Until recently, Pakistan had internal political disputes and low levels of foreign investment which led to slow growth and underdevelopment. Agriculture accounts for more than one-fourth of output and two-fifths of employment. Textiles account for most of Pakistan's export earnings. 

Remittances from overseas workers, averaging more than $1 billion a month, remain a bright spot for Pakistan. After a small current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to a deficit where it remained through 2014, spurred by higher prices for imported oil and lower prices for exported cotton. In September 2013, after facing balance of payments concerns, Pakistan entered into a three-year, $6.7 billion IMF Extended Fund Facility. The Sharif government has since made modest progress implementing fiscal and energy reforms, and in December 2014 the IMF described Pakistan's progress as "broadly on track."

Pakistan must address long standing issues related to government revenues and the electricity and natural gas sectors in order to spur the amount of economic growth that will be necessary to employ its growing and rapidly urbanizing population, more than half of which is under 22. Other long term challenges include expanding investment in education and healthcare, adapting to the effects of climate change and natural disasters, and reducing dependence on foreign donors. (Source: Central Intelligence Agency)

Macro economy: Pakistan is a developing country and has the potential to become one of the world's large economies in the 21st century. However, after decades of war and social instability, as of 2013, serious deficiencies in basic services such as railway transportation and electric power generation had developed. Pakistan is a semi-industrialized nation, where the manufacturing and industries sector serve as the back bone of the economy.

According to World Bank estimates, Pakistan faces significant economic, governance and security challenges to achieve durable development outcomes. The continuing conflict in the border areas and security challenges throughout the country has impacted all aspects of life in Pakistan and is seen as an impediment to development.

Islamic economy:  Pakistan ranks #5 in the Global Islamic Economy Indicator produced by Thomson Reuters. The ranking evaluates quality of the overall Islamic economy ecosystem a country has relative to its size. In the last one year, Pakistan has shown remarkable development in Islamic finance and Halal Food sectors as well as Pharmaceutical and Cosmetics sectors. It also ranks fifth in the Islamic Finance Development Indicator. Thanks to the strong Islamic governance initiatives and a growing awareness in those sectors. According to data from Thomson Reuters, there are five Islamic banks and 18 Islamic banking windows in the country with a total banking asset of $12,563 million. Pakistan has more than 25 Islamic financial institutions.