ISLAMABAD, Pakistan: The Federal Minister for Finance Muhammad Aurangzeb on Tuesday unveiled the Pakistan Economic Survey 2023-24, providing details about the major socio-economic developments, performance and trends of various sectors of the economy during the outgoing Fiscal Year.
Launching the Economic Survey 2023-24 in Islamabad, the finance minister said that the real gross domestic product (GDP) has posted a positive growth of 2.38 percent during the outgoing fiscal year as against the negative growth of the last year due to the prudent policy measures.
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The finance minister said that the robust growth of 6.25 percent in the agriculture sector is the highest in the last 19 years which is a major hallmark. He said that this growth has been mainly driven by 16.82 percent growth in important crops such as wheat, rice and cotton.
Muhammad Aurangzeb said that the industrial sector posted a positive growth of 1.21 percent.
The industrial sector performance is mainly driven by the manufacturing sector and construction sector while the services sector also witnessed a moderate growth of 1.21 percent.
The finance minister said that the inflation has come down to 11.8 percent and there has been an unprecedented increase of 30 percent in revenue collection.
Aurangzeb said that it was estimated that the Current Account Deficit (CAD) will remain US$ 6 billion in 2024. However, it is expected to be US$ 200 million. He said that the current account remained surplus for three months and the month of May is also expected to be in surplus.
The minister said that the foreign exchange reserves have reached about US$ 9 billion which are sufficient for two months import. He said that the markets are also responding positivity as a result of macroeconomic stability.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb presented a copy of the Economic Survey of Pakistan 2023-2024 to Prime Minister Muhammad Shehbaz Sharif prior to its official launch. pic.twitter.com/kek5qkp8Us
— Ministry of Finance, Government of Pakistan (@Financegovpk) June 11, 2024
According to the Economic Survey 2023-24, the per capita income increased by US$ 129 to US$ 1,680 as compared to US$ 1,551 of last year on the account of increase in economic activity and appreciation in the exchange rate.
Similarly, the saving to GDP ratio has been recorded at 13 percent this fiscal year compared to 13.2 percent of last year.
The Mining and Quarrying sector posted growth of 4.9 percent during the current fiscal year against contraction of 3.3 percent last year.
According to the Economic Survey, the mineral sector witnessed significant growth such as Coal 37.7 percent, Chromites 36.9, Iron Ore 63.9, Soap stone 29.3, Magnetite 34.4 and Marble witnessed an increase of 23.2 percent.
Total development expenditures grew by 14.2 percent to Rs 1,158.1 billion against Rs 1,014.0 billion last year.
Remittances grew by 3.5 percent during the first 10 months of current Fiscal Year and were recorded at US$ 23.8 billion as against US$ 23 billion last year.
The Foreign Direct Investment (FDI) inflow has been increased by 8.1 percent to US$ 1.5 billion during the first 10 months of current year as compared to US$ 1.3 billion in the same period last year.
The finance minister expressed the commitment to block leakages in the economy. He said that there are no sacred cows and everybody has to contribute to the economy. He said that the process has been started for digitization of the FBR.
As regards negotiations with the International Monetary Fund (IMF), Muhammad Aurangzeb said that we have had constructive and positive dialogue with the international lender and these are progressing well.
The minister recalled that Pakistan successfully concluded stand by arrangement with the IMF and the economic discipline demonstrated by the country was recognized by the lender.
Answering to a question, Muhammad Aurangzeb said that repayment will not be a challenge once IMF programme is finalized as we are entering the next fiscal year with stronger note as compared to the last year.
Replying to another question, he said that high impact projects are being given priority under the Public Sector Development Programme (PSDP).
