KARACHI: Pakistan’s economy experienced a modest growth of 0.29% in the fiscal year 2022-2023 (FY23), a significant decline from the previous year’s growth rate of 6.1%, according to Economic Survey of Pakistan.

The growth performance across sectors varied, with the services sector expanding by 0.86% in FY23 compared to 6.19% in FY22. Notably, the Wholesale & Retail trade sector faced a decline of 4.46% during the year, contrasting with its growth rate of 10.3% in the previous fiscal year.

The industrial sector witnessed a contraction of -2.49% in FY23, a notable decline from the 6.83% growth recorded in the previous year. Large-Scale Manufacturing, a key component of the industrial sector, experienced a decline of 8.11% during the first nine months of FY23, compared to a growth rate of 10.61% during the same period in FY22. However, a few sectors within the industry, including furniture, wearing apparels, other manufacturing (footballs), and leather products, registered positive growth during the period.

The agriculture sector observed a growth rate of 1.55% in FY23, down from 4.27% in FY22. Within agriculture, the Livestock sector showed a growth rate of 3.78%, while forestry and fishing witnessed growth rates of 3.93% and 1.44%, respectively.

The nominal GDP of Pakistan expanded to PKR 84.7 trillion in FY23, a notable increase from the PKR 66.6 trillion recorded in FY22. In terms of US dollars, the size of the economy reached USD 341.6 billion.

Despite the overall increase in the size of the economy, the GDP per capita (dollar terms) experienced a decline of 11.2% to USD 1,568.4. This decline can be attributed to currency depreciation, lower economic growth, and a rising population.

Total investment during FY23 exhibited a growth rate of 10.2% compared to the previous year’s growth rate of 29.1%. It accounted for 13.6% of GDP, slightly lower than the 15.7% recorded in FY22.

Additionally, national savings increased by 44.7% in FY23, reversing the decline of 3.8% witnessed in the previous year. National savings settled at 12.6% of GDP, higher than the 11.1% recorded in FY22.

The economic performance in Pakistan for FY23 highlights the challenges faced by various sectors, particularly in the services and industrial sectors. However, the increase in total investment and national savings indicates positive signs for future economic growth and stability.