PAKISTAN

Islamic Republic of Pakistan

Islami Jamhooria Pakistan

CAPITAL: Islāmābād

FLAG: The national flag is dark green, with a white vertical stripe at the hoist and a white crescent and five-pointed star in the center.

ANTHEM: The opening lines of the national anthem, sung in Urdu, are "Blessed be the sacred land, Happy be the bounteous realm, Symbol of high resolve, land of Pakistan, Blessed be thou citadel of faith."

MONETARY UNIT: The rupee (r) is a paper currency of 100 paisa. There are coins of 1, 2, 5, 10, 25, and 50 paisa and of 1 rupee, and notes of 1, 2, 5, 10, 50, 100, 500, and 1,000 rupees. r1 = $0.01678 (or $1 = r59.6) as of 2005.

WEIGHTS AND MEASURES: The metric system was introduced in 1966 and made mandatory as of 1 January 1979.

HOLIDAYS: Pakistan Day, 23 March; May Day, 1 May; Independence Day, 14 August; Defense of Pakistan Day, 6 September; Anniversary of Death of the Quaid-e-Azam, Mohammad Ali Jinnah, 11 September; Christmas and Birthday of the Quaid-e-Azam, 25 December. Religious holidays include 'Id al-Fitr, Id al-'Adha', 1st of Muharram, and Milad an-Nabi.

TIME: 5 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Situated in southern Asia, Pakistan has an area of 803,940 sq km (310,403 sq mi), extending 1,875 km (1,165 mi) ne–sw from the ranges of the Hindu Kush and the Himalaya to the Arabian Sea and 1,006 km (625 mi) se–nw. Comparatively, the area occupied by Pakistan is slightly less than twice the size of the state of California. The enclave of Junagadh, claimed by Pakistan, and Jammu and Kashmir, divided between Pakistan and India by the 1971 "line of control," are not included in the area. Pakistan is bordered on the ne by China, on the e by Jammu and Kashmir to the Karakoram Pass, on the e and se by India, on the s by the Arabian Sea, on the sw by Iran, and on the w and nw by Afghanistan. The total land boundary length is 6,774 km (4,209 mi). The coastline is 1,046 km (650 mi). Pakistan's capital city, Islāmābād, is located in the northern part of the country.

TOPOGRAPHY

More than two-thirds of Pakistan is arid or semiarid. The west is dominated by the Baluchistan plateau, consisting of arid plains and ridges. Rivers, streams, and lakes exist only seasonally. The arid south ends at the rugged Makran coast and rises to the east into a series of rock-strewn ranges, the Kirthar, and to the north, the Sulaiman, which extends to the Indus plains. A semiwatered plateau surrounds Rāwalpindi, bounded to the south by the salt range. Southward, the extensive Punjab plains support about 60% of the country's population.

In the northern areas of Pakistan, the forest-clad hills give way to lofty ranges, including 60 peaks over 6,700 m (22,000 ft) high. K-2 (Godwin Austen), at 8,611 m (28,250 ft), is the second-highest mountain in the world.

The principal ranges, trending nw–se, include several Himalayan ranges—notably the Pir Panjal and Zaskar—leading into the Karakoram Mountains. The Indus is the principal river of Pakistan. Its major tributaries are the Jhelum, Chenab, Ravi, and Sutlej.

On 8 October 2005, an earthquake measuring 7.6 on the Richter scale struck the Kashmir region. There were more than 140 aftershocks recorded; many measured 5.0 in magnitude. Landslides damaged homes, killed livestock, and blocked rivers, causing severe flooding. More than 69,000 were injured and there were more than 73,000 deaths. It was estimated that about 3 million people were displaced or left homeless.

CLIMATE

Pakistan's climate is dry and hot near the coast, becoming progressively cooler toward the northeastern uplands. The winter season is generally cold and dry. The hot season begins in March, and by the end of June the temperature may reach 49°c (120°f). Between June and September, the monsoon provides an average rainfall of about 38 cm (15 in) in the river basins and up to about 150 cm (60 in) in the northern areas. Rainfall can vary radically from year to year, and successive patterns of flooding and drought are not uncommon.

FLORA AND FAUNA

The mangrove forests of the coastal region give way to the mulberry, acacia, and date palms of the sparsely vegetated south; the foothills support phulai, kao, chinar, and wild olive, and the northern forests have stands of oak, chestnut, walnut, pine, ash, spruce, yew, and fir. Above 3,000 m (10,000 ft), birch, dwarf willow, and juniper are also found.

Pakistan's wide range of animal life includes the Siberian ibex, wild sheep, buffalo, bear, wolf, jackal, fox, wildcat, musk cat, hyena, porcupine, gazelle, peacock, python, and boar. As of 2002, there were at least 188 species of mammals, 237 species of birds, and over 4,950 species of plants throughout the country.

ENVIRONMENT

Relatively high population growth contributed to the depletion of forestland from 9.8% of Pakistan's total area in 1947 to 4.5% by 1986, despite the forest conservation measures mandated by the Forest Act of 1927. Pakistan lost 14.5% of its remaining forest and woodland between 1983 and 1993. In 2000, only about 3.1% of the total land area was forested. Deforestation has also contributed to increased soil erosion, declining soil fertility, and severe flooding.

Primary responsibility for environmental matters belongs to the Environmental and Urban Affairs Division of the Ministry for Housing and Works. Laws to set air and water quality standards and regulate coastal zones to prevent pollution were under consideration in the 1980s. In the mid-1990s, Pakistan was among the 50 nations with the world's highest levels of industrial carbon dioxide emissions, which totaled 71.9 million metric tons per year, a per capita level of 0.59 metric tons per year. In 2000, the total of carbon dioxide emissions was at 104.8 million metric tons. The nation's water supply is at risk due to untreated sewage along with agricultural and industrial pollutants. It is estimated that about 80% of the nation's diseases are related to impure water.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 17 types of mammals, 30 species of birds, 9 types of reptiles, 14 species of fish, and 2 species of plants. Endangered species included the Indus dolphin, Baluchistan bear, tiger, Pakistan sand cat, snow leopard, Indian wild ass, green sea turtle, olive ridley turtle, gavial, Central Asian cobra, Kabul markhor, chi pheasant, western tragopan, great Indian bustard, and Siberian white crane. Hunting or capturing wild animals was banned in 1981. In 2003, about 4.9% of the total land area was protected.

POPULATION

The population of Pakistan in 2005 was estimated by the United Nations (UN) at 162,420,000, which placed it at number 6 in population among the 193 nations of the world. In 2005, approximately 4% of the population was over 65 years of age, with another 42% of the population under 15 years of age. There were 106 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 2.4%, a rate the government viewed as too high. In 2002, the government initiated the Population Policy of Pakistan, which aimed to stabilize population growth by 2020 by lowering both the fertility rates and mortality rates. The projected population for the year 2025 was 228,822,000. The population density was 204 per sq km (528 per sq mi).

The UN estimated that 34% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 3.60%. The capital city, Islāmābād, had a population of 698,000 in that year. Karāchi, the largest city, had a population in excess of 12 million. Other cities with populations in excess of one million include Lahore, Faisalābad, and Rāwalpindi, Gujrānwāla, Mutlān, Hyderābād, and Peshāwar.

MIGRATION

Some 6,000,000 Muslims migrated to Pakistan from India at the time of independence in 1947, and Muslims have continued to arrive from India in much fewer numbers since then. The Soviet military intervention in Afghanistan in December 1979 led to an influx of Afghan refugees.

After the Taliban captured Kabul on 27 September 1996, there was a new outflow of Afghan refugees to Pakistan. By March 1997, around 50,000 new Afghan refugees entered the country. As of 1999, there were still around 1.2 million Afghan refugees living in refugee villages in Pakistan. An unknown number of unregistered Afghans were living in the main Pakistani cities of Rāwalpindi, Lahore, and Karāchi. Pakistan also hosts non-Afghan refugees, including Iraqis, Iranians, and Somalis. The total number of migrants living in Pakistan was 4,243,000 in 2000. In 2004, the total persons of concern to the United Nations High Commissioner for Refugees (UNHCR) was 968,774. Refugees numbered 960,617; of these 960,041 were from Afghanistan. In that same year, 9,662 Pakistanis sought refuge in Canada, and 8,656 in Germany. In 2004, there were 8,157 asylum seekers in Pakistan, mainly from Afghanistan (7,164), and Nigeria. In that same year, Pakistanis sought asylum in 18 countries, mainly in Canada, the United Kingdom, France, Germany, and the United States. In 2004, Pakistan dropped from being the main country of asylum at the beginning of the year to the rank of second by the end of the year.

In 2003 worker remittances were $3.9 billion. In 2005, the net migration rate was -1.67 migrants per 1,000 population. The government views the migration levels as satisfactory.

ETHNIC GROUPS

The majority of the population is Punjabi (an estimated two-thirds). Other major ethnic groups include the Sindhi, Pathan, Baloch, and Muhajirs (immigrants from India and their descendants). The Rajputs and the Jats are the most numerous of the Punjabi castes. In the area of the delta and the lower course of the Indus River are Sindhi peasant tribesmen. In the north and northwest are the hardy, warlike nomadic and seminomadic Pathans. The Balochi live in the vast western section of Pakistan and are divided into 12 major tribes, some of them purportedly of Dravidian origin. Native speakers of Urdu, the Muhajirs are refugees, or descendants of refugees, from pre-partition India. They are well represented in the cities.

LANGUAGES

Punjabi is spoken by about 48% of the population; Sindhi by 12%; Siraiki (a Punjabi variant) by 10%; Pashtu by 8%; Urdu by 8%; Balochi by 3%; Hindko by 2%; Brahui by 1%; English, Burushaski, and other by 8%. During the Mughal (or Mogul) period, a fusion of local dialects and Persian produced Urdu, a "language of the camp" (zaban-i-urdu ). Although regional languages and dialects persist, Urdu is the official language of Pakistan; while it is spoken by only a minority, it is understood everywhere except in the rural or mountainous areas on the western frontier. English also claims official status and is the lingua franca of Pakistani elite and most government ministries.

RELIGIONS

The country of Pakistan was essentially created as a Muslim homeland. According to a 1998 census, some 96% of the population was Muslim, giving Pakistan one of the largest Islamic communities in the world. While most Muslims are of the Sunni and Shia sects, there are a few members of the Ismaili sect concentrated at Karāchi. Ahmadis consider themselves Muslims but they do not accept Muhammad as the last prophet; as such, they are not accepted as orthodox by other Muslim groups and were officially declared non-Muslims by the government in 1974. Zikris form another branch of people who consider themselves Muslim but are rejected by Sunni leaders because they practice ceremonies that are not common to all of Islam.

In the 1998 census, about 2% of the population were Christians with the largest group belonging to the Church of Pakistan, an umbrella Protestant organization. Roman Catholics were the next largest group of Christians. About 2% of the population were Hindus with about 2,000 temples and shrines, mostly in Sindh and Baluchistan. Buddhists, Parsis, Sikhs, and Baha'is were also represented.

Though the constitution provides for religious freedom, the government has placed restrictions on a number of religious groups. Islam is the state religion and actions or speech contrary or derogatory to Islam are illegal. There have been many cases of trials, imprisonment, and even death sentences based on the violation of these "blasphemy laws." Religious minorities face a great deal of harassment and discrimination and have been the object of physical violence. The Ahmadis, as an unrecognized offshoot of Islam, face a particular level of discrimination. They are prohibited by law from referring to themselves as Muslims or posing as Muslims in anyway. They are also not allowed to hold public assemblies or conferences. The constitution states that the president and the prime minister must be Muslim and all other government officials swear an oath to uphold the Islamic ideology of the state.

TRANSPORTATION

Railways are a major carrier of passenger and freight traffic. In 2004, Pakistan Railways operated 8,163 km (5,072 mi) of broad and narrow gauge track. Of that total, broad gauge lines predominate, with 7,718 km (4,801 mi), of which 293 km (182 mi) are electrified.

In 2002, Pakistan's road system totaled 247,811 km (153,989 mi) of roads, of which 141,252 km (87,858 mi) were paved, including 339 km (211 mi) of expressways. Road traffic drives on the left. The 800 km (500 mi) Karakoram highway, built jointly by Pakistan and China to connect Islāmābād with western China, was opened in 1979. In November, 1997, the Lahore-Islāmābād motorway was opened for traffic. There were 390,480 passenger cars and 396,225 commercial vehicles in use in 2003. The road network carries 85% of all goods and passengers moving within the country. The harbor of Karāchi, which provides Pakistan with its major port, covers an area of 6.5 sq km (2.5 sq mi) and handles over 10.5 million tons annually. Port Qasim, 22 km (14 mi) south of Karāchi, was developed during the 1970s to help handle the increased shipping traffic. As of 2005, Pakistan's merchant marine operated 13 oceangoing vessels of 1,000 GRT or more, totaling 329,486 GRT.

Pakistan had an estimated 131 airports in 2004. As of 2005, a total of 91 had paved runways, and there were also 18 heliports. Karāchi Airport is the main international terminus. As of July 2001, along with the government-run Pakistan International Airlines (PIA), two private carriers, Aero Asia and Shehann Air International (SAI), were operating on domestic as well as flights to Europe, the United States, and the Far East. In 2003, about 4.477 million passengers were carried in scheduled domestic and international flights.

