Obligation Pakistania 8.25% ( US695847AK91 ) en USD

Pakistania

100 % ⇌

Pakistan

US695847AK91 ( en USD )

8.25% par an ( paiement semestriel )

14/04/2024 - Obligation échue

Prospectus brochure de l'obligation Pakistan US695847AK91 en USD 8.25%, échue

200 000 USD

1 000 000 000 USD

695847AK9

Le Pakistan est une république islamique d'Asie du Sud, bordée par l'Afghanistan, l'Iran, l'Inde, la Chine et le golfe d'Oman.

L'Obligation émise par Pakistania ( Pakistan ) , en USD, avec le code ISIN US695847AK91, paye un coupon de 8.25% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 14/04/2024

The President of the Islamic Republic of Pakistan
for and on behalf of
the Islamic Republic of Pakistan
U.S.$1,000,000,000 7.25 per cent Notes due 2019
U.S.$1,000,000,000 8.25 per cent Notes due 2024
Issue price of 2019 Notes: 100.0 per cent
Issue price of 2024 Notes: 100.0 per cent
The U.S.$1,000,000,000 7.25 per cent Notes due 2019 (the 2019 Notes) and the U.S.$1,000,000,000 8.25 per cent Notes due 2024 (the 2024
Notes, and together with the 2019 Notes, the Notes) are issued by The President of the Islamic Republic of Pakistan for and on behalf of the
Islamic Republic of Pakistan (the Issuer) and are direct, unconditional and unsecured obligations. Interest on the 2019 Notes will be payable
semi-annually in arrears on 15 October and 15 April in each year commencing on 15 October 2014. Interest on the 2019 Notes will accrue from
and including 15 April 2014 and will be at a rate of 7.25 per cent per annum. The 2019 Notes will mature on 15 April 2019 (the 2019 Maturity
Date). Interest on the 2024 Notes will be payable semi-annually in arrears on 15 October and 15 April in each year commencing on 15 October
2014. Interest on the 2024 Notes will accrue from and including 15 April 2014 and will be at a rate of 8.25 per cent per annum. The 2024 Notes
will mature on 15 April 2024 (the 2024 Maturity Date). Payments on the Notes will be made in U.S. dollars without deduction for or on account
of taxes of the Islamic Republic of Pakistan to the extent described under "Terms and Conditions of the Notes Taxation".
Application has been made to admit the Notes to listing on the Official List of the Luxembourg Stock Exchange and to trading on the
Luxembourg Stock Exchange's Euro MTF market (the Euro MTF Market). The Euro MTF Market is not a regulated market pursuant to the
provisions of Directive 2004/39/EC. This offering circular (the Offering Circular) constitutes a prospectus for the purposes of the Luxembourg
law dated 10 July 2005 on prospectuses for securities, as amended.
Prospective investors should be aware that none of the statistical information in this Offering Circular has been independently
verified. An investment in the Notes involves certain risks. For a discussion of these risks see "Risk Factors" beginning on page 6 of this
Offering Circular.
The Notes have not been and will not be registered under the Securities Act or with any securities regulatory authority of any state or
other jurisdiction of the United States and may not be offered, sold or delivered within the United States except pursuant to an
exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933, as amended (the
Securities Act) and applicable state securities laws. Accordingly, the Notes are being offered, sold or delivered: (a) in the United
States only to qualified institutional buyers (QIBs) (as defined in Rule 144A (Rule 144A) under the Securities Act) in reliance on, and in
compliance with, Rule 144A (the 2019 Restricted Notes and the 2024 Restricted Notes respectively, and together the Restricted
Notes); and (b) outside the United States in reliance on Regulation S (Regulation S) under the Securities Act (the 2019 Unrestricted
Notes and the 2024 Unrestricted Notes respectively, and together the Unrestricted Notes). Each purchaser of the Notes will be
deemed to have made the representations described in "Plan of Distribution" and "Transfer Restrictions" and is hereby notified that
the offer and sale of Notes to it, if in the United States, is being made in reliance on the exemption from the registration requirements
of the Securities Act provided by Rule 144A. In addition, until 40 days after the commencement of the offering, an offer or sale of any
of the Notes within the United States by any dealer (whether or not participating in the offering) may violate the registration
requirements of the Securities Act if the offer or sale is made otherwise than in accordance with Rule 144A. The Notes are not
transferable except in accordance with the restrictions described under "Plan of Distribution" and "Transfer Restrictions".
The Notes will be offered and sold in denominations of U.S.$200,000 and integral multiples of U.S.$1,000 in excess thereof. Each of the 2019
Unrestricted Notes and the 2024 Unrestricted Notes will initially be represented by interests in a global unrestricted certificate in registered form
(the 2019 Unrestricted Global Certificate and the 2024 Unrestricted Global Certificate respectively, and together, the Unrestricted Global
Certificates), without interest coupons, which will be deposited with a common depositary for, and registered in the name of a nominee of,
Euroclear Bank S.A./N.V. (Euroclear) and Clearstream Banking, société anonyme (Clearstream, Luxembourg) on the Closing Date. Beneficial
interests in the Unrestricted Global Certificates will be shown on, and transfers thereof will be effected only through, records maintained by
Euroclear or Clearstream, Luxembourg. Each of the 2019 Restricted Notes and the 2024 Restricted Notes will initially be represented by a
global restricted certificate in registered form (the 2019 Restricted Global Certificate and the 2024 Restricted Global Certificate respectively,
and together, the Restricted Global Certificates and, together with the Unrestricted Global Certificates, the Global Certificates), without
interest coupons, which will be deposited with a custodian for, and registered in the name of a nominee of, The Depository Trust Company
(DTC) on 15 April 2014 or such later date as may be agreed (the Closing Date) by the Issuer and the Managers (as defined under "Plan of
Distribution"). Beneficial interests in the Restricted Global Certificates will be shown on, and transfers thereof will be effected only through,
records maintained by DTC and its participants. See "Clearing and Settlement Arrangements". Individual definitive note certificates in registered
form (Individual Certificates) will only be available in certain limited circumstances as described herein. It is expected that delivery of the
Global Certificates will be made in immediately available funds on the Closing Date (i.e. the fifth Business Day following the date of
pricing of the Notes (such settlement cycle being herein referred to as T+5)).
Managers
Barclays
BofA Merrill Lynch
Citi
Deutsche Bank
The date of this Offering Circular is 9 April 2014.

