Pakistan Location : Southern Asia, bordering the Arabian Sea, between India on the east and Iran and Afghanistan on the west and China in the north Capital City : Islamabad Curreny : Pakistani rupee (PKR) Languages Spoken : Punjabi 48%, Sindhi 12%, Siraiki (a Punjabi variant) 10%, Pashtu 8%, Urdu (official) 8%, Balochi 3%, Hindko 2%, Brahui 1%, English (official and lingua franca of Pakistani elite and most government ministries), Burushaski, and other 8% Climate : mostly hot, dry desert; temperate in northwest; arctic in north National Holiday : Republic Day, 23 March (1956) Background Information The separation in 1947 of British India into the Muslim state of Pakistan (with two sections West and East) and largely Hindu India was never satisfactorily resolved. A third war between these countries in 1971 resulted in East Pakistan seceding and becoming the separate nation of Bangladesh. A dispute over the state of Kashmir is ongoing. In response to Indian nuclear weapons testing, Pakistan conducted its own tests in 1998. Geographical Note controls Khyber Pass and Bolan Pass, traditional invasion routes between Central Asia and the Indian Subcontinent Economy Pakistan, an impoverished and underdeveloped country, suffers from internal political disputes, lack of foreign investment, and a costly confrontation with neighboring India. Pakistan's economic prospects, marred by poor human development indicators, low levels of foreign investment, and reliance on international creditors for hard currency inflows, were nonetheless on an upswing through most of 2001. The MUSHARRAF government made significant inroads in macroeconomic reform - it completed an IMF short-term loan program for the first time and improved its standing with international creditors by increasing revenue collection and restraining the fiscal deficit in the 2001/02 budget. While Pakistan has capitalized on its international standing after the 11 September terrorist attacks on the US by garnering substantial assistance from abroad - including $1.3 billion in IMF Poverty Reduction and Growth Facility aid and $12.5 billion in Paris Club debt rescheduling - long-term prospects remain uncertain. GDP growth will continue to hinge on crop performance; dependence on foreign oil leaves the import bill vulnerable to fluctuating oil prices; and foreign and domestic investors remain wary of committing to projects in Pakistan. Pakistani trade levels - already in decline due to the global economic downturn - worsened in the aftermath of the September 11 attacks. Religions Muslim 97% (Sunni 77%, Shi'a 20%), Christian, Hindu, and other 3% Ports : Karachi, Port Muhammad bin Qasim International Disputes - Risks to travellers : armed stand-off with India over the status and sovereignty of Kashmir continues; dispute with India over the terminus of Rann of Kutch prevents extension of a maritime boundary; water-sharing problems with India persist over the Indus River (Wular Barrage); close ties with Pashtuns in Afghanistan make long border difficult to control
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