The growth rate forecast of Pakistan’s economy increased significantly during 2021-22, making it the second-highest economic growth recorded over the past four years suggesting recovery of the economy from the Covid-19 pandemic.
The projection that Pakistan’s economy will grow at a rate of 5.97 per cent in 2021-22 is much higher than the projections of 4pc and 4.3pc by the International Monetary Fund and the World Bank, respectively, for the same year.
This projection came as a surprise when it was feared the fuel subsidies will ditch the growth forecast. The growth was mainly contributed by the industrial sector, followed by services and agriculture sectors. In the agriculture sector, a robust growth was seen in four major crops — cotton, rice, sugarcane and maize — while a dip was noted in wheat production.
The 105th meeting of the National Accounts Committee, chaired by Planning Secretary Dawood Muhmmad Bareach, approved the figures of gross domestic product (GDP) for the fiscal year 2021-22 and revised figure for 2020-21.
Forecast much higher than IMF, World Bank projections
An upward trend in the growth was also seen in the revised figures for the year 2020-21, when it was estimated at 5.74pc, which was provisionally projected at 5.57pc.
The size of the economy rose to $380 billion in 2021-22 from the revised figure of $346.76bn the previous year. The size of the economy grew in dollar terms as the rupee strengthened against the greenback — the highest-ever increase in any year.
Per capita income has also been calculated at Rs314,353, up from Rs268,223 for 2020-21. The per capita income in dollar terms has jumped to $1,798 from previous year’s projections of $1,676.