Knowledge Note

Pakistan enjoyed a period of strong economic growth between 2003 and 2007. However, since 2007, inflation has become a major concern and the economic outlook further deteriorated since the floods of 2010, which affected all provinces with an estimated flood damage of US$ 10 billion. About a fifth of the population still subsists on less than US $1.25 per day.1 Pakistan’s export earnings come primarily from the textile industry, though overseas remittances continue to play a major role.