Federal government will release the Economic Survey for the fiscal year 2024-25 on June 9. According to official sources, while several economic targets were missed, the overall performance shows ‘moderate improvement’ compared to the previous year.
The targeted GDP growth of 3.6% could not be achieved, with actual growth recorded at 2.7%. However, inflation remained significantly below expectations, recorded at 5% against the annual target of 12%. The development marked a notable achievement amid global economic challenges.
Per Capita Income and Tax Collection
Per capita income stood at Rs509,174, falling short by Rs34,794 from the targeted Rs543,968. On the revenue front, indirect tax collection exceeded projections, totaling Rs8,393 billion compared to the target of Rs7,799 billion.
Agriculture Sector Performance
The agriculture sector underperformed, with only 0.6% growth against the 2% target. Major crops recorded sharp declines:
Cotton: -30.7%, Maize: -15.4%, Sugarcane: -3.9%, Rice: -1.4% and Wheat: -8.9%.
In contrast, small crops outperformed with a 4.8% increase versus the 4.3% target. Growth was also noted in vegetables, fruits, oil seeds, spices, and green fodder.
Industrial Sector Overview
The industrial sector exceeded expectations with 4.8% growth against the 4.4% target. Notable increases were seen in textile, automobile, garments, tobacco, and petroleum production. However, declines were reported in the production of food, chemicals, iron and steel, electrical machinery, and furniture.
Large-scale manufacturing contracted by -1.5%, missing the 3.5% target. On the other hand, small-scale industries performed well, achieving 8.8% growth against the 8.2% target.
Services and Construction Sectors
The services sector underperformed with a growth rate of 2.9% versus the 4.1% target. In contrast, the construction sector exceeded expectations, recording 6.6% growth compared to the 5.5% target.
The electricity, gas, and water supply sector saw remarkable growth of 28.9%, far surpassing the target of 2.5%.
Health, Education, and Private Lending
The health sector recorded 3.7% growth (target: 3.2%), while the education sector achieved 4.4% growth (target: 3.5%). Private sector lending increased significantly, rising from PKR 294 billion to PKR 870 billion.
Revenue and Tax-to-GDP Ratio
Total revenue increased by 36.7% to Rs13,367 billion. The tax-to-GDP ratio improved from 6% to 8%, indicating better fiscal performance.
What is economic survey?
The Economic Survey provides a comprehensive overview of the country's economic health ahead of the federal budget and highlights areas of both concern and progress.
