Regions and Countries

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p. 3 of 11 BACK | NEXT Executive Summary I. Development Agenda A. Key Features of Pakistan B. Current Political, Macroeconomic, and Social Trends C. Current Development D. Development Priorities and Outlook II. Implementation of the Country Strategy and Program III. ADB's Strategy IV. Operational Approach V. Three-Year Assistance Program VI. Performance Monitoring and Evaluation

Country Strategy and Program 2002-2006: Pakistan : I. Development Agenda

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A. Key Features of Pakistan

1. Pakistan, covering an area of approximately 796,000 square kilometers, with an estimated population of 140 million in 2001, is the 8th most populous country in the world. The majority (77 percent) lives in rural areas. The country's unique geographic location, at the crossroads between Central Asia, Middle East, and India, has had, and continues to have, an important impact on its political, economic, and social development. Pakistan is a federation of four provinces-Balochistan, North-West Frontier Province (NWFP), Punjab, and Sindh; two federally administered areas (Federally Administered Northern Areas and the Federally Administered Tribal Areas); and the federal capital area of Islamabad. Pakistan is a multiethnic country, with at least one major ethnolinguistic group from each of the four provinces, and Urdu-speaking migrants from India concentrated in urban Sindh. The predominant religion is Islam, with its two major sects (Sunni and Shia) and many minor ones.

2. Since independence in 1947, perceived threats to its existence have shaped Pakistan's political and economic development. It has fought fourOf the three wars with India, tThree wo were over Kashmir; that dispute has once again brought the two countries to the brink of war. These wars and the perceived security threat have resulted in excessive public spending on defense at the expense of social sectors, and erosion of the rule of law. In addition, Pakistan's involvement in the war during the 1980s in Afghanistan strengthened extremist groups, increased the spread of weapons, and resulted in occasional breakdowns of internal security.

3. Politically, Pakistan has alternated with regularity between democratic and military governments. Between 1947 and 1988, military governments were in power for 24 of the 41 years. During the period of parliamentary democracy between 1988 and 1999, the country had four national elections and nine changes of government. The uncertainty created by these frequent changes of government, the associated economic policies, and lapses in internal security has had a negative impact on private investment and growth.

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