GDP grows 3.94pc, per capita income 13.4pc in FY 2020-21
Asad Umar said total GDP increase from $263 billion to $296 billion an increase of $33 billion
ISLAMABAD (Dunya News) – The National Accounts Committee (NAC) on Friday estimated the Gross Domestic Product (GDP) to grow by 3.94 percent during the current fiscal year 2020-21.
"Due to a combination of GDP growth and strengthening of Pak rupee against the US Dollar, per capita income of Pakistan jumped by 13.4 percent during the current fiscal year (2020-21) from $1361 to $1543", Minister for Planning, Development and Special Initiatives Asad Umar said.
In a tweet he said total GDP increase from $263 billion to $296 billion an increase of $33 billion which is the highest ever increase in any year.
The minister said after finalizing the GDP growth estimates, national accounts committee has estimated the growth at 3.94 percent in a period in which COVID placed a huge challenge to the economy. He said the growth is extremely gratifying and proof of success of Prime Minister Imran Khan economic policies.
Earlier the National Accounts Committee estimated provisional growth of Gross Domestic Product (GDP) for the year 2020-21 at 3.94 percent as GDP as current market prices reached at Rs47,709 billion, showing growth of 14.8% as compared the corresponding period of last year.
The estimation was made in the 103rd meeting of the National Accounts Committee, which was held here to review the Gross Domestic Product (GDP) was held under the Chairmanship of the Secretary Ministry of Planning, Development and Special Initiatives.
The provisional estimates of the GDP and Gross Fixed Capital Formation (GFCF) for the year 2020-21 were presented on the basis of the latest data of 6-9 months which were annualized, says a press release issued by Ministry of Planning, Development and Special Initiative.
The provisional growth of GDP for the year 2020-21 has been estimated at 3.94 percent, which was based upon growth estimates of the agricultural, industrial, and services sectors at 2.77%, 3.57%, and 4.43%, respectively. The growth for 2019-20 was revised downward from -0.38% to -0.47%.
The agriculture sector grew by 2.77% in 2020-21 as against 3.31% in 2019-20. The growth of important crops during this year was 4.65% on the back of the historic highest ever production of wheat, rice, and maize while sugarcane registered the second-highest ever production.
This growth in the production of wheat, rice, sugarcane, and maize was at 8.
1%, 13.6%, 22.0%, and 7.38%, respectively. However, cotton has witnessed negative growth of 22.8%, which also resulted in a 15.6% decline in cotton ginning. Other crops (vegetables, fruits and green fodder) showed positive growth of 1.41% mainly because of an increase in the production of oil seeds and vegetables. The livestock sector registered a growth of 3.1%. Forestry has grown at 1.4%.
The overall industrial sector has witnessed a positive growth of 3.57%. The value-added in the mining and quarrying sector has declined by 6.5%.
The large-scale manufacturing (LSM) sector, which is driven primarily by QIM data (from July 2020 to March 2021), showed an unprecedented healthy growth of 9.29%.
Major contributors to this growth were textile sector grew by 5.9%, food beverage & tobacco 11.73%, petroleum products 12.71%,pharmaceuticals 12.57%, chemicals 11.65%, on-metallic mineral products 24.31%, automobiles 23.38%, and fertilizer production grew by 5.69%.
The electricity and gas sub-sector had witnessed declined by 22.96% mainly due to lower allocation of subsidies by the government to DISCOs, low increase in output, and a higher proportional increase in intermediate consumption.
The construction activity has increased by 8.34% mainly due to an increase in general government expenditure and private sector construction-related expenditures.
Meanwhile, services sector remained a major growth driver for many years and this year it witnessed a growth of 4.43% in the provisional estimates. While the wholesale and retail trade sector grew by 8.37% primarily because of an increase in the marketable surplus, the transport, storage, and communication sector has declined by 0.61%.
The finance and insurance sector showed an increase of 7.84%. The remaining components of services including housing, general government, and other private services have witnessed a positive growth of 4.01%, 2.20%, and 4.64%, respectively.
The GDP at current market prices has also been computed and stands at Rs47,709 billion for 2020-21. This shows a growth of 14.8% over Rs41,556 billion for 2019-20.
The per capita income for 2020-21 has been calculated as Rs.246,414, showing a growth of 14.6% over Rs. 215,060 during 2019-20. The per capita income in Dollars increased by 13.4% from USD 1,361 in 2019-20 to USD 1,543 in 2020-21.
