Islamabad May 25 2023: Pakistan growth rate slow down to 0.29 percent for the year 2022-23 from 6.1 percent in 2021-22.
The final growth rate of GDP for the year 2020-21 has been estimated at 5.7 percent which was 5.4 percent in the revised estimates, according to National Accounts Committee.
The revised growth rate of GDP for the year 2021-22 is 6.1 percent which was provisionally estimated at 5.97 percent.
The provisional GDP growth rate for the year 2022-23 is estimated at 0.29 percent with negative growth witnessed in industrial sector of the economy. The growth of agricultural, industrial and services sectors is 1.55 percent, -2.94 percent and 0.86 percent respectively. Important crops decline during this year by -3.2 percent. Other crops showed growth of 0.23 percent. Livestock sector is showing a growth of 3.78 percent. The growth of forestry is 3.93 percent and fishing is at 1.44 percent.
For agriculture, the year 2022-23 was particularly challenging largely owing to climate externalities. Pakistan witnessed a drought like situation in the beginning of the Kharif season (April 2022) followed by record monsoon rains, which resulted in heavy floods throughout the country. In addition, the high global gas prices caused higher fertilizer costs leading to suppressed fertilizer offtake during the review period. Consequently, important crops, such as, rice and cotton sustained production losses, as compared to last year. Within the important crops, rice suffered the most, as the intensity of flood damages was the highest in the rice crop zone.
The overall industrial sector shows decrease of 2.94 percent. The mining and quarrying sector has decreased by 4.41 percent due to decline in production of other minerals as well as decline in exploration cost. The Large Scale Manufacturing industry is driven primarily by QIM data which shows decline of 7.98 percent. Electricity, gas and water industry shows a growth of 6.03 percent. The value added in construction industry, mainly driven by construction related expenditures by industries, has registered a negative growth of 5.53 percent mainly due to decrease in general government spending and increase in policy rate by State Bank of Pakistan.
The services sector shows a growth of 0.86 percent. Wholesale and Retail Trade industry decline by 4.46 percent. It is dependent on the output of agriculture, manufacturing and imports. Transportation & Storage industry has increased by 4.73 percent. Accommodation and food services activities have increased by 4.11 percent. Similarly, Information and communication increased by 6.93 percent due to improvement in telecommunication, computer programming, consultancy and related activities. Finance and insurance industry shows an overall decrease of 3.82 percent mainly due to decline in deposits and loans. Real estate activities grew by 3.72 percent while public administration and social security (general government) activities posted negative growth of 7.76 percent due to high deflator. Education has witnessed a growth of 10.44 percent due to public sector expenditure. Human health and social work activities also increased by 8.49 percent due to general government expenditures. The provisional growth in other private services is 5.0 percent.