HISTORY

The ruins of ancient civilizations at Mohenjodaro and at Harappa in the southern Indus Valley testify to the existence of an advanced urban civilization that flourished in what is now Pakistan in the second half of the third millennium bc during the same period as the major riverain civilizations in Mesopotamia and Persia. Although overwhelmed from 1500 bc onward by large migrations of nomadic Indo-European-speaking Aryans from the Caucasus region, vestiges of this civilization continue to exist not only in present-day Pakistan but also in the Indic culture that evolved from interaction of the Aryans and others in the years following. Among the latter were Persians in 500 bc, Greeks under Alexander the Great in 326 bc, and—after ad 800—Arabs, Afghans, Turks, Persians, Mongols (Mughals), and Europeans, the last of whom first arrived by sea beginning in ad 1601.

Islam, now the dominant cultural influence in Pakistan, arrived with Arab traders in the 8th century ad. Successive overland waves of Muslims followed, culminating in the ascendancy of the Mughals in most of the subcontinent. Led initially by Babur, a grandson of Genghis Khan, the Mughal empire flourished in the 16th and 17th centuries and remained in nominal control until well after the British East India Company came to dominate the region in the early 18th century. Effective British governance of the areas that now make up Pakistan was not consolidated until well into the second half of the 19th century.

Nationalism and the Rise of the Muslim League

In 1909 and 1919, while the British began to take steps to expand local self-rule, mass movements challenging colonial authority began to rise. The largest of these movements was spearheaded by the Indian National Congress, founded in 1885 as an Anglophile society. Congress began to attract wide support after 1920 with one of its key leaders, Mohandas K. Gandhi, nonviolent struggle. Its leadership included Muslims but was in many ways Hindu dominant. As a result, Muslims worried that their needs would be forgotten and formed an All-India Muslim League to look after their interests. National and provincial elections held under the Government of India Act of 1935 confirmed many Muslims in this view by showing the power the majority Hindu population could wield at the ballot box.

Sentiment among Muslims began to coalesce around the "two-nation" theory propounded by the poet Iqbal, which declared that Muslims and Hindus were separate nations and that Muslims required creation of an independent Islamic state for their protection and fulfillment. A Bombay (now Mumbai) attorney, Muhammad Ali Jinnah, who came to be known "Quaid-i-Azam" (Great Leader), led the fight for a separate Muslim state to be known as Pakistan. The Muslim League endorsed the project at Lahore in 1940.

Jinnah's quest succeeded on 14 August 1947 when British India was divided into the two self-governing dominions of India and Pakistan, the latter created by combining contiguous, Muslim-majority districts in British India, the former consisting of the remainder. Partition occasioned a mass movement of Hindus, Muslims, and Sikhs who found themselves on the "wrong" side of new international boundaries; more than 20 million people moved, and up to three million of these were killed.

The new Pakistan was a state divided into two wings, East Pakistan (with 42 million people crowded mainly into what had been the eastern half of Bengal province) and West Pakistan (with 34 million in a much larger territory that included the provinces of Baluchistan, Sind, the Northwest Frontier, and western Punjab). In between, the wings were separated by 1600 km (1000 miles) of an independent, mainly Hindu, India professing secularism for its large Muslim, Christian, and Sikh minorities.

From the capital in Karāchi, in West Pakistan, the leaders of the new state labored mightily to overcome the economic dislocations of Partition, which cut across all previous former economic linkages, while attempting to establish a viable parliamentary government with broad acceptance in both wings. Jinnah's death in 1948 and the assassination in 1951 of Liaquat Ali Khan, its first prime minister, were major setbacks, and political stability proved elusive, with frequent recourse to proclamations of martial law and states of emergency in the years following 1954.

Complicating their task were the security concerns that Pakistan's new leaders had regarding India in the aftermath of the bitterness of partition and a still-unresolved dispute over the former princely state of Jammu and Kashmir. In the early 1950s, Pakistan sought security in relationships external to the subcontinent, with the Islamic world and with the United States. It joined such American-sponsored alliances as the Baghdād Pact (later—without Baghdād—the Central Treaty Organization or CENTO) and the Southeast Asia Treaty Organization (SEATO).

East–West Divide

Pakistan also faced the daunting challenging of trying to bridge a profound political and ethnic gap that existed between its west and east wings. The Bengali east wing was economically more important, but political power rested in the Sindhi and Punjabi factions of the west wing. The eastern areas chafed under national policies laid down in the west, and seeking greater autonomy, voted the Muslim League (ML) out of office as early as 1954, resulting in a period of direct rule from Karāchi.

In 1958, the Army chief, Gen. Muhammad Ayub Khan, seized control of Pakistan, imposing martial law and banning all political activity for several years. Ayub later dissolved provincial boundaries in the west wing, converting it to "one unit," to balance East Pakistan. Each "unit" had a single provincial government and equal strength in an indirectly elected national legislature; the effect was to deny East Pakistan its population advantage, as well as its ability, as the largest province, to play provincial politics in the west wing.

Ayub's efforts failed to establish stability or satisfy the demands for restoration of parliamentary democracy. Weakened by his abortive military adventure against India in September 1965 and amid rising political strife in both wings in 1968, Ayub was eventually forced from office. General Muhammad Yayha Khan, also opposed to greater autonomy for the east wing, assumed the presidency in 1969. Again martial law was imposed and political activity suspended.

Yahya's attempt to restore popular government in the general elections of 1970 failed when the popular verdict supported those calling for greater autonomy for East Pakistan. Civil unrest in the east wing flared into civil war. India, with more than a million refugees pouring into its West Bengal state, joined the conflict in November 1971, supporting East Pakistan. When the brutal war ended in early 1972, the eastern wing was formally severed from Pakistan and became the nation of Bangladesh (land of Bengalis).

Authoritarian Politics

The loss of east Pakistan led to the resignation on 20 December 1971 of Yahya Khan and brought to the presidency Zulfikar Ali Bhutto, whose populist Pakistan Peoples Party (PPP) had won a majority of seats in the west wing. A longtime minister under Ayub Khan, Bhutto quickly charted an independent course for West Pakistan, which became the Islamic Republic of Pakistan. He distanced Pakistan from former close ties with the United States and the west, seeking security from India by a much more active role in the Third World and especially in the growing international Islamic movement fueled by petrodollars. Bhutto launched limited land reform, nationalized banks and industries, and obtained support among all parties for a new constitution promulgated in 1973, restoring a strong prime ministership, which position he then stepped down to fill. In the years following, Bhutto grew more powerful, more capricious, and autocratic. His regime became increasingly dependent on harassment and imprisonment of foes and his popular support seriously eroded by the time he called for elections in March 1977. His PPP had lost many of its supporters, and he came to rely increasingly on discredited former PML members for support.

At the polls, the PPP was opposed by the Pakistan National Alliance (PNA), a nine-party coalition of all other major parties including the Jamaat-i-Islami (JI) on the Islamic right, the National Democratic Party on the secular left, the Pakistan Muslim League (PML/Pagaro) in the center, Asghar Khan's Tehrik Istiqlal (TI) on the secular right, and others. Although the results gave the PPP a two-thirds majority in parliament, allegations of widespread fraud and rigging undercut its credibility. PNA leaders demanded new elections, and Bhutto's exercise of emergency powers to arrest them led to widespread civil strife. On 5 July 1977, the army intervened and ousted Bhutto. Army chief General Muhammad Zia-ul-Haq partially suspended the 1973 constitution, imposed martial law, and assumed the post of Chief Martial Law Administrator (CMLA). As calm returned to Pakistan, Zia promised elections for October 1977, but for the first of many times to come, he reversed himself before the event, arguing that he needed more time to set matters aright. And as the months passed, he began to assume more of the trappings of power, creating a cabinet-like Council of Advisers of made up of serving military officers and senior civil servants, chief among whom was longtime Defense Secretary, Ghulam Ishaq Khan, who became Finance Advisor and Zia's strong right arm.

In mid-1978, Zia brought Bhutto to trial for conspiracy to murder a political rival in which the rival's father was killed. He also expanded his "cabinet" with the addition of several PNA leaders as advisors, and, when the incumbent resigned, he assumed the added responsibilities (and title) of president. He allowed a return of limited political activity but put off elections scheduled for fall when he was unable to get agreement among the PNA parties on ground rules that would keep the PPP from returning to power.

Bhutto's conspiracy conviction was upheld by the Supreme Court in March 1979, and he was hanged on 4 April. In the fall, and with the PNA now in disarray, Zia again scheduled, then postponed elections and restricted political activity. But he did hold "nonparty" polling for district and municipal councils, only to find at year's end confirmation of his concerns about PPP strength when PPP members, identifying themselves as "Friends of the People," showed continuing appeal among the electorate.

Opposition to martial law began slowly to coalesce in 1980 when most of the PNA leadership joined with PPP leaders Ghulam Mustafa Jatoi and Nusrat Bhutto, Zulfikar's widow, to form the Movement for the Restoration of Democracy (MRD) and to demand Zia's resignation and the restoration of the 1973 constitution. But Zia proceeded to expand the role of Islamic values and institutions in society.

Meanwhile, neighboring Afghanistan experienced a communist coup in 1978 and Soviet invasion in 1979. Zia jumped into the political arena, taking a strong anticommunist leadership role that drew support from the Islamic world, the UN and the United States. In the 1980s, the United States and Pakistan signed economic and security assistance agreements worth us$3.2 and us$4.02 billion. Zia also sought improved relations with India but anxiety about the much more powerful India remained high, at least partially because the status of Jammu and Kashmir remained unresolved.

In Pakistan in 1984, President Zia held a referendum on his Islamization policies in December and promised that he would serve a specified term of five years as president if the voters endorsed his policies. The MRD opposed him but did not prevent what Zia claimed was a 63% turnout, with 90% in his favor. On the strength of this disputed showing, Zia announced national and provincial elections, on a nonparty basis, for February 1985. The MRD again boycotted, but the JI and part of the Pakistan Muslim League (PML) supported Zia. Deemed reasonably fair by most observers, the elections gave him a majority in the reconstituted National Assembly and left the opposition in further disarray.

Ten months later, on 30 December 1985, Zia ended martial law, as well as the state of emergency he had inherited from Zulfikar Bhutto, turning over day-to-day administration to the PML's Mohammad Khan Junejo, whom he had appointed prime minister in March. He also restored the 1973 constitution but not before amending it to strengthen presidential powers vis-a-vis the prime minister. As the Eighth Amendment to the constitution, these changes were approved by the National Assembly in October 1985. They remain a contentious issue today, having subsequently played a key role in institutional tension between incumbents of the presidency and the prime ministership. In the first such instance, frictions developed slowly through 1987, but on 29 May 1988, Zia suddenly fired Junejo, alleging corruption and a lack of support for his policies on Islamization and on Afghanistan. He called for new elections in November, and in June he proclaimed the Shariah (Islamic law) supreme in Pakistan.

However, Zia was among 18 officials (including the American Ambassador) killed in the crash of a Pakistan Air Force plane. Two months later, Chairman of the Senate, Ghulam Ishaq Khan, set elections for November. Benazir Bhutto, Zulfikar Bhutto's daughter, won a thin majority, and with her support Pakistan's electoral college chose Ghulam Ishaq President of Pakistan in his own right on 12 December 1988.

But the alliance was brief. Ghulam Ishaq on 20 August 1990 used his powers as president to remove Bhutto from leadership. He declared yet another a state of emergency, dissolved the National Assembly, named Ghulam Mustafa Jatoi (then leader of the opposition) prime minister, and called for new elections on 24 October. The Punjab high court upheld the constitutionality of his actions, and on 24 October, the voters gave a near-majority to the Islamic Jamhoori Ittehad (IJI), a multiparty coalition resting mainly on a partnership of the PML and the JI. Mian Muhammad Nawaz Sharif, PML leader and former chief minister of Punjab, became prime minister on 6 November and quickly ended the state of emergency.

During late 1992 and early 1993, the president and the new prime minister moved toward a new confrontation over the exercise of their respective powers. Challenged by Nawaz Sharif on the president's choice of a new army chief, Ghulam Ishaq again used his eighth amendment powers to dismiss the government and dissolve the assembly on 18 April, alleging mismanagement and corruption. But public reaction to the president's actions was strong, and on 26 May, a supreme court ruling restored Nawaz Sharif to power, creating a period of constitutional gridlock until 18 July when the army chief brokered a deal in which both Ghulam Ishaq and Nawaz Sharif left office. Sharif resigned and was replaced by Ishaq Khan as interim prime minister by Moeen Qureshi, a former World Bank vice president; the president was then replaced by Wasim Sajjad, chairman of the senate.

Under Qureshi, Pakistan entered a period of fast-paced nonpartisan rule and reform in which widespread corruption was exposed, corrupt officials dismissed, and political reforms undertaken. In his actions, Qureshi was strengthened by public support and his disavowal of interest in remaining in power. He held elections as promised on 19 October, and the PPP, leading a coalition called the People's Democratic Alliance (PDA), was returned to power, with Benazir Bhutto again prime minister. On 13 November, with her support, longtime PPP stalwart Farooq Leghari was elected president. Three years later in 1996, Leghari dismissed Bhutto and her cabinet and dissolved the National Assembly. Bhutto challenged her dismissal and the dissolution of the National Assembly in the Supreme Court. In a 6–1 ruling, the Court upheld the president's actions and found her ousted government corrupt.

