The strategic thrust of the Annual Plan 2009-10 has been derived from Nine Points Economic Agenda of the government. Major elements of the strategy are to 1) Ensure economic recovery consistent with stabilization 2) Maintain momentum of agriculture growth together with support policies for revival of industries 3) Address critical infrastructure gaps in water, power and transport for enhancing competitiveness 4) Achieve Millennium Development Goals and reduce poverty through a comprehensive social protection system with an exit strategy 5) Facilitate balanced development in the country by reducing regional disparities; and 6) Rehabilitation and reconstruction of conflict affected areas.

The economy of Pakistan has grown on an average of 7.5 percent over the last< four years 2003-07, whereas during the current year 2006-07 a growth rate of 7 percent has been achieved. The size of GDP increased three times from Rs 2,938 billion in 1998-99 to Rs 8,716 billion in 2006 -07, while per capita income increased more than two times from $ 438 to $ 926, investment by five times from Rs 409 billion to Rs 2,004 billion and national savings 4.6 times from Rs 344 b illion to Rs 1,572 billion in the same period. On the basis of rapid and sustained growth achieved in the recent past, Pakistan has joined the fastest growing economies of the Asian region. Impressive growth of Pakistan’s economy is attributed to the continuity and consistency of policies initiated by the present regime within the overall framework of deregulation, privatization and liberalization.

The economy of Pakistan has entered a stage of sustained revival after it had taken the turnaround a couple of years ago. This revival is duly reflected in higher than targeted growth rate in the real GDP, containment of budgetary deficit and significant improvement in the external sector especially in the merchandize exports and remittances and accumulation of foreign exchange reserves with coverage of about 11 months of imports. By implementing wide-ranging structural reforms during the last five years, the government of Pakistan has been able to achieve the mutually competing objectives of macroeconomic stability and stimulated economic growth. Due to effective macroeconomic management, bumper cotton and wheat crops and impressive performance of services and manufacturing sectors, the GDP growth rate has been estimated at 8.4 percent for the year 2004-05, the second highest since 1985.