Pakistan Real GDP Posted A Growth Of 5.97 Percent In FY2022

Fiscal Deficit

ISLAMABAD: According to the Economic Survey of Pakistan 2021-22, the real GDP posted a growth of 5.97 percent in FY2022.For Jul-Apr FY2022, the current account deficit remained US$13.8 billion against the deficit of US$0.5 billion last year resulting in widening the Saving-Investment Gap.

Similarly for FY2022, GDP at current market prices stood at Rs 66,950 billion showing a growth of 20 percent over last year (Rs 55,796 billion). In Dollar term, it stood US$383 billion.

Regarding per capita income in terms of dollar, there was a rebound seen in FY2021 which continued in FY2022. Per capita income in FY2022 was recorded at US$1,798 which reflects an improvement in prosperity due to the fact that economic growth per person improved.

For the outgoing fiscal year, investment to GDP ratio remained 15.1 percent compared to 14.6 percent recorded in FY2021.

The document added that exports of goods and services posted a growth of 39 percent, and imports of goods and services 46 percent in FY2022.

For FY2022, real GDP (GVA at basic prices 2015-16) posted a growth of 5.97 percent on account of 4.40 percent growth in agriculture, while 7.19 and 6.19 percent growth in industry and services respectively. This growth is slightly above the growth of 5.74 percent recorded for FY2022.

Further the agriculture sector posted growth of 4.4 percent mainly due to 6.6 percent growth in crops and 3.3 percent growth in livestock. The growth in crops was recorded on account of 7.2 percent growth in important crops, 5.4 percent growth in other crops, and 9.2 percent growth in Cotton Ginning. livestock sector which constitutes almost 62 percent share in agriculture, posted a growth of 3.3 percent. The other components of agriculture, forestry and fishing posted growth of 6.1 and 0.3 percent, respectively.

The industrial sector recorded a growth of 7.2 percent in FY2022 compared to 7.8 percent growth in FY2021.Likewise the services sector posted a growth of 6.2 percent on account of 10 percent growth in Wholesale and Retail Trade industry, 5.4 percent growth in Transportation.

While Storage, 4.1 percent growth in accommodation and food services activities, 4.9 percent growth in Finance and insurance, 3.7 percent growth in Real estate activities, 8.7 percent growth in education, 2.2 percent growth in Human health and social work activities, and 3.8 percent growth in Other private services. However, Public administration and social security (general government) activities posted negative growth of 1.2 percent mainly due to high deflator.

Total revenues increased by 17.7 percent and reached Rs 5,874.2 billion (8.8 percent of GDP) in July-March FY2022 against Rs 4,992. 6 billion (8.9 percent of GDP) last year.

A significant increase in tax collection was the key factor in boosting revenue growth, which more than offset the decline in non-tax revenues.Total tax collection (Federal & Provincial) grew by 28.1 percent to reach Rs 4,821.9 billion during July-March FY2022 as compared to Rs 3,765.0 billion in the comparable period of last year. Non-tax revenues, on the other hand, fell 14.3 percent to Rs 1,052.2 billion in July-March FY2022, compared to Rs 1,227.6 billion in the same period the previous year.

Total expenditures grew by 27.0 percent to reach Rs 8,439.8 billion in July-March FY2022 against Rs 6,644.6 billion last year. Current expenditures grew by 21.2 percent to Rs 7,378.0 billion during July-March FY2022 as compared to Rs 6,085.4 billion in the comparable period of last year.

Higher growth in non-markup expenditures lifted up the total current spending. Total development expenditure increased significantly by 54.6 percent to Rs 1,032.7 billion in July-March FY2022 against Rs 668.0 billion in the comparable period of last year.

The federal PSDP grew by 28.1 percent to Rs 452.3 billion during July-March FY2022 against Rs 353.0 billion last year.FBR tax collection during July-May, FY2022, increased by 28.4 percent to Rs 5,348.2 billion against Rs 4,164.3 billion last year.

The headline inflation CPI, averaged at 11.3 percent during July-May, FY2022 against 8.8 percent in the comparable period last year.

As per the Survey, total public debt was Rs 44,366 billion at end-March 022. Domestic debt was Rs 28,076 billion and external public debt was Rs 16,290 billion or US$ 88.8 billion at end March-2022.

In the energy sector, the import bill of oil increased by 95.9 percent to US$17.03 billion during July-April FY2022 compared to US$8.69 billion during the same period last year. Liquefied Natural Gas witnessed an increase of 82.90 percent in value, while Liquefied Petroleum Gas (LPG) imports also jumped by 39.86 percent during July-April FY2022.

In the social protection sector, the second phase of Ehsaas Emergency Cash Programme (ECAP-II) was launched in June, 2021. As of 30-03-2022, an amount of Rs 30.18 billion was disbursed to 2.50 million additional beneficiaries (other than UCT beneficiaries) @ Rs 12,000 per beneficiaries to ever-married women of the eligible families having valid CNIC.

The Survey added that Ten Billion Tree Tsunami Programme planted 579.093 million plants during July-March FY2022 and cumulatively attained level of 1586.18 million plants till March 2022. Through the programme 327,877 man-months were employed uptil March 2022.