Pakistan aims for 6-7% GDP growth in medium term

Ministry of Finance highlights economic progress in its ’75 Years – Economic Journey of Pakistan’ report released on Saturday.

Pakistan aims for 6-7% GDP growth in medium term. The Pakistan government intends to increase GDP growth to 6-7% with a focus on sustainability and inclusivity in the medium and long terms, said the Ministry of Finance.

A report titled ’75 Years – Economic Journey Of Pakistan’ released by the Ministry of Finance on Saturday sheds light on major economic events that have occurred since independence which significantly shaped the economic contours of Pakistan.

The report highlighted that the country’s nominal GDP rose from $3 billion in 1950 to $383 billion in 2022. Meanwhile, per capita income rose from $86 in 1950 to $1,798 in 2022.

Foreign direct investment (FDI) increased from $1.2 million in FY1950 to $1,867.8 million in FY2022. Remittances increased from $0.14 billion in FY1973 to $31.2 billion in FY2022.

Export figures increased from $162 million in FY1950 to $31.8 billion in FY2022. Whereas, Pakistan’s imports increased from $276 million in FY1950 to $80.2 billion in FY2022.

The report stated that the government aims to sustain growth rates over the medium and long term without creating pressure on the balance of payments. It wants to reduce poverty by ensuring higher and inclusive growth and strengthening the social safety nets.

Furthermore, the report stated that the government seeks to “improve investment climate and attract domestic and foreign investment through effective implementation of investment promotion strategy. Establish special economic zones focusing on export promotion, import substitution and employment generation

“To realise these objectives, short, medium, and long-term economic programs are underway for all sectors of the economy including agriculture, industry and services,” said the report, adding that the aspiration is to put the economy on a higher growth trajectory through higher investment, efficiency and enhanced productivity.

The report shared that tax revenues rose from Rs0.31 billion in 1950 to Rs6,126.1 billion in 2022.

Coming to agriculture, wheat production enhanced from 3.354 million tonnes in 1948 to 26.394 million tonnes. Rice production increased from 0.693 million tonnes in 1948 to 9.323 million tonnes in 2022.

Maize production improved to 10.635mn tonnes in 2022, as compared to only 0.359mn tonnes in 1948. Furthermore, cotton production, which stood at 1.156mn bales in 1948, has increased to 8.329mn bales in 2022.

Coming to the fiscal side, the size of the federal PSDP (Planning Development and Special Initiative) increased from Rs45.4 billion in 1990 to Rs900 billion in 2022.

Meanwhile, the share of direct taxes increased from 22% in the 1960s to 39% in the 2020s. Whereas, the share of indirect taxes has reduced from 78% in the 1960s to 61% in the 2020s, said the report.