GDP Grows by 2.38%: Economic Survey of Pakistan 2023-24

GDP Grows by 2.38%: Economic Survey of Pakistan 2023-24 – Pakistan launched its Economic Survey for the Fiscal Year 2023-24 on Tuesday, revealing that the country’s GDP grew by 2.38 percent. The survey highlighted resilience and steady improvement across the real, fiscal, and external sectors, as well as financial markets.

The report detailed that in FY 2024, Pakistan’s GDP saw a growth of 2.38 percent, driven primarily by robust performance in the agriculture sector, which expanded by 6.25 percent compared to the previous year’s growth of 2.27 percent. However, both the industrial and services sectors experienced modest growth, each registering an increase of 1.21 percent.

The GDP, when valued at current market prices, surged to Rs 106,045 billion (US $375 billion), marking a 26.4 percent increase from the previous year’s Rs 83,875 billion (US $338 billion). This growth was reflected in the per capita income, which rose to US $1,680, up from US $1,551 the previous year, indicating improved economic activity and a stable exchange rate.

Despite these gains, the investment-to-GDP ratio for FY 2024 decreased to 13.14 percent from 14.13 percent in FY 2023. This decline was attributed to a global economic slowdown, political instability within the country, and restrictive macroeconomic policies. Nevertheless, Gross Fixed Capital Formation (GFCF) increased to Rs 12,122.5 billion, an 11.4 percent rise over FY 2023. Both private and public investments showed significant growth, with private investment increasing by 15.8 percent and public investment by 18.2 percent.

On the savings front, the national saving rate remained steady at 13.0 percent for FY 2024. This stability in savings suggests that despite the challenging economic environment, households and businesses were able to maintain a consistent level of savings relative to the previous fiscal year.

Federal Minister for Finance and Revenue Muhammad Aurangzeb, while presenting the survey, noted the progress made despite numerous challenges. “Our economy has shown resilience in the face of adversity. The agriculture sector, in particular, has been a major contributor to this growth,” he said. Aurangzeb also emphasized the need for continued reforms and investment to sustain and accelerate economic growth.

The Economic Survey 2023-24 provides a mixed picture of Pakistan’s economic landscape. While significant strides have been made in agriculture and overall GDP growth, challenges such as decreased investment-to-GDP ratios and political instability remain. The government remains optimistic, however, with plans to address these issues through strategic reforms and policies aimed at fostering a more robust and stable economic environment.