Pakistan Economy 2010-2011: Growth and Investment Highlights

According to the Economic Survey of Pakistan (2010 - 2011), published by Finance Division, (Ministry of Finance), the following are the highlights of Growth and Investment:

1. The Real GDP is estimated to grow at 2.4 percent on the back of strong performance of services sector as against actual growth of 3.8 percent last year and target of 4.5 percent.

2. The growth in the agriculture is estimated at 1.2 percent on the back of 3.7 percent growth in the livestock sector.

3. Major Crops accounting for 31.1 percent of agricultural value added registered negative growth of 4.0 percent compared to a negative growth of 2.4 percent last year and a target of 3.7 percent.

4. Minor crops registered a growth rate of 4.8 percent compared to the target of 3.0 percent and massive negative growth of 7.8 percent last year.

5. Output in the manufacturing sector has witnessed expansion of 3 percent in 2010 11 as compared to expansion of 5.5 percent last year on the back of strong performance from small and medium manufacturing sector.

6. Large-scale manufacturing grew by 0.98 percent (July-February 2010-11 incorporated in the national accounts but the growth is now 1.7 percent in July-March 2010-11) as against 4.9 percent of last year.

7. The services sector grew by 4.1 percent against the target of 4.7 percent and actual outcome of 2.9 percent. Within services sector Wholesale and retail trade sector grew at 3.9 percent as compared to 4.6 percent last year and the target for the year of 5.1 percent. Finance and insurance sector recorded negative growth of 6.3 percent in 2010-11 as against contraction of 11.3 percent last year. Public administration and defense posted a stellar growth of 13.2 percent as compared to 2.5 percent in last year. Social Services Sector grew by 7.1 percent which is slightly higher than the target of 5.0 percent but lower than last year’s actual growth of 7.8 percent.

8. Pakistan’s per capita real income has risen by 0.7 percent in 2010-11 as against 2.9 percent last year.

9. Per capita income in dollar term rose from $ 1073 last year to $ 1254 in 2010-11, thereby showing tremendous increase of 16.9 percent. This is mainly because of stable exchange rate as well as higher growth in nominal GNP.

10. Real private consumption rose by 7.0 percent as against 4.0 percent attained last year. However, gross fixed capital formation lost its strong growth momentum and real fixed investment growth contracted by 0.4 percent as against the contraction of 6.1 percent in last fiscal year.

11. The total investment has declined from 22.5 percent of GDP in 2006-07 to 13.4 percent of GDP in 2010-11.

12. Fixed investment has decreased to 11.8 percent of GDP from 13.4 percent last year.

13. The national savings rate has decreased to 13.8 percent of GDP in 2010-11 as against 15.4 percent of GDP last year.

14. Domestic savings has also declined substantially from 16.3 percent of GDP in 2005-06 to 9.5 percent of GDP in 2010-11.

Note: For up-to-date information and updates, visit the official website of the Finance Ministry, Government of Pakistan.

Tags: Pakistan, Economics, Summary, Finance

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