KP GDP growth reduces by half in FY23

The Gross Domestic Product (GDP) growth rate in Khyber Pakhtunkhwa (KP) has suffered a significant decline, falling by over half within a year, as said by the provincial Planning and Development Department (P&D).

During the financial year 2020-21, the GDP growth rate was 3.98%. However, it plummeted to 1.98% in the financial year 2022-23, reflecting a decline of more than 50%. This decline in GDP growth can be attributed to various factors, including political instability, floods, security concerns, and the adverse effects of the national economy.

The P&D has estimated that it will take at least two years to restore the GDP growth rate to the level observed in the financial year 2021-22. This setback in GDP growth poses a significant challenge for the province, which has been striving to address economic and financial challenges. It is crucial for the government to take proactive measures to address the underlying factors contributing to the decline in GDP growth.