Prime Minister Imran Khan has expressed his happiness over the country’s gross domestic product (GDP) growth for the current fiscal year which is projected at an estimated 3.94 percent.
The prime minister posted a message on his Twitter handle saying that the “National Accounts Committee has finalised GDP growth estimate and GDP growth is estimated at 3.94 per cent.”
Prime Minister Imran wrote that “it reflects the success of his government’s economic policies while managing Covid-19 pandemic.
“Our V-shaped recovery is balanced between three major sectors – agriculture, industry and services, he added.
Meanwhile, the prime minister’s tweet on GDP estimates has surprised experts as the State Bank (SBP) had estimated it 3 percent against the projection of the International Monetary Fund and World Bank who put it between 1.3 percent and 1.5 percent for the fiscal year 2020-21.
The services sector has been a major source of economic growth for the last few years. It has witnessed a 4.43 percent growth in the financial year 2020-21 – a slight shortfall due to coronavirus.
The agriculture sector showed a slight growth – 2.77 percent – while industrial sector posted 3.57 percent surge. The low increase in growth is due to the impact of coronavirus last year when the economy contracted due to lockdown.
These figures were presented in the 103rd meeting of the National Accounts Committee to review the GDP.
Provisional estimates for the fiscal year 2020-21 for GDP and Gross Fixed Capital Formation (GFCF) have been presented on the basis of the latest data available for six to nine months, according to an official announcement on Friday, showing a better picture of the overall economy in the third year of the Pakistan Tehrik-e-Insaf government.
The GDP size stands at Rs47.709 trillion for 2020-21, compared to Rs41.556 trillion the previous year, showing a growth of 14.8 percent. It surged to $296 billion in 2020-21 against $263 billion in 2019-20, an increase of $33 billion or 12.54 percent.
Meanwhile, Planning and Development Minister Asad Umar termed the GDP growth a “success” in his tweet.
He said that the per capita income had posted a growth due to a combination of GDP growth and strengthening of the rupee against the dollar. The growth in GDP in a period in which Covid-19 posed a huge challenge to the economy was extremely gratifying and proof of success of the government’s economic policies.
Minister for Energy Hammad Azhar, in his tweet, said: “On the basis of latest data, National Accounts Committee has estimated this fiscal year’s GDP growth to be close to 4 per cent.”
Terming it a remarkable recovery, the minister said that unlike past growth stints, forex reserves have also grown and the current account remains in surplus.
According to estimates, per capita income has been calculated at Rs246,414 for 2020-21, compared to Rs215,060 the previous year, showing a growth of 14.6 percent. The per capita income in dollar terms has jumped by 13.4pc to $1,543 from $1,361 last year.