Nawaz Sharif won the general election held in February 1997 with one of the largest democratic mandates in Pakistan's history. He immediately set about consolidating his hold on power by repealing major elements of the 1985 Eighth Constitutional Amendment. This transferred sweeping executive powers from the president to the prime minister. Within the next few months Nawaz Sharif dismissed his Chief of Naval Staff, arrested and imprisoned Benazir Bhutto's husband for ordering the killing of a political opponent, and froze the Bhutto family's assets. In March 1998, a warrant was issued for the arrest of Benazir Bhutto on charges of misuse of power during her tenure as prime minister.

Nawaz Sharif gained a popularity boost when Pakistan successfully tested five nuclear devices on 28 May and 30 May 1998. This was in response to India's nuclear tests earlier in the month and raised international concerns over a potential nuclear confrontation between Pakistan and India. Tensions eased when Nawaz Sharif and India's prime minister, Atal Behari Vajpayee, signed the historic "Lahore Declaration" on 21 February 1999, committing their countries to a peaceful solution of their problems.

In May 1999, however, several hundred Pakistani troops and Islamic militants infiltrated the Indian-held Kargil region of Kashmir. Two months of intense fighting brought Pakistan and India to the brink of all-out war. Under intense diplomatic pressure from the United States, but against the wishes of Pakistan's military, Nawaz Sharif ordered a withdrawal from Kargil in July 1999. This unpopular decision contributed to the prime minister's eventual downfall.

The Musharraf Years

Distrustful of his army chief of staff, General Pervez Musharraf, Nawaz Sharif dismissed Musharraf on 12 October 1999 while he was in the air returning from a visit to Sri Lanka. However, when the general's plane was denied permission to land at Karāchi Airport, army troops loyal to Musharraf seized the airport, arrested Sharif, and returned Pakistan to military rule for the fourth time in the country's history.

General Musharraf declared yet another state of emergency, suspended the constitution and assumed power as chief executive. Many Pakistanis welcomed the military takeover as a change from the corruption and abuses of Nawaz Sharif's rule. Musharraf introduced modest economic reforms (mostly in the area of revenue collection), restricted the activities of Islamic extremists, and instituted policies to curb lawlessness and sectarian violence. On 23 March 2000, Musharraf announced local elections to be held over a period of seven months between December 2000–July 2001. Significantly, however, no mention was made of national elections or a return to civilian rule. Moreover, the independence of the judiciary was seriously compromised in January 2000, when Musharraf required all judges to take an oath of loyalty to his regime. Nawaz Sharif was tried and found guilty of hijacking and terrorism for trying to prevent Musharraf's plane, a commercial flight with civilians on board, from landing at Karāchi in October 1999. Sharif was sentenced on 16 April 2000 to life in prison. In December he went into exile in Saudi Arabia after being pardoned by military authorities.

On 20 June 2001 General Musharraf named himself president of Pakistan while remaining head of the army.

After 11 September 2001, Musharraf supported the US-led bombing campaign in Afghanistan and ties between the two countries were greatly strengthened. The United States removed some sanctions imposed on Pakistan after its 1998 nuclear tests and after the Taliban were removed from power in Afghanistan in late 2001, the United States moved to strengthen counterterrorism operations in Pakistan.

On 13 December 2001, the Indian Parliament was attacked by five suicide fighters, and India blamed the attack on two Pakistan-based Islamic organizations, Lashkar-e-Taiba and Jaish-e-Muhammad, accusing Pakistan of supporting the groups and giving their leaders sanctuary. Tensions between the two countries flared, and they began to amass hundreds of thousands of troops along their shared border. Pakistan banned Jaish-e-Muhammad and Lashkar-e-Taiba, although it claimed India had not provided evidence of the groups' involvement in the attack. The standoff between India and Pakistan continued for 10 months, and through 2003, the two countries continued to test-fire ballistic missiles capable of carrying nuclear weapons.

Pakistan's ties to the United States and proximity to Afghanistan made it home in 2002 and 2003 to series of violent acts against Westerners or Christians. Nevertheless, in April 2002, Pakistan's military regime held a referendum on General Musharraf's presidency; 98% of the votes cast were in favor of Musharraf, giving him another 5-year term as president. In August, he unilaterally implemented 29 amendments to the constitution to grant himself the power to dissolve parliament and to remove the prime minister. He also gave the military a formal role in governing the country for the first time by setting up a National Security Council that would oversee the performance of parliament, the prime minister, and his or her government. Parliamentary elections were held on 10 October, with Quaid-e-Azam, a political faction of the Muslim League supportive of Musharraf, taking the most seats.

India and Pakistan declared a formal cease-fire in Kashmir in November 2003, and relations between the two countries were slowly improving. A bus link between the India- and Pakistan-controlled portions was established in April 2005, and both countries cooperated to some degree with the distribution of humanitarian aid following a deadly earthquake that struck the region on 8 October 2005.

GOVERNMENT

Pakistan came into being as a self-governing dominion in the British Commonwealth in 1947 and declared itself a republic in 1956. Under a constitution framed by Zulfikar Bhutto and effective as of 14 August 1973, it is federal in nature, and Westminster-style cabinet systems operate at the federal and provincial levels. All powers not otherwise specified are reserved for the federal government, which is armed also with extensive emergency powers in the event of a breakdown in constitutional government.

Pakistan is governed under the constitution of 12 August 1973 (as amended) which declared Islam the state religion and provided for a president as a nominal head of state and a prime minister as executive head of government. The president and prime minister were chosen by members of parliament, and the prime minister was responsible to that body, which was elected under universal suffrage at 18 years of age (the voting age was subsequently raised to 21, but then lowered once again to 18 in the October 2002 elections). In 1973, the parliament consisted of a national assembly of 200 elected members plus 10 seats reserved (until 1982) for women and 6 for tribal areas, these reserved seats filled by vote of the elected members. A senate of 63 members included 14 legislators from each of the four provincial legislatures, plus 5 seats reserved for tribal areas and 2 for the federal capital area.

Despite the presence of a constitution, much of Pakistan's governance has been under military rule. The constitution was suspended 5 July 1977, and restored with amendments on 30 December 1981. It was suspended again on 15 October 1999 by General Pervez Musharraf and restored 31 December 2002. Musharraf imposed a series on amendments on 31 December 2003.

The first suspension and subsequent restoration of the constitution is tied to the rule of army chief. General Zia-ul Haq. Zia revived much of the 1973 constitution, although its Fundamental Principles and its electoral provisions remained suspended until martial law was lifted in 1985. The CMLA was initially assisted by an appointive council of advisors, then by an advisory Federal Council of 277 appointed members that was formed in 1982 to assist and advise the martial law government.

Amendments that, following the lifting of martial law in December 1985, redressed the balance of powers between the positions of prime minister and president, who also remained commander-in-chief of the armed forces. It established term limits of five years for the incumbents, and provided that their successors in 1990 would be elected, the president by an electoral college composed of members of the national assembly, the senate, and the provincial assemblies, and the prime minister, by the national assembly.

After a 12 October 1999 military coup staged by the army chief, General Pervez Musharraf, the constitution was suspended again. On 21 August 2002, Musharraf announced 29 amendments that established a National Security Council and granted new powers to the president, including the right to dissolve the national assembly at his or her discretion, to appoint governors and to dissolve provincial assemblies in consultation with them, and to appoint the joint chiefs of staff and the three service chiefs in consultation with the prime minister.

Under the constitution, the president is to be elected by Parliament every five years. Musharraf's term was extended in 2002 and the next election was scheduled for 2007. One of the branches of Parliament—the National Assembly—is responsible for choosing the prime minister. Shaukut Aziz was chosen in 2004 for a five-year term.

The parliament, also known as Majlis-i-Shura, has two chambers. The first chamber, the Senate, as of January 2006 consisted of 100 members who were elected indirectly by provincial assemblies to serve four-year terms. The second chamber, the National Assembly, consists of 342 members who are elected by popular vote to four-year terms. New elections were to take place in October 2006. Of the 342 National Assembly seats, 60 are reserved for women and 10 for minorities.

POLITICAL PARTIES

Political parties have existed in Pakistan during all of its turbulent political history, but the dominant force in Pakistani politics remains the military. Parties have been frequently banned or restricted by the government, which in many cases has rendered them ineffectual. Islamic ulema (or clergy) and traditional landowners also command much authority in Pakistan.

Parties operate at both the national and regional level. A total of 14 parties held seats in Pakistan's Parliament in 2006.

LOCAL GOVERNMENT

Pakistan is divided into four provinces, each with deep historic roots and both linguistic and cultural associations. Outside the provinces, there are Federally Administered Tribal Areas (FATA) along the border with Afghanistan and the federal capital of Islāmābād, In addition, provincial governments directly administer tribal areas within their territories.

The provinces, in order of population size, are Punjab (with its capital at Lahore), Sindh (Karāchi), Northwest Frontier Province (Peshāwar), and Baluchistan (Quetta), the largest in area. Under the 1973 constitution, provinces have popularly elected provincial assemblies, a governor appointed by the president, and a chief minister in whom executive power is vested. The governor acts on the advice of a chief minister who is elected from the party commanding the support of the assembly.

The senior administrative officer of each province is the chief secretary. Each province is divided administratively into divisions headed by commissioners who, like the chief secretary and the secretaries of provincial ministries, are senior members of the Pakistan Civil Service (CSP). Divisions are further subdivided into districts headed (depending on local usage) by deputy commissioners, district officers, or collectors, also members of the CSP, who manage development funds, collect the revenues, supervise the police, adjudicate disputes, administer justice, and interface with the elected councils at the local level which have limited taxing authority, decide on priorities for local development programs, and try certain local legal cases.

The Pakistan-controlled third of the original state of Jammu and Kashmir is divided into two areas. The southern portion, referred to as Azad Kashmir, is administered from Muzaffarabad by an appointed president and council of ministers. The larger portion to the north is known as the Northern Areas and is administered by a Commissioner and an elected council.

The number of seats in the provincial assemblies was increased in October 2002, and seats were reserved for women and non-Muslims. In the provincial assembly elections held on 10 October, the MMA won a landslide victory in the Northwest Frontier Province. In Punjab, the Quaid-e-Azam faction of the PML took the most seats, with Bhutto's Pakistan People's Party coming in second. The PPP came in first in Sindh, and the MMA came in first in Baluchistan.

JUDICIAL SYSTEM

Pakistan's judicial system stems directly from the system that was used in British India. The Supreme Court has original, appellate, and advisory jurisdictions. The president of Pakistan appoints the justices. Each province has a high court, the judges of which are also named by the president. Below the high courts are district and session courts, and below these are subordinate courts and village courts on the civil side and magistrates on the criminal side. There are no jury trials in Pakistan.

The British tradition of an independent judiciary has been undermined in Pakistan by developments over the last 50 years. In May 1991, for example, the National Assembly adopted legislation which incorporated the Islamic legal code, the Shariah into Pakistan's legal system. A Federal Shariah Court has the power to nullify any law it finds repugnant to Islam.

The position of the judiciary in Pakistan has also been affected by periods of military rule in the country. When General Zia al-Huq imposed martial law in 1977, military courts were given jurisdiction over trial and punishment of civilians found guilty of violating martial law regulations. The verdicts could not be appealed to a higher civilian court. Moreover, a provision of the 1973 constitution that judges could be removed only by the supreme judicial council, consisting of the chief justice and two ranking judges from the Supreme Court and the high courts, was revoked by the military government in June 1979. Under the 1981 interim constitution, a new oath was imposed on all Supreme Court, high court, and Shariah court judges, and all laws promulgated by the martial law regime were exempted from judicial review. The Supreme Court chief justice and several other judges were replaced after refusing to take the oath. Although the military courts were abolished in December 1985, their decisions still cannot be appealed to civilian courts.

Similarly, in January 2000, Musharraf required all judges to take an oath of loyalty to his regime. The Supreme Court chief justice, Saiduzzaman Siddiqui, and five colleagues refused and were dismissed. This was just a week before the court was due to hear the first of several cases challenging the legality of the new government. Legal experts argue this action did irreparable harm to Pakistan's judiciary; with all sitting judges having accepted the military regime, there is no independent judiciary to protect the constitution.

ARMED FORCES

In 2005, Pakistan's armed forces totaled 619,000 active personnel. The Army comprised the largest portion, accounting for 550,000 active members, followed by the Air Force at 45,000 and the Navy at 24,000 personnel (including an estimated 1,400 Marines). The Army's major weapons systems included more than 2,461 main battle tanks, 1,266 armored personnel carriers, over 4,291 artillery pieces, and 22 attack helicopters. Major naval units included 8 tactical submarines, 7 frigates, 10 patrol/coastal vessels, and 3 mine warfare ships. The Navy's air arm included 9 maritime patrol aircraft and 12 antisubmarine warfare helicopters. The Air Force's primary striking force was made up of 331 combat capable aircraft, which included 143 fighters and over 51 fighter ground attack aircraft. Pakistan's paramilitary forces had an active strength of 302,000 personnel that included the Pakistan Rangers (up to 40,000), the Frontier Corps (up to 65,000), a maritime security agency (estimated at 2,000), a National Guard (185,000) and the Northern Light Infantry (estimated at 12,000). It is suspected that Pakistan's nuclear arsenal consisted of between 24 and 48 weapons, with the capability to produce more. Pakistan was a participant in UN and peacekeeping operations in 10 countries or regions. The defense budget in 2005 was $3.74 billion.

