ISLAMABAD: Pakistan’s economy had a tough year during the outgoing fiscal year as GDP growth lagged behind the target while other key macroeconomic indicators also painted a grim picture.
According to the Economic Survey of Pakistan, which was presented by Finance Minister Ishaq Dar on Tuesday ahead of the federal budget for the next 2013-14 fiscal year, most of the macroeconomic targets for the 2012-13 fiscal year have been missed. The budget deficit remains at 4.7pc for outgoing fiscal year, he said.
The GDP growth is forecast to be 3.60 percent, less than the targeted 4.3 percent for the FY13. An overall GDP growth rate over the last five years remained at just 3%, leading to unemployment and energy crisis, he said.
Dar said the large scale manufacturing industrial sector has witnessed little growth, finishing at 2.8% against the target of 2%. The services sector missed its target of 4.3 percent registering only 3.7 percent.
The agriculture target, which was set at 4.1 percent, fell short to 3.3 percent. The target of investment to GDP, which was fixed at 13%, is around 12.6 percent.
The finance minister said that the target of tax collection also could not be met, recording a shortfall of Rs350 billion. The State Bank of Pakistan, he said, has foreign exchange reserves of $6.2 billion.
The circular debt stands at Rs500 billion.
Wheat, corn and sugarcane crops remained near their targets, but cotton and rice production lagged behind. Livestock sector also could not get near the target of 3.9 percent, as it trailed behind at 3.7 percent.
Savings and investments shrank during the last five years, presently standing at 14.2 percent as against 19.2 percent in 2007-08.
The production of petroleum products rose by 13.47 percent, jet fuel by 0.47 percent, kerosene by 15.51 percent, petrol by 21.9 percent, diesel by 15.7 percent, furnace oil by 19.83 percent, while liquid petroleum gas production surged by 25.7 percent.
According to economic survey, the production of sugar went up by 3.04 percent, paper- board by 3.04 percent, while fertilizer production fell down by 7.84 percent and cement production rose by 6.08 percent.
He said the National Economic Council (NEC) has approved Rs 1,155 billion development projects including Federal Public Sector Development Programme of Rs540 billion and Rs 615 billion rupees of development projects for provinces.
