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Pakistan Sees GDP at 5.5pc in 2015-16

Posted by on Friday, June 5, 2015, 11:04
This news item was posted in Breaking News, Pakistani News category and has 0 Comments so far .

Pakistan Finance Minister Ishaq Dar said on Thursday that economic growth in 2015/16 (July-June) would rise to 5.5 percent from 4.2 percent in 2014/15, and continue accelerating over the following two years.

Pakistan Finance Minister Ishaq Dar

Pakistan Finance Minister Ishaq Dar

“Our GDP (growth) target for 2015/16 is 5.5 percent, for the next year 6 percent, and for 2017/18 our GDP (growth) target is 7 percent,” Dar told reporters a day before he presents the 2015/16 budget to parliament.

He also said that the government aimed to keep inflation in “single digits” over the next three years.

Dar said the country needs enormous resources to enhance productive capacity of the economy by repairing damaged infrastructure and to create a favorable investment climate. The security situation will be the key determinant of future flow of the investment, he added.

“After adoption of National Action Plan by the All Parties Conference (APC) and its subsequent implementation which is overseen by the apex committees of the provinces”, Dar said quoting the survey.

There had been improvements in the overall security situation in the country in the recent months as a result of concerted actions by the government of Pakistan, Dar added.

“However, peace and stability in Afghanistan and the region are vital for the complete revival of Pakistan’s economy and to keep stability in the system,” he said..

Highlights of Economic Survey 2014-15

Pakistan needs enormous resources to enhance productive capacity of the economy by repairing damaged infrastructure and to create a favorable investment climate.
The direct and indirect cost incurred by Pakistan due to incidents of terrorism amounted to US $106.98 billion –equivalent to Rs.8,702.75 billion– during the last 14 years.
Growth and Investment Global  economic  growth  during  the  outgoing   year  has witnessed  some  continuing  signs  of improvement  with  a  pick-up  in  high-income  economies  along  with  some  improvement in developing countries. China  and  Pakistan  have  made agreements  to  establish  China  Pakistan Economic  Corridor between the two countries. The corridor will serve as a driverfor connectivity, trade in the world is expected to increase and Pakistan will take benefits through multiple dimensions.
Major  trading partners  of  Pakistan  are  growing  with  better outlook, which  will  certainly  have positive impact on the economy of Pakistan and provides an opportunity to uplift socio-economic condition of common man in the country.
Pakistan is  improving  quantitatively and  qualitatively  as  growth achieved 4.24  percent  is  broad based and is the highest achievement since 2008-09.
Major  success  of  the  outgoing  fiscal  year  includes: Jump in  economic growth,  inflation  at  lowest  level  since  2003,  improvement  in  tax  collection,  reduction  in  fiscal  deficit, all-time high worker remittances, successful launch of Sukuk, significant increase in foreign exchange reserves, and record hike in high stock market.
The  GDP  growth  accelerated  to  4.24  percent  in  2014-15  against   the growth  of  4.03  percent recorded  in  the  same  period  last  year.  The growth  momentum  is  broad- based,  as  all  sectors namely agriculture, industry and services have supported economic growth.
The  agriculture  sector  accounts  for  20.9  percent  of  GDP  and   43.5 percent  of  employment,  the sector  has  strong  backward  and  forward linkages.  The  agriculture sector  has  four  sub-sectors including: crops,livestock, fisheries and forestry.
The industrial sector contributes 20.30 percent in GDP;  it is also a  major source of tax revenues and contributes significantly in the  provision of job opportunities.
Industrial  sector  recorded  growth  at  3.62 percent  as  compared  to 4.45 percent last year.
The  manufacturing  is  the  most  important  sub-sector  of  the  industrial  sector  comprising  65.4 percent  share  in  the  overall  industrial  sector.  Growth  of  manufacturing was registered  at  3.17 percent compared to 4.46 percent last year.
Manufacturing has three sub-components; namely the Large-Scale Manufacturing (LSM) with the share  of  80  percent,  Small  Scale  Manufacturing  with  the  share  of  13  percent  and  Slaughtering with the share of 7 percent.
Small  scale  manufacturing  witnessed  growth  at  8.24  percent   against   8.29  percent last  year  and  slaughtering  recorded growth at  3.32  percent  as  compared  to  3.40  percent  last year.
LSM  has  registered  a  growth  of  2.38 percent compared  to 3.99  percent  last fiscal.
The share of construction in industrial sector is 12 percent and it is one  of the potential components of sector. The  construction sector secured a growth of 7.05 percent against 7.25 percent last year.
Mining  and  quarrying  sub-sector  contains  14.4  percent  share  of the industrial  sector.  It witnessed a growth of 3.84 percent as compared to 1.65 percent last year.
Power  generation  &  distribution  and  gas  distribution  is   the  most  essential  component  of industrial  sector. It  registered  growth  at  1.94  percent  as  compared  to 5.57 percent last fiscal.

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