Real GDP posts growth of 5.97%
For July-April FY22, current account deficit remains $13.8bn
Agriculture sector posts growth of 4.4%
Industrial sector records growth of 7.2% in FY22
Services sector still constitutes the largest share of 58% in GDP
Total revenues increase by 17.7% and reach Rs5,874.2bn
ISLAMABAD: A day before announcing the budget for the fiscal year 2022-23, the coalition government reflected upon the performance of the economy for the outgoing fiscal year with a growth of 6% against the envisaged target of 4.8%.
Finance Minister Miftah Ismail, who succeeded Shaukat Tarin as the country’s finance czar in mid-April (which interestingly is when the survey review period ends), chaired the launch ceremony of the Economic Survey 2021-22.
"The situation in Pakistan has remained the same: whenever the country records growth, unfortunately, it falls into a crisis of current deficit,” Miftah said in a televised press conference.
The survey document released by the Ministry of Finance noted that though the economy recovered from the pandemic (a 0.94% drop in FY20) and maintained a V-Shaped recovery by posting real GDP growth of 5.97% in the fiscal year 2022, this high growth is "unsustainable" and has resulted in "financial and macroeconomic imbalances".
The survey also noted that provisional GDP growth has been estimated at 5.97% on the back of 4.4%, 7.19%, and 6.19% in the agriculture, industry, and services sector, respectively.
It is worth mentioning that the National Economic Council (NEC) has approved the annual targets for the upcoming fiscal year 2022-23, including the economic growth target set at 5%, along with the commitment to make efforts to raise it to 6%.
Pakistan's growth story
He said that historically, Pakistan’s economy had shown periodic boom-bust growth cycles. And the reasons for such volatile growth cycles included wide-ranging economic challenges like shrinking fiscal space, exchange rate pressure, mounting current account deficit, and inflation, among others.
“The same has happened this time as well. The recent 5.97% growth recorded during the outgoing fiscal year 2021-22, according to the new estimates, has pushed Pakistan towards the balance of payments and current account deficit crises,” the finance minister lamented.
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