INTERNATIONAL COOPERATION

Pakistan became a member of the United Nations on 30 September 1947 and is a member of several specialized agencies, such as ESCAP, the FAO, UNESCO, UNHCR, the World Bank, ILO, UNIDO, and the WHO. As an Islamic state, Pakistan is an active member of the Organization of the Islamic Conference (OIC). Pakistan also belongs to the Asian Development Bank, the Colombo Plan, the Commonwealth of Nations, G-24, G-77, and the WTO. In 1960, Pakistan and India signed an Indus water basin treaty opening the way to the peaceful use and development of water resources. Pakistan, Turkey, and Iran established a tripartite arrangement, called Regional Cooperation for Development (RCD), in 1964. In 1985, Pakistan and six other South Asian countries, including India and Bangladesh, formed the South Asian Association for Regional Cooperation (SAARC). The country holds observer status in the OAS

Pakistan is part of the Nonaligned Movement. The government has offered support for UN missions and operations in Kosovo (est. 1999), Western Sahara (est. 1991), Liberia (est. 2003), Sierra Leone (est. 1999), East Timor (est. 2002), Georgia (est. 1993), Burundi (est. 2004), and the DROC (est. 1999), among others. The UN Military Observer Group in India and Pakistan (UNMOGIP) was established in 1949 to observe the cease-fire between the two countries. Nine countries participate in this peacekeeping effort, yet strained relations between Pakistan and India have often lead to acts of violence.

In environmental cooperation, Pakistan is part of the South Asia Cooperative Environment Program (SACEP), the Basel Convention, the Convention on Biological Diversity, Ramsar, CITES, the London Convention, the Kyoto Protocol, the Montréal Protocol, MARPOL, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

Despite steady expansion of the industrial sector during the 1990s, Pakistan's economy remains dominated by agriculture. Agriculture and industry made roughly similar contributions to GDP—21.6% and 25.1%, respectively—in 2005, although 42% of the labor force was in agriculture and only 20% in industry. About 70% of export revenues are generated by agriculture or agriculture-based manufactures, with cotton alone accounting for about 60% of the total. Exports of primary agricultural products are concentrated in cotton and rice. One-fourth of the land is farmed or used for grazing, and much of this is planted to food crops for domestic consumption. Pakistan is generally poor in natural resources, although extensive reserves of natural gas and petroleum are being exploited. Iron ore, chromite, and low-quality coal are mined.

This strong performance not withstanding, a growing debt-servicing burden, large government expenditures on public enterprises, low tax revenues, high levels of defense spending, and a rapid rise in imports with burgeoning domestic demand contributed to serious fiscal and current account deficits during the late 1980s. In response, in 1988 the government initiated a major structural reform program with World Bank and IMF support. When the country was created in 1947, there were no industries, and few banks or mercantile firms. Since that time, industrial production has risen significantly. In 1998, industry accounted for about 26% of the GDP, compared with only 7% in 1950. Thanks in part to significant expansion of power facilities, largely in the Indus basin, the pace of economic development was particularly rapid during the 1980s. For most of the decade, the annual GDP growth rate averaged 6.5%, reflecting an expansion of over 4% annually in the agricultural sector and over 7% in value added in the industrial sector.

The government pursued policies aimed at private sector-led development, macro economic stability, and structural reforms. Overall growth indicators remained promising with the reform measures, as GDP increased by 5.5% in 1990/91 and 7.8% in 1991/92, and export growth averaged a robust 14% between 1989 and 1992. These improvements notwithstanding, reform efforts secured less than expected reductions in the country's balance of payment deficits, due in part to deteriorating terms of trade in the wake of rising oil prices during the 1991 Gulf War. Severe floods in the Sindh and Punjab provinces in late 1992 and a contraction in international commodity markets weakened Pakistan's export sector during 1992/93, further exacerbating the country's trade and current account deficits and helping to reduce GDP growth to only 3% in 1993. In March of 1994 the government received IMF approval of a three-year Enhanced Structural Adjustment Facility (ESAF) to support reforms. The IMF wanted austerity measures aimed at reducing the government deficit to 4% of GDP, a reduction in the maximum tariff rate from 70% to 45%, increased privatization of large state-owned enterprises, and a tax on agricultural income. However, the government's failure to follow the IMF recommendations and liberalize the economy caused the IMF to suspend the $1.5 billion loan in mid-1995. The suspension of the loan worried investors and damaged Pakistan's debt ratings. The trade deficit grew, foreign exchange reserves dwindled, and inflation remained high.

After the government recommitted itself to reform, the IMF approved a new $600 million standby arrangement in September 1995. Still, by 1996 the economy was in its worst recession in 25 years. Tax receipts were falling well below their targets and export earnings had declined, leaving the government with a deepening foreign-exchange crisis as reserves fell to only $500 million by the end of the year. By mid-1997, the government owed $1.6 billion in interest on $30 billion owed to foreign creditors, putting the country perilously close to default. Growth in GDP was only 1.2% in 1997, down from 6.1% in 1996. Growth rebounded to 4.2% in 1998/99 as per capita income reached $434, up from $400 in 1990. However, Pakistan came under international economic sanctions following its six nuclear bomb tests in May 1998, and then again after the elected government was overthrown in a military coup in 1999. The growth rate declined to 3.9% in 1999/00 and then to 2.5% in 2000/01, as per capita income fell to $397. Net public debt in 2000/01 rose to 103.8% of GDP. In November 2000, the government entered into a 10-month stand-by agreement with the IMF preliminary to the rescheduling of $1.8 billion of sovereign debt with the Paris Club countries in January 2001. After the 11 September 2001 terrorist attacks on the United States, more concessional finance was made available. In December 2001, Pakistan entered into a three-year arrangement with the IMF under its Poverty Reduction and Growth Facility (PRGF), and under a new Paris Club agreement, over $12 billion of national debt was rescheduled. Net public debt in 2001/02 decreased marginally to 96.2% of GDP. GDP growth rose slightly to 3.6% and inflation eased to 2.7%, down from 4.4% the year before. The most improved economic indicator was foreign reserves, which rose from about $900 million in 1999 to over $10 billion in March 2003.

In October 2005, a devastating earthquake in northern Pakistan and Kashmir killed some 80,000 people and left more than 3 million homeless, mostly in Pakistan, to survive the winter. Foreign donors in November 2005 pledged over $6 billion to support reconstruction in the wake of the earthquake. Despite the earthquake, however, the economy was expected to perform strongly in 2006: real GDP growth was projected to reach 6.6% in 2005/06 and 6% in 2006/07. The annual inflation rate was forecast to average 8.6% in 2006 and 6.7% in 2007. Although substantial progress had been made on macroeconomic reforms, by 2006 progress on more politically-sensitive reforms had slowed. For example, in the 2006 fiscal year budget, the government did not impose taxes on the agriculture or real estate sectors, despite Pakistan's severely-low tax-to-GDP ratio. Despite Pakistan's low level of development, prospects for job creation and poverty reduction were good in the medium term. GDP growth, prodded by double-digit gains in industrial production over 2005, has become less dependent on agriculture, and stood at 8.4% in 2005. Foreign exchange reserves continued to reach new levels in 2005, spurred on by steady workers' remittances. Real GDP growth averaged 5% over the 2001–05 period, and inflation averaged 5.2% over the same period.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Pakistan's gross domestic product (GDP) was estimated at $385.2 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $2,400. The annual growth rate of GDP was estimated at 8.4%. The average inflation rate in 2005 was 9.2%. It was estimated that agriculture accounted for 21.6% of GDP, industry 25.1%, and services 53.3%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $3.964 billion or about $27 per capita and accounted for approximately 4.8% of GDP. Foreign aid receipts amounted to $1,068 million or about $7 per capita and accounted for approximately 1.3% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Pakistan totaled $60.57 billion or about $409 per capita based on a GDP of $82.3 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 4.0%. In 2001 it was estimated that approximately 45% of household consumption was spent on food, 19% on fuel, 6% on health care, and 5% on education. It was estimated that in 2001 about 32% of the population had incomes below the poverty line.

LABOR

In 2005, Pakistan's labor force was estimated at 46.84 million. As of 2004, it was estimated that agriculture accounted for 42% of the total workforce, with services at 38%, and industry at 20%. Unemployment and underemployment are major problems. Although in 2005, unemployment was estimated at 6.6%, underemployment is known to be substantial. In addition, Pakistan's workforce is marked by the widespread export of labor, most of which is to the Middle East, and the use of child labor.

There are sizable numbers of Pakistani workers in the Middle East and European countries, most of them from the poor regions of Pakistan's NWFP. There are also several million refugees from Afghanistan who have become part of the Pakistan labor force in those regions and in Karāchi.

The trade union movement is of recent origin. The principal federations include the National Labor Federation and the All Pakistan National Federation of Trade Unions. Labor-management differences are handled by the central conciliation machinery, established under the provisions of the Industrial Disputes Act of 1947. Benefits such as bonuses, paid holidays, and job security regulations are set forth in the basic West Pakistan Industrial and Commercial Employment Ordinance of 1968. In 2002, approximately 10% of the industrial labor force was unionized, and 3% of the total workforce. The government curtails union activity. Although collective bargaining is protected by law, government restrictions preclude bargaining by large segments of the labor force.

The practice of child labor is widespread. According to a government survey, three or four million children between the ages of five and 14 worked as of 2002. However, informal estimates have placed this figure as high as 8 to 10 million. There may also be some 20 million bonded laborers in Pakistan. Bonded labor is particularly common among the persecuted Christian minority. Children are often kidnapped to serve as forced labor. The minimum wage for unskilled workers was $30 per month in 2002. There is a maximum workweek of 48 hours, but most employees are unaware of these work restrictions.

AGRICULTURE

Agriculture engaged 47% of the economically active population in 2000. Agricultural production increased by an annual average of 4.4% during 1990–2000, accounting for 23% of GDP in 2003. The development of a huge irrigation network covering two-thirds of the total cultivated area—together with massive land reclamation projects—has made possible the farming of vast tracts of previously barren and unusable land. The Indus Valley of Punjab is Pakistan's agricultural heartland. There are two principal growing seasons: the kharif season starts between April and June and ends between October and December, while the rabi season starts between October and December and ends during April or May. Grains constitute the most important food crops, with wheat, rice, corn, and citrus the major products. Cotton, the most important cash crop, generates more foreign trade income than any other export item. Cotton production suffered in the late 1990s from leaf curl virus. In 2004/05, production totaled 11.3 million bales. Rice, sugarcane, tobacco, rapeseed, and mustard are also large export earners. Rice covers 12% of all cropland—production in 2004/05 totaled 5.02 million tons.

Improved government policies over the past decade have made Pakistan a net exporter of guar products, tobacco, cotton, and rice. Other major agricultural exports include molasses, fruits and vegetables, guar and guar products, and tobacco. Principal crops with 2004 output (in thousands of tons) were wheat, 19,767; sugarcane, 53,419; and corn, 2,775. Production of sunflower seed amounted to 404,000 tons in 2004. Other crops include millet, barley, sesame, flax, groundnuts, mangoes, citrus fruits, and vegetables. Opium poppies are grown in the North-West Frontier Province (on an estimated 2,500–3,000 hectares/6,200–7,400 acres in 2003), government efforts to stamp out the opium and heroin trade have helped reduce production by over 95% since the mid-1980s.

Farming production remains limited by primitive methods, and mechanization is uncommon. The introduction of improved wheat and rice varieties has met with some success, although the greatest impact on agriculture has derived from the Indus basin irrigation schemes, which by the 1970s had provided Pakistan with the largest irrigated network in the world. The availability of water has made possible increased use of chemical fertilizers, with the most intensive consumption occurring in cotton production. The government has instituted soil conservation, farm mechanization, land reclamation, and plant protection programs.

To increase smallholders' equity and provide further incentives for agricultural improvement, the government decreed in 1959 that the maximum holding for any person should be 200 hectares (500 acres) of irrigated land or 400 hectares (1,000 acres) unirrigated. Land in excess of these amounts was acquired by the government and paid for in interest-bearing 30-year bonds. In March 1972, the maximum permissible size of a holding, measured in terms of production index units, was reduced by two-thirds, with the government empowered to confiscate without payment all excess land for free redistribution to landless peasants and small tenants. To help the new landowners, the government provided loans for purchase of seed, feed, and bullocks. In accordance with a statement of national agricultural policy issued in 1980, the Agricultural Price Commission was established to provide incentives to Pakistani farmers through higher prices for farm products.