The Issuer accepts responsibility for the information contained in this Offering Circular. The Issuer,
having made all reasonable enquiries, confirms that this Offering Circular contains or incorporates all
information which is material in the context of the Notes, that the information contained or incorporated
in this Offering Circular is true and accurate in all material respects and is not misleading, that the
opinions and intentions expressed in this Offering Circular are honestly held and that there are no
other facts the omission of which would make this Offering Circular or any of such information or the
expression of any such opinions or intentions misleading.
No person is or has been authorised to give any information or to make any representation other than
those contained in this Offering Circular in connection with the offering of the Notes and, if given or
made, such information or representations must not be relied upon as having been authorised by the
Issuer or any of the Managers. Neither the delivery of this Offering Circular nor any sale made
hereunder shal , under any circumstances, constitute a representation or create any implication that
there has been no change in the affairs of the Issuer since the date hereof. Neither this Offering
Circular nor any other information supplied in connection with the issue of the Notes constitute an offer
of, or an invitation by, or on behalf of, the Issuer or any of the Managers to subscribe for, or purchase,
any of the Notes in any jurisdiction in which such offer or invitation is unlawful. Neither this Offering
Circular nor any other information supplied in connection with the issue of the Notes constitute an
offer, and may not be used for the purpose of an offer to, or a solicitation by, anyone in any jurisdiction
or in any circumstances in which such an offer or solicitation is not authorised or is unlawful.
The Managers have not separately verified the information contained herein. Accordingly, no
representation, warranty or undertaking, express or implied, is made and no responsibility or liability is
accepted by the Managers or any of them as to the accuracy or completeness of the information
contained in this Offering Circular or any other information provided by the Issuer in connection with
the Notes or their distribution. None of the Managers accept any liability in relation to the information
contained in this Offering Circular or any other information provided by the Issuer in connection with
the Notes.
Neither this Offering Circular nor any other information supplied in connection with the Notes is
intended to provide the basis of any credit or other evaluation and should not be considered as a
recommendation by the Issuer or the Managers that any recipient of this Offering Circular or any other
information supplied in connection with the Notes should purchase any of the Notes. Each investor
contemplating purchasing Notes should make its own independent investigation of the financial
condition and affairs, and its own appraisal of the creditworthiness, of the Issuer.
Each potential investor in the Notes must determine the suitability of that investment in light of its own
circumstances. In particular, each potential investor should:
(i)
have sufficient knowledge and experience to make a meaningful evaluation of the Notes, the
merits and risks of investing in the Notes and the information contained in this Offering Circular
or any applicable supplement;
(i )
have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its
particular financial situation, an investment in the Notes and the impact the Notes wil have on
its overall investment portfolio;
(i i)
have sufficient financial resources and liquidity to bear all of the risks of an investment in the
Notes, including where the currency for principal or interest payments is different from the
potential investor's currency;
(iv)
understand thoroughly the terms of the Notes and be familiar with the financial markets; and
(v)
be able to evaluate (either alone or with the help of a financial adviser) possible scenarios for
economic, interest rate and other factors that may affect its investment and its ability to bear the
applicable risks.
For a description of certain restrictions on the offering and sale of the Notes and on distribution of this
Offering Circular, see "Plan of Distribution" below.

