NAC estimates Pakistan’s GDP growth at 5.97pc in FY22

ISLAMABAD – The provisional growth in the gross domestic product (GDP) for the financial year 2021-22 (FY22) is estimated at nearly 6 per cent, National Accounts Committee (NAC) said on Wednesday.
The National Accounts Committee (NAC) has projected country’s gross domestic product (GDP) at 5.97 percent during the current fiscal year. The growth rate has surpassed the target of 4.8 percent. The NAC has also estimated the growth rate of GDP for the year 2020-21 at 5.74 percent which was provisionally estimated at 5.57 percent. Broad based growth was witnessed in all the sectors of the economy. The growth of agricultural, industrial and services sectors is 4.40 percent, 7.19 percent and 6.19 percent respectively as against target of 3.5 percent, 6.5 percent and 4.7 percent respectively.
The overall industrial sector shows an increase of 7.19 percent. The mining and quarrying sector growth has decreased by 4.47 percent due to decline in production of other minerals as well as decline in exploration cost. The Large Scale Manufacturing industry is driven primarily by QIM data (from July 2021 to March 2022) which shows an increase of 10.4 percent. Major contributors to this growth are food (11.67 percent), tobacco (16.7 percent), textile (3.19 percent), wearing apparel (33.95 percent), wood products (157.5 percent), chemicals (7.79 percent), iron & steel products (16.55 percent), automobiles (54.10 percent), furniture (301.83 percent) and other manufacturing (37.83 percent). Electricity, gas and water industry shows a growth of 7.86percent mainly due to increase in subsidies in 2021-22. The value added in construction industry, mainly driven by construction related expenditures by industries, has registered a modest growth of 3.14 percent mainly due to increase in general government spending.
The services sector shows a growth of 6.19 percent. Wholesale and retail trade industry grew by 10.04 percent. It is dependent on the output of agriculture, manufacturing and imports. The growth in trade value added relating to agriculture, manufacturing and imports stands at 3.99 percent, 9.82 percent and 19.93 percent respectively. Transportation & storage industry has increased by 5.42 percent due to increase in gross value addition of railways (41.85 percent), air transport (26.56 percent), road transport (4.99 percent) and storage. Accommodation and food services activities have increased by 4.07 percent. Similarly, information and communication increased by 11.9 percent due to improvement in telecommunication, computer programming, consultancy and related activities. Finance and insurance industry shows an overall increase of 4.93 percent mainly due to increase in deposits and loans. Real estate activities grew by 3.7 percent while public administration and social security (general government) activities posted negative growth of 1.23 percent due to high deflator. Education has witnessed a growth of 8.65 percent due to public sector expenditure. Human health and social work activities also increased by 2.25 percent due to general government expenditures. The provisional growth in other private services is 3.76 percent.
In agriculture sector, the growth of important crops during this year is 7.24 percent. The growth in production of important crops namely cotton, rice, sugarcane and maize is estimated at 17.9 percent, 10.7 percent, 9.4 percent and 19.0 percent respectively. The cotton crop increased from 7.1 million bales reported last year to 8.3m. Bales; rice production increased from 8.4m tons to 9.3m tons; sugarcane production increased from 81.0m tons to 88.7m tons; maize production increased from 8.4m tons to 10.6m tons respectively, while wheat production decreased from 27.5m tons to 26.4m tons. Other crops showed growth of 5.44 percent mainly because of increase in production of pulses, vegetables, fodder, oilseeds and fruits. Livestock sector is showing a growth of 3.26 percent. The growth of forestry is 3.13 percent and fishing is at 0.35 percent.
The GDP of the country at current market prices has reached to Rs.66.949 trillion in 2021-22 which has resulted in increase in per capita income from Rs.268,223 in 2020-21 to Rs.314,353 in 2021-22. The per capita income in US$ has increased from 1676 in 2020-21 to 1798 in 2021-22. Further, the volume of the economy in US$ in 2021-22 stands at $383 billion.

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