Pakistan Economic Survey FY24

June 11, 2024 (MLN): Pakistan’s real Gross Domestic Product (GDP) posted a growth of 2.38% in the fiscal year 2023-24 as compared to a negative growth of 0.21% in the previous year, but lower than the targeted 3.5%.

The prudent policy management and the resumption of inflows from multilateral and bilateral partners, and the gradual economic recovery in the major trading partners, turned the negative growth in FY2023 to positive growth in FY2024, unveiled the Economic Survey of Pakistan 2023-24.

The size of Pakistan’s economy (nominal GDP) stood at Rs106.045 trillion in FY24, showing a growth of 26.4% over last year (Rs83.87tr). In US Dollar terms, it rose to $374.9 billion.

During FY24, per capita income increased by $129 or 8.3% to $1680 as compared to $1,551 last year. That compares with the last 10-year average of $1,626.

The increase was on the account of increase in economic activity and appreciation in the exchange rate.

In PKR terms, it stood at Rs475,281 compared to Rs384,747 in the previous year, up 23.5%.

The investment to GDP ratio, however, fell to 13.14% in FY24 compared to 14.13% in FY23 mainly due to contractionary macroeconomic policies and political uncertainty.

The saving to GDP ratio was recorded at 13.0% in FY24 compared to 13.2% in FY23.

The growth of agriculture sector was at 6.25% in FY24. This growth is mainly driven by 16.82% growth in important crops such as wheat, rice, and cotton.

The robust growth in agriculture sector, the highest in last 19 years emerged as the key driver of economic growth in FY24.

The industrial sector posted a positive growth of 1.21% in FY2024. Industrial sector performance is mainly driven by the manufacturing sector (2.42%) and construction sector (5.86%).

Services sector constitutes the largest share of 57.7%  in GDP for FY2024. This sector also witnessed a moderate growth of 1.21%.

The Federal Board of Revenue's (FBR) tax collection performance showed an upward trend during the year, demonstrating the effectiveness of tax policy and administrative measures.

FBR Tax collection grew by 31% during Jul-May FY24 to Rs8.13tr against Rs6.21tr last year.

The FBR is undergoing reforms and modernization to become a more efficient organization and achieve optimal outcomes. Efforts are underway to digitize FBR and tax documentation.

According to the Labor Force Survey 2020-21, the literacy rate in Pakistan stood at 62.8% in 2020-21 as compared to 62.4% in 2018-19.

The rate is higher for Males (73.4%) than females (51.9%) however, the disparity is narrowing down with time.

Area-wise analysis suggests literacy increased in both rural (53.7% to 54.0%) and urban (76.1 % to 77.3%).

According to the 7th National Population and Housing Census 2023 the population is 241.5 million with growth rate of 2.55%.

In 2023, urban population is 93.75m while rural population is 147.75m.

According to the Labour Force Survey 2020-21, total labour force is 71.76m out of which 67.25m are employed and 4.51m are unemployed with unemployment rate of 6.3%.

The Pakistan Economic Survey 2023-24 presents an overview of the country’s economic performance during the outgoing fiscal year.

It underscores the resilience and robustness of Pakistan’s economy in the face of multifaceted domestic and external challenges.

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