i

The Notes are not being offered or sold and may not be offered, sold or transferred directly or
indirectly in Pakistan, to residents in Pakistan or to, or for the account or benefit of, such persons.
The Islamic Republic of Pakistan is a foreign sovereign state. Consequently it may be difficult for
investors to realise judgments of courts in England or their own jurisdiction against Pakistan in the
courts of Pakistan. See "Enforcement of Foreign Judgments in Pakistan" and "Risk Factors 
Enforcement of foreign judgements in Pakistan".
The issue of the Notes by The President of the Islamic Republic of Pakistan for and on behalf of the
Islamic Republic of Pakistan is in accordance with Article 173(3) of the Constitution of the Islamic
Republic of Pakistan which states "All contracts made in the exercise of the executive authority of the
Federation or of a Province shal be expressed to be made in the name of the President or, as the
case may be, the Governor of the Province".
In connection with the issue and distribution of the Notes, the Managers (or any person acting
on their behalf) may over-allot Notes or effect transactions with a view to supporting the
market price of the Notes at a level higher than that which might otherwise prevail. However,
there is no assurance that the Managers (or persons acting on behalf of the Managers) will
undertake stabilisation action. Any stabilisation action or over-allotment may begin on or after
the date on which adequate public disclosure of the terms of the offer of the Notes is made
and, if begun, may be ended at any time, but it must end no later than the earlier of 30 days
after the issue date of the Notes and 60 days after the date of the allotment of the Notes. Any
stabilisation action or over-allotment shall be conducted in accordance with all applicable laws
and rules.
The Notes have not been approved or disapproved by the United States Securities and Exchange
Commission or any other securities commission or other regulatory authority in the U.S., nor have the
foregoing authorities reviewed or passed upon the accuracy or adequacy of this Offering Circular. Any
representation to the contrary is a criminal offence.
This Offering Circular is being distributed in the United States to a limited number of QIBs for
informational use solely in connection with the consideration of the purchase of certain Notes issued
by the Issuer. Its use for any other purpose in the United States is not authorised. It may not be
distributed in the United States or any of its contents disclosed to anyone in the United States other
than the prospective investors to whom it is originally submitted.
Each purchaser or holder of interests in the Notes wil be deemed, by its acceptance or purchase of
any such Notes, to have made certain representations and agreements as set out in "Plan of
Distribution" and "Transfer Restrictions".
NOTICE TO NEW HAMPSHIRE RESIDENTS
NEITHER THE FACT THAT A REGISTRATION STATEMENT OR AN APPLICATION FOR A
LICENSE HAS BEEN FILED UNDER CHAPTER 421-B OF THE NEW HAMPSHIRE REVISED
STATUTES WITH THE STATE OF NEW HAMPSHIRE NOR THE FACT THAT A SECURITY IS
EFFECTIVELY REGISTERED OR A PERSON IS LICENSED IN THE STATE OF NEW HAMPSHIRE
CONSTITUTES A FINDING BY THE SECRETARY OF STATE OF NEW HAMPSHIRE THAT ANY
DOCUMENT FILED UNDER CHAPTER 421-B IS TRUE, COMPLETE AND NOT MISLEADING.
NEITHER ANY SUCH FACT NOR THE FACT THAT AN EXEMPTION OR EXCEPTION IS
AVAILABLE FOR A SECURITY OR A TRANSACTION MEANS THAT THE SECRETARY OF
STATE HAS PASSED IN ANY WAY UPON THE MERITS OR QUALIFICATIONS OF, OR
RECOMMENDED OR GIVEN APPROVAL TO, ANY PERSON, SECURITY OR TRANSACTION. IT
IS UNLAWFUL TO MAKE, OR CAUSE TO BE MADE, TO ANY PROSPECTIVE PURCHASER,
CUSTOMER OR CLIENT, ANY REPRESENTATION INCONSISTENT WITH THE PROVISIONS OF
THIS PARAGRAPH.

