According to provisional figures released by the National Accounts Committee, Pakistan’s economy grew at 5.3pc in the current financial year. This is the highest growth achieved in nearly ten years, it was largely made possible to the resurgence of the agricultural sector and improved performance of the service sector in the current financial year (FY).
Pakistan’s nominal size of its economy reached $304.4b in light of the 5.3pc growth rate achieved in the current FY 2016-17. A target of 5.7pc growth was set by the government for the current FY 2016-17, which it had failed to achieve again.
Around 67pc of the growth contributor in the current FY 2016-17 has been attributed to the services sector, the government had failed to meet its targeted growth for the industrial segment. It did however meet its targeted growth for the services and agricultural sector in the current FY. The government did not meet its targeted export amount of $24.8b for this FY and it is expected to actually hover around $21.7b.
The current account deficit of the country widened almost three-folds to $7.247 billion in July-April 2016-17 if we compare it with the same period of the last fiscal year. It broadened due to sliding exports and lower inflows of direct investment and remittances. The exports decreased by 2.29 per cent to $16.918 billion in July-April 2016-17, while imports touched all-time high at $43.473 billion or 40.12 per cent during the same period.
The agriculture sector registered a growth of 3.5pc in FY 2016-17 and it accounts for 37pc of the total labour force employed in the country. According to the figures, production of major crops saw a growth of 4.1pc, Cotton ginning saw 5.6pc growth, livestock 3.4pc and forestry sector registered growth of 14.6pc.
The services sector saw a growth of around 6pc in the current FY 2016-17 and grew more than the target set of 5.7pc. According to data available, the transportation and communication segment saw 3.9pc growth, finance and insurance growth increased by 10.8pc and wholesale/retail trade registered a 6.8pc growth.
And the industrial sector failed to meet its growth target for the current FY 2016/17, with the construction segment growing at 9pc, output of large scale manufacturing was recorded at 3.9pc and small-scale manufacturing grew 8.1pc.
