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Economic growth

Pakistan's Economic Survey Reveals Mixed Results, Slowdown in Agriculture Sector

Strategic Insights

— 1 min read

The Economic Survey of Pakistan for fiscal year 2024-25 has shown a mixed picture of the country's economy, with a growth rate of 2.7% falling short of the target of 3.6%. The survey attributes this to a slowdown in the agriculture sector, where production of major crops such as wheat, rice, and cotton declined by 13.5%. However, the industrial and services sectors showed a growth of 4.77% and 2.91%, respectively. The government also failed to meet its investment-to-GDP target, with the private sector investment target missed by a wide margin.

Key Takeaways:

  • The economic growth rate of 2.7% is attributed to a slowdown in the agriculture sector, where production of major crops declined by 13.5%.
  • The industrial sector showed a growth of 4.77%, with an increase in production of coal and a positive growth in the electricity, gas, and water supply industry.
  • The services sector grew by 2.91%, with positive contributions from all constituents, including wholesale and retail trade, transport and storage, and information and communication.
  • The government failed to meet its investment-to-GDP target, with the private sector investment target missed by a wide margin.
  • The private sector investment target was 9.1% of the GDP, which is lower than the 14.2% target.
  • The government met the inflation target of 12%, but missed the tax target by a huge margin of over Rs1 trillion.
  • The Finance Minister proposed a new formula for distribution of resources between the center and the provinces under the National Finance Commission, suggesting delinking population from the NFC.

Statistics:

  • Economic growth rate: 2.7%
  • Industrial growth: 4.77%
  • Services sector growth: 2.91%
  • Agriculture sector growth: -13.5%
  • Economic size in dollar terms: $411 billion
  • Per capita income: $1,824
  • Size of the economy in dollar terms: $411 billion
  • Current account: in surplus
  • Foreign exchange reserves: $11.5 billion

Sources:

  • Economic Survey of Pakistan for fiscal year 2024-25, launched by Finance Minister Muhammad Aurangzeb
  • Financial Times of Pakistan
  • Dawn News
  • Press release by the Ministry of Finance

Please note that the statistics and key takeaways are based on the provided text, and may not be comprehensive or up-to-date. The sources listed are also based on the original text, without any additional information or embellishments.

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