ISLAMABAD: Federal Finance Minister Ishaq Dar on Thursday presented the Economic Survey of Pakistan 2016-2017 in which the government failed to meet the intended target of 5.7 percent GDP growth rate. However, Dar was all praises for the 5.28 percent growth that was recorded for 2016-2017 (April).
GDP growth rate
Rate of inflation
Inflation rate remained 4.09% while the volume of Pakistan’s economy surpassed $300 billion, said Dar.
Fiscal deficit decreases to 4.2 percent
The fiscal deficit of Pakistan has also registered a decrease. From last year when it was 4.6 percent, the fiscal deficit has been brought down to 4.2 percent. As can be seen, the fiscal deficit has been decreasing ever since 2012-2013 when it was at a staggering 8.2 percent.
The growth of agriculture has also seen a welcome rise as it jumped from 0.3% in 2015-2016 to 3.5% in 2016-2017.
The services sector has also recorded an increase in growth as it finished at 5.98% in 2016-2017 compared to last year’s figures which enabled it to stand at 5.70%.
The industrial growth suffered a decline as it went from 5.80% growth in 2015-2016 to 5.0% this year.
A sectoral analysis of the GDP growth rate of Pakistan
A sectoral analysis briefly summarizes the various components of an economy recording and registering their growth rates over a number of years.
This data enables the reader to gauge the growth rate that each sector has recorded over a period of time. Pakistan’s economic sector mainly comprises of industrial, agricultural and services sector.
Investment and Savings
Total investment has reached to the level of Rs. 5026 billion as compared to the Rs 4526 billion last year, showing growth of 11.05 percent in FY 2017. Investment to GDP ratio has reached 15.78 percent in FY 2017. Fixed investment has increased to Rs 4517 billion as compared to Rs. 4061 billion last year.
National savings were 13.1 percent of GDP in FY2017 against 14.3 percent last year. Domestic savings are recorded at 7.5 percent of GDP in outgoing fiscal year as compared to 8.2 percent of GDP last year.
Per capita income
Per capita income is one of the most useful and accurate measures of the well-being of countries around the world. It is a vital economic indicator that also points out to the economic development that has taken place in a country.
As per the Economic Survey of Pakistan, the per capita income has seen a growth of 6.4% in FY2017 as compared to last year when the figure stood a 1.1%.
Foreign Direct Investment
Pakistan also registered a growth in FDI for this year. According to the Economic Survey of Pakistan, a 12.75% growth was registered in FDI as compared to last year. Currently, Pakistan’s FDI stands at Rs. 1.733 billion whereas last year it stood at $1.537 billion.
Major FDI inflows
Major FDI inflows during the period under review were from China ($ 744.4 Million), Netherland ($478.6 Million), France ($171.0 Million), Turkey ($137.7 Million), US ($103.2 Million), U.A.E ($ 48.4 Million), UK ($47.6 Million), Italy ($ 47.4 Million), Japan ($ 42.1 Million) and Germany ($ 40.5 Million).