ISLAMBAD: The GDP growth rate for outgoing fiscal year 2021-22 remained at 5.97 percent, according to the Pakistan Economic Survey released on Thursday ahead of the federal budget.
Finance Minister Miftah said that the growth rate remained 5.97 percent during the current fiscal year but this growth created an adverser Current Account Deficit and Balance of Payment crisis.
According to the economic survey, the underlying macroeconomic imbalances and associated domestic and international risks have dampened celebration for the high GDP growth.
The economy of Pakistan rebounded from the pandemic (0.94 percent contraction in FY2020) and continued to post a V-Shaped economic recovery which is higher than the 5.74 percent recorded last year (FY2021).
However, it stated the high growth is also accompanied by external and internal imbalances, as has been the case historically with Pakistan’s economy.
External circumstances also played a critical role this time. These circumstances have placed almost all economies of the world in shambles, it said.
It cited the highly transmissible Omicron variant, changes in Afghanistan’s government after the withdrawal of US troops sparked and the Russian-Ukraine crsis which rupended the global
economic picture.
“Financial and commodity markets have felt shockwaves. Thus, energy and food prices have surged rapidly and threaten to remain further elevated.”
“The exceedingly uncertain outcome of the crisis is another challenge for developing economies, particularly for Pakistan,” the report said.
It stated that Pakistan’s economy has shown a strong recovery after being depressed due to the
pandemic which resulted in lockdown.
For FY2022, real GDP posted a growth of 5.97 percent on account of 4.40 percent growth in Agriculture, 7.19 percent growth in the Industrial sector, and 6.19 percent growth in the Services
sector. This growth is slightly above the growth of 5.74 percent recorded for FY2021.
For FY2022, GDP at current market prices stands at Rs 66,950 billion showed a growth of 20.0 percent over last year (Rs 55,796 billion).
In the dollar term, GDP remained at US$383 billion. Regarding per capita income in terms of dollar, there was a rebound seen in FY2021 which continued in FY2022.
In FY2022, per capita income was recorded at US$1,798 which reflects an improvement in prosperity due to the fact that economic growth per person improved.
