PR No. 27 Highlights of Pakistan Economic Survey 2015-16 Part II Islamabad: June 02, 2016
Pakistan’s economy continues to maintain its growth momentum for the 3rd year in a row with real GDP growing at 4.71 percent in FY 2016 which is the highest in eight years
The country’s Forex reserves reached all time high US$ 21.6 billion in May 2016, enough to finance over 5 months of country’s import bill
The average CPI inflation fell from 8.62 percent in FY 2014 to 4.53 percent in FY 2015 and further declined to 2.79 percent during July-April FY 2016 compared to 4.81 percent of the corresponding period last year.
The industrial sector during FY 2016 recorded a remarkable growth of 6.8 percent against the target of 6.4 percent and is all time high in eight years.
The construction activities also recorded an impressive growth of 13.10 percent.
The LSM sector which contribute 80 percent in Manufacturing and 51.8 percent in industrial sector also registered an impressive growth of 4.70 percent during July-March FY 2016 compared to 2.81 percent of last year
The unemployment rate has seen a decline from 6.2 percent in FY 2013 to 5.9 percent in FY 2015.
The capital market reaching historical levels is another sign of investor’s interest in Pakistan’s economy. Pakistan stock exchange is taking a quantum leap and its market fundamentals are strong and all set to joint MSCI Emerging Market Index in June 2016.
Under Crop Loan Insurance Scheme an amount of Rs.500 million has been allocated for FY 2016. A number of measures which include, Credit Guarantee Scheme for Small and Marginalized farmers, Crop Loan insurance Scheme and Livestock Insurance Scheme have been taken as per agenda of the government to protect the farmers from vagaries of market fluctuations, and support them in the face of natural calamities.
Poverty rate has come down as estimated on both old and new methodology. The literacy rate has also improved to 60 percent in FY 2016 as compared to 58 percent in FY 2014.
National Health Insurance programme has been launched where poor families will be provided with free of cost health insurance to access secondary as well as primary diseases treatment without any financial obligation. About 10 million people will be benefited from this insurance scheme in the first phase which will get free of cost medical treatment.
Pakistan’s economy during FY2016 recorded a growth of 4.71 percent which is the highest growth achieved since 2008-09. Industrial sector recorded the growth of 6.80 percent and Services sector accelerated at the rate of 5.71 percent.
Electricity generation & distribution and Gas Distribution has registered a growth of 12.18 percent during this fiscal year as compared to 11.98 percent growth last year.
Services sector performance remained broad based, as all components of services contributed positively, as Wholesale and Retail Trade grew by 4.57 percent, Transport, Storage and Communication by 4.06 percent, Finance and Insurance by 7.84 percent, Housing Services by 3.99 percent, General Government Services by 11.13 percent and Other Private Services by 6.64 percent.
Total investment has reached to the level of Rs 4502 billion as compared to Rs 4256 billion last year, showing the growth of 5.78 percent in FY 2016.
Investment to GDP ratio has reached to 15.21 percent in FY 2016.
Fixed investment have increased to Rs. 4028 billion as compared to Rs 3816 billion last year, it has recorded growth of 5.57 and fixed investment as percentage of GDP is recorded at 13.61 percent. Private investment has recorded a growth of 3.71 percent and private investment as percentage of GDP reached to 9.79 percent. Whereas public investment grew by 10.63 percent and as percentage of GDP it has increased from 3.72 percent to 3.82 percent, which is an indicator that government expenditure strategy is development oriented.
The per capita income in dollar terms has increased from $ 1,516.8 in FY 2015 to $ 1,560.7 in FY 2016.
National savings increased to 14.6 percent of GDP in this fiscal year against 14.5 percent last year.
During July-April, FY2016, FBR collected Rs.2,346.1 billion as provisional tax revenues against Rs.1,973.6 billion in the same period last year, thus reflecting a growth of 18.9 percent.
Within tax revenues, provincial taxes grew at 28.6 percent, while share in federal taxes registered a growth of 13.1 percent during the period under review.
Inflation during July-April FY2016 has been further contained at 2.79 percent, which is the lowest in 13 years. Food and non-food inflation have been estimated at 2.1 percent and 3.3 percent as compared to 3.6 percent and 5.7 percent in the same period last year.
Core inflation during July-April FY 2016 recorded at 4.1 percent as against 6.9 percent during the same period last year.
According to the latest Pakistan Social and Living Standards Measurement (PSLM) Survey FY2015, the literacy rate of the population improved to 60 percent as compared to 58 percent in FY2014
The present government increased the BISP budgetary allocations from Rs.70 billion in FY2013 to Rs. 75 billion in FY2014, which has subsequently been enhanced to Rs. 97 billion in FY2015 and for the current fiscal FY2016 year it has been enhanced to Rs. 102 billion. The annual installment is enhanced by the government from Rs.12,000/ to Rs. 14,400/ per family in July, 2013 which has subsequently been increased to Rs. 18,000/ per family in 2014.The present government has again increased the annual stipends from Rs. 18,000 per annum to Rs. 18,800 per annum per beneficiary w.e.f. 1st July, 2015.
The number of BISP beneficiaries has also been enhanced from 5.0 million in FY 2015 to 5.3 million by the end of FY 2016
Pakistan Poverty Alleviation Fund (PPAF) is also contributing a large amount of funds throughout Pakistan to its core projects like microcredit, water and infrastructure, drought mitigation, education, health and emergency response interventions have been widely recognized. The core operating units of the PPAF delivered range of development interventions at the grassroots/community level through a network of 134 Partner Organizations across the country.