The Pakistan Bureau of Statistics (PBS) is set to develop a Producer Price Index (PPI) framework by the end of the current fiscal year, with work already underway in collaboration with provincial authorities.
BR reported, citing sources, that this initiative aims to improve the accuracy of data tracking in key sectors, addressing critical gaps identified by the International Monetary Fund (IMF) in its September 2024 report.Â
The IMF noted that significant issues remain with the data available for sectors that account for nearly a third of the country’s GDP, as well as with the granularity and reliability of Government Finance Statistics (GFS). To address these issues, the IMF is providing technical assistance to PBS.
The PPI will be a comprehensive system, tracking prices across the entire supply chain, from the farm gate and factory gate to retail outlets. This will allow the government to monitor production costs, such as those at the factory gate, and consumer prices more effectively.Â
Unlike the current system, which only monitors wholesale and retail prices, the PPI will provide a clear picture of production costs, helping to identify any discrepancies or unusual price fluctuations between producers and consumers.
In addition to launching the PPI, PBS is also preparing to rebase the National Accounts, with the base year shifting from 2015-16 to 2025-26. The new base year is expected to be implemented by 2027-28.Â
As part of the effort, PBS will initiate fieldwork for four major surveys in July 2024, including the integrated agricultural census, labor force survey, and household economic survey. Preliminary results from these surveys are expected in FY25.
With these initiatives, the PBS aims to enhance data accuracy, improve the country’s statistical framework, and ensure that the monitoring of production and pricing is more robust and reflective of actual market conditions.
