Pakistan missed GDP growth target; achieves 2.38% in FY24: Economic Survey

Pakistan has missed the growth target for the financial year 2023-24 and achieved 2.38 per cent GDP growth against the target of 3.5 per cent, the cash-strapped government acknowledged on Tuesday.

The Economic Survey of Pakistan 2023-24, a pre-budget document detailing the country's major socio-economic achievements during the outgoing fiscal year, was launched by Finance Minister Muhammad Aurangzeb at a press conference.

The real GDP posted a growth of 2.38 per cent in FY 2024, showed the document, adding that due to prudent policy management and the gradual economic recovery, the negative growth in FY 2023 turned to positive in FY 2024.

The growth remained below the estimated target of 3.5 per cent for the outgoing year and the government failed to achieve it, mainly due to underperformance of industries and services sectors.

The minister said that agriculture outperformed every other sector by posting 6.25 per cent growth against a target of 3.5 per cent.

However, the industrial growth was 1.21 per cent against 3.4 per cent and the services sector also showed 1.21 per cent growth against 3.6 per cent target.

The robust growth in the agriculture sector, the highest in the last 19 years, emerged as the key driver of economic growth in FY 2024, Aurangzeb said.

The fiscal deficit was recorded at 3.7 per cent, which is the same as was for the last year. The trade deficit remained at 4.2 per cent.

The revenue collection was 9.79 trillion from July to March, including Rs 7.26 trillion in tax revenues and 2.52 trillion in non-tax revenues.

According to the survey, inflation has been reduced to 11.8 per cent as the prolonged inflationary impact has been gradually fading in FY2024 steadily since the third quarter.

It showed that the GDP at current market prices increased to Rs.106,045 billion in FY2024, showing a growth of 26.4 per cent over (Rs.83,875 billion) last year.

The per capita income increased by USD 129 to USD 1,680 as compared to USD 1,551 last year on account of an increase in economic activity and appreciation in the exchange rate.

The investment to GDP ratio stood at 13.14 per cent in FY 2024 compared to 14.13 per cent in FY 2023 mainly due to contractionary macroeconomic policies and political uncertainty. The saving to GDP ratio was recorded at 13.0 per cent in FY2024 compared to 13.2 per cent in FY2023.

The minister said that the government was committed to offloading the loss-making state-owned enterprises, with the government leading the drive by privatising the national flag carrier, Pakistan International Airlines.

This survey comes ahead of the national budget on June 12 (Wednesday).