ii

PRESENTATION OF FINANCIAL INFORMATION
Certain amounts included in this Offering Circular have been subject to rounding adjustments;
accordingly, figures shown as totals in certain tables may not be an arithmetic aggregation of the
figures which precede them.
Unless otherwise specified or the context requires, references to dollars, U.S. dollars and U.S.$ are
to United States dol ars and references to Rupees and Rs. are to the lawful currency of the Islamic
Republic of Pakistan. Historic amounts translated into Rupees or U.S. dollars have been translated at
historic rates of exchange. Such translation should not be construed as a representation that the
amounts in question have been, could have been or could be converted into U.S. dollars at that or any
other rate. The spot mid-rate between the Rupee and the U.S.$ on 28 March 2014 as quoted by the
State Bank of Pakistan (SBP) was Rupees 98.0637 to U.S.$1.00. References to billions are to
thousands of mil ions. References to SDR are to the Special Drawing Right, a unit of account having
the meaning ascribed to it from time to time by the Rules and Regulations of the International
Monetary Fund (IMF). References to any individual period as 2012-13 and so on are references to a
fiscal year commencing on 1 July in one year and ending on 30 June in the subsequent year.
SERVICE OF PROCESS AND ENFORCEMENT OF CIVIL LIABILITIES
The Issuer is a foreign sovereign nation, and a substantial portion of the assets of the Issuer are
located outside the United States and the United Kingdom. As a result, it may not be possible for
investors to effect service of process, within the United States and/or the United Kingdom, upon the
Issuer or to enforce against it, in the United States courts or courts located in the United Kingdom,
judgments obtained in United States courts or courts located in the United Kingdom, respectively,
including judgments predicated upon the civil liability provisions of the securities laws of the United
States or any state or territory within the United States.
ENFORCEMENT OF FOREIGN JUDGMENTS IN PAKISTAN
In Pakistan, statutory recognition is given to foreign judgments under section 13 of the Pakistan Code
of Civil Procedure 1908 (the Code). This provides that a foreign judgment shal be conclusive as to
any matter thereby directly adjudicated upon except (i) where it has not been pronounced by a court of
competent jurisdiction, (ii) where it has not been given on the merits of the case, (i i) where it appears
on the face of the proceedings to be founded on an incorrect view of international law or a refusal to
recognise the law of Pakistan in cases where such law is applicable, (iv) where the proceedings in
which the judgment was obtained were opposed to natural justice, (v) where it has been obtained by
fraud, or (vi) where it sustains a claim founded on a breach of any law in force in Pakistan.
Section 44A of the Code provides that where a foreign judgment has been rendered by a court in any
country or territory outside Pakistan which the Government has, by notification, declared to be a
reciprocating territory, it may be enforced in Pakistan as if the judgment has been rendered by the
relevant court in Pakistan. The High Court of Justice in England is a court in a reciprocating territory
for the purposes of section 44A and, accordingly, a money judgment of that court would, subject to the
exceptions contained in section 13 of the Code, be enforceable as if the judgment were the judgment
of a district court in Pakistan. Accordingly, upon obtaining a foreign judgment, three possible courses
are open to the holder:
(a)
obtaining execution of the judgment by proceedings under section 44A, where these provisions
are applicable, as they are in the case of a judgment of the High Court of Justice in England, for
which the limitation period for initiating proceedings in Pakistan is three years from the date of
the English judgment;
(b)
filing a suit in Pakistan on the basis of the foreign judgment treating it as the cause of action, for
which the limitation period is six years from the date of the foreign judgment; and
(c)
filing a suit in Pakistan on the original cause of action, for which the limitation period is three
years from when the cause of action arises.

