Govt unveils Pakistan Economic Survey 2021-22

ISLAMABAD: Federal Minister for Finance and Revenue, Miftah Ismail Thursday formally launched the pre-budget document, Pakistan Economic Survey 2021-22 during a press conference in Islamabad.

While unveiling the Economic Survey 2021-22  in a press conference along with Planning Minister Ahsan Iqbal, the finance minister highlighted the key economic indicators and the performance of different sectors of the economy during the fiscal year 2021-22.

The finance minister said the that present coalition government is taking tough decisions to steer the economy through various crises.

“Unfortunately, the weak economic management of the previous government has resulted in the deterioration of the exchange rate, high inflation and widened the twin deficits, thus bringing Pakistan to the verge of a financial crisis,” he lamented.

Pakistan Economic Survey 2021-22 has been launched by Finance Minister Miftah Ismail, Fed Min Planning Ahsan Iqbal, Fed Min for Energy Khurram Dastgir , MoS Dr. Aisha Ghous Pasha today. pic.twitter.com/ZvAOGXsflN

— Ministry of Finance (@FinMinistryPak) June 9, 2022

Miftah Ismail went on to say that the present coalition government has inherited a fragile economy with a current account deficit of $13.8 billion in the first 9-months of the year, a fiscal deficit of 3.8 percent of GDP expected to increase to 7.0 percent by June, total public debt at Rs 44,366 billion (end March 2022), inflation at 11.3 percent and depleting forex reserves.

“The government is taking measures to extend relief to the less well-off citizens through Benazir Income Support Programme (BISP),” he noted.

This overall growth came on the back of 4.40pc growth in Agriculture, 7.19pc growth in Industries, and 6.19pc growth in Services against targets of 3.5pc, 6.5pc and 4.7pc, respectively.

The finance minister further said that Pakistan’s imports grew 48pc to $72 billion and exports by 28pc to $28.9bn during the first 11 months of 2021-22.

He shared that Chinese banks have agreed to refinance USD 2.3 billion worth of funds which will shore up Pakistan’s foreign exchange reserves.

“Pakistan’s economy in FY2022 has witnessed an estimated GDP growth of 5.97 percent. This unsustainable growth has triggered macroeconomic imbalances,” he said.

The Pakistan Economic Survey has reviewed the progress of the outgoing fiscal year based on the latest available data up to March-April 2021-22. As is customary, the Survey is launched just before the presentation of the Federal Budget 2022-23.

Among others, the launching ceremony was attended by Minister for Planning, Development and Special Initiatives, Ahsan Iqbal, Federal Minister for Power Khurram Dastigir, State Minister for Finance and Revenue Aisha Ghaus pasha and other government officials.

Key highlights of Economic Survey

• The real GDP posted a growth of 5.97 percent.
• For July-April FY2022, the current account deficit remained US$13.8 billion against the deficit of US$0.5 billion.
• The investment to GDP ratio remained 15.1 percent compared to 14.6 percent recorded in FY2021.
• The agriculture sector posted growth of 4.4 percent
•  Industrial sector recorded a growth of 7.2 percent in FY2022 compared to 7.8 percent growth in FY2021.
• Total revenues increased by 17.7 percent and reached Rs 5,874.2 billion
• Total tax collection (Federal & Provincial) grew by 28.1 percent
• Non-tax revenues, on the other hand, fell 14.3 percent to Rs 1,052.2 billion in July-March FY2022
• Total expenditures grew by 27.0 percent to reach Rs 8,439.8 billion in July-March FY2022 against Rs 6,644.6 billion last year.
•  Current expenditures grew by 21.2 percent to Rs 7,378.0 billion during July-March FY2022 as compared to Rs 6,085.4 billion in the comparable period of last year.
• Total development expenditure increased significantly by 54.6 percent to Rs 1,032.7 billion in July-March FY2022
• The federal PSDP grew by 28.1 percent to Rs 452.3 billion during July-March FY2022 against Rs 353.0 billion last year.
• FBR tax collection during July-May FY2022 increased by 28.4 percent
• During July-March FY2022, all the four provinces posted a combined surplus of Rs 599.8 billion
• The fiscal deficit increased to 3.8 percent of GDP (Rs 2,565.6 billion) during July-March FY2022 against 3.0 percent of GDP (Rs 1,652.0 billion) in the same period of last year.
• The primary balance posted a deficit of Rs 447.2 billion against the surplus of Rs 451.8 billion during the period under review.
• The headline inflation CPI averaged at 11.3 percent during July-May FY2022 against 8.8 percent in the comparable period last year.
• Trade deficit increased by 49.6 percent in July-April FY2022 to US$ 32.9 billion as compared to US$ 22.0 billion in the corresponding period last year

Here is the full text of Economic Survey 2021-22

https://www.finance.gov.pk/survey/chapter_22/Economic%20Survey%202021-22.pdf