The National Accounts Committee (NAC) released National Accounts for FY23 based on provisional numbers. The estimates of GDP growth for FY23 came out to be 0.29% compared to 6.10% growth recorded in FY22.
In the out-going FY23, Pakistan encountered a series of economic challenges and political unrest that cast a shadow on its GDP growth. The nation was grappled with a range of obstacles including rising inflation, fiscal deficits, weak currency, political instability and a decline in capital flows (to name a few) that impeded its economic progress.
Sector-wise breakdown shows that the manufacturing sector in Pakistan encountered negative growth which was primarily attributed to the impact of tight macroeconomic policies and higher cost of doing business, which exerted downward pressure on aggregate demand.
On the other hand, Agriculture and Services sector supported the overall economic growth.
Sector-wise estimates show that:
§ Services sector growth is estimated at 0.86% in FY23 vs. 6.59% in FY22
§ Industrial sector growth is estimated at -2.94% in FY23 vs 6.83% last year
§ Agriculture sector growth is estimated at 1.55% in FY23 vs 4.27% in FY22
The size of Pakistan’s economy (Gross Value Added at base price) is estimated to be PKR 38.9trn in FY23 compared to PKR 38.8trn recorded in FY22.