iii

In the case of proceedings described in paragraph (c) above, where the Pakistani court will have the
power to assess the damages, it is possible that a Pakistani court will not award damages on the
same basis as a foreign court, especial y if it viewed the award of such damages as being contrary to
Pakistani public policy.
Section 82 of the Code requires a decree against the Government to specify a period within which it is
to be satisfied. If it remains unsatisfied at the expiry of such period, the Court issuing such decree is
required to issue a report for the Orders of the Provincial Government within which such Court is
situated. Execution proceedings can only be initiated against the Government three months after the
date of such report.
PRESENTATION OF STATISTICAL AND OTHER INFORMATION
References to Pakistan are to the Islamic Republic of Pakistan and references to the Government
are to the Government of Pakistan. References to the Economic Survey 2012-13 herein are to the
Economic Survey 2012-13 published on 11 June 2013 by the Government of Pakistan, Finance
Division, Economic Advisor's Wing, Islamabad. The Economic Survey, which is published each year
a few days before the presentation of the Federal Budget and presents a view on the national
economy based on provisional data for the first three quarters of the fiscal year, is followed by the
publication of its Statistical Supplement, in which the data series are provisionally updated for the
whole fiscal year. It should be noted that certain historic data set out herein may be subject to minor
amendments as a result of more accurate and updated information becoming available. References to
the Labour Force Survey 2012-13 herein are to the labour force survey published in November 2013
by the Government of Pakistan, Statistics Division, Pakistan Bureau of Statistics, Islamabad. The
Labour Force Survey 2012-13 presents information on labour force characteristics that have been
collected from a representative sample of 35,067 households to produce gender disaggregated
national and provincial level estimates with an urban/rural breakdown.
Prospective investors in the Notes should be aware that none of the statistics in this Offering Circular
have been independently verified.
A portion of Pakistan's economy is comprised of an informal, or shadow, economy. The informal
economy is not recorded and is only partial y taxed, resulting in not only lack of revenue for the
Government but also ineffective regulation, unreliability of statistical information (including the
understatement of GDP and the contributions to GDP of various sectors) and inability to monitor a
large portion of the economy. Although the Government is attempting to address the informal
economy by streamlining certain regulations, particularly tax laws, there can be no assurances that
such reforms will adequately address the issues and bring the informal economy into the formal
sector.
Although a range of governmental ministries produce statistics on Pakistan and its economy in
accordance with international standards, there may be inconsistencies in the compilation of data and
methodologies. The statistical information in this Offering Circular has been derived from a number of
different identified sources and is based on the latest official information currently available from the
stated source. Several statistics are provisional and are noted as such where presented. The
development of statistical information relating to Pakistan is, however, an ongoing process, and
revised figures and estimates are produced on a continuous basis. Al statistical information provided
in this Offering Circular may differ from that produced by other sources for a variety of reasons,
including the use of different assumptions, methodology, definitions and cut-off times.
Prospective investors in the Notes should be aware that figures relating to Pakistan's economy and
many other aggregate figures cited in this Offering Circular are subject to revision. Furthermore,
standards of accuracy of statistical data may vary from ministry to ministry or from period to period due
to the application of different methodologies. In this Offering Circular, data is presented as provided by
the relevant ministry to which the data is attributed, and no attempt has been made to reconcile such
data to the data compiled by other ministries or by other organisations, such as the IMF. Pakistan
produces data in accordance with the IMF's General Data Dissemination System, although the IMF
standard may not always be consistently applied.