ANIMAL HUSBANDRY

Some 30 to 35 million people are engaged in the livestock industry. Camels are used for transport throughout the more barren south and west, and bullocks and donkeys elsewhere. Sheep range widely over the grazing lands of middle and northern Pakistan; the bulk of their wool is exported. Among local breeds of cattle, the Red Sindhi, the Tharparker, the Sahiwal are renowned for milk, and the Bhagnari and Dhanni for draft purposes. The production of powdered milk, cheese, butter, and ice cream is carried out by several large dairy plants. From 1984 to 1990, milk production increased by 41%, and meat production rose 48%. Even so, domestic milk production still falls short of demand. Poultry production has become prominent, especially through scientific research in breeding, feeding, and disease control. With the assistance of the Asian Development Bank, several livestock development projects were underway.

In 2005 there were 26.3 million buffaloes, 24.2 million head of cattle, 56.7 million goats, and 24.9 million sheep. Commercial poultry numbered 166 million in 2004. There were also an additional 3.5 million ducks. Modern poultry production in Pakistan is constrained by high mortality and incidence of disease in chicks and an inefficient marketing system. Production estimates for 2005 included (in tons): beef, 469,000; goat meat, 370,000; mutton, 166,000; poultry, 420,600; wool, 40,000; and milk, 29,474,000 (67% from buffalo). In an effort to increase domestic milk production, the government has initiated a comprehensive livestock development program with $55 million in assistance from the Asian Development Bank. The government has also broadened extension and artificial breeding services, taken measures to improve slaughterhouses, and introduced high-yield fodder varieties. Cattle dung is an important cooking fuel and fertilizer.

FISHING

With a coastline of 814 km (506 mi), Pakistan is rich in fishery resources that remain to be fully developed. Almost the entire population of the coastal areas of Sindh and Balochistan depends on fisheries for its livelihood. The fish catch in 2003 was 576,804 tons, 70% of it landed off coastal waters. Species include salmon, mullet, pomfret, mackerel, shrimp, and local varieties. About 10% of the annual catch is exported. Export earnings from fish products amounted to $136.9 million in 2003.

To exploit potential fishery resources, the government has undertaken such projects as construction of a modern harbor for fishing vessels at Karāchi, procurement of diesel-powered vessels, establishment of cold storage and marketing facilities, export of frozen shrimp, and encouragement of cooperative fish-marketing societies. An aquaculture project financed by the Asian Development Bank and the EU aimed to increase the annual fish catch and to promote prawn farming.

FORESTRY

Of Pakistan's depleted forest resources, amounting to about 3.1% of the total area, only about 1,748,000 hectares (4,319,500 acres) are classified as commercial or productive forests. Privately-owned forests cover some 3,783,000 hectares (9,348,000 acres), located primarily in the North Western Frontier Province (NWFP) and Punjab. Hill forests predominate in the north and northwest temperate and subtropical regions. Fir, spruce, deodar, bluepine, chirpine, Chalghoza, and juniper, as well as broadleaved species like oak, maple, walnut, poplar, and chestnut are found in the hill forests. These forests are the main source for constructional timber and supply great quantities of fuelwood, while providing groundcover to the fragile mountain ecosystems (thereby lessening floods and droughts in the plains). Forests in the foothills consist of broadleaved evergreens, with main species of olive and phulai. Irrigated plantation forests grow such species as sheesham, mulberry, bakain, and semal, mostly for timber, furniture, and sporting goods production.

About 500,000 cu m (17.6 million cu ft) of timber is produced annually by state forests, which are under the authority of the Pakistan Forest Institute. During 1990–2000, the annual average rate of deforestation was 1.5%. Pakistan has a 25-year forestry master plan outlining the development of the industry through 2018. The total timber cut in 2004 was 28.28 million cu m (998.2 million cu ft), with 91% consumed as fuelwood. Since forest resources are limited, Pakistan must import wood and wood products in increasing volumes to satisfy rising demand. In 2004, forest product imports totaled $137 million.

MINING

Except for petroleum and natural gas, mineral reserves in Pakistan were meager and of poor quality. Chromite was one of the few valuable minerals available. Production of chromium (by metal content) rose to an estimated 13,000 metric tons in 2003 from an estimated 12,500 metric tons in 2002. Construction materials were a leading industry in the country. In 2003, small quantities were produced of aragonite and marble, barite, bauxite, bentonite, chalk, dolomite, natural emery, feldspar, fire clay, fluorspar, fuller's earth, crude gypsum, kaolin (china clay), limestone and other stone, crude magnesite, nitrogen, ammonia, phosphate rock, natural mineral pigments, rock and marine salt, bajir and common sand, glass sand, caustic soda, soapstone, strontium minerals (celestite), native sulfur, soapstone talc and related materials.

Pakistan's inadequate infrastructure, poorly educated workforce, and pervasive violence have been major obstacles to attracting foreign investment. The Minister for Petroleum and Natural Resources invited the Iranian government in 2000 to invest in copper exploration and development, and to manage the mothballed Saindak copper-gold-molybdenum-silver mining and metallurgical complex, in Baluchistan's Chagai Hills. Also interested in acquiring the Saindak project were China, China Metallurgical Construction Corp. built the mine and plant, and BHP of Australia. Mining stopped at Saindak in 1996. BHP and Australia's Mincor Resources formed an alliance to explore and develop large porphyry-style copper deposits in the Chagai Hills. The joint venture initially was to focus on the Reko Diq Complex, possibly one of the world's largest copper deposits with more than 7 million tons of copper and 342,000 kg of gold. The Geological Survey of Pakistan reportedly discovered a total of 400 million tons of commercially viable iron ore in Baluchistan and the North West Frontier (NWF), to be mined by open-cut methods. The NWF government was considering reviving the Swat emerald mine, at Mingora. The discovery of a large low-ash, low-sulfur lignite deposit in the Tharparkar desert may increase the importance of Pakistan's coal.

ENERGY AND POWER

Pakistan is a net importer of petroleum, but is self-sufficient in natural gas. It has relatively small coal deposits. Its electric power sector relies heavily upon fossil fuels to produce power.

As of 1 January 2004, Pakistan's proven oil reserves were estimated at 288 million barrels. In 2003, oil production averaged an estimated 61,769 barrels per day, of which crude oil production accounted for 60,000 barrels per day. However, Pakistan's demand for oil in 2003 came to an estimated 360,000 barrels per day, making the country a net importer. Imports that year were estimated to average 298,231 barrels per day. As of 1 January 2004, Pakistan's crude oil refining capacity was estimated to average 268,975 barrels per day.

Pakistan's proven natural gas reserves are more robust. As of 1 January 2004, the country's proven natural gas reserves were estimated at 26.8 trillion cu ft. Natural gas output and domestic consumption were each estimated at 0.81 trillion cu ft.

Although coal plays a relatively minor part in Pakistan's overall energy picture, the country does have recoverable coal reserves estimated at 2.5 billion short tons, as of 1 January 2004. In 2002, Pakistan produced an estimated 3.7 million short tons of coal. However, demand outstripped output that year, coming in at 4.7 million short tons, and necessitating the importation of 1.1 million short tons of coal.

Pakistan's electric power generating capacity in 2002 totaled 18.038 million kW, of which 12.537 million kW of capacity was dedicated to conventional thermal generation. Hydroelectric dedicated capacity amounted to 5.039 million kW, while nuclear power accounted for 0.462 million kW of capacity. Electric power output in 2002 totaled 72.443 billion kWh, of which 48.516 billion kWh came from conventional thermal sources and 22.127 billion kWh came from hydroelectric sources. Nuclear power generation provided 1.800 billion kWh. Despite increases in installed generating capacity, Pakistan faces electricity shortages due to rapid demand growth, transmission losses due to outdated infrastructure, power theft, and seasonal reductions in the availability of hydropower. Rotating power outages still needed in some areas and many villages are not yet electrified. As of 2002, less than half of Pakistan's population was connected to the nation's power grid.

INDUSTRY

During the 1960s and 1970s, light industry expanded rapidly—especially textiles, sugar refining, fertilizers, and other manufactures derived from local raw materials. Large government investments in the 1970s established the country's first large-scale ship-building and steel milling operations; the production of chemical fertilizers was also given special government support. The Pakistan Industrial Development Corp., established in the early 1980s with IDA credit, developed industrial estates for small- and medium-scale industries, assisting their occupants in obtaining credit, raw materials, technical and managerial assistance, access to production facilities, as well as marketing support. Despite steady overall industrial growth during the 1980s, the sector remains concentrated in cotton processing, textiles, food processing and petroleum refining.

The 1973 nationalization program, which placed 10 basic industries wholly within the public sector, was reversed in 1991 with the enactment of an ambitious privatization program. In 1992, the government began auctioning off majority control in nearly all public sector industrial enterprises, including those manufacturing chemicals, fertilizers, engineering products, petroleum products, cement, automobiles, and other industrial products requiring a high level of capital investment, to private investors. In 1995, however, the speed of privatization began to slow as the sale of some large state-owned units were stalled and postponed. In 2002, the public industrial sector, under the Production Wing of the Ministry of Industries and Production consisted of eight public holding companies—Pakistan Steel, the State Cement Corporation (PACO), Federal Chemical and Ceramics Corporation (FCCC), State Petroleum Refining and Petrochemical Corporation (PERAC), State Engineering Corporation (SEC), the Pakistan Industrial Development Corporation (PIDC), the state fertilizer corporation, and Pakistan Automobile Corporation. The majority of the 74 production enterprises controlled by these holding companies have been privatized, and most of those remaining are scheduled to be sold. The public sector continues to dominate in steel, heavy engineering, automobiles, petroleum and defense-related production.

Cotton textile production is the most important of Pakistan's industries, accounting for about 19% of large-scale industrial employment, and 60% of total exports in 2000/01. Pakistan has become self-sufficient in cotton fabrics and exports substantial quantities. Some long and extra-long staple cotton is imported to meet demand for finer cottons. About 80% of the textile industry is based on cotton, but factories also produce synthetic fabrics, worsted yarn, and jute textiles. Jute textile output amounted to 70,100 tons in 1999/00. The textile industry as a whole employs about 38% of the industrial work force, accounts for 8.5% of GDP, 31% of total investment, and 27% of industrial value-added. In January 2005, the WTO lifted textile-import quotas in Europe and the United States, and Pakistan, having invested $4 billion in the four years up to the lifting of the quotas, was well-placed for growth in the textile industry.

Other important industries include food processing, chemicals manufacture, and the iron and steel industries. Food processing is considered Pakistan's largest industry, accounting for slightly more than 27% of value-added production. Pakistan Steel, the country's only integrated steel mill, employs about 14,500 workers and has an annual production capacity of 1.1 million tons. The government plans to expand the mill's annual capacity to 3 million tons. Pakistan Steel produces coke, pig iron, billets, hot and cold rolled coils and sheets, and galvanized sheets. In June 1999, the first tinplating plant began operation, a joint venture with Japan.

As of 2005, Pakistan had 10 fertilizer plants, 4 state-owned and 6 private, with a total annual production capacity of 5.75 million tons. There were 24 cement plants, four state-owned and 20 private, with an annual production capacity of 19.55 million tons. Pakistan's chemical industry produces an number of basic chemicals used in its other industries, including soda ash, caustic soda and sulfuric acid. Industrial output from other major industries also includes refined sugar, vegetable ghee, urea, rubber tubes, electric motors, electrical consumer products (light bulbs, air conditioners, fans, refrigerators, freezers, TV sets, radios, and sewing machines), and pharmaceuticals

SCIENCE AND TECHNOLOGY

Pakistan has made notable advances in nuclear technology since the 1980s, when its Atomic Energy Commission (AEC) developed a nuclear plant for electric power generation and research programs. The AEC's three nuclear centers for agricultural research have employed nuclear techniques to improve crop varieties. Six nuclear medical centers provide diagnosis and treatment of patients with radioisotopes produced from Pakistan's own uranium resources. In May 1998, Pakistan conducted nuclear weapons tests in the desert of the Chagai Hills in response to Indian testing earlier that month. Five nuclear bombs were fired on 28 May and a sixth on 30 May.

The Karāchi Export Processing Zone (EPZ), established in 1980, has attracted foreign capital investment in advanced technologies. Another EPZ has been proposed for Lahore. EPZ now include those for computer assembly and parts manufacture, television assembly, other electrical and electronic products, and engineering.

Scientific learned societies include the Pakistan Academy of Science (founded in 1953 at Islāmābād), the Pakistan Association for the Advancement of Science (founded in 1947 at Lahore), and the Scientific Society of Pakistan (founded in 1954 at Karāchi). The Pakistan Council for Science and Technology is the chief government advisory body. The Pakistan Council of Scientific and Industrial Research and the Pakistan Medical Research Council (both in Karāchi), and the Pakistan Agricultural Research Council (in Islāmābād) promote research in their respective fields. In 1996, Pakistan had 28 universities and colleges offering courses in basic and applied sciences. In 1987–97, science and engineering students accounted for 32% of college and university enrollments.

In 2002, research and development (R&D) expenditures totaled $758.491 million, or 1.67% of GDP. In that same year, there were 88 scientists and engineers per million people that were engaged in R&D. High technology exports in 2002 totaled $36 million or 1% of Pakistan's manufactured exports. In 1996, Pakistan had 28 universities and colleges offering courses in basic and applied sciences.

