Miftah Ismail the Finance Minister of Pakistan, is releasing the Pakistan Economic Survey (PES) 2021-22, which shows a 5.97% growth rate against a target of 4.8%.
Agriculture grew by 4.40 percent, Industries by 7.19 percent, and Services by 6.19 percent, compared to projections of 3.5 percent, 6.5 percent, and 4.7 percent, respectively.
The Pakistan Economic Survey is an annual study on the economy’s progress, with an emphasis on key macroeconomic indicators. This time, probably for the first time, a new administration (headed by the PML-N) is presenting the economic record of a previous government (PTI).
Despite the fact that the country exceeded overall growth estimates as well as sector-specific growth objectives, the survey document states that “underlying macroeconomic imbalances and associated domestic and foreign concerns have tempered celebrations.”
“Obtaining growth was not an issue for Pakistan,” the finance minister said at the launch of the survey. “The true difficulty for Pakistan is achieving sustainable growth.”
“GDP growth is 5.97% this year… yet the current account deficit has once again demonstrated that we have a balance of payments problem,” Ismail remarked.
According to the minister, imports were $77 billion, making it the highest-ever import bill in terms of GDP. “Imports have grown significantly, but exports have also climbed significantly,” Ismail added.
According to the survey, goods exports increased by 26.6 % and amounted to $ 23.7 billion in FY2022, while services exports increased by 17.1% and amounted to $ 5.1 billion.
“Despite the positive export results, the country’s imports have increased dramatically. The rise in imports was fueled by a broad-based increase in global commodity costs, Covid-19 vaccination imports, and demand-side pressures “According to the PES.
As a result, the trade imbalance increased by 55.5%, reaching $30.1 billion, or 8.6% of GDP, a “historically high” level, according to the paper.
Despite the fact that export receipts and worker remittances both hit new highs during the nine-month timeframe, import payments saw a “significant, broad-based increase.”
As a result, the current account deficit grew significantly over the previous year, according to the report.