Country overview
The Islamic Republic of Pakistan has a population of over 180 million people. The official languages are Urdu and English. Regional languagesPunjabi, Pashto, Sindhi and Balochiare widely used.
The Islamic Republic of Pakistan is made up of four provincesSindh, Punjab, Khyber Pakhtunkhwa (formerly North-West Frontier) and Balochistan. 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 KashmirGilgit-Baltistanalso known as the 'Northern Areas' of Pakistan which has a quasi provincial status but does not currently have representation in parliament. Islamabad is a special 'Federal Capital Territory'.
Pakistan lies in the Indus Valley and is bordered by India to the east, China to the north, Afghanistan to the north and northwest, Iran to the west and the Arabian Sea to the south. Both the boundaries with China and with northern Afghanistan are in very high mountainous terrain. The Karakoram Highway, constructed under Chinese supervision, provides the major link between Pakistan and China along the Indus Valley.
Economy
Pakistan's economy was significantly affected by the global economic downturn in 2008, which has diminished its capacity to deliver services across the country. In November 2008 the GoP was forced to accept a US$7.6 billion loan from the International Monetary Fund (IMF), which was extended in August 2009 to US$11.3 billion. Under the conditions of the loan, the IMF has identified three priority areas that the GoP needs to address to boost economic growth: increase electricity tariffs (prices); reform of the tax base to increase Government tax revenues; and increase support for social safety nets.
Much of the economic recovery the country had begun to make in 200910 (including increased GDP growth and reduced inflation) was reversed following the July 2010 floods. The GDP growth forecast for 201011 fell from 4.1 per cent pre-floods to 2.6 per cent in December 2010. Inflation is high. The State Bank of Pakistan has forecast an inflation rate of 14.5 per cent for 201011, with food price inflation recorded at over 20 per cent in October 2010. Pakistan's population is expected to grow by another 40 million by 2020, meaning GDP growth will need to average eight per cent per year to generate employment and provide adequate social services and education opportunities for the growing population.
Development challenges
Pakistan's development challenges are considerable and were exacerbated by the unprecedented floods in July 2010. In the 2010 United Nations Human Development Index, Pakistan ranks 125 out of 169 countries. It is estimated that one third of the population lives on less than US$1 a day and almost one-quarter of the population is malnourished (including up to 38 per cent of children). Progress against the MDGs has been slow, particularly against MDG 2 on primary education, MDG 4 on child mortality, and MDG 5 on maternal health.
The maternal mortality rate is high, with 320 out of 100,000 mothers dying during childbirth and only 39 per cent of births attended by skilled medical personnel. Child health and nutrition are a particular concern, with two out of every five children malnourished and one in ten children dying before reaching the age of five. Poor access for disadvantaged groups and poor quality of care are issues undermining the delivery of effective health services. It is anticipated that these already low development indicators will worsen as a result of the floods.
National education indicators in Pakistan are amongst the lowest in South Asia. Gender disparities in education access and outcomes, limited access to schooling in remote and rural areas, lack of adequate infrastructure, and poor quality of teaching and teaching materials are systemic challenges facing the education sector. More than 42 million children between the ages of five and 19 do not attend school. Half of the adult population is illiterate (including two-thirds of women) and only 62 per cent of primary school-aged children are enrolled in school. The 2010 floods will impact on education indicators with the floods damaging over 8,000 schools across the country.
The 2010 floods have had a devastating effect on development progress across Pakistan. Approximately 20 million people were affected. More than one million homes, and 24,000 kilometres of road were damaged, while over two million hectares of planted crops were washed away and millions of livestock and poultry were lost.
The floods seriously impacted upon Pakistan's already fragile economy and further constrained development, including the country's progress against the MDGs. According to the United Nations Development Programme's preliminary estimates, the floods pushed a further four per cent of Pakistan's population below the calorie-based poverty line, mostly in rural areas. As a result, the MDG of halving the proportion of people living under one dollar per day and the proportion of people suffering from hunger is now even less likely to be achieved.
Australian aid to Pakistan
Pakistan is an important bilateral partner for Australia. Australias aid program has increased since 2008. In 2010-11, Australias total Official Development Assistance (ODA) for Pakistan is estimated at $119.3 million.. Total ODA to Pakistan for 2011-12 is estimated at $92.8 million.
Australia's assistance to Pakistan includes support for basic health care and education given the slow progress against the MDGs in these areas. Significant investments in health will strengthen national systems for improved service delivery, including through a major national program in maternal and newborn child health, which is being delivered in partnership with the Government of Pakistan and the UK's Department for International Development (DFID). Australia, through the Fred Hollows Foundation, is also providing continued support to reduce blindness through enhanced district eye care, and targeted assistance for the emerging problems of childhood blindness and diabetic retinopathy.
Australia is making significant investments in basic education in Pakistan, with a focus on improving access to, and quality of, education, particularly for girls. Current partners in delivering this assistance include the United Nations, DFID and the Aga Khan Foundation.
Building human capital is a major focus of the aid program. Australia has been providing scholarships since 1991. In addition to 42 Australian Development Scholarships provided in 2011 Australia will also be providing 100 long term and short term agricultural scholarships between 2011 and 2014.
The agricultural scholarships complement Australia's ongoing assistance in the agriculture and rural development sector. Australia provides assistance to Pakistan to improve agribusiness management and agricultural research under the second phase of the Agriculture Sector Linkages Program, which is managed by the Australian Centre for International Agricultural Research (ACIAR). Australia also supports an integrated rural development program for conflict-affected areas of Khyber Pakhtunkhwa delivered by the Sarhad Rural Support Programme.
Support for improved standards of democratic governance is a growing focus of the program. Australia supported monitoring efforts during the 2008 elections and works with a local non-government organisation, Strengthening Participatory Organisation, to build the capacity of local community groups that promote democratic governance and social harmony. Australia is planning further investments to improve governance in Pakistan, particularly to support the decentralisation process under the recent 18th Constitutional amendment.
In 2010, Australia provided $75 million in humanitarian and early recovery assistance in the areas of health, education and rural livelihoods. See a full breakdown of the funding. Australia is currently considering options for how to assist the GoP with post flood reconstruction and rehabilitation. Humanitarian relief to help meet the immediate and medium term needs of internally displaced people affected by law enforcement operations in Khyber Pakhtunkhwa and the Federally Administered Tribal Areas is an ongoing priority. Over three million people have been displaced by fighting since mid-2008 and the reconstruction and rehabilitation of areas affected by conflict is an ongoing priority.