DOMESTIC TRADE

The government supervises the supply and pricing of essential commodities, including fruits, vegetables, livestock, and dairy products, and has established several cooperative marketing and distribution organizations. Foreign goods are brought in by large importing concerns, centered at Karāchi, and distributed to retailers through many intermediaries.

There are several produce exchanges at Karāchi, and the trade organizations are represented by the Federation of Chambers of Commerce and Industry. Large supermarkets and department stores have not yet developed in the nation. Chain stores for clothing have become popular in major cities, with shops carrying locally produced goods. Most retail establishments are small or medium-sized, owned by a family or an individual. Government-owned "Utility Stores" carry food and household items at controlled prices. There are about 200,000 retail outlets throughout the country. Steps have been taken to improve marketing and distribution facilities throughout the country. Advertising remains small in scope, in part because of the high rate of illiteracy. Outlets include television, newspapers, posters, handbills, and color slides shown in the motion-picture houses.

Banks are customarily open from 9 am to 1 pm, Mondays through Thursdays and Saturdays, and from 9 am to 12 pm on Fridays. Private businesses usually operate from 9 am to 5 pm, Mondays through Thursdays and Saturdays, and from 9 am to 12 pm on Fridays. Most businesses are closed on Sunday. During Ramadan, shorter hours are observed. Many international firms are also closed on Saturdays.

FOREIGN TRADE

Pakistan has suffered a weak trade position since the early 1970s, as the cost of oil imports have risen while prices for the country's main exports have declined on the international market. Exports fell 2.5% and imports dropped 20% in 1998, but by 2000 they were back on the upswing, growing at 8.3% and 19%, respectively. Pakistan's commerce ministry estimates that up to $1.5 billion of unregistered trade occurs annually, mostly from smuggled imports. Smuggled goods (tea, soap, domestic appliances, batteries, tires, bicycles, and televisions) enter the country primarily from Afghanistan.

The important commodity exports for Pakistan are cotton, textiles, and clothes. Other major exports include rice and leather. In 2003, Pakistan's major exports were: cotton fabrics (10.8% of all exports); cotton yarn and thread (9.6%); and rice (5.3%). Primary imports were: machinery and transportation equipment (26.7% of all imports); mineral fuels and related (23.8%); and chemicals (16%).

During the 1980s, the United Kingdom, traditionally Pakistan's most important trading partner, slipped behind the United States, Japan, and Germany. In 2004, Pakistan's leading markets were: the United States (21% of all exports); the UAE (10.9%); the United Kingdom (7%); and Germany (5.1%). Leading suppliers were: China (12.2% of all imports); the United States (11.1%); the UAE (10.7%); and Saudi Arabia (10.4%).

BALANCE OF PAYMENTS

Pakistan's payments problems have been chronic since the 1970s, with the cost of oil imports primarily responsible for the trade imbalance. The growth of exports and of remittances from Pakistanis working abroad (mostly in the Middle East) helped Pakistan to keep the payments deficit in check. Remittances from overseas workers peaked at $2.9 billion in 1982/83, then dropped to $1.4 billion by 1997/98 and $1 billion from 1999 to 2001. This trend especially accelerated during the 1991 Gulf War, when nearly 80,000 Pakistanis in Kuwait and Iraq lost their jobs. Only about 25% of these jobs had been regained a year after the end of the conflict. Increased imports and softer demand for Pakistan's textiles and

apparel in major markets also caused the current account deficit to further increase. The balance of payments position weakened in 1995/96 as imports grew by 16% and exports by only 6%. The rupee was devalued by 11% during 1995 and 1996 to encourage exports. Nevertheless, foreign reserves fell to around $800 million by mid-1997. By 2000, foreign debt equaled 100% of GDP.

The government took steps in the early 2000s to liberalize and deregulate the exchange and payments regime. Pakistan moved to a dual exchange rate system in 2000. An increase in liquid foreign exchange reserves in 2001 was due in part to outright purchases from the kerb market and inflows from international financial institutions. Export growth in 2000/01 was primarily due to higher exports of primary commodities such as rice, raw cotton, and fish, and other manufactures such as leather, carpets, sporting goods, and surgical instruments. Imports increased in 2000/01 primarily due to higher imports of petroleum and petroleum products, and machinery.

In 2004, merchandise exports stood at $13.4 billion and imports at $16.7 billion, resulting in a trade deficit of $3.4 billion. The current-account balance averaged 1.6% of GDP over the 2001–05 period. The current-account balance was estimated at -$1.43 billion in 2005. The current-account deficit was expected to widen to 3.8% of GDP in 2006 and to 4.3% of GDP in 2007, in line with the rising merchandise trade deficit.

BANKING AND SECURITIES

The central banking institution is the State Bank of Pakistan (SBP), established in 1948 at Karāchi and with branches in the larger cities. The government holds 51% of the bank's paid-up capital; 49% is held by corporations, societies, and individuals. The State Bank has exclusive responsibility for the issuance of currency; it is the financial agent of the central and provincial governments, and is responsible for the flotation and management of the public debt. As of 2002, there were 44 commercial banks and 36 nonbanking financial institutions (NBFI's) in Pakistan. Of the commercial banks, 25 were domestic (with over 7,000 branches) and 19 were foreign (with 78 branches). Citibank is the largest foreign bank operating in Pakistan. NBFI's included 10 development financial institutions, 16 investment banks, four housing finance companies, two venture capital companies, and four discount houses. Consumer banking in Pakistan is largely undeveloped; commercial banks lend predominantly to corporations. There is a minimum capital level of 8% on all risk assets. The total volume of default loans from all financial institutions in 1998 was $2.8 billion.

The nation's largest commercial banks were nationalized in 1974 and regrouped under five state banking institutions: the National Bank of Pakistan, Habib Bank, United Bank, Muslim Commercial Bank, and Allied Bank of Pakistan. The government-controlled banking system thus comprised all but a few of the nation's banks and accounted for a large share of total bank deposits and outstanding domestic credit. In 1981, in accordance with the Islamic condemnation of usury, virtually all banks opened special accounts for depositors who preferred, in lieu of interest, to share in the profits or losses from investments made with their money. In 1985, all savings accounts stopped yielding interest and converted to sharing in profit and loss. Pakistan instituted banking reforms in 1991. The Muslim Commercial Bank and the Allied Bank of Pakistan Ltd. reverted to private ownership shortly thereafter. In 1991 banking licenses were granted to private commercial banks that wanted to establish foreign bank branches in the country. Major weaknesses persist and are particularly marked in the case of the four remaining government-run commercial banks, which account for the bulk of deposits and advances. The government announced plans to privatize Habib Bank in 1998.

The portfolios of the state-owned development finance institutions, which provide the bulk of long-term lending to industry and agriculture, likewise tend to be of poor quality. Their lending is less diversified and more risky than that of commercial banks, while their costs are higher and margins lower. The state provides credit through the Agricultural Development Bank of Pakistan and the House Building Finance Corp. Industrial loans are made available through the Pakistan Industrial Credit and Investment Corp. (established in 1957), the Industrial Development Bank of Pakistan (1961), and the National Development Finance Corp. (1973). The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $15.6 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $26.6 billion. The money market rate, the rate at which financial institutions lend to one another in the short term, was 8.49%. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 10%.

There are stock exchanges at Lahore, Karāchi, and Islāmābād, with Karāchi accounting for a major share of the business. In 2001, there were 747 listings on the Karāchi Stock Exchange, the largest of the country's three bourses, down from a peak of 782 in 1996. Total market capitalization was $4.9 billion, down 25% from the previous year and well below the peak of $12.2 billion in 1994. The KSE 100 Index was also lower than the previous year, by 15.6% at 1,273. As of 2004, a total of 661 companies were listed on the Karāchi Stock Exchange, which had a market capitalization of $29.002 billion, that year. In 2004, the KSE 100 Index rose 39.1% from the previous year to 6,218.4.

INSURANCE

Pakistan's life insurance sector, nationalized in 1972, operated under the aegis of the State Life Insurance Corp. and Postal Life Insurance until 1992, when the government opened it to private sector participation. Foreign companies are no longer barred from the life insurance business, but they are restricted to minority ownership. Private companies function in nonlife insurance areas, but the government insurance business is controlled by the National Insurance Corp. One of the state's first steps was to standardize and reduce premium rates and to encourage coverage among a wider segment of the population. In 2003, the value of all direct insurance premiums written totaled $434 million, of which nonlife premiums accounted for $269 million. In 2002 Pakistan's top nonlife insurer was Adamjee, which had gross domestic written nonlife premiums of $75.4 million, while the country's leading life insurer was State Life, which had gross written life insurance premiums of $140.4 million.

PUBLIC FINANCE

The fiscal year extends from 1 July to 30 June. The federal government frames two separate budgets: revenue (current account) and capital. Deficits have appeared since 1971/72, a combined result of the loss of revenues from East Pakistan, stepped-up defense expenditures, lax spending controls, and a low and inelastic tax base. Expenditures (debt service, defense, administration) consume over 70% of the budget, while development needs (education, health, energy, and rural development) receive the remainder. Tax revenues have not kept pace with expenditure growth due to widespread evasion, corruption among tax officials, overreliance on foreign trade taxes, and a tax exemption for agricultural income, which comprises 24% of GDP. The budget deficit was hovering at about 6.2% of GDP in 1995 and 1996 and was projected to

reach almost 7% in 1997. Interest payments on the accumulated debt threatened to bankrupt the government by mid-1997. As a condition for a $1.6 billion loan from the IMF and World Bank, the government agreed to reduce the deficit to 4% of GDP. To do so, the government attempted to raise revenues by expanding the tax base beyond the 1% of Pakistanis who then paid income tax. Other proposals included a reduction in government payrolls, improved tax administration, and an end to the tax exemption for agricultural income. The IMF approved an Enhanced Structural Adjustment Facility in January 1999, when Pakistan was almost halfway through the three-year Structural Adjustment Program worth $1.6 billion. In April 2000, the IMF discovered that the former Prime Minister Nawaz Sharif had purposely minimized reports of the government's budget deficit, by about 1%, in order to keep the extra $2 billion in funds.

The US Central Intelligence Agency (CIA) estimated that in 2005 Pakistan's central government took in revenues of approximately $15.4 billion and had expenditures of $18.4 billion. Revenues minus expenditures totaled approximately -$2.9 billion. Public debt in 2005 amounted to 54.3% of GDP. Total external debt was $39.94 billion.

The International Monetary Fund (IMF) reported that in 2004, the most recent year for which it had data, central government revenues were r795,466,000 and expenditures were r905,549,000. The value of revenues was us$13,654,000 and expenditures us$15,541, based on a market exchange rate for 2004 of us$1 = r58.258, as reported by the IMF. Government outlays by function were as follows: general public services, 66.5%; defense, 19.9%; public order and safety, 1.7%; economic affairs, 8.5%; housing and community amenities, 0.3%; health, 0.8%; recreation, culture, and religion, 0.3%; education, 1.9%; and social protection, 0.2%.

TAXATION

Pakistan lives predominantly by foreign trade, and its import tariffs and export tariffs are essentially revenue-producing. The national government does not levy income tax on agricultural income; only about 1% of the population pays income taxes. Rates are progressive, rising from 5% in the lowest category to 35% in the highest, with a net wealth tax of up to 2.5%.

As of 2005, Pakistan effectively had three corporate tax rates: a 35% rate for public companies; a 39% rate for private companies; and a 41% rate for banking companies. There also a 0.5% tax on turnover. However, the rates for banks and private firms are scheduled for reduction in 2006 and 2007. In 2006, the rate for banks and private firms will be cut to 38% and 37%, respectively, and to 35% for both in 2007. The rate for public companies will not be changed. Generally, capital gains for companies and individuals are taxed as part of income. Capital gains resulting from assets held 12 months or less are taxed at the full corporate rate. Gains resulting from the sale of assets held longer than 12 months are taxed only at 75% of the total capital gains amount. Dividends are subject to a withholding tax of 5% (for those paid to public firms or insurance companies); 7.5% (dividends paid by power companies, certain privatized power projects, and by those firms solely engaged in mining operations, except petroleum); and 10% (for all other dividends). Generally, interest income is subject to a 30% tax rate, while royalties and technical services fees are each subject to a 15% rate.

A sales tax of 15% is levied on the value of goods. However there are exemptions for certain items and for certain classes of people. Exports are zero-rated.

Established proportions of the various taxes levied by the federal government are distributed to the provincial governments. In addition, the provinces collect, for their exclusive use, taxes on land revenue, immovable property, vehicles, professions and services, and mineral rights, as well as excise taxes. Municipalities and other local governments also levy taxes.

CUSTOMS AND DUTIES

Pakistan's customs tariffs bring in the largest single share of national revenue. Most dutiable items are subject to ad valorem duties that range from 0–30%. There is, in many cases, a 15% sales tax on imported goods (food, raw materials, and capital goods are exempt from this tax). Alcohol is levied at a rate up to 65%, but can be as high as 225%. However, maximum rates average at around 35%.

Tariffs are levied on major items of export, but these rates are subject to change as measures are taken to encourage or discourage the export of raw materials. Exports of certain foods, used copper and brass utensils, and some hides and skins are banned. Trade with Israel, South Africa, and Taiwan is prohibited.

