashmir was formed, and Pakistan became its administrating country.

In 1956, Pakistan’s constitution was revised under which Pakistan was proclaimed an Islamic republic, however the martial law implemented two years later suspended it. In 1971 East Pakistan separated from the West and became Bangladesh. In 1985, the constitution was reinstated when the martial law was lifted, and in 1988 Pakistan elected Benazir Bhutto as its first ever female Prime Minister.

Key Dates

1947 Pakistan gains independence on the 14th of August. West and East Pakistan created out of Partition.

1956 New constitution drafted; Pakistan declared an Islamic Republic.

1971 East Pakistan separated and becomes Bangladesh.

1978 Zulfiqar Ali Bhutto becomes Prime Minister.

1979 Pakistani physicist Abdus Salam wins Nobel Peace Prize

1988 Pakistan People’s Party leader Benazir Bhutto wins elections.

1989 Pakistan re-joins Commonwealth.

1991 Nawaz Sharif begins trade liberalisation program.

2010 Parliament passes constitutional reforms (18th Amendment) transferring greater power to the Prime Minister and provinces.

2013 First democratic transfer of power from one elected government to another.

2018 Imran Khan’s Pakistan Tehreek-e-Insaf forms government.

2022 Coalition government led by Shehbaz Sharif takes office after no-confidence vote.

2024 Shehbaz Sharif returns as Prime Minister following general elections.

Legal System and Government

Pakistan is a parliamentary republic wherein the Prime Minister is the head of government in charge of the executive branch of the government as well as the Cabinet which includes ministers of state. The federal legislature is bicameral consisting of the Senate in the upper house and National Assembly in the lower house. The Senate is a permanent legislative body with equal number of seats for each province that are elected by their respective provincial assemblies. The chairman of the Senate may, under the constitution, replace the President should the position become vacant. The Prime Minister is appointed by the National Assembly members via vote; and the National Assembly members themselves are elected by universal suffrage.

The legal system is derived from English common law but is altered by the 1973 constitution and Islamic law (Sharia). The Supreme Court, provincial high courts, and other courts oversee criminal and civil issues. The president appoints the Supreme Court’s chief justice, other Supreme Court justices as well as provincial high court judges on the advice of the chief justice. The Supreme Court has original, appellate, and advisory jurisdiction, and high courts have original and appellate jurisdiction. The Federal Shariat Court ensures that the laws are consistent with Islamic injunctions. Pakistan’s penal code has limited jurisdiction in tribal areas, where law is largely derived from tribal customs.

Economy

Pakistan has seen varying rates of economic growth in recent years. Its landscape lends itself well to farming and harvesting crops, from which a large proportion of Pakistanis earn their living. Similarly, the country’s arable land allows for the production and processing of cotton, which contributes to Pakistan’s expansive textile industry. Textiles form the largest source of Pakistani foreign exchange revenue, accounting for a substantial share of all Pakistani exports and employing a large portion of the industrial labour force. The country’s yarn production remains significant globally and it has one of the longest production chains. The European Union has granted Pakistan’s textile industry Generalised Scheme of Preferences Plus (GSP+) status, which allows domestically produced garments to flow more freely throughout the Union. Agriculture remains a major contributor to the economy, employing a large share of the total workforce. Pakistan enjoys an abundance of arable land which is well-suited for farming. The sector produces a wealth of crops for domestic consumption and for exportation, which include sugar cane, wheat, and rice amongst other foodstuffs.

Pakistan has abundant deposits of coal, copper, gold, chromite, mineral salt, bauxite, and several other minerals. There are also a variety of precious and semi-precious minerals including peridot, aquamarine, topaz, ruby, emerald, rare-earth minerals, sphene, tourmaline, and several varieties of quartz. However, the mining sector contributes only a modest share of GDP despite such rich resources. The services sector has grown in importance, alongside manufacturing.

Trade

In recent years the size of Pakistan’s economy has been estimated in the range of US$408–452 billion. Pakistan’s total merchandise exports have typically been in the region of US$30–40 billion. The main exports continue to be textiles and clothing (including bed linen, apparel and cotton products), cereals (especially rice), and other manufactured goods. Main export destinations include the United States, China, the United Kingdom, the United Arab Emirates and Germany. Total imports substantially exceed exports and include mineral fuels and oils, electrical and electronic equipment, machinery, iron and steel, and chemicals. The main import supplier countries are China, the United Arab Emirates, Saudi Arabia, Indonesia and others. The Pakistani government has formed trade agreements with several countries. It has established Free Trade Agreements and preferential arrangements with various partners and is a party to the South Asian Free Trade Agreement (SAFTA) and the Economic Cooperation Organization Trade Agreement.

Investment Opportunities

Pakistan possesses a youthful, large and affordable semi-skilled labour force, and a growing middle class that is proficient in English. The consumer market of Pakistan is expanding and mobile penetration remains high. The logistics and transport industries continue to attract foreign direct investment; however, further investment is required to maximise the potential of the country’s dry ports and the strategic Gwadar port. The government is encouraging the usage of ports by constructing special economic zones and smart cities along them, such as the Gwadar SEZ. Telecoms as an industry has attracted significant investment. The country is an ideal location for investment in such an industry, with a large number of mobile and broadband subscribers. Additionally, Pakistan ranks highly globally for freelance development and the country prides itself on its relatively open telecoms market.

To improve the automobile industry, the government of Pakistan has pursued automotive development policies aiming to increase the volume and quality of motor vehicles manufactured in the country using advanced technology. The state of Pakistan is actively seeking foreign investment and for foreign companies to set up their automotive businesses in the country or undertake joint venture programmes with local companies. Incentives for foreign investors include duty concessions on imports of machinery and parts for setting up manufacturing facilities. Although Pakistan has large natural reserves of coal, the country aims to improve its green power generation, promoting wind, hydro and solar power generation. Hydroelectricity accounts for a significant share of energy produced across Pakistan, and the country has vast potential for further sustainable energy projects under the China–Pakistan Economic Corridor (CPEC) and other initiatives.