Despite myriad of challenges, Pakistan’s economy is moving progressively on higher inclusive and sustainable growth path on the back of various measures and achievements during the year, as per economic survey 2021. Major achievements highlighting the economic performance during FY2021 are mentioned below:
Pakistan was implementing stabilization policy post crisis of 2017-18 and the economy was recovering from macroeconomic imbalances but COVID-19 slowed down the pace which was recovered initially but the advent of 2nd and 3rd wave brought significant challenges which were met by the timely prudent policies.
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Growth rate set at 4.8 percent for Fiscal year 2021-22
Pandemics like COVID-19 are once-in-a-century event that devastate global economies. Pakistan did much better in coping up with the pandemic compared to many countries.
Government took several important policy decisions: monetary and fiscal measures, smart lockdowns, rapid vaccination etc. National Command and Operating Centre (NCOC) as a single organization was made responsible to take key decisions in collaboration with the provinces. Situation was put under control due to government’s timely decision making, numbers of daily COVID-19 cases are presently on declining trend.
Prior to COVID-19, the working population was 55.74 million. This number declined to 35.04 million which indicates people either lost their jobs or were not able to work. Due to prudent decisions by the government, working population reached 52.56 million till October, 2020.
Economy has witnessed a V – shaped recovery. The current economic recovery has been achieved without compromising internal and external stability.
Manufacturing has witnessed broad-based growth as major sectors of LSM have shown significant improvement i.e., Textile, Food Beverages & Tobacco, Non-Metallic Mineral Products and Automobile. First nine months of FY2021 recorded highest period wise growth of 8.99 percent since FY2007.
Current account posted a surplus of $ 0.8 billion, during July-April, FY2021 for the first time in 17 years.
Inflows of foreign exchange through the Roshan Digital Account (RDA) crossed the $1 billion mark. During July-April FY2021, workers’ remittances posted historically high growth of 29 percent and reached to $ 24.2 billion. Overview of the Economy Pakistan Economic Survey 2020-21
SBP’s foreign exchange reserves rose to $16 billion, four-years high.
Keeping in view the significant performance pertaining to FATF conditions, potential of exports and e-commerce, Pakistan has been added into the Amazon’s seller list.
FBR tax collection has witnessed a significant growth of around 18 percent during July-May FY2021 owing to the revival of domestic economic activity and ongoing comprehensive tax policy and administrative reforms.
Primary balance remained in surplus at 1.0 percent of GDP, highest level through the first three quarters in 12 years. On 27th May 2021, PSX witnessed an all-time high daily trading volume with 2.21 billion shares traded in a single session.
Due to its impressive growth, Pakistan Stock Exchange earned the title of being the best Asian stock market and fourth best-performing market across the world in 2020. marketcurrentswealthnet
Profile of domestic debt has improved significantly during the tenure of the present government as short-term debt as percentage of total domestic debt has decreased to 23 percent at end March, 2021 compared with 54 percent at end June, 2018.
Over 80 percent of the net borrowing from domestic sources was through mediumto-long term domestic debt instruments (Pakistan Investment Bonds & Government Ijara Sukuk) during first nine months of FY2021.
Pakistan has entered the international capital market after a gap of over three years by successfully raising $ 2.5 billion through Euro bonds.
The policy rate remained unchanged at 7.0 percent which improved business sentiments and thus stimulating economic activities enabling employment to recover.
During July-February FY2021, the two gas utility companies (SNGPL & SSGCL) have laid 143 Km gas transmission network, 2,616 Km distribution and 886 Km services lines and connected 70 villages/towns to the gas network. During the same period 304,573 additional gas connections including 303,243 domestic, 1,020 commercial and 310 industrial connections were provided across the country.
Installed capacity of electricity increased to 37,261 MW during July-April FY2021 compared to same period last year, showing an addition of 1,289 MW. Likewise, its generation increased to 102,742 GWh showing an additional generation of 6,360 GWh during the period under discussion. The share of Industry in electricity consumption has increased to 26.3 percent in July-March FY2021 as compared to 25.5 percent in the same period last year.
Cellular mobile subscribers (number of active SIMs) in Pakistan have reached 182 million at the end of March, 2021 compared to 167.3 million by the end of June, 2020 showing an increase of 8.6 percent in nine months of FY2021.
At end March, 2021 broadband (BB) subscribers reached to 100 million. The total BB penetration in Pakistan stood at 47.6 percent in March, 2021 registering an increase Overview of the Economy iii of about 19.7 percent as compared to end March, 2020.
Under Ehsaas Emergency Cash Programme, Rs 179.3 billion has been disbursed. Approximately 14.8 million families have been benefited from the programme. World Bank recognizes Ehsaas Emergency Cash among top 4 social protection interventions globally in terms of number of people covered.
Under Kamyab Jawan Youth Entrepreneurship Scheme, Rs 8,566 million has been disbursed till April, 2021 to the youth for various businesses.
The 10 billion Tree Tsunami programme has achieved plantation of approximately 350 million plants during July-March FY2021 and about 100,000 daily wagers have been employed till March, 2021. Cumulatively, over 800 million plants have been regenerated /planted in last two years.
IMF has acknowledged that the government policies have been critical in supporting the economy and saving lives and livelihoods. The IMF and Pakistan have announced the resumption of stalled $ 6 billion loan programme.
During the year, all three major credit rating agencies, Moody's, Fitch and Standard & Poor's, reaffirmed their sovereign credit Ratings for Pakistan. This reaffirmation is reflective of the sound policies of the Government and of the confidence reposed by these leading international institutions in the country's economic outlook.