iv

Pakistan has also provided information on certain matters pertaining to documentation that belongs to
independent third parties. In some of these circumstances, Pakistan has relied on reported information
in presenting such matters but is unable to independently verify such information.

v

FORWARD-LOOKING STATEMENTS
Some of the statements contained in this Offering Circular, including those under "Summary The
Islamic Republic of Pakistan", "The Islamic Republic of Pakistan" and "Overview of Pakistan's
Economy", are forward-looking. These statements are not historic facts, but are based on the
Government's current plans, estimates, assumptions and projections. When used in this Offering
Circular, the words "anticipates", "estimates", "expects", "believes", "intends", "plans", "aims", "seeks",
"may", "wil ", "should" and any similar expressions generally identify forward-looking statements.
Future events may differ materially from those expressed or implied by such forward-looking
statements. Therefore, prospective investors should not place undue reliance on them. Forward-
looking statements speak only as of the date they are made, and the Issuer undertakes no obligation
to update any of them in light of new information or future events. Forward-looking statements involve
inherent risks. The Issuer cautions prospective investors that many factors could affect the future
performance of the Pakistani economy. These factors include, but are not limited to:
External factors, such as:

interest rates in financial markets outside Pakistan;

the impact of changes in the credit rating of Pakistan;

the impact of changes in the international prices of commodities;

economic conditions in Pakistan's major export markets;

the impact of possible future regional instability; and

the decisions of international financial institutions and donor countries regarding the amount and
terms of their financial assistance to Pakistan, as wel as
Internal factors, such as:

general economic, political, social, legal and/or business conditions in Pakistan;

present and future exchange rates of the Pakistani currency;

foreign currency reserves;

natural disasters;

the impact of possible future social unrest or the security situation;

the level of domestic debt;

domestic inflation;

the ability of Pakistan to implement important economic reforms including its privatisation
programme;

the levels of foreign direct and portfolio investment; and

the levels of Pakistani domestic interest rates.

vi

EXCHANGE RATE INFORMATION
Pakistan has had a market-based unitary exchange rate system since May 1999. Under this unitary
exchange rate system, the floating inter-bank rate applies to al foreign exchange receipts and
payments both in the public and private sectors. See "Balance of Payments and Foreign Trade 
Exchange Rates".
The following table sets forth the average and period end exchange rates for the periods presented,
expressed in Rupees per U.S. dollar, not adjusted for inflation, as published by the SBP. The Federal
Reserve Bank of New York does not report a noon buying rate for Rupees.
Period
Average During Period Indicated
Period End
2008-09................................................
78.65
81.46
2009-10................................................
83.89
85.51
2010-11................................................
85.56
85.97
2011-12................................................
89.27
94.55
2012-13................................................
96.85
99.66
July-Dec 2013 .....................................
105.00
105.32
January 2014 ......................................
105.48
105.48
February 2014 ......................................
105.12
104.90
March 2014(1) .......................................
100.07
98.06
(1) As of 28 March 2014.
Source: State Bank of Pakistan

Currency conversions contained in this Offering Circular should not be construed as representations
that Rupees have been, could have been, or could be converted into U.S. dollars at the indicated or
any other exchange rate.

