The growth of non-agricultural sectors has changed the structure of the economy, and agriculture now only accounts for roughly 20% of the GDP. The service sector accounts for 53% of the country's GDP with wholesale and retail trade forming 30% of this sector. In recent times, the Karachi Stock Exchange has soared, along with most of the world's emerging markets. Large amounts of foreign investments have been made into several industries.
The top industries in Pakistan are telecom, software, automotives, textiles, cement, fertilizer, steel, ship building, and more recently, Aerospace. Pakistan has accomplished many engineering feats such as construction of the world's largest earth filled dam Tarbela, the world's twelfth largest dam Mangla, as well as, with collaboration with China, the world's highest international road: the Karakoram Highway. There are also half a dozen additional dams planned such as Kalabagh Dam, Diamer-Bhasha Dam, Munda, Akhori and Skardu Katzara. In November of 2006 China and Pakistan signed a Free Trade Agreement hoping to triple bilateral trade from $4.2 billion (USD) to $15 billion (USD) within the next five years;[58] Pakistan's annual exports in 2005 amounted to $15 billion (USD),[59] and is poised to cross $18 billion (USD) in 2006 and $20 billion (USD) in 2007.[60] Pakistan is also home to a thriving arms industry which exports $200 million (USD) annually, mostly defence equipment and arms to countries in the Middle East and South Asia, and its defence officials are hopeful that these exports will surpass $500 million (USD) a year within the next five years.
In keeping with its rapid economic development in recent years, Pakistan registered an economic growth rate of 7 percent in the financial year 2006–07, the fourth consecutive year of seven percent growth.[61][62] In its June 2006 Economic Survey global finance giant Morgan Stanley listed Pakistan on its list of major emerging markets in the world economy, placing it on a list of 25 countries displaying continued moderate to strong growth over a sustained period of time. The report noted "its economy has been growing quickly in recent periods and corporate direct investors have taken notice".

A similar report by State Street Corporation, states that "economic growth (in 2007) has been strong and the stock market has been helped by privatizations as well as foreign investment" Concurrently, highlighting the strides made on the economic front in recent times, Moody's Investors Service in December 2006 upgraded Pakistan's credit rating from B2 to B1, noting a "positive outlook". In late March 2007, the Asian Development Bank "Outlook 2007" report predicted that strong growth would continue in 2007 and 2008 with growth rates of 6.5 to 7 percent, with manufacturing, exports and consumer expenditure leading the way.[66] Further progress was highlighted by news that the foreign direct investment (FDI ) for FY 2006/7 would touch $7 billion, eclipsing the targeted $4 billion. Telecoms, real estate and energy are major industries for FDI.