Not with standing the current political developments in Pakistan, the economy has delivered yet another year of solid economic growth in 2005-2006. Pakistan's economy has grown at an average rate of almost 7.5% per annum during the last four years, thus positioning itself as one of the fastest growing economies of the Asian region.

The astounding growth momentum that Pakistan has sustained for the last four years is underpinned by dynamism of its industrial, agriculture and service sectors, and the emergence of a new cycle with investment rate reaching a new height at 20% of GDP. Over the last six years, approximately US$6 billion have been invested on expansion of production capacity in the textile industry.

The Government of Pakistan has formulated various incentives, encouraging import of machinery to increase manufacturing and the export of value added products, and has thus far attracted US$3 billion in Foreign Direct Investment (FDI) during July-April in 2005-06; the highest ever in the country's history, showing an increase of a whopping 238% against the same period in the previous year. It is further predicted that the FDI will reach US$3.5 billion mark by end of the current fiscal year.