2.2.1.2 Economic Growth

Pakistan's economy has undergone a remarkable structural change during the last four decades. In the years between 1949-50 agriculture was the dominant sector, contributing about 53% to Gross Domestic Project (GDP). However, the share of the agriculture sector has declined over time and was at 246 in 1997-98 However, agriculture is still the largest sector providing one quarter of GDP and 70% of the work force derives employment from agriculture, and agricultural exports generate over 70% of the total foreign exchange earnings Projections of the structure of the economy were made based on the past record of economic growth for 2025. These projections indicate that by the year 2025 the share of the agriculture sector in GDP will decrease to 18.41 %, manufacturing sector will be 21.99% and other commodity producing sectors will be 10.69%. The service sectors share in GDP will not change and is projected to be around 48.91%.

2.2.1.3 Energy Use

Per capita consumption of energy in Pakistan is extremely low, with a comparatively flat rate of increase However, Pakistan uses the limited energy at its disposal in an extremely inefficient manner Availability of energy is key for economic growth and development in Pakistan Any change in the energy sector would have a direct impact on the water sector because of the large amount of energy used by the water sector. The water sector is one of the principal users of electricity and as such. the energy pricing policies will have a great deal of impact on our use of water resources It is estimated that about 30% of all electricity is used for water pumping and about 42% of the total hydropower is being used for water pumping. In case other stand alone energy sources like private generators, etc, are included this percentage increases even more. About 16% of peak energy consumption is used by tube wells. A flat rate has been levied for the use of electricity by these tube wells as a result of which they did not have an incentive to save money and be efficient