- Says per capita income increased to $1,666: Size of economy reaches $346.76bn
FAISALABAD: Minister for Planning, Development and Special Initiatives Asad Umar has claimed that the country’s economic growth rate was recorded an all-time high in 14 years at 5.7 percent in fiscal year 2020-21 against a forecast of 3.4 percent.
Talking to journalists on Thursday, the minister said that despite being hit by Covid-19, Pakistan’s economy witnessed record development under the leadership of Imran Khan. He added that the coronavirus has badly affected the world’s economy, but last year, Pakistan’s economic growth shot up as compared to the last 14 years.
The federal minister further said that last year, the growth of industries recorded a 15-year high, while major industries also succeeded in maintaining the growth rate at 15 percent which is more than average. Historic increases in the production of wheat were recorded while potato, tomato, onion, and natural gas and crude oil production also shot up.
Umar also lashed out at the opposition, saying that in the last two weeks, it came up with two failed narratives. “I pity them (the opposition) as the government vanquished them in the National Assembly after passing bills with a majority,” he said.
Meanwhile, the National Accounts Committee (NAC) Thursday approved the revised figures of Pakistan’s Gross Domestic Product (GDP) growth rate of 5.37 percent against the provisional numbers of 3.9 percent for the fiscal year 2020-21 (FY21).
According to the final numbers approved by the committee, the per capita income increased to Rs266,614 or US $1,666 in 2020-21 while the size of the economy reached US $346.76 billion.
The committee also accorded approval to the change of base of National Accounts from 2005-06 to 2015-16. The 104th meeting of the NAC was held here under the Chairmanship of Secretary Planning, Development & Special Initiatives Abdul Aziz Uqaili.
Due to improved coverage and better estimation of input output structure of industries, the gross value addition has increased by Rs3.1 trillion in the base year 2015-16 from Rs27.4 to Rs30.5 trillion, showing an increase of 11.3 percent in the Gross Value Added (GVA) for the base year 2015-16.
This shows that in the previous base of 2005-06 the economy was underestimated by 11.3 percent. Agriculture showed an increase of 8.3 percent from Rs6.7 to Rs7.3 trillion, industry grew by 11.9 percent from Rs5.3 to Rs5.9 trillion and services enhanced by 12.5 percent from Rs15.3 to 17.3 trillion.
With re-basing and level shift of the economy from Rs29.1 trillion to Rs32.7 trillion in 2015-16, the GDP at market prices increased to Rs55.5 trillion in 2021, and Gross National Income increased to Rs59.3 trillion.
Planning Ministry and Pakistan Bureau of Statistics (PBS) have decided to devise a mechanism to rebase National Accounts as well as price statistics after every five years in line with the best practice adopted by the most of the countries of the world, as both go in tandem to capture more areas and activities, which have taken place in the last couple of years.
The PBS being a national statistical organisation has to comply with the international standards while compiling national indicators of economy. The methodology adopted in the re-basing is in line with the 2008 System of National Accounts (SNA). During 2014-15 to 2016-17, the PBS has conducted about 45 census, surveys, and studies to properly capture the economic activities in the country.
The results of these census, surveys, and studies have already been reviewed by internal and World Bank experts. Efforts have been made to include new economic activities.
Dedicated surveys and studies have been conducted to capture the share of economic activities in the economy. Input output ratios of various industries have been updated, which has resulted in better reflection of their contribution in the economy, said the statement.
