Pakistan’s economy faced a significant downturn in the fiscal year 2022-23, with a decline in GDP size, growth rate, and per capita income. This represents the slowest expansion in the country’s overall output over the past four years.
The decline in Pakistan’s economy during this period reflects substantial mismanagement by the coalition government led by the PML-N. The economy only grew by 0.29 percent, a sharp drop from the previous year’s rapid growth of 6.1 percent under the PTI government.
The size of the economy in dollar terms decreased from $375.449 billion in FY22 to $341.554 billion in the outgoing FY23. This decline can be attributed to the highest-ever depreciation of the Pakistani rupee in any year.
The per capita income in dollar terms also fell, reaching $1,568 in FY23 compared to $1,766 in the previous year and $1,677 in FY21. This indicates a deterioration in the standard of living and well-being of various segments of society, accompanied by a significant decline in personal incomes. Consequently, this may lead to reduced disposable income, limiting individuals’ ability to afford goods and services, save, or invest.
The provisional growth rate of GDP for the fiscal year 2022-23 is estimated at 0.29 percent. The agriculture sector is projected to experience a positive growth of 1.55 percent, while the industrial sector is expected to decline by 2.94 percent and the services sector by 0.86 percent. These estimates provide insights into 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, for instance, experienced a significant surge of 5.4 percent, reaching 27.634 million tonnes compared to the previous year’s 26.208 million tonnes.?
Similarly, sugarcane production saw a rise of 2.8 percent, with output increasing from 88.65 million tonnes to 91.11 million tonnes. Additionally, maize yields witnessed a substantial growth of 6.9 percent, climbing from 9.52 million tonnes to 10.183 million