FOREIGN INVESTMENT

Foreign aid and investment have played a critical role in Pakistan's economic development since the first years of independence. Since 1954, the government has tried to attract foreign investment to maintain economic development, provide specialized technical knowledge, and bring in much-needed foreign exchange. Incentives for private investment include guarantees for the repatriation of capital invested in approved industries, facilities for remittance of profits, and guarantees for equitable compensation in the event of nationalization of an industry. In addition, special tax concessions available to certain local industries are also available to foreign investors. Since the late 1980s, a series of regulatory reforms related to exchange controls, repatriation of profits, credit for foreign-owned firms, issuing of equity shares, foreign currency accounts, and transactions on the stock exchange have significantly reduced the restrictions on general foreign investor activity in the wider Pakistani economy.

Foreign direct investment (FDI) peaked in 1995/96 at $1.1 billion, then dropped to $548 million in 1996/97 in response to a foreign-exchange crisis. Investors were also deterred by Pakistan's listing as the second-most-corrupt nation in the world, after Nigeria. In the tension leading up to the nuclear bomb tests in May 1998, FDI fell to $432.7 million in 1998/99, and then decreased further after the military coup in 1999, to $420 million, in 1999/00. In 2000/01, FDI fell to an annual rate of less than $275 million. After the 11 September 2001 terrorist attacks on the United States, Pakistan received a windfall in foreign assistance, raising foreign reserves from $908 million in 1999/00 to $4.3 billion in 2001/02. In March 2003, on the eve of the US-led invasion of Iraq, foreign reserves stood at more than $10 billion. However, the overall investment climate in terms of security was worsened by Pakistan's role in the US-led war on terrorism.

The United States has traditionally been the largest source of FDI in Pakistan, with total investment of $1.2 billion as of mid-2002. Over the three years 1998/99 to 2000/01, the US-based investment totaled $250 million. The United Kingdom was the second-largest source, with $241 million. The total for 1998/99 was $327 million, including $135 million from US sources, $77 million from the United Kingdom, and $51 million from Japan.

In 2004/05, total FDI inflows amounted to $1.524 billion, with the UAE investing $367.5 million in the country, the United States $326 million, and the United Kingdom $181.5 million. From July to November 2005, Saudi Arabia invested $265.6 million in Pakistan, the United States $170.8 million, the United Kingdom $56.2 million, while the UAE's FDI total was in the negative figures, at - $31.5 million. Such shifts in investment were due in part to foreign countries' reactions to Pakistan's privatization efforts: certain Gulf states, flush with capital, have placed bids on Pakistani contracts only to pull out. This happened in the case of the Pakistan Telecommunications Co. Ltd. (PTCL). In June 2005, the UAE's company Etisalat (Emirates Telecommunications) offered the highest bid of $2.6 billion to acquire 26% shares and management control of PTCL. This bid price offered by Etisalat was 100% higher than market price and reserve price fixed by the government. The second-highest bidder was China Mobile of China, offering a bid of $1.4 billion, followed by Sing Tel of Singapore, with a bid of $1.17 billion for 26% shares. In October 2005, the PTCL privatization transaction failed to materialize when Etisalat failed to make payment of the balance bid amount by the agreed-upon timeline. This was the second major privatization deal that had failed within a year: earlier in 2005, Kanooz-al-Watan of Saudi Arabia, the highest bidder of Karāchi Electric Supply Corp. (KESC), backed out of its offer. However, in January 2006, Etisalat and the Pakistani government came to an agreement over payments for PTCL, so the deal went through.

FDI inflows to Pakistan averaged 0.8% of GDP over the 2001–05 period.

ECONOMIC DEVELOPMENT

After the founding of the Pakistani state in 1947, the government's economic policy concentrated attention on developing an economic infrastructure, achieving self-sufficiency in food, and developing export industries. A major new land reform program introduced in March 1972 had resulted by March 1975 in the confiscation (for eventual redistribution) of 45.3% of all privately cultivated farmland. By November 1973, the government had nationalized industries in 10 major categories of production. In a third major step, most of the commercial banks were nationalized on 1 January 1974, resulting in control of more than 90% of all banking business by the State Bank and the five newly created units.

By the late 1970s, however, Pakistan's martial law government, claiming the nationalization program had stifled production and discouraged private investment, moved to restore private sector confidence by fostering economic stability and by redressing the balance-of-payments deficit, which was causing large overseas debt obligations. A new five-year plan (1978–83), Pakistan's fifth, reserved 48% of industrial investment for the private sector and set goals for an annual economic growth rate of 7.2%, a 4.2% rise in per capita income, and increases of 6% in agricultural output and 10% in industrial production. The plan was allocated a budget of $21 billion, of which 25% was to come from external sources. Indications were that the agricultural sector would meet its target, but that rising oil costs and the burden of providing for the Afghan refugees had impeded progress in other sectors.

The sixth five-year plan (1983–88), with a proposed outlay of r210 billion, envisioned further investments in water and power development, deregulation to increase private sector activity, and a new emphasis on provision of social services and infrastructural improvements for rural areas. Prime Minister Junejo announced a program for 1986–90, with an outlay of r70 billion, focusing on rural development, particularly in the areas of education, village electrification, potable water supply, roads, health care, and employment.

By the late 1980s, a number of structural factors resulted in increasingly critical fiscal and balance of payment deficits. With less than 30% of the budget devoted to infrastructural development and other needs in health and education, the prognosis for long-term social and economic development remained poor. In response, a medium-term structural reform program was developed under the government of Prime Minister Benazir Bhutto for implementation in 1989–91. Aimed at correcting fiscal and external imbalances, the program targeted a reform of the tax collection system, tighter government spending controls and monetary management, the privatization of state-owned industrial enterprises, banks and utilities, the phasing out of state monopolies in the transportation, insurance, telecommunications and energy sectors, and liberalization of investment and foreign exchange regulations. Implementation of the ambitious program proceeded under the government of Nawaz Sharif who assumed the prime minister's office in 1991. Results were somewhat uneven, with little effective improvements scored in the country's tax system or its fiscal and balance of payments deficits. While the rapid change of government in 1993 and ongoing political tensions dampened private investment, officials assured that structural reform and privatization would continue.

Fiscal indecision and post-nuclear test economic sanctions dried up foreign investments while budget and trade deficits soared in 1999. The United States lifted some sanctions, clearing the way for the IMF to negotiate a bailout package of $1.5 billion with Pakistan. Key demands included cuts in government budget deficits, further privatization, and improved tax collections. After suspension of payments under a previous arrangement, Pakistan entered into a 10-month stand-by arrangement as a prerequisite to rescheduling. In December 2001, the government entered into a three-year program under the Poverty Reduction and Growth Facility (PRGF) in preparation for a second rescheduling of debt by Paris Club members, in this case for over $12 billion.

Since the early 1950s through 1993, Pakistan was estimated to have received about $37 billion in aid disbursements, including both long-term and medium-term loans and grants, making it one of the largest recipients in the developing world. For the Indus Valley project, Pakistan received funding of more than $1.3 billion from the IBRD, IDA, ADB, United States, United Kingdom, and other countries. In addition to US aid, Pakistan has also received aid from Iran and the Arab states. New economic aid from the United States was halted in 1990, under the terms of a Congressional amendment requiring certification of Pakistan's status as a nuclear weapons-free country. These sanctions were alleviated in 1996 by the Brown Amendment, but the nuclear tests of 1998 caused further economic sanctions that were only partially lifted by 2000. Since the 11 September 2001 terrorist attacks on the United States, Pakistan has substantial international financial resources and concessions have been mobilized in exchange for the government's support of the US-led war on terrorism.

By 2006, the government was continuing with economic and institutional reforms initiated by the pre-October 2002 military government, but progress had slowed. The civilian government appeared to be less committed than the military establishment to improving accountability and attacking corruption. The government announced it would pursue a five-year plan to revive the economy and increase foreign investment inflows. In order for the economy to improve, the privatization program must follow an accelerated course, as must the expansion of exports, and the maintenance of inflows of remittances through official channels. Inflation remains a significant threat to the economy: annual inflation was forecast to average 8.6% in 2006 and 6.7% in 2007. The current-account deficit was predicted to widen to 3.8% of GDP in 2006 and 4.3% in 2007, in line with the rising merchandise trade deficit.

SOCIAL DEVELOPMENT

The social security plan covers employees of firms with 10 or more workers. Family and self-employed labor is excluded, and there are separate systems for the armed forces, police, and other public employees. Social security coverage includes old age, disability, and survivor benefits, as well as sickness and maternity payments, workers' compensation, and unemployment benefits. This program is funded by contributions from employers and employees and subsidies from the government. The Worker's Compensation Act is supplemented by a Social Insurance Law and provides disability and worker's injury benefits to workers earning 3,000 rupees or less a month. The labor code requires employers with more than 20 employees to pay a severance gratuity in the amount of 30 days wages for each year of employment.

An Islamization program to promote social welfare in accordance with Islamic precepts was introduced in 1977 under martial law. Islamic welfare taxes, the zakat and ushr, were levied to redistribute wealth. The ushr tax on landowners took effect in 1983. Islamic beliefs are inculcated in the public schools and disseminated widely by the mass media. Laws against drinking alcoholic beverages, adultery, and bearing false witness have been strictly enforced.

Women face serious social and legal discrimination. In a court of law, the testimony of women is not permitted in serious cases which may result in harsh corporal punishment (lashing, stoning, amputation). In cases dealing with financial matters, the testimony of two women must be introduced as evidence. Islamic precepts are ingrained into the Penal Code. Women who have been raped are subject to charges of adultery and fornication under these provisions. The incidence of rape is high in Pakistan, and most women are afraid to file charges. Honor killings are on the rise, and domestic violence is prevalent. Between 70 and 90% of women are victims of family violence; women are killed by their husbands for trivial matters. Most women are unaware of their legal rights concerning inheritance, and in following with Muslim custom, widows give up their share of the joint assets. The Supreme Court has ruled that men may divorce their wives without any legal or written notification. In 2004, the practice of buying and selling brides persists.

The use of child labor in Pakistan is widespread. Children not only work in the agricultural sector, but are also engaged in low-paying work in carpet weaving centers. Bonded child labor, in which the employer makes a payment to the child's parent and keeps the child to work off the long-term debt, has been made illegal but still may affect hundreds of thousands, if not millions, of children.

Human rights violations include arbitrary arrest, prolonged detention, and torture. Pakistan's human rights situation is dismal.

HEALTH

Health facilities in Pakistan are inadequate, mainly due to a lack of resources and a high population growth rate. In 1993, 85% of the population had access to health care. Public health care expenditures equaled 1% of GDP, and total health care expenditure was estimated at 4% of GDP.

The country needs food, a proper water supply, and adequate sanitation. However, Pakistan is the first country to nearly completely eradicate dracunculiasis. Pakistan is also working toward universal immunization, disease prevention, health promotion, and curative and rehabilitative services. In the 1990s there were several programs under way to improve health care coverage and control tuberculosis, leprosy, and cancer. One such program was a Child Survival/Primary Health Care program to reduce mortality, malnutrition, and deaths due to diarrheal diseases. Approximately 36% of children under five years old were considered malnourished. The goiter rate was high in 1996; 40 of every 100 school children were affected by goiter. Around 90% of children up to one year of age were immunized against tuberculosis; 74% against diphtheria, pertussis, and tetanus; 74% against polio; and 74% against measles.

In 2004, there were an estimated 66 physicians, 47 nurses, and 3 dentists per 100,000 people. Many medical students have been sent abroad under an advanced medical training program. Special attention has been given to the training of nurses, and several training centers are in operation. However, medical personnel ratios, though much improved, remain inadequate. There were 302 health centers with 2,462 beds serving the rural population. Centers for the disabled included 11 physical therapy centers, 12 mental retardation centers, 11 centers for the visually impaired, and 12 centers for the hearing impaired.

Malaria, tuberculosis, intestinal diseases, venereal diseases, and skin diseases remain Pakistan's main public health problems. Common diseases were diarrheal diseases, leprosy, malaria, and tuberculosis. Drug addiction, especially among university students, is an increasing concern, and government detoxification centers have helped many addicts recover.

In 2005, the infant mortality rate was 72.44 per 1,000 live births. Major causes of infant mortality are immunizable diseases, diarrhea, malnutrition, and poor environmental sanitation. It was estimated that 88% of the population had access to safe drinking water and 61% had adequate sanitation. The estimated overall mortality rate was 9 per 1,000 people in 2002. The leading causes of death were diarrhea, pneumonia, tuberculosis, cardiovascular diseases, and cancer. Average life expectancy in 2005 was estimated at 63 years.

The HIV/AIDS prevalence was 0.10 per 100 adults in 2003. As of 2004, there were approximately 74,000 people living with HIV/AIDS in the country. There were an estimated 4,900 deaths from AIDS in 2003.