v ii

Contents

Page
PRESENTATION OF FINANCIAL INFORMATION ................................................................................ i i
FORWARD-LOOKING STATEMENTS ................................................................................................... vi
EXCHANGE RATE INFORMATION ...................................................................................................... vii
SUMMARY ............................................................................................................................................... 1
RISK FACTORS ....................................................................................................................................... 8
USE OF PROCEEDS .............................................................................................................................16
THE ISLAMIC REPUBLIC OF PAKISTAN .............................................................................................17
OVERVIEW OF PAKISTAN'S ECONOMY ............................................................................................29
BALANCE OF PAYMENTS AND FOREIGN TRADE ............................................................................59
PUBLIC FINANCE AND TAXATION ......................................................................................................69
PUBLIC DEBT ........................................................................................................................................74
TERMS AND CONDITIONS OF THE 2019 NOTES ..............................................................................84
TERMS AND CONDITIONS OF THE 2024 NOTES ..............................................................................95
THE GLOBAL CERTIFICATES ............................................................................................................106
TAXATION ............................................................................................................................................110
CLEARING AND SETTLEMENT ARRANGEMENTS ..........................................................................115
PLAN OF DISTRIBUTION ....................................................................................................................120
TRANSFER RESTRICTIONS ..............................................................................................................124
VALIDITY OF NOTES ..........................................................................................................................126
GENERAL INFORMATION ..................................................................................................................127

vii i

SUMMARY
The fol owing summary does not purport to be complete and is qualified in its entirety by reference to,
and must be read in conjunction with, the detailed information appearing elsewhere in this Offering
Circular and related documents referred to herein. It does not contain all the information investors may
consider important in making their investment decision. Therefore, investors should read this entire
Offering Circular carefully, including, in particular, the section entitled "Risk Factors".
References herein to a Condition are to the numbered condition corresponding thereto set out in the
Terms and Conditions of the 2019 Notes or the 2024 Notes, as applicable.
The Islamic Republic of Pakistan
General
Pakistan is a federal republic located in south-central Asia between India, China, Afghanistan, Iran
and the Arabian Sea. Its population was approximately 182.5 mil ion in 2012-13 and over 96 per cent
of the population is Muslim. The capital of Pakistan is Islamabad. The national language is Urdu and
English is the official language.
Pakistan has a federal parliamentary system with the President as the Head of State. The current
Government was elected on 11 May 2013 following a democratic transition of government. The
Pakistan Muslim League (Nawaz) (PML-N) formed the current Government and Mr. Mamnoon
Hussain is currently President and Constitutional Head of the State and the Government is headed by
the Prime Minister, Nawaz Sharif.
Pakistan's economy is the twenty-seventh largest in the world in terms of purchasing power parity and
the forty-fourth largest in terms of GDP, according to best estimates from publicly available sources.
Pakistan is a rapidly developing country and is one of the "Next Eleven" countries that have the
potential to become significant world economies in the next 25 years. Pakistan's economy is semi-
industrialised, with centres of growth along the Indus River, Karachi and major urban centres in the
Punjab. It ranks as the fifteenth largest trader of goods in the world and the world's sixth largest trader
of services, according to best estimates from publicly available sources. It has three principal sectors:
services (57.7 per cent of GDP 2012-13), industrial (20.9 per cent of GDP 2012-13) and agriculture
(21.4 per cent of GDP 2012-13). Major industries include textiles, chemicals, food processing,
agriculture, fertilizer, cement, dairy and rugs.
Pakistan's currency is the Rupee and its fiscal year is 1 July to 30 June.
Despite one of the most serious economic crises in Pakistan's recent history, a measure of
macroeconomic stability has been achieved in recent years. Nominal gross domestic product (GDP)
was approximately Rupees 22,909 billion (approximately U.S.$238.7 bil ion) in 2012-13 and GDP
growth was 3.6 per cent in 2012-13, 4.4 per cent in 2011-12 and 3.7 per cent in 2010-11. The
slowdown in GDP growth from 4.4 per cent in 2011-12 to 3.6 per cent in 2012-13 was principal y due
to severe energy shortages in Pakistan, as wel as the disruptions to law and order brought on by the
Fight against Terrorism which included some destruction of physical infrastructure.
The following table sets out major economic indicators for the past five years.

2008-09
2009-10
2010-11
2011-12
2012-13(1)
GDP at current market price
13,199,707
14,866,996
18,284,869
20,090,862
22,909,079
(Rupees million) .................................
GNI at current market price
13,545,988
15,433,243
19,105,094
21,126,569
24,010,565
(Rupees million) .................................
Population (million).............................
168.2
171.7
175.3
178.9
182.5

1