Karachi continues to be an important financial and industrial centre for the country and handles most of the overseas trade of Pakistan and the central Asian countries. It accounts for a large portion of the GDP of Pakistan and a large chunk of the country’s white collar workers. Karachi’s population has continued to grow and is estimated to have passed the 20 million mark, although official figures still show a population of around 14.5 million. The current economic boom in Pakistan has also resulted in a new period of resurgence in the economy of Karachi.

Agriculture is the mainstay of Pakistan’s economy, employing almost 50% of the population. Wheat, rice, cotton, sugarcane, and tobacco are the chief crops, and cattle and sheep are raised. Most of Pakistan’s agricultural output comes from the Indus basin. The country is now self-sufficient in food, as vast irrigation schemes have extended farming into arid areas, and fertilizers and new varieties of crops have increased yields.

Pakistan’s industrial base is able to supply many of the country’s needs in consumer goods, although production has slowed in recent years. The country’s natural resources provide materials for such industries as textile production (the biggest earner of foreign exchange), oil refining, metal processing, and cement and fertilizer production. Remittances from Pakistanis working abroad constitute the second largest source of foreign exchange. Since the mid-1950s electric power output has greatly increased, mainly because of the development of hydroelectric power potential and the use of thermal power plants. Pakistan’s chief imports are petroleum, machinery, transport equipment, chemicals, and edible fats and oils. The chief trading partners are the European Union nations, the United States, Japan, and China. In the late 1990s, following years of lax fiscal policies, Pakistan appeared on the verge of bankruptcy, with a foreign debt of over $30 billion.

Tourism is a growing industry in Pakistan, based on its diverse cultures, peoples and landscapes. The variety of attractions range from the ruins of ancient civilizations such as Mohenjo-daro, Harappa and Taxila, to the Himalayan hill stations, which attract those interested in field and winter sports.