KARACHI: In FY2022, the real GDP growth remained at 5.97 percent, Economic Survey of Pakistan revealed. However, underlying macroeconomic imbalances and associated domestic and international risks have dampened celebrations. The economy of Pakistan rebounded from the pandemic (0.94 percent contraction in FY2020) and continued to post a V-Shaped economic recovery which is higher than the 5.74 percent recorded last year (FY2021).
This high growth, however, is also accompanied by external and internal imbalances, as has been the case historically with Pakistan’s economy. However, external circumstances also played a critical role this time. These circumstances have placed almost all economies of the world in shambles. A highly transmissible Omicron variety, changes in Afghanistan’s government after the withdrawal of US troops sparked and the Russian-Ukraine conflict started in Feb 2022, all of these have upended the global economic picture. Financial and commodity markets have felt shockwaves.
Thus, energy and food prices have surged rapidly and threaten to remain further elevated. The exceedingly uncertain outcome of the crisis is another challenge for developing economies, particularly for Pakistan.
Pakistan’s economy has shown a strong recovery after being depressed due to the pandemic which resulted in lockdown. 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, 7.19 percent growth in the Industrial sector, and 6.19 percent growth in the Services sector. This growth is slightly above the growth of 5.74 percent recorded for FY2021.
For FY2022, GDP at current market prices stands at Rs 66,950 billion showed a growth of 20.0 percent over last year (Rs 55,796 billion). In the dollar term, it remained at US$ 383 billion. Gross National Income (GNI) is also used for measuring and tracking a nation’s wealth which is calculated by adding Net Primary Income (NPI) to GDP (MP).
Regarding per capita income in terms of dollar, there was a rebound seen in FY2021 which continued in FY2022. In FY2022, per capita income was recorded at US$1,798 which reflects an improvement in prosperity due to the fact that economic growth per person improved.
The Gross Fixed Capital Formation (GFCF) for FY2022 was recorded at Rs 8,992 billion against Rs 7,217 billion in FY2021, thus, posting a growth of 24.6 percent. The GFCF is comprised of Private, Public, and General governments. The GFCF in the private sector during FY2021 is estimated at Rs 6,704 billion against Rs 5,557 billion in FY2021, showing an increase of 20.6 percent. On the basis of data reported by PBS, GFCF in Public sector remained at Rs 481 billion during FY2022 compared to Rs 419 billion last year, registering an increase of 14.9 percent. The overall provisional GFCF in General Government services for FY2022 has been recorded at Rs 1808 billion compared to Rs 1241 billion during FY2021, posting a growth of 45.6 percent.
This time, PBS has also provided industry-wise disaggregation of GFCF of General Government. The data suggests that there was a 48, 34, and 25 percent increase in Public Administration & Social Security, Education, and Human Health & Social Work, respectively.