Average income drops to $1,568

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ISLAMABAD: Pakistan’s economy experienced a notable decline in its GDP size in dollar terms, growth rate and per capita income during the outgoing 2022-23, marking the slowest expansion in the country’s overall output over the past four years.

The decline in Pakistan’s economy during 2022-23 reveals significant mismanagement by the coalition government led by the PML-N. The overall economy only grew by 0.29 per cent in FY23, marking a sharp drop from the previous year’s rapid 6.1pc growth under the PTI government.

The economy size in dollar terms declined to $341.554 billion in the outgoing FY23 from $375.449bn in FY22. These figures, approved by the National Accounts Committee (NAC) late Wednesday night, were subsequently released to the media on Thursday. The decrease in the economy’s size can be attributed to the highest-ever depreciation of the rupee in any year.

The per capita income in dollar terms fell to $1,568 in FY23 from $1,766 in the previous year and $1,677 in FY21. This suggests the deterioration of the standard of living and well-being of almost all segments of society with a sharp decline in personal incomes.

It may lead to a decrease in disposable income, limiting individuals’ ability to afford goods and services, save, or invest.

The provisional growth rate of GDP for the year 2022-23 is estimated at 0.29pc. The growth of the agricultural, industrial and services sectors has been estimated at 1.55pc, a negative growth of 2.94pc and 0.86pc, respectively.

The provisional growth rate of GDP for the fiscal year 2022-23, estimated at 0.29pc. The data indicates varying growth rates across different sectors, with agriculture projected to experience a positive growth of 1.55pc. However, the industrial sector is expected to face a decline of 2.94pc and 0.86pc in the services sector. These estimates shed light on the performance and dynamics of the economy, highlighting sector-specific trends and their potential impact on overall economic growth.

The provisional growth in the agriculture sector can be attributed to notable increases in key crop yields. Wheat yields experienced a significant surge of 5.4pc, reaching 27.634m tonnes compared to the previous year’s 26.208m tonnes. Similarly, sugarcane production saw a rise of 2.8pc, with output increasing from 88.65m tonnes to 91.11m tonnes. Additionally, maize yields witnessed a substantial growth of 6.9pc, climbing from 9.52 million tonnes to 10.183 million tonnes.

On the other hand, there was a significant decline in the production of cotton crops, which dropped by 41pc from 8.33 million bales to 4.91 million bales. Similarly, rice production also experienced a decline of 21.5pc, falling from 9.32m tonnes to 7.32m tonnes.

In addition, several other crops have shown a modest growth rate of 0.23pc. The industrial sector has experienced a provisional negative growth rate of 2.94pc. Large-scale manufacturing (LSM) has witnessed a negative growth rate of 7.98pc. The services sector has experienced a relatively sluggish growth rate of 0.86pc.

Published in Dawn, May 26th, 2023