Finance Minister Muhammad Aurangzeb revealed that Pakistan’s gross domestic product (GDP) growth was 2.38 per cent, surpassing the projected 2 per cent, during the unveiling of the Economic Survey of Pakistan for 2023-24.
The survey detailed significant developments and trends in various sectors, such as agriculture, manufacturing, services, and technology.
Minister Aurangzeb highlighted the nation’s progress toward macroeconomic stability at the survey’s launch despite numerous challenges. This included a 30 per cent increase in revenue collection and reductions in the current account deficit and inflation, contributing to currency stabilization.
The minister remarked on the economic turnaround from a prior contraction and significant currency depreciation. He noted challenges in manufacturing due to high interest rates and energy issues but mentioned agricultural gains as a silver lining.
Agriculture, dairy, and livestock are expected to drive future economic growth. The survey precedes the federal budget for 2024-25, to be presented on June 12.
Investment Dynamics
The finance ministry reported a decline in the investment-to-GDP ratio, attributed to contractionary policies and political uncertainty.
The report also highlighted a shift from negative to positive GDP growth due to effective policy management and resumed inflows from global partners.
Agricultural Sector Performance
DP growth turned positive in FY2024, driven by robust agricultural output, the highest in 19 years, and decreasing inflation trends.
The agricultural sector saw significant gains, with major crops like cotton and rice showing substantial production increases. Conversely, sugarcane and maize experienced slight declines attributed to shifts in crop cultivation.
Other agricultural areas, including fruit and vegetable production, also grew compared to the previous fiscal year. The cotton ginning industry grew significantly, propelled by increased cotton production.
Fiscal Developments
Fiscal measures enhanced revenue, but high markup payments pressured expenditures. The fiscal deficit remained stable, with significant improvements in the primary surplus.
Development expenditures and total revenues saw substantial increases, supported by significant growth in non-tax collections and a strong performance in tax collection by the Federal Board of Revenue (FBR).
Global Economic Outlook
The survey noted a slowdown in global economic growth, influenced by contractionary policies in advanced economies. Growth projections for the coming years were also discussed, highlighting ongoing global economic challenges.
