Economic survey: 'GDP grew 5.8pc, inflation rate reduced to 3.8pc'
Ahsan Ibal, Miftah Ismail unveil economic survey
ISLAMABAD (Dunya News) – Planning and Development Minister Ahsan Iqbal and Adviser to the Prime Minister on Finance Miftah Ismail unveiled the economy s performance over fiscal year 2017-18 (FY17-18) on Thursday.
During a joint press conference, they said that the growth rate remained highest at 5.79 percent in the last 13 years, while inflation rate reduced to 3.8 percent from 7.89 percent.
Giving details, Miftah said that the agriculture grew 3.8 percent, while export the export sector improved after the package was announced. “We are proud of fulfillment of promises we made to the people,” said Miftah, adding that development expenditures surged due to electricity projects launched by taking loans. “We have allocated Rs 100 billion for development expenditures for the next government.”
Ahsan Iqbal claimed that investors were fleeing Pakistan in 2013. “We eradicated terrorism with our resources. Today, Pakistan is a safer country. The government had added 11,000MW to the national grid.”
"We would have achieved 6.1pc without political turmoil," he explained.
Some of the key figures revealed in the economic survey are:
1. Provisional GDP growth rate clocks in at 5.79%, at a 13-year high
2. Pakistan s economy is now worth more than USD 330bn.
3. Key growth sectors: Services 6.43%, Industrial 5.80% (10 year high) and Agriculture 3.81% (13 year high).
4. Services now contribute 60% to GDP while agriculture contributes 19%.
5. Major crops underwent a growth of 3.83%.
6. The cotton ginning sector depicted a growth of 8.72%.
7. Sugar cane production during the year was 81.11mn tons (up 7.4% YoY).
8. Agriculture credit to reach a massive PKR 1,001bn (FY18E)
9. Investment to GDP ratio is set to clock in at 16.4% for FY18, while Savings to GDP is targeted at 11.4% for FY18.
10. Consumer Price Index (CPI) remained below the expected 6% to clock-in at 3.78% (as per 9MFY18 PBS data). Dissection revealed Food price inflation remained at 2.00%, whereas prices of non-food items surged by 5.00% in 9MFY18.
11. Fiscal deficit budgeted at 4.1% in FY18 with total revenue at PKR 5,310bn.
12. Remittances have clocked in at USD 14.6bn as per 9MFY18 SBP data. Remittances for the outgoing year are projected at USD 20.6bn while Foreign Direct Investment (FDI) clocked in at USD 2.1bn during 9MFY18.
13. Current account deficit has clocked in at USD 12.0bn (5% of GDP) as per 9MFY18 SBP data and is targeted at 5% of GDP for FY18.
14. As per 9MFY18, imports have clocked in at USD 44.3bn while exports have clocked in at USD 17.1bn.
15. Imports by end of the current year are estimated at ~USD 56.5bn while exports are expected to reach ~USD 27.3bn in FY18.
16. Trade deficit during the said period stands at USD 27.3bn vis-à-vis USD 23.3bn SPLY, expected to swell to USD 29.2bn by end of FY18.
17. Forex reserves have contracted to USD 17.1bn (as of 20-Apr-18, down 20% FYTD), and are targeted to settle at USD 20.6bn for FY18.
18. Income per capita has reached USD 1,641 (up 0.5% YoY).
19. GDP growth target for FY19 is set at 6.2%.