HOUSING

The rapid increase in urbanization, coupled with the rising population, has added to the housing shortage in urban areas. About 25% of the people in large cities live in katchi abadis (shantytowns). The Public Works Department has built more than 8,000 units in Islāmābād, Lahore, Peshāwar, and Quetta at a cost of r1,588 million. Under the 1986–90 program, the residents in the katchi abadis were to be given proprietary rights. In 1987, the National Housing Authority was created to coordinate the upgrading of the existing katchi abadis and prevent the growth of new ones.

As of 1991, 171 abadis had been renovated at a cost of r454 million, and 522 more were under development. In 1998, there were 19,211,738 housing units nationwide with an average of 6.8 occupants per unit. About 54.97% of all units had two to four rooms; 38.11% had one room. About 81% of all dwellings were owner occupied. The most common building materials for residential dwellings were baked bricks, blocks or stones for walls (58% of all units) and wood or bamboo for the roofs (57%). Only 32% of all housing units are linked to piped drinking water. About 70% are linked to an electrical network for lighting. Only 32.7% of all housing units had a separate kitchen and 33.29% had a separate bathroom.

EDUCATION

The education system is poor, notwithstanding a massive educational reform announced in 1972 and aimed at providing free and universal education through the 10th year of formal schooling for both boys (by 1983) and girls (by 1987). As an initial step, private educational institutions at all levels were nationalized. Additional steps included a reform of the curriculum away from general education and in favor of agricultural and technical subjects, equality of access to formal schooling for low-income groups and females, financial aid programs for poor students, and broad expansion and improvement of higher-level facilities. Curriculum bureaus were set up at federal and provincial levels, and the National Council of Education was established to formulate and evaluate educational development policy.

As of 2004, education is compulsory for five years, which are covered through primary school. This is followed by three years of middle school and two years of basic secondary school. Students may then choose to continue in a two-year higher secondary program or a two-year technical school. Girls attend separate schools at both primary and secondary levels.

In 2001, about 54% of children between the ages of three and four were enrolled in some type of preschool program. Primary school enrollment in 2001 was estimated at about 59% of age-eligible students; 68% for boys and 50% for girls. The student-to-teacher ratio for primary school was at about 40:1 in 2003.

Arts and sciences colleges are affiliated with the universities of the Punjab (at Lahore, established 1882), Sind (at Hyderābād, 1947; at Karāchi, 1951), Peshāwar (1950), Baluchistan (1970), and Multan (1975). An agricultural university was established in 1961 at Lyallpur (now Faisalābad). Two engineering and technological universities have been founded at Lahore (1961) and Islāmābād (1966). Research institutions include the Institute of Islamic Studies at Lahore, the Iqbal Academy at Lahore, and the Pakistan Institute of International Affairs at Karāchi. In 1995, there were a total of 29 universities, seven of which are privately operated. Urdu and English are the languages of instruction. Many adult literacy centers, including women's literacy centers, have been established, the majority in Sind. In addition, the People's Open University was established at Islāmābād (1974) to provide mass adult education via correspondence and the communications media. In 2003, about 3% of the tertiary age population were enrolled in some type of higher education program. The adult literacy rate for 2004 was estimated at about 64.5%, with 74.8% for men and 53.9% for women.

As of 2003, public expenditure on education was estimated at 1.8% of GDP, or 7.8% of total government expenditures.

LIBRARIES AND MUSEUMS

The National Library of Pakistan in Islāmābād holds 130,000 volumes. The largest university library in Pakistan is that of the Punjab University at Lahore, with a collection of about 398,000 volumes, including some 20,000 manuscripts. Sizable collections are also found at the University of Karāchi (105,000 volumes) and the University of Sindh (244,000 volumes). Other important libraries are the Punjab Public Library in Lahore (259,000 volumes), the Liaquat Memorial Library (147,000 volumes), the Central Secretariat Library (110,000 volumes), and the National Archives (35,000 volumes), all in Karāchi. The International Islamic University in Islāmābād holds 100,000 volumes. There are about 300 public libraries in the country, but only about 30 libraries have a collection of 10,000 or more volumes. The Punjab Public Library in Lahore is the largest with a collection of about 256,000 volumes.

The National Museum of Pakistan (Karāchi) contains prehistoric material from the Indus Valley civilization, Buddhist statues and carvings, and material from the Islamic centuries, including the renowned Mughal period. The Peshāwar Museum has a splendid collection of Buddhist sculpture of the Gandhara style. The Lahore Museum has an outstanding collection of Greco-Buddhist sculpture. Fine mosques, shrines, and mausoleums of the Islamic centuries are scattered throughout the country. Among the best of the surviving gardens of the Mughal period are those at Lahore, including the Shalimar gardens. There is a museum dedicated to the work of Shakir Ali in Lahore and the Pakistan Army Museum is in Rāwalpindi. There are archaeological museums in Harappa, Banbhore, Moenjodaro, and at the universities of Karāchi and Peshāwar.

MEDIA

Postal, telegraph, and telephone services are owned and operated by the state. Automatic telephone service has been installed in most cities and large towns. Radiotelephone and radiotelegraph services are available within the country and to foreign countries. Pakistan's Indian Ocean INTELSAT communications stations began service in 1971 near Karāchi. In 2003, there were an estimated 27 mainline telephones for every 1,000 people; about 190,300 people were on a waiting list for telephone service installation. The same year, there were approximately 18 mobile phones in use for every 1,000 people.

Through Azad Kashmir Radio and the Pakistan Broadcasting Corporation, the government operates 18 shortwave radio stations. Karāchi is the broadcasting center, and there are important transmitters at Hyderābād, Quetta, Lahore, Rāwalpindi, Peshāwar, Multan, Bahawalpur, and Islāmābād. Government-run Pakistan-TV broadcasts at least 10 hours a day through 28 transmitters. In total, as of 1999, there were 26 AM, 3 FM, and 22 television stations in use. In 2003, there were an estimated 105 radios and 150 television sets for every 1,000 people. About 26.7 of every 1,000 people were cable subscribers. Also in 2003, there were 4.2 personal computers for every 1,000 people and 10 of every 1,000 people had access to the Internet. There were 37 secure Internet servers in the country in 2004.

Daily newspapers–most of them with very small circulations—are published in Urdu, English, and a few other languages. English-language newspapers are read by less than 1% of the population but are very influential, especially Dawn (2002 estimated circulation, 80,000), published in Karāchi, and Pakistan Times (50,000), published in Lahore and Rāwalpindi. Leading Urdu-language dailies (with 2002 circulations) are Jang (750,000) and Hurriyet (600,000), both in Karāchi, and Jang Lahore (1,200,000) and Nawa-e-Waqt (560,000), in Lahore.

While freedom of the press has always been provided for constitutionally, censorship was imposed on the press by the martial law governments. Between 1979 and 1982, local censors reviewed items prior to publication, and some books and periodicals were confiscated. Even after the lifting of censorship, the government continued to influence press coverage by controlling the availability of newsprint, which must be imported, and the placement of government advertising, which is a source of newspapers' revenue. There are no longer restrictions on the importation of newsprint. There is a constitutional prohibition on the ridicule of Islam, the armed forces, or the judiciary.

ORGANIZATIONS

Most major cities contain chambers of commerce and there are numerous employers' associations, such as the All-Pakistan Textile Mills Association, the Pakistan Carpet Manufacturers' and Exporters' Association, and the Pakistan Shipowners' Association. There are also professional associations representing a variety of fields, particularly technical and scientific fields.

The Islamic community is represented by several flourishing organizations, and other religious communities, such as the Zoroastrians, have their own groups. The Pakistan Historical Society, the Scientific and Cultural Society of Pakistan, and the Research Society of Pakistan all serve to promote interest and study in national and Islamic culture.

National youth organizations include the Baloch Student Organization, the Pakistan Progressive Student Alliance, the Adventure Foundation of Pakistan, Junior Chamber, the Pakistan Boy Scouts Association, and the YMCA/YWCA. There are also a number of sports associations for all ages. National women's organizations include the All Pakistan Women's Association, the Pakistan Association for Women's Studies, the Pakistan Federation of University Women, the Women's Resource Center, and the Revolutionary Association of the Women of Afghanistan.

Ansar Burney Welfare Trust International is a national human rights association. International organizations with national chapters include Amnesty International, Caritas, Habitat for Humanity, the Society of St. Vincent de Paul, and the Red Crescent Society.

TOURISM, TRAVEL, AND RECREATION

On 8 October 2005 an earthquake severely damaged Pakistan, which caused the tourism industry to suffer.

Pakistan Tours, a government subsidiary, provides daily tours of Karāchi, Rāwalpindi, and other main cities. Adventure tours are set in northern Pakistan, while the cultural tours showcasing the archaeology are in Taxila, Moenjodaro, and Harrappa. In Karāchi are the National Museum and the Mausoleum of the Quaid-e-Azam. In Lahore, the "city of gardens" and Pakistan's foremost cultural and educational center, remnants of the Mughal Empire are resplendently preserved.

Islāmābād, the wholly planned capital, offers notable examples of architecture in the modern style. Popular recreations include mountain climbing in the Himalayan foothills, sailing, and deep-sea fishing off the Arabian Sea coast. Hockey and cricket are the leading sports, but polo and golf are also popular, with courses in Lahore, Rāwalpindi, Islāmābād and other cities.

Most visitors to Pakistan are required to have a visa and a valid passport. Tourists planning to stay more than 30 days must register with the government. Road permits are available for land crossings into India at Wagah (between Lahore and Amritsar in India). There are no health restrictions on visitors entering Pakistan except in regard to cholera and yellow fever immunizations for those who have been in infected areas.

In 2005, the US Department of State estimated the daily cost of staying in Islāmābād at $263, and in Karāchi, $218.

FAMOUS PAKISTANIS

Several figures of monumental stature are associated with the creation and establishment of Pakistan. The poet and philosopher of a revitalized Islam, Mohammad Iqbal (1873–1938), who wrote in Urdu, Farsi, and English, first called for the establishment of a Muslim state on the subcontinent in a statement made in 1930. Mohammad Ali Jinnah (1876–1948), the Quaid-e-Azam, or "Great Leader," rallied the Muslims to this cause and became the first governor-general of the Commonwealth of Pakistan. His "right hand," Liaquat Ali Khan (1896–1951), was the first prime minister of the nation until his assassination. Chaudhury Mohammad Ali (1905–80), a former prime minister, played a key role in the organization of the new government in 1947. Field Marshal Mohammad Ayub Khan (1908–74) served as commander-in-chief of the Pakistani army, as minister of defense in 1954–55, and as president of Pakistan from October 1958 to March 1969. Sir Mohammad Zafrulla Khan (1893–1985), a distinguished jurist, was several times minister of foreign affairs and later a member of the World Court at The Hague; in 1962, he served as president of the 17th UN General Assembly. Zulfikar Ali Bhutto (1928–79), who rose to prominence as founder and leader of the socialist-leaning Pakistan People's Party, was prime minister during 1973–77 and guided the country's political and economic transformation following the loss of East Pakistan. After Bhutto's execution in 1979, his elder daughter, Benazir (b.1953), became titular head of the Pakistan People's Party. She became the first woman to lead a Muslim country when she assumed the post of prime minister in 1988; she was deposed 20 months later but was reelected in 1993 to serve for three years. Gen. Mohammad Zia-ul-Haq (1924–87) came to power in 1977 and assumed the presidency in 1978. Pervez Musharraf (b.1943) took power in 1999 after a coup d'état and assumed the title of president of Pakistan in 2001. The Pakistani-born scientist Abdus Salam (1926–96) shared the 1979 Nobel Prize for Physics for his work in electromagnetism and the interaction of elementary particles.

In literature, the paramount position is still held by the great Urdu writers who lived before the establishment of Pakistan. Ghalib (1796–1869) and Iqbal are recognized as the two greatest Urdu poets. Contemporary writers who have won fame include the Urdu poet Faiz Ahmad Faiz (1911–84), imbued with a strongly socialist spirit, and the Urdu short story writer Saadat Hasan Manto (1912–55). Foremost among Pakistan's artists is Abdur Rahman Chughtai (1899–1975).

DEPENDENCIES

Pakistan has no territories or colonies.

BIBLIOGRAPHY

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Burki, Shahid Javed. Historical Dictionary of Pakistan. Metuchen, N.J.: Scarecrow Press, 1991.

Chopra, Pran. India, Pakistan, and the Kashmir Tangle. New Delhi: Indus, 1994.

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Khan, Adeel. Politics of Identity: Ethnic Nationalism and the State in Pakistan. Thousand Oaks, Calif.: Sage, 2005.

Kukreja, Veena and M.P. Singh (eds.) Pakistan: Democracy, Development, and Security Issues. Thousand Oaks, Calif.: Sage, 2005.

Malik, Iftikhar H. State and Civil Society in Pakistan: Politics of Authority, Ideology, and Ethnicity. Houndmills, U.K.: Macmillan, 1997.

Mitra, Subrata K. (ed.). A Political and Economic Dictionary of South Asia. Philadelphia: Routledge/Taylor and Francis, 2006.

Saliba, Therese, Carolyn Allen, and Judith A. Howard (eds.). Gender, Politics, and Islam. Chicago: University of Chicago Press, 2002.

Stern, Robert W. Democracy and Dictatorship in South Asia: Dominant Classes and Political Outcomes in India, Pakistan, and Bangladesh. Westport, Conn.: Praeger, 2001.