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Economic Survey of Pakistan 2019-20 was presented to the Prime Minister of Pakistan today. Basically a gloomy book of statistics wrapped in red ribbon.
It was not at all good for PTI’s led Government, as govt misses key macro indicators by a margin. Here are few highlights of the Economic Survey of Pakistan 2019-20.
A Major Miss: GDP Growth Target was 4% but it falls drastically to a negative figure after 50’s. It falls to -0.38%.
A Major Plus : In the FY 2019-20 , Exchange rate remained stable and Foreign Direct investment (FDI) grows by 127%. An improved ranking in World Bank Ease of Doing Business Index (EDB).
Another Plus : B3 Credit Rating by Moody’s.
A big blow: Per Capita income reduced to 1355 $ compared to 1455$ and 1652 $ in the year of Fy 2019 and 2018 respectively.
A Big Miss: Inflation rate was targeted around 6.5 % but it turned out to be 9.1%.
A Plus: Federal Board of Revenue collected taxes 10.8% more than the previous year but it missed the target of 4700 billion Rs and collected only 3908 billion Rs.
Sector Wise Report
Agriculture: Target was 3.5 % however it grows to 2.67%. Livestock Sector grew to 2.58% whereas Fisheries and forestry grew by 0.60% and 2.29% respectively.
Industries: The sector growth target was 2.3% positive growth but it falls drastically to -2.64% even below the figure of previous year.
Services: Target was set to an ambitious positive growth of 4.8% but the largest contributor to GDP falls to a negative growth i.e. -0.6%.
Unprecedented times due to Corona Virus
The corona virus pandemic had a bleak shadow over all the sectors of economy but it is apt to say that the indicators were not so well even before the pandemic. State Bank of Pakistan has taken some steps in order to avoid drastic impacts of pandemic on the economy of Pakistan. The policy rate has been reduced to 8%.
State Bank of Pakistan also introduced refinance schemes for businesses and medical centers. To mitigate the negative impact of pandemic, Government of Pakistan had announced a package of Rs. 1.24 trillion.
By: Syed Umaer Anwer