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Asia - Iran
Pakistan
The signs of economic recovery and macro-economic stability of
Pakistan are evidenced by the improving economic indicators and the continued
support by the IFI's (International Financial Institutions) for the reform
agenda of the regime led by Chief Executive of Pakistan, General Pervaiz Musharf.
To mitigate the negative impact of stabilization program on growth, the
program was supplemented by a series of wide-ranging structural reform measures
that were needed to enhance economic incentives and improve resource allocation,
as well as to remove impediments to private sector development.
A sharp reduction in budget and current account deficits along with
lower-than-targeted inflation in the midst of several exogenous shocks have
marked the high points of the stabilization effort in the outgoing fiscal year,
FY July-June 2000-2001. These developments have contributed in improving overall
macroeconomic environment in the country.
Not withstanding a major success on the stabilization front, Pakistan's
growth performance was adversely affected by the worst drought in the country's
history and also by weaker external demand, falling commodity prices, and the
persistence of higher oil prices in the international market.
The non-agriculture GDP grew by 4.3 percent during the 2000-01 percent
as against 3.1 percent last year. According to the Economic Survey report, The
real GNP grew by 2.4 percent in 2000-01, as against 3.5 percent of last year.
The real per capita income (GNP) stood at Rs.4724 in 2000-01, which is
0.1 percent higher than last year. The per capita income at current market
prices is estimated at Rs 24,528 which is higher by 6.3 percent over last year.
The non-agriculture GDP, however, grew by 4.3 percent as against 3.1 percent
last year. Besides agriculture, the value addition in electricity & gas
distribution has also been adversely affected by drought.
After adjusting the impact of drought i.e. excluding agriculture and
electricity & gas distribution, the real GDP growth provisionally estimated at
4.8 percent this year, as against 4.0 percent in the last year.
Real GDP at market prices grew by 3.3 percent in 2000-01, as against
2.6percent of last year. The major contributors to GDP growth include
manufacturing (1.2 percentage points) and services sector (2.2 percentage
points). The contribution of agriculture was negative to the extent of 0.7
percentage point, it being the main victim of the unprecedented drought
conditions. Agricultural growth declined by 2.5 percent in current fiscal year
as against an impressive growth of 6.1 percent last year.
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