Pakistan Country Brief - February 2009
System of government
The Islamic Republic of Pakistan is made up of four provinces - Sindh (capital, Karachi), Punjab (Lahore), North-West Frontier (Peshawar) and Baluchistan (Quetta). In addition, the Federal Government administers seven areas (‘agencies’) on the border with Afghanistan. These are known as the federally-administered tribal areas (FATA). Pakistan also administers approximately one-third of the area of the former princely state of Jammu and Kashmir. Islamabad is a special ‘Federal Capital Territory’.
Pakistan has a federal system of government which at the centre has a bicameral legislature. Members of the 342-seat National Assembly, the lower house, are elected from single-member electorates distributed between the provinces on a population basis, with a number of seats reserved for women and religious minorities. Members of the Senate, the upper house, are elected indirectly by an electoral college formed by the members of the National Assembly, the four provincial assemblies, the federally-administered tribal areas and the federal capital.
All four provinces have their own elected provincial assemblies and each provincial government is headed by a chief minister who presides over the provincial cabinet. Provincial governors are appointed by the president. Local or district governments are headed by elected nazims.
Recent political developments
On 12 October 1999, the Government of Prime Minister Nawaz Sharif was removed in a military coup led by General Pervez Musharraf, who subsequently assumed power as Chief Executive. Following the 11 September 2001 terrorist attacks in New York and Washington, General Musharraf provided substantial assistance for the international coalition’s military operations in neighbouring Afghanistan. Parliamentary elections were held in Pakistan on 12 October 2002 after a referendum in April 2002 granted General Musharraf a five-year extension as President.
President Musharraf was re-elected as President on 6 October 2007 but declared a state of emergency on 3 November which suspended freedoms of speech, movement, media and association and removed the Supreme Court. As a result, the Commonwealth Ministerial Action Group (CMAG) suspended Pakistan from the Councils of the Commonwealth on 22 November 2007 ‘pending the restoration of democracy and the rule of law in that country’. President Musharraf resigned as Chief of Army Staff on 28 November and was sworn in as a civilian president on 29November.
Pakistan held National Assembly and provincial parliamentary elections on 18February 2008. The National Assembly elections were won by a coalition of the Pakistan People’s Party (PPP) and Pakistan Muslim League – Nawaz (PML-N). Pakistan’s Government is led by Prime Minister Yusuf Raza Gilani, a member of the PPP. Pakistan’s membership to CMAG was reinstated on 12May 2008.
On 18 August 2008, Pervez Musharraf resigned as President of Pakistan. One week later, the PML-N quit the coalition and now sits in opposition. The PPP retains power with the support of minor parties and independents. On 6September 2008, Asif Ali Zardari, PPP co-chairman became President of Pakistan.
An election to the Senate, where the four provinces have equal representation, was held in March 2006. Senators serve terms of six years and one-half of the seats come up for re-election every three years. The next Senate elections are scheduled for 4March 2009.
Economic overview
Pakistan’s economy has suffered significantly as a result of the global financial and credit crisis, Pakistan’s internal security situation and higher oil and food import prices. In November 2008, the International Monetary Fund (IMF) approved a US$7.6 billion loan to Pakistan to help it stabilise its economy while expanding its social safety net to protect the poor.
Pakistan also faces significant development challenges. Adult literacy is approximately 50 per cent and life expectancy is about 65 years. Approximately one third of Pakistan’s population live below the poverty line.
Although generating only 20 per cent of GDP, agriculture employs about 45 percent of Pakistan's labour force. Pakistan is one of the world's largest producers of cotton. Other important crops include grain, sugar cane, pulses, oil seeds, tobacco, fruit and vegetables.
Industry, which contributes approximately a quarter of Pakistan's GDP, is concentrated around the Karachi-Hyderabad region and Lahore. Pakistan processes much of its own agriculture output and also produces cement, fertiliser, steel and chemicals.
Pakistan produces two-thirds of its own energy needs, principally in the form of gas from the east of the country, hydro-electricity from dams at Tarbela and Mangla, and some low-quality coal. However, energy shortages remain a constraint on expanding manufacturing in the country and Pakistan is reliant on oil imports from the United Arab Emirates, Saudi Arabia and Kuwait.
Pakistan's principal exports include textiles, rice, leather goods, sports goods, chemicals, carpets and rugs. Its main imports are petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel.
Bilateral relationship
Australia established diplomatic relations with Pakistan after partition and has had a resident mission in the country since 1948. In late September 2001, in recognition of Pakistan’s key role in the global fight against terrorism, Australia re-established bilateral defence relations suspended following Pakistan’s May 1998 nuclear tests.
There have been a number of high level visits between the two countries in recent years. Former Prime Minister Howard visited Pakistan in 2005, the same year in which former President Musharraf visited Australia. Former Attorney-General PhillipRuddock visited Pakistan in 2007. Australia’s Chief of Defence Forces has also visited Pakistan three times since 2005, most recently in May 2008.
In February 2009, the Honourable Stephen Smith MP, Minister for Foreign Affairs, visited Pakistan. Mr Smith met with President Zardari and Prime Minister Gilani, as well as a number of senior ministers in the Pakistani government, including Foreign Minister Qureshi. During the visit, Mr Smith announced that Australia and Pakistan would work to enhance bilateral relations between the two countries. This includes increased economic links and providing assistance to Pakistan’s efforts to combat terrorism both domestically and regionally. Australia will also substantially increase development assistance to Pakistan, focussing on health, education and governance.
Australia’s total development assistance program to Pakistan in 2008-09 is expected to be $30.5 million, supporting basic health care and education. For further information, see AusAID’s website.
People-to-people links between Australia and Pakistan are expanding. There is a growing Pakistani community in Australia of approximately 17000 and, in 2007, there were close to 5000 Pakistani students studying in Australia. Under the Australia-Pakistan Scholarship Program, 500 scholarships are available to Pakistani students from 2005-2010 to facilitate postgraduate studies in Australia.
Australia participates in the Friends of Democratic Pakistan group which seeks to help Pakistan address its security, development, energy and institution building challenges. Other members of the group are Pakistan, the United Kingdom, United States, Saudi Arabia, the United Arab Emirates, Canada, China, France, Germany, Italy, Japan and Turkey, the European Commission, the European Union and the United Nations.
South Asia Earthquake
A major earthquake on 8 October 2005, with an epicentre approximately 100 kilometres north of Pakistan’s capital Islamabad and measuring 7.6 on the Richter Scale, affected Pakistan, Afghanistan and India. In total, more than 73,000 people were killed, more than 69,000 were injured and 3.3 million were left homeless. In response, Australia deployed an ADF medical team as part of the relief operation and contributed more than $74 million in relief and reconstruction assistance.
Bilateral economic and trade relationship
Australian exports, principally coal, lead, vegetable products and fertilizers were valued at A$490 million in 2007-2008. This constituted a 53 percent increase in exports from the 2006-2007 period. Australian imports from Pakistan, mainly textiles, clothing and rice were value at $154 million in 2007-2008.
Commercial links between Australia and Pakistan include BHP Billiton's investment in Pakistan's Zamzama gas field valued at US$100 million. Situated in Sindh Province approximately 300 kilometres north of Karachi, Zamzama is considered Pakistan's fourth